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Graviss Hospitality Ltd.

BSE: 509546 Sector: Services
NSE: N.A. ISIN Code: INE214F01026
BSE LIVE 11:36 | 21 Nov 25.90 1.20
(4.86%)
OPEN

24.75

HIGH

25.90

LOW

24.70

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 24.75
PREVIOUS CLOSE 24.70
VOLUME 755
52-Week high 25.90
52-Week low 15.75
P/E
Mkt Cap.(Rs cr) 183
Buy Price 0.00
Buy Qty 0.00
Sell Price 25.90
Sell Qty 823.00
OPEN 24.75
CLOSE 24.70
VOLUME 755
52-Week high 25.90
52-Week low 15.75
P/E
Mkt Cap.(Rs cr) 183
Buy Price 0.00
Buy Qty 0.00
Sell Price 25.90
Sell Qty 823.00

Graviss Hospitality Ltd. (GRAVISSHOSPITAL) - Auditors Report

Company auditors report

To the Members of Graviss Hospitality Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of GRAVISSHOSPITALITY LIMITED ("the Company") which comprise the Balance Sheet as at31st March 2017 the Statement of Profit and Loss the Cash Flow Statement forthe year then ended and a summary of the significant accounting policies and otherexplanatory information.

Management's Responsibility for the Standalone 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 ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

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 accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. 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 overall presentationof 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 standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2017 and its loss and its cash flows for the year ended on that date.

Emphasis of Matter

Without qualifying our opinion attention of the members is drawn to Note 27.B.17 inview of the matter stated therein relating to the accumulated losses of two subsidiariesas at 31st March 2017 keeping in mind the factors stated in the Note there is nodiminution in the value of investments in the subsidiaries and the loans given to thesubsidiaries are considered good of recovery.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure A a statement on the matters specified in paragraphs 3and 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 it 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 standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in termsof Section 164 (2) of the Act.

(f) 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 opinionand to the best of our information and according to the explanations given to us:

(i) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note27.B.1.A to the financial statements;

(ii) The Company did not have any foreseeable losseson long-term contracts includingderivative contracts.

(iii) There was no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

(iv) The company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016 and these are in accordance with thebooks of accounts maintained by the company.

(g) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

For V. SANKAR AIYAR & CO.
Chartered Accountants
Firm Registration No. 109208W
G. SANKAR
Place: Mumbai Partner
Dated: 2nd May 2017 Membership No. 46050

Annexure to the Auditors' Report

Annexure A referred to in the Auditor's Report to the Members of Graviss HospitalityLimited on the Financial

Statements for the year ended 31st March 2017.

(i) (a) The company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets.

(b) As explained to us physical verification of high value fixed assets was carriedout by an external agency during the year. As certified by the said agency there were nomaterial discrepancies noticed on such verification.

(c) In our opinion and according to the information and explanations given to usthetitle deeds of immovable properties are held in the name of the company.

(ii) As explained to us the inventories were physically verified during the year bythe management at reasonable intervals and no material discrepancies were noticed onphysical verification as compared to the record of inventories.

(iii) According to the information and explanations given to us the company has notgranted any loans to companies firms or other parties covered in the register maintainedunder section 189 of the Companies Act 2013.

(iv) The company has not granted any loans guarantees or security and has not madeinvestments to which the provisions of section 185 and 186 of the Companies Act 2013apply.

The company had granted interest free long term unsecured loans to threesubsidiarycompaniesin terms of Special Resolution passed by the Shareholders on 28thApril 2006 in accordance with the provisions of section 372A of the Companies Act 1956.(Attention is also invited to Note 27.B.17 to the financial statements). We are informedthat the Company being in the hospitality business the provisions of Section 186 readwith Schedule VI to the Companies Act 2013 are not applicable in respect of the loansgranted to the subsidiary companies whose main object of business is also hospitality.

(v) In our opinion and according to the information and explanations given to us thecompany has not accepted deposits from the public during the year.

(vi) According to the information and explanations given to us the Central Governmenthas not prescribed maintenance of cost records under Section 148(1) of the Act for any ofthe products of the Company.

(vii) (a) According to the records maintained by the company the company is generallyregular in depositing with appropriate authorities undisputed statutory dues includingprovident fund employees' state insurance income tax sales tax wealth tax servicetax custom duty excise duty cess and other statutory dues where applicable.

According to the information and explanations given to us no undisputed amounts inrespect of the aforesaid statutory dues were in arrears as at 31st March2017 for a 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 there are no dues of sales tax / customs duty / wealth tax / service tax / exciseduty / cess which have not been deposited on account of any dispute. In case of IncomeTax the amount of demand not deposited on account of disputes is Rs.15 lacs in respect ofAY 2011-12 to 2012-13 and the disputes are pending before the Appellate authorities ofIncome Tax department . In case of VAT there is a disputed demand of tax and penalty ofRs. 84 lacs for the year 2010-11 which is contested before the Appellate Tribunal.

(viii) On the basis of verification of records and according to the information andexplanations given to us the Company has not defaulted in repayment of dues to Banks. Thecompany has not taken any loan from any financial institution or by way of issue ofdebentures.

(ix) According to the information and explanations given to usand the records of thecompany the company has not raised money by way of initial public offer or further publicoffer during the year.In our opinion the term loans taken during the year have primafacie been applied for the purpose for which they were raised.

(x) According to the information and explanations given to us and based on auditprocedures performed and representations obtained from the management we report that nofraud on or by the company has been noticed or reported during the year under audit.

(xi) According to the information and explanations given to usand based on verificationof records the managerial remuneration has been paid in accordance with the requisiteapprovals mandated by the provisons of section 197 read with Schedule V of the CompaniesAct 2013.

(xii) The Company is not a Nidhi Company and hence clause (xii) of the order is notapplicable.

(xiii) According to the information and explanations given to us the transactions withrelated parties were entered in to at reasonable rates and were approved by the AuditCommittee or the Board of Directors in compliance with sections 177 and 188 of CompaniesAct 2013 and the details have been disclosed in the Financial Statements etc. asrequired by Accounting Standard 18 - Related Party Disclosures.

(xiv) The company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.

(xv) According to the information and explanations given to usand based on verificationof records the company has not entered into any non-cash transactions with directors orpersons connected with him.

(xvi) 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 V. SANKAR AIYAR & CO.
Chartered Accountants
Firm Registration No. 109208W
G. SANKAR
Place: Mumbai Partner
Dated: 2nd May 2017 Membership No. 46050

Annexure to the Auditors' Report

Annexure B referred to in the Auditor's Report to the Members of Graviss HospitalityLimited on the Financial Statements for the year ended 31st March 2017.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of GravissHospitality Limited as of March 31st 2017 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on 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 responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including 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 controls systemover 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 andexpenditures 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 March 31 2017 based on"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India".

For V. SANKAR AIYAR & CO.
Chartered Accountants
Firm Registration No. 109208W
G. SANKAR
Place: Mumbai Partner
Dated: 2nd May 2017 Membership No. 46050