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Hotel Rugby Ltd.

BSE: 526683 Sector: Services
NSE: HOTELRUGBY ISIN Code: INE275F01019
BSE LIVE 14:51 | 15 Dec 2.77 0.13
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NSE 09:19 | 13 Nov Stock Is Not Traded.
OPEN 2.77
PREVIOUS CLOSE 2.64
VOLUME 200
52-Week high 5.90
52-Week low 2.26
P/E
Mkt Cap.(Rs cr) 4
Buy Price 2.51
Buy Qty 1000.00
Sell Price 2.77
Sell Qty 1606.00
OPEN 2.77
CLOSE 2.64
VOLUME 200
52-Week high 5.90
52-Week low 2.26
P/E
Mkt Cap.(Rs cr) 4
Buy Price 2.51
Buy Qty 1000.00
Sell Price 2.77
Sell Qty 1606.00

Hotel Rugby Ltd. (HOTELRUGBY) - Auditors Report

Company auditors report

To the Members of

M/s. Hotel Rugby Limited

Report on the Financial Statements

We have audited the accompanying standalone financial statements of M/s. Hotel RugbyLimited ( the Company ) which comprise the balance sheet as at 31st March2017 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 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 preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting the frauds and otherirregularities; 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 standalone financial statements that give a true andfair view and are free from material misstatement 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 accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there under.

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 standalone financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone financial statements. The procedures selected depend onthe auditor s judgment including the assessment of the risks of material misstatement ofthe standalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the

Company s preparation of the standalone financial statements that give a true and fairview in order to design audit procedures that are appropriate in the circumstances butnot for the purpose of expressing an opinion on whether the Company has in place anadequate internal financial controls system over financial reporting and the operatingeffectiveness of such controls. An audit also includes evaluating the appropriateness ofthe accounting policies used and the reasonableness of the accounting estimates made bythe Company s

Directors as well as evaluating the overall presentation of the standalone financialstatements.

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.

Basis For Qualified Opinion

1. During the year the Company has not given any Loans or advances. Further no freshinvestment was made. However for the Loans and advances already given no fresh approvalis taken u/s 186 of the Companies Act 2013 although approval under Companies Act 1956was taken. (Refer Note 8.2)

2. We are unable to verify the non current investments amounting to Rs.400000 andcurrent investments Rs.4383693 and the valuation thereof as the supporting evidences forthe same has not been produced for our verification. (Refer Note 7 and Note 9)

3. The accounts are prepared on going concern basis though all the fixed assets of thecompany have been disposed off long back.( Refer Note 16)

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effect of the matter described in basis for the qualifiedopinion paragraph as above the aforesaid financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India:

(a) In the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2017; (b) in the case of the Statement of Profit and Loss of the loss for the year;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 (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 theparagraph 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 andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit except as stated in the basis forqualified opinion paragraph.

(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 31March 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2017 from being appointed as a director in terms of Section164 (2) of the Act; and

(f) 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"; and

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

i. The Company does not have any impact of pending litigations on its financialposition in its standalone financial statements. ii. The Company does not have anylong-term contracts including derivatives contracts for which there were any materialforeseeable losses. iii. There are no amounts required to be deposited to the InvestorEducation and Protection Fund by the Company. iv. The company has provided requisitedisclosures in its standalone financial statements as to holdings as well as dealings inSpecified Bank Notes during the period 8th November 2016 to 30thDecember 2016 and these are in accordance with the books of account maintained by thecompany ( Refer Note 26).

For R. K. Patni & Co. Chartered Accountants Firm Registration No. 131257W R KPatni Proprietor Membership No. 043947 Place: Mumbai Date: 29th May 2017

ANNEXURE "A" TO

INDEPENDENT AUDITORS' REPORT

Referred to in Paragraph 1 under the heading of "Report on Other Legal andRegulatory Requirements" of our Independent Auditors' Report of even date to themembers of the M/s. Hotel Rugby Limited on the nancial statements for the year ended 31stMarch 2017

Report on the Companies (Auditors' Report) Order 2016 issued in terms of Section143(11) of the Companies Act 2013

1. The Company does not have any xed assets. Therefore clause 3 (i)(a) 3(i)(b) and3(i)(c) of the Order are not applicable to the company.

2. The Company is not dealing in any goods and therefore there is no inventory held bythe company. Therefore Clause 3 (ii)(a) and 3(ii)(b) are not applicable to the company.

3. The Company has not granted any loans secured or unsecured to companies rms LLPor other parties covered in the registered maintained under Section 189 of the CompaniesAct 2013. Accordingly Clause 3 (iii)(a) 3(iii)(b) and 3(iii) (c) are not applicable tothe company.

4. In our opinion and according to the information and explanations given to usprovisions of Sections 185 have been complied with by the Company. However the provisionsrelating to obtaining the fresh approval of shareholders required under section 186 of theCompanies Act 2013 has not been complied with though the company had obtained theapproval under the erstwhile provisions of Companies Act 1956.

5. In our opinion and according to the information and explanations given to us thecompany has not accepted any deposits and accordingly Clause 3 (v)(a) 3(v)(b) and 3(v)(c)of the Order are not applicable to the company.

6. As per the information and explanations given to us the Central Government has notspeci ed maintenance of cost records under sec 148 (1) of Companies Act 2013 for thecompany. Accordingly Clause 3(vi) of the Order is not applicable to the company.

7. In our opinion and according to the information and explanations given to us:

(a) the company is generally regular in depositing undisputed statutory dues with theappropriate authorities including income tax and there are no arrears of outstandingstatutory dues as at the last day of the nancial year concerned for a period of more thansix months from the date they become payable. The Company is not liable for Providentfund Employees State Insurance fund sales tax service tax duty of custom duty ofexcise value added tax cess or any other statutory dues.

(b) There are no dues of income tax and sales tax or service tax or duty of custom orduty of excise or value added tax which have not been deposited on account of any disputeexcept the following disputed liabilities in respect of service tax:

Name of Statute Nature of the dues Amount (In Rs.) Period to which amount relates Forum where the Dispute is pending
Finance Act 1994 Interest on Service tax 707394 October 2004 to July 2006 Commissioner (Appeals) Mumbai
Penalty on Service tax 1641776

8. In our opinion and according to the information and explanations given to us thecompany has not taken any loans from any nancial institution banks government or issuedany debentures. Therefore (Clause 3 (viii)) of the Order is not applicable to the company.

9. In our opinion and according to the information and explanations given to us thecompany has neither raised any money by way of initial public offer or further publicoffer nor taken any term loans. Therefore (Clause 3 (ix)) of the Order is not applicableto the company.

10. As per the information and explanations given to us no fraud by the company or onthe company by its of cers and employees has been noticed or reported during the year.

11. As per the information and explanations given to us no managerial remuneration hasbeen paid by the company during the year. Therefore (Clause 3 (xi)) of the Order is notapplicable to the company.

12. In our opinion and according to the information and explanations given to us thecompany is not a Nidhi Company and therefore (Clause 3 (xii)) of the Order is notapplicable to the company.

13. As per the information and explanations given to us all transaction with therelated party is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable and the details have been disclosed in the nancial statements as required bythe applicable accounting standard.

14. In our opinion and according to the information and explanations given to us thecompany has not made any preferential allotment or private placement of shares or fully orpartly convertible debentures during the year under review. Therefore (Clause 3 (xiv)) ofthe Order is not applicable to the company.

15. In our opinion and according to the information and explanations given to us thecompany has not entered into any non-cash transaction with a director or any personconcerned with him. Therefore (Clause 3 (xv)) of the order is not applicable to thecompany.

16. In our opinion and according to the information and explanations given to usthough the company's nancial assets are more than 50 per cent of its total assets (nettedoff by intangible assets if any) and income from nancial assets is more than 50 per centof the gross income the company is not required to be registered under Section 45 IA ofReserve Bank of India Act 1934 as mainly the income is from the interest on loans andadvances which is not its principal business.

FOR R. K. Patni & Co.

Chartered Accountants

Firm Registration No. 131257W

R K Patni

Proprietor

Membership No. 043947

Place: Mumbai

Date: 29th May 2017

ANNEXURE "B" TO

THE INDEPENDENT AUDITOR'S REPORT ON THE STANDALONE FINANCIAL STATEMENTS OF M/s. HotelRugby Limited

Annexure referred to in Point 2(f) of the Auditor's Report of even date to the membersof M/s. Hotel Rugby Limited for the year ended 31st March 2017.

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 nancial controls over nancial reporting of Hotel RugbyLimited ("the Company") as of 31st March 2017 in conjunction with our audit ofthe standalone nancial 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 internalnancial controls based on "the internal control over nancial 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 nancial controlsthat were operating effectively for ensuring the orderly and ef cient 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 nancial information asrequired under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal nancial controlsover nancial reporting based on our audit. We conducted our audit in accordance with theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") issued by ICAI and the Standards on Auditing prescribed undersection 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal nancial controls. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal nancial controls over nancial reporting was establishedand maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal nancial controls system over nancial reporting and their operatingeffectiveness.

Our audit of internal nancial controls over nancial reporting included obtaining anunderstanding of internal nancial controls over nancial reporting assessing the risk thata material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone nancial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is suf cient and appropriate toprovide a basis for our audit opinion on the Company's internal nancial controls systemover nancial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal nancial control over nancial reporting is a process designed toprovide reasonable assurance regarding the reliability of nancial reporting and thepreparation of standalone nancial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal nancial control overnancial reporting includes those policies and procedures that:

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly re ect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of standalone nancial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the standalone nancial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal nancial controls over nancialreporting 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 nancial controls over nancialreporting to future periods are subject to the risk that the internal nancial control overnancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the company has in all material respects an adequate internal nancial controlssystem over nancial reporting and such internal nancial controls over nancial reportingwere operating effectively as at 31st March 2017 based on "the internal controlover nancial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia".

FOR R. K. PATNI & CO.

Chartered Accountants

Firm Registration No. 131257W

R K Patni

Proprietor

Membership No. 043947

Place: Mumbai

Date: 29th May 2017