To the Members of
Apollo Sindoori Hotels Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Apollo Sindoori HotelsLimited ("the Company") which comprise the Balance Sheet as at March312014 the Statement of Profit and Loss and the Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for 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 Standards referred to in sub-section (3C) ofsection 211 of the Companies Act 1956 ("the Act"). This responsibility includesthe design implementation and maintenance of internal control relevant to the preparationand presentation of the financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement. An audit involvesperforming procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditor's judgment includingthe assessment of the risks of material misstatement of the financial statements whetherdue to fraud or error. In making those risk assessments the auditor considers internalcontrol relevant to the Company's preparation and fair presentation of the financialstatements in order to design audit procedures that are appropriate in the circumstancesbut not for the purpose of expressing an opinion on the effectiveness of the entity'sinternal control.
An audit also includes evaluating the appropriateness of accounting policies used andthe reasonableness of the accounting estimates made by management as well as evaluatingthe overall presentation of the financial statements. We believe that the audit evidencewe have obtained is sufficient and appropriate to provide a basis for our qualified auditopinion.
Basis for Qualified Opinion
We draw attention to Note 16 (3) on not providing for impairment ofassets pendingoutcome of arbitration which involves certain claims towards the value of certain assetstaken over by the landlord of the erstwhile leased premises. The additional provision ifany required to be made on account of impairment of assets consequent to the arbitratoraward is not ascertainable at this stage and not provided for and accordingly the impactif any is also not ascertainable.
Our opinion is qualified in respect of this matter. Qualified 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 exceptfor the effects of the matter described in the "Basis for Qualified Opinion " paragraphin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
(a) In the case of the Balance Sheet of the state of affairs of the Company as atMarch 312014;
(b) In the case of the Statement of Profit and Loss of the profit for the year endedon that date; and
(c) In the case of the Cash Flow Statement of the cash flows for the year ended onthat date.
Emphasis of Matter
We draw attention to Note 31 to the financial statements on Gratuity and encashment ofearned leave liability of Rs. 11099960/- to employees deputed to cost plus contractsreflected as claims receivable pending confirmation. Our opinion is not qualified inrespect of this matter.
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 ofthe Act we give in the Annexure a statement on the matters specified in paragraphs 4 and5 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 ourknowledge 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 Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;
d. in our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards referred to in subsection (3C) of section211 of the Companies Act 1956;
e. on the basis of written representations received from the directors as on March 312014 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 312014 from being appointed as a director in terms of clause (g) ofsub-section (1) of section 274 of the Companies Act 1956.
| ||For R. SUBRAMANIAN AND COMPANY |
| ||Chartered Accountants |
| ||(Firms Registration. No.004137S) |
| ||R. RAJ ARAM |
|Place: Chennai ||Partner |
|Date: 29.05.2014 ||M.No.25210 |
Annexure referred to in paragraph 3 of our report of even date:
i. a. The Company is maintaining records which are in the process of being updatedshowing full particulars including quantitative details and situation of fixed assets
b. Fixed Assets were physically verified during the year by the management inaccordance with a programme of verification which in our opinion provides for physicalverification of all the fixed assets at reasonable intervals. As per the information madeavailable to us no material discrepancies have been noticed on such verification.
c. Substantial part of the fixed assets has not been disposed off during the yearaffecting going-concern.
Ii. a. Physical verification of Inventory has been conducted at reasonable intervals bythe management.
b. The procedures of Physical verification of inventory followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness.
c. Proper records of inventory have been maintained by the company and materialdiscrepancies noticed on Physical verification have been properly dealt with in the booksof the company.
iii. During the year the company has not availed any loan from companies listed in theRegister maintained under section 301 of the Companies Act 1956.
Iv. During the year the company has not granted Loans to companies Firms or otherparties listed in the Register maintained under section 301 of the Companies Act 1956.
v. In our opinion and according to the information and explanations given to usinternal control procedures are adequate commensurate with the size of the company and thenature of its business for the purchase of Fixed Assets and for the rendering of services.During the course of audit we have not observed any continuing failure to correct majorweakness in Internal Control.
vi. a. The particulars of contracts or arrangements referred to section 301 of theCompanies act have been entered in the register required to be maintained under thatsection.
b. The transactions made in pursuance of such contracts or arrangements have been madeat prices which are reasonable having regard to the prevailing market price at therelevant time.
vii. The company has not accepted any fixed deposits from the public during the yearrequiring compliance of provisions of Section 58 A and 58 AA or any other relevantprovisions of the Companies Act 1956.
viii. The Company has an internal audit system commensurate with the size and thenature of business.
ix. According to the information and explanations given to us the Central Governmenthas not prescribed the maintenance of cost records under Section 209(1 )(d) of theCompanies Act 1956 for the services rendered by the Company.
X. a. According to the information and explanations given to us the company has beengenerally been depositing undisputed statutory dues including Employees Provident fundemployees' State Insurance Investor Protection fund Income tax sales tax wealth taxand any other statutory dues with the appropriate authorities during the year. Howeverduring the year delay has been observed in many months in the payment of EmployeesProvident fund Employees State Insurance Tax deducted at source and Service Tax.
b. According to the information and explanations given to us undisputed amountspayable in respect of value added tax professional tax income tax and service taxaggregating to Rs 93614/- was in arrears as at 31.03.2014 for a period of more than sixmonths from the date they became payable.
c. According to the information and explanations given to us the following are thedues in respect of Income tax and Service Tax which have not been deposited on account ofany dispute and there are no such dues in respect of Wealth Tax Customs Duty and ExciseDuty.
|SI No ||Nature of dues ||Forum Where Disputed ||Amount Unpaid |
|1 ||Income Tax ||Income Tax Appellate Tribunal ||Rs.13.93 Lacs |
xi. The Company does not have accumulated losses and has not incurred Cash loss duringcurrent year and in the immediately preceding financial year.
xii. The Company has not defaulted in the repayment of dues to Debenture holdersfinancial institution or bank.
xiii. The Company has not granted any loan or advance on the basis of Security by wayof pledge of shares Debentures and other securities.
xiv. The provisions of Special Statute relating to Chit fund/Nidhi are not applicableto this company.
xv The Company is not dealing in or trading in shares securities debentures and otherInvestments.
xvi According to the information and explanations given to us the Company has notgiven any guarantee during the year for loans taken by others from Bank or FinancialInstitutions during the financial year.
Xvii. To the best of our knowledge and belief and according to the information andexplanation given to us no term loan was availed by the company during the current year.
xviii. According to the Cash flow statement and other records examined by us and basedon the information and explanations given to us on an overall basis funds raised onshort term basis have not been used for Long term Investment.
xix. During the year Company has not made any preferential allotment of shares toparties and companies covered in the register maintained under section 301 of theCompanies Act 1956.
xx. No debentures have been issued by the Company during the year.
xxi. The Company has not raised any money by way of Public issue during the year.
xxii. To the best of our knowledge and according to information and explanations givento us no fraud on or by the company was noticed or reported during the financial yearthat causes the financial statements to be materially misstated.
| ||For R. SUBRAMANIAN AND COMPANY |
| ||Chartered Accountants |
| ||(Firms Regn. No.004137S) |
|Place: Chennai ||R. RAJARAM |
|Date: 29.05.2014 ||Partner |
| ||M.No.25210 |