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Advani Hotels & Resorts (India) Ltd.

BSE: 523269 Sector: Services
NSE: ADVANIHOTR ISIN Code: INE199C01026
BSE LIVE 15:40 | 23 Feb 56.40 -0.35
(-0.62%)
OPEN

54.00

HIGH

56.80

LOW

52.70

NSE LIVE 15:31 | 23 Feb 53.75 -0.15
(-0.28%)
OPEN

53.95

HIGH

53.95

LOW

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OPEN 54.00
PREVIOUS CLOSE 56.75
VOLUME 1700
52-Week high 66.20
52-Week low 45.10
P/E 29.07
Mkt Cap.(Rs cr) 260.57
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 54.00
CLOSE 56.75
VOLUME 1700
52-Week high 66.20
52-Week low 45.10
P/E 29.07
Mkt Cap.(Rs cr) 260.57
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Advani Hotels & Resorts (India) Ltd. (ADVANIHOTR) - Auditors Report

Company auditors report

TO THE MEMBERS OF ADVANI HOTELS & RESORTS (INDIA) LIMITED Report on the FinancialStatements

We have audited the accompanying financial statements of ADVANI HOTELS & RESORTS(INDIA) LIMITED ("the Company") which comprise of Balance Sheet as at 31stMarch 2016 the Statement of Profit and Loss and the Cash Flow Statement for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation.

Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the

Act") with respect to the preparation of these financial statements that give atrue and fair view of the financial position financial performance and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards specified under the Section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder. We conducted our audit in accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with the ethical requirements and plan and perform the audit toobtain reasonable assurance about whether the financial statements are free of materialmisstatement. An audit involves performing procedures to obtain audit evidence about theamounts and disclosures in the financial statements.

The procedures selected depend on the auditor’s judgment including the assessmentof the risks of material misstatement of the financial statements whether due to fraud orerror. In making those risk assessments the auditor considers internal financial controlrelevant to the Company’s preparation of the financial statements that give a trueand fair view in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on whether the Company hasin place an adequate internal financial controls system over financial reporting and theoperating effectiveness of such controls. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company’s Directors as well as evaluating the overallpresentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2016 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 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure – "A" a statement on thematters 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 bestof 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 theCompany so far as appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this report are in agreement with the books of account.

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards 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 31stMarch 2016 taken on record by the Board of Directors none of the Directors isdisqualified as on 31st March 2016 from being appointed as a Director in terms of Section164(2) of the Act.

(f) Our report on adequacy of internal financial controls system over financialreporting of the Company and the operating effectiveness of such controls is given inAnnexure "B".

(g) With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies

(Audit and Auditors) Rules 2014 in our opinion and to the best of our information andaccording to the explanations given to us: (i) The Company has disclosed the impact ofpending litigations on its financial position in its financial statements – ReferNote 25 (m) on Contingent Liabilities of the financial statements.

(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.

(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For J.G.VERMA & CO.
Chartered Accountants
(Registration No.111381W)
J.G.VERMA
Place: Mumbai Partner
Mumbai: May 16 2016 Membership No. 5005

ANNEXURE "A" TO THE INDEPENDENT AUDITORS’ REPORT

The Annexure referred to in paragraph 1 under ‘Report on Other Legal andRegulatory Requirements’ in our report of even date to the members of ADVANI HOTELS& RESORTS (INDIA) LIMITED for the year ended 31st March 2016. We report that:

1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) Some of the fixed assets were physically verified during the year by the managementin accordance with a phased programme of verification which in our opinion provides forphysical verification of all the fixed assets at reasonable intervals. No materialdiscrepancies between the books records and physical inventory have been noticed.

(c) According to the records of the Company examined by us and the information andexplanations given to us the title deeds of immovable properties are held in the name ofthe Company.

2 In our opinion physical verification of inventories has been conducted by themanagement at reasonable intervals. The discrepancies noticed on such verification by themanagement have been properly dealt with in the books of account.

3 The Company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the Register maintained undersection 189 of the Act hence clause 3 (iii) (a) 3 (iii) (b) and 3 (iii) (c) of the Orderare not applicable to the Company.

4 The Company has not given any loans or made investments or issued any guarantee orprovided any security covered under section 185 and 186 of the Act hence clause 3 (iv) ofthe Order is not applicable to the Company.

5 The Company has not accepted any deposits from the public within the meaning ofSection 73 to 76 of the Act and the rules framed there under. We are informed that theCompany Law Board or National Company Law Tribunal or Reserve Bank of India or any courthas not passed any Order.

6 The Central Government of India has not prescribed the maintenance cost records forany of the products of the Company under sub-section (1) of section 148 of the Act and therules framed thereunder.

7 (a) According to the records of the Company the Company is generally regular indepositing with appropriate authorities undisputed statutory dues including providentfund employees’ state insurance income-tax sales-tax service-tax customs dutyexcise 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 ofundisputed amounts payable in respect of above statutory dues which were outstanding as onthe last day of the financial year for a period of more than six months from the date theybecame payable.

(b) According to the information and explanations given to us there are no cases ofnon-deposit with appropriate authorities of disputed dues of income-tax sales-taxservice-tax customs duty excise duty value added tax or cess except the following:

Name of the statute Nature of dues Amount Rs ( in lakhs) Period to which the amount relates Forum where the dispute is pending
Central Sales Tax Act 1956 Central Sales tax 12.16 Asst. Year 2005-06 & 2006-07 Asst. Commissioner of Commercial Tax (Value Added Tax)
Income-tax Act 1961 Income-tax on completion of regular assessment 10.66 Asst. Year 2005-06 Income-Tax Appellate Tribunal
Income-tax Act 1961 Income-tax on completion of regular assessment 54.47 Rs ( 54.18 paid) Asst. Year 2010-11 Commissioner of Income-tax (Appeals)
Income-tax Act 1961 Income-tax on completion of regular assessment 79.78 Asst. Year 2011-12 Commissioner of Income-tax (Appeals)
Income-tax Act 1961 Income-tax on completion of regular assessment 89.13 Asst. Year 2012-13 Commissioner of Income-tax (Appeals)
Income-tax Act 1961 Income-tax on assessment of TDS 15.13 Asst. Years 2005-06 to 2008-09 Commissioner of Income-tax (Appeals)
Customs Act 1962 Differential duty on equipment imported under EPCG Scheme and Penalty 42.60 49.60 Plus Interest 2000 Customs Excise and Service Tax Appellate Tribunal

8. According to the records of the Company examined by us and the information andexplanations given to us the Company has not defaulted in repayment of dues to banksduring the year. The Company has not taken any loan from any financial institution or fromgovernment and by way of issue of debentures.

9. In our opinion on an overall basis and according to the information and explanationsgiven to us the term loans were applied for the purpose for which the same were obtained.The Company has not raised any money by way of initial public offer or further publicoffer (including debt instruments) during the year.

10. During the course of our examination of the books of account and records of theCompany carried out in accordance with the generally accepted auditing practices in Indiaand according to the information and explanations given to us we have neither come acrossany instances of fraud by the Company or any fraud on the Company by its officers andemployees was noticed or reported during the year nor have we been informed of any suchinstance by the management.

11. According to the records of the Company examined by us and the information andexplanations given to us managerial remuneration has been paid / provided by the Companyin accordance with the requisite approvals mandated by the provisions of section197 readwith Schedule V to the Act except that (i) in respect of part of the remuneration of Rs5.24 lakhs payable / paid to the Chairman & Managing Director (CMD) for the month ofMarch 2016 which is approved by the shareholders of the Company an application has beenmade to the Central Government during the year which is pending; and (ii) in respect ofpart of the remuneration of Rs 2.24 lakhs payable / paid to the Executive Director (ED)for the month of March 2016 which is approved by the shareholders of the Company theCompany is in the process of making an application to the Central Government. We areinformed that the CMD and ED are holding the above remuneration in trust for the Company.

12 The Company is not a Nidhi Company hence our comments as required under clause 3(xii) of the Order is not applicable to the Company.

13 In our opinion and according to the records of the Company examined by us and theinformation and explanations given to us the transactions entered into by the Companyduring the year with related parties are in compliance with the provisions of Section 177and 188 of the Act where applicable and the details thereof have been disclosed in theFinancial Statements etc. as required by the accounting standards.

14 According to the information and explanations given to us the Company has not madeany preferential allotment or private placement of shares or fully or partly convertibledebentures during the year. Therefore clause 3 (xiv) of the Order is not applicable tothe Company.

15 According to the records of the Company examined by us and the information andexplanations given to us the Company has not entered into any non-cash transactionsreferred to in section 192 of the Act with Directors of the Company or persons connectedwith them during the year.

16 According to the information and explanations given to us the Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.

For J.G.VERMA & CO.
Chartered Accountants
(Registration No.111381W)
J.G.VERMA
Place: Mumbai Partner
Mumbai: May 16 2016 Membership No. 5005

ANNEXURE "B" TO THE INDEPENDENT AUDITORS’ REPORT

The Annexure referred to in paragraph 2 (f) under ‘Report on Other Legal andRegulatory Requirements’ in our report of even date to the members of ADVANI HOTELS& RESORTS (INDIA) LIMITED for the year ended 31st March 2016. We report that:

Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of AdvaniHotels & Resorts (India) Limited ("the Company") as of 31st March 2016 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company’s policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditure of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For J.G.VERMA & CO.
Chartered Accountants
(Registration No.111381W)
J.G.VERMA
Place: Mumbai Partner
Mumbai: May 16 2016 Membership No. 5005