The Members of
Best Eastern Hotels Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Best Eastern Hotels Limited("the Company") which comprise the Balance Sheet as at 31st March2015 the Statement of Profit and Loss and the Cash Flow Statement of the Company for theyear then ended and a summary of the significant accounting policies and other explanatoryinformation.
Managements Responsibility for the Financial Statements
The management and Board of Directors of the Company are responsible for the mattersstated in Section 134(5) of the Companies Act 2013 (the Act") with respect tothe preparation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with rule 7 of Companies (Accounts) Rules2014. This responsibility includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; design implementation and maintenance of adequate internal financial controlsthat are operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
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 from materialmisstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditors judgement including the assessment of the risks of material misstatementof the financial statements whether due to fraud or error. In making those riskassessments the auditor considers the internal financial control relevant to theCompanys preparation of the financial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances but not forthe purpose of expressing an opinion on whether the Company has in place an adequateinternal financial controls system over financial reporting and the operatingeffectiveness of such controls. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made by theCompanys Management and Board of 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.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin 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 at 31stMarch 2015;
(b) in the case of the Statement of Profit and Loss of the loss of the Company for theyear ended on that date and
(c) in the case of the Cash Flow Statement of the cash flows for the year ended onthat date.
Report on Other Legal and Regulatory Requirements
(1) As required by the Companies (Auditors Report) Order 2015 ("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 statement on the matters specified inparagraphs 3 and 4 of the Order.
(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 purposes 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 the Cash Flow Statement dealtwith by this Report are in agreement with the books of account;
(d) in our opinion the Balance Sheet Statement of Profit and Loss and the Cash FlowStatement comply with the applicable Accounting Standards specified under section 133 ofthe Act read with rule 7 of the Companies (Accounts) Rules 2014;
(e) On the basis of the written representations received from the directors as on 31stMarch 2015 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2015 from being appointed as a director in termsof sub-section (2) of section 164 of the Act.
(f) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditors Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014::
i. The Company does not have any pending litigations which would impact its financialposition
ii. The Company has no long-term contracts including derivative contracts; as such thequestion of commenting on any material foreseeable losses thereon does not arise
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
For Amar Bafna & Associates
Firm Registration No: 114854W
Membership No. 048639
Date: May 30 2015
ANNEXURE REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ON OTHER LEGAL ANDREGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF THE BESTEASTERN HOTELS LIMITED WE REPORT THAT :
|Clause ||Sub ||Particulars |
|(i) ||(a) ||The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. |
| ||(b) ||As explained to us the inventory has been physically verified during the year by the management and as informed to us no material discrepancies were noticed on such verification. In our opinion the frequency of verification is reasonable. |
|(ii) ||(a) ||As explained to us the inventory has been physically verified during the year by the management. In our opinion the frequency of verification is reasonable. |
| ||(b) ||The procedures of physical verification of inventories followed by the management were 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. The discrepancies noticed on verification between the physical stocks and the book records were not material. |
|(iii) || ||The Company has not granted any loans secured or unsecured to companies firms or other parties covered in the register maintained under Section 189 of the Act. Therefore the provisions of Clause 3 (iii) (iii)(a) and (iii)(b) of the said Order are not applicable to the Company. |
(iv) In our opinion and according to explanation given to us there are adequateinternal control procedures commensurate with the size of the company and the nature ofits business with regards to purchase of fixed assets and sale of services. The activitiesof the Company do not involve purchase of inventory and the sale of goods. We have notobserved any major weakness in the internal control system during the course of the audit.
(v) According to the information and explanations given to us we are of the opinionthat the Company has not accepted any deposits from the public within the meaning ofSection 73 to 76 of The Companies Act 2013.
(vi) The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act for the Companys products and activities.
(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund income taxsales tax wealth tax service tax duty of customs value added tax cess and othermaterial statutory dues have been regularly deposited during the year by the Company withthe appropriate authorities. As explained to us the Company did not have any dues onaccount of employees state insurance and duty of excise. According to theinformation and explanations given to us no undisputed amounts payable in respect ofprovident fund income tax sales tax wealth tax service tax duty of customs valueadded tax cess and other material statutory dues were in arrears as at 31 March 2015 fora period of more than six months from the date they became payable.
(b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of income-tax sales-tax wealth-taxservice-tax customs duty and excise duty which have not been deposited on account of anydispute.
(c) According to the information and explanations given to us there were no amountswhich were required to be transferred to the investor education and protection fund inaccordance with the relevant provisions of the Companies Act 1956 (1 of 1956) and rulesthere under.
(viii) The Company has does not have accumulated losses and has not incurred cashlosses during the financial year covered by our audit and in the immediately precedingfinancial year.
(ix) In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of dues to financial institutions banks anddebenture holders during the year.
(x) In our opinion and according to the information and the explanations given to usthe Company has not given any guarantee for loans taken by others from banks or financialinstitutions.
(xi) Based on our examination of documents and records and according to the informationand explanations given to us by the Management the Company has not taken any term loanduring the year.
(xii) According to the information and explanations given by the management we reportthat no fraud on or by the company was noticed or reported during the year.
For AMAR BAFNA & ASSOICATES
Firm Registration No: 114854W
Membership No. 048639
Place: May 30 2015