We have audited the accompanying financial statements of Mahasagar
Travels Limited, which comprise the Balance Sheet as at 31st March ,
2014, the Statement of Profit and Loss and the Cash Flow Statement for
the year then ended, and a summary of the significant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s 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.
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
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 the internal control relevant to the
Company''s preparation and fair presentation of the financial statements
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 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.
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
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date, and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company 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) 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 purposes of our
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
(c) The Balance Sheet, Statement of Profit and Loss, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in sub-section (3C) of section 211 of the Act.
(e) On the basis of the written representations received from the
directors as on 31st March, 2014 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2014
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Act.
ANNEXURE TO THE AUDITORS '' REPORT
(Referred to in our Report of even date)
(I) (a) The Company maintains proper records showing full particulars
including quantitative details and situations of fixed asset.
(b) The fixed assets have been physically verified by the management at
all its offices at reasonable interval. Material discrepancies were not
(c) The Company did not disposed off a substantial part of fixed assets
during the year.
(ii) (a) The management carried out physical verification of the
inventory at reasonable intervals during the year
(b) In our opinion, and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
(C) The Company maintains proper records of inventory, No Discrepancies
noticed on physical verification of inventory as compared to the book
(iii) (a) The Company has not granted or taken any loans, secured or
unsecured to/from Companies, firms or other parties covered in the
register maintained under Section 301 of the Act during the year.
(b) In our opinion, the terms and conditions of such Loans were not,
prima facie, prejudicial to the interest of the Company.
(c) In respect of the aforesaid Interest free loan, the Company is
receiving the Loan amount as stipulated.
(d) In respect of the aforesaid Loan, there is no specific terms for
repayment of loan.
(iv) In our opinion, the Company has an adequate internal control
procedure commensurate with the size of the Company and nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods.
(v) (a) according to the information and explanation given to us, based
on the disclosure of interest made by the directors of the Company,
transactions that need to be entered into a register in pursuance of
section 301 of the Act have been so entered.
(b) In our opinion and according to the information and explanations
given to us, in respect of the transactions made in pursuance of
contracts or arrangement entered in the registers maintained under
section 301, the rates at which such services are rendered are
reasonable having regard to the prevailing market prices of such
services and the commission paid to other parties.
(vi) The Company has not accepted any deposits from the public to which
the directives issued by the Reserve Bank of India and the provisions
of section 58A and 58AA of the Act and the rules framed there under are
(vii) In our opinion, the Company has an adequate internal control
system in the absence of internal audit system commensurate with the
size and nature of its business.
(viii) The Central Government has not prescribed maintenance of cost
records under section 209(1)(d) of the Act for any of the activities of
(ix) (a) According to the information and explanations given to us, the
Company is generally regular in depositing undisputed statutory dues
including,, Income Tax, Sales Tax, RTO Tax etc. and any other statutory
dues with the appropriate authorities. There is no Undisputed Dues as
at March, 31st 2014 for a period exceeding six months from the date
they became payable is accounted for on accrual basis and provided for
in the books.
Name of the Statue Nature of dues Amount
1 The Gujarat Commercial
Tax Act Proessinal Tax 23200/-
Name of the Statue Perieod to which Due Dates Date of
it relate Payment
1 The Gujarat Commercial April-2013 to 7th of next
Tax Act September-2013 month N.A
(b) According to information and explanations given to us, the
following are disputed dues by the company under the various Acts.
Name of the statue Dispute
1 The Income Tax Act, 1961 INCOME TAX 6508160/-
2 The Income Tax Act, 1961 INCOME TAX 3868320/-
3 The Income Tax Act, 1961 T.D.S 367014/-
4 The Income Tax Act, 1961 T.D.S 81600/-
5 Service Tax SERVICE TAX 1,88,71,086/-
Name of the statue Period to which Forum where dispute
amount relates is pending
1 The Income Tax Act, 1961 F.Y.2007-08 ITAT, Rajkot
2 The Income Tax Act, 1961 F.Y.2010-11 CIT (APPEALS) IV
3 The Income Tax Act, 1961 F.Y. 2012-13 CIT(appeal), Rajkot
4 The Income Tax Act, 1961 F.Y. 2013-14 CIT(appeal), Rajkot
5 Service Tax April-2006 to CESTAT, Ahmedabad
The pending dipute of Income Tax in relation to F.Y. 2006-07 and F.Y.
2007-08 in which there is reduction in loss and department has filed
appel at ITAT, Rajkot and in relation to F.Y. 2009-10, the dispute is
pending before CIT (A), Rajkot is not included in above table as there
is no tax demand in it.
(x) The Company''s accumulated losses at the end of the financial year
does not exceed 50 % of its net worth. The company does not incurred
cash losses during the financial year and in the Financial year
immediately preceeding such financial year.
(xi) On the basis of our examination and according to the information
and explanation given to us, the Company has not defaulted in repayment
of the dues to financial institutions and Banks with respect to its
(xii) According to the information and explanation given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares.
(xiii) Provision for special statute applicable to chit fund, Nidhi,
Mutual Benefit Fund/ Societies are not applicable to the Company.
(xiv) According to information and explanation given to us, the Company
has not dealt in trading in shares, securities, debentures and other
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others to banks
or financial institution.
(xvi) The Company has obtained H.P. Vehicle Loan from Banks and
Financial Institution and O/D. from bank which has been utilized for
the purpose for which it was obtained.
(xvii) On the basis of our examination and according to the information
and explanation given to us, there are no funds raised on a short term
basis which are used for long term investment, and vice versa.
(xviii) 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 During the Year
(xix) The Company has not issued debentures. Accordingly, we have no
(xx) The Company has not raised any money by public issue during the
(xxi) To the best of our knowledge and according to the information and
explanations given to us, no fraud on or by the Company has been
noticed or reported during the year.
For,B.H.Advani & Associates
Place: Junagadh Chartered Accountants
Dated: 21.07.2014 F.R.No: 117127W