Independent Auditor's Report
To the Members of Hotel Rugby Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Hotel Rugby Limited whichcomprise the Balance Sheet as at 31st March 2015 and the Statement of Profit and Lossand Cash Flow Statement for the year then ended 31st March 2015 and a summary ofsignificant accounting policies and other explanatory information.
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 preparationof these financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
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 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 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-issufficient and appropriate to provide a basis for our audit opinion on the financialstatements.
I Opinion (03931/
! 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 subject to note 5 for investment including non-Verification and Note 21accounts are prepared on going concern concept 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 March31 2015;
b) In the case of the Profit and Loss Account of the loss for the year ended on thatdate; and
c) In the case of the Cash Flow Statement of the cash flows for the year ended on thatdate. Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2015 ("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 statement on the matters specified in paragraphs 3 and4 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 Statement of Profit and Loss and Cash Flow Statement dealt with'by this Report are in agreement with the books of account.
d) In our opinion the aforesaid financial Statement comply with the AccountingStandards specified under section 133 of the Act read with Rule 7 of the CompaniesAccounts (Rules) 2014 ;
e) On the basis of written representations received from the directors as on 31 March2015 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31st March 2015 as per the certificate received by us from being appointed as adirector in terms of section 164(2) of the Act.
f) With respect to the other matters included in the Auditor's Report and to the bestof our information and according to explanation given to us:
1. The Company has disclosed the impact of pending litigation on its financial positionin its financial statement-Refer Note 10 of the financial statements.
2. The Company does not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.
3. During the current year there is no amount which needs to be transferred to theInvestor Education and Protection Fund by the Company.
For R. Kabra b Co.
M. ShiD No. 104808
FRN : 104502W
Date: 29th May 2015
Hotel Rugby Limited
ANNEXURE TO AUDITOR'S REPORT
(Referred to our report of even date)
Annexure referred to in Point 1 of the Auditor's Report of even date to the members ofM/s. Hotel Rugby Limited for the year ended 31st March 2015.
On the basis of such checks as we considered appropriate and the information andexplanations given to us during the course of the audit we state as under:
i) (a) There are no fixed assets of the company and therefore the question ofmaintaining proper
records showing full particulars including quantitative details and situation of fixedassets does notarise.
(b) Since there are no fixed assets the question of its physical verification anddiscrepancies with book records does not arise.
(c) Fixed Assets have been disposed off fully during the earlier years thus thegoing concern concept of the company is effected.
ii) In our opinion and according to the information and explanation given to us thecompany do not have any inventories during the current year and thus clause ii(a)pertaining to physical verification clause ii(b) pertaining to procedure of physicalverification and clause ii(c) regarding maintenance of proper record of inventories arenot applicable. '
iii) In our opinion and according to the information and explanation given to us thecompany has not i granted unsecured loans to companies firms or other parties covered inthe register maintained under section 189 of the Companies Act 2013.
iv) In pur opinion and according to the information and explanation given to us by themanagement the internal control systems are adequate with the size of the company and thenature of its business and there are no purchase of inventory and fjxed assets and sale ofgoods and services during the year except other Income.
v) There are no public deposit and therefore the directives issued by the Reserve Bankof India and the provisions of sections 73 to 76 or any other relevant provisions of theAct and the rules framed there under are not applicable.
vi) To the best of our knowledge and as explained to us maintenance of cost recordshas not been prescribed by the Central Government under sub section (1) of section 148 ofthe Companies Act.
vii) (a) There are no arrears for outstanding statutory dues as at the last day of thefinancial year concerned for a period of more than six months from the date they becamepayable.
(b) According to the information and explanation given to us and the records of thecompany examined by us there are no arrears as on 31.03.2015 of the disputes taxes exceptthat various assessments under Service Tax are pending finalization. The amount ofinterest & penalty levied by the department from the period Oct 2004 to July 2006 isRs. 707394/- and Rs. 1641776 respectively.
viii) There are accumulated losses at the end of the financial year and is more thanfifty percent of the net worth. The company has incurred cash loss in the currentfinancial year and in the immediately preceding financial year after appropriation items.
ix) Based on our audit procedures and the information and explanations given by themanagement we are of the opinion that the company has not defaulted in repayment of duesto financial institutions and banks. There are no Debenture holders of the company.
x) On the basis of the information and explanation given to us and records producedbefore us the company has not given any guarantee for loans taken by others from bank orfinancial institutions.
xi) The company has not taken any term loan in current year; therefore the question ofapplicability for the purpose for which the loan is taken dose not arises.
xii) During the course of our examination of the books and records of the companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information gnd explanation given to us we have neither come across anyinstances of fraud on or by the company noticed or reported during the current year norwe have been informed of such case by the management.
| ||For RKABRA&Cp. |
| ||Chartered Accountants |
| ||FirmReg.No.1Q4502W |
| ||sd/- |
| ||Deepa Rathi |
| ||Partner |
|Place : Mumbai ||M. No.104808 |
|Date :29th May 2015 ||FRN:104502W |
Significant Accounting Policies forming part of the accounts for the year ended 31stMarch 2015
1) System of Accounting !
The Company generally adopts the mercantile system of accounting.
2) Fixed Assets
(i) The fixed assets acquired if any during the current year are stated at cost plusincidental ; expenses relating to the same.
(ii) The Major part of the fixed assets has been transferred/sold/disposed off duringthe year 2007 itself and the balance fixed assets are also sold during the previous years.Since all the fixed assets have been sold therefore the going concern concepts of thebusiness has been affected.
(i) Depreciation will be provided on the basis of useful life of assets as specified inSchedule II to the ' Companies Act 2013.Though during the current year there are no fixedassets on which depreciation need to be calculated.
(ii) The Gross Block & Corresponding depreciation is shown as deduction whereverassets are sold/ disposed off during the year with Profit/ Loss adjusted to Profit &Loss A/c.
(i) The investments in unquoted and quoted shares (except in subsidiaries) are statedat cost. The subsidiaries investments were shown at token value of Rs. 1/- by writing offthe investment in earlier years. During the previous year the company has sold its stakein subsidiary namely Polar Finance Limited therefore to the extent of sale value thecompany has written back the investments which has been written off in earlier year.
(ii) Any depreciation or fall in investment value unless otherwise held for long termis provided in the books.
(iii) Any other investment in share & mutual fund held if any are for long termperiod and diminution if any is temporary in nature and hence not provided.
5) Retirement Benefits
Since the last few years there are'no major operations in the company and also thereare no employees in the company and therefore other than any old liabilities if any whichis not known the provisions of The Payment of*Gratuity Act 1972 Leave Salary & TheEmployees Provident Fund & Miscellaneous Provision Act 1952 are not applicable.
6) Sales & Business Segments
The company has no sales from business of food or catering or hotel and no other newactivity during the current year ended 31st March 2015 is commenced and therefore segmentreporting is not applicable for the current year. The only income is pertaining tointerest income from Inter Corporate deposits.
During the current year there are no Purchases & Sales and therefore no inventoriesare held.
8) Revenue Recognition
The revenue is recognised as and when it is accrued.
9) Borrowing Costs
Borrowing costs attributable to construction of asset are capitalized as a part of thecost of such asset upto date when such asset is ready for its intended use. Otherborrowing costs are charged to Profit and Loss Account.
10) Accounting for Taxes on Income
i) Provision for the current tax is made on the assessable income at the relevantassessment year.
ii) Deferred Tax is recognised on timing differences beincf the difference betweentaxable income and accounting income that originate in one period and capable of reversalin one or more subsequent periods.
iii) Deferred Tax assets are recognised if there is reasonable certainty that therewill be sufficient future profits available to realise such assets.
11) Provisions Contingent Liabilities & Contingent Assets
Provisions involving substantial degree of estimation in measurement are recognizedwhen there is a present obligation as a result of past events and it is probable thatthere will be an outflow of recourses. Contingent liabilities are not recognized but aredisclosed in the notes. Contingent Assets are neither recognized nor disclosed in thefinancial statements.
12) Earning per Share
Basic earning per share is calculated by dividing the net profit or loss for the yearattributable to equity shareholders (after deducting attributable taxes) by the weightedaverage number of equity shares outstanding during the year for the purpose ofcalculating diluted earning per shares the net profit or loss for the year attributableto equity per shareholders and the weighted average number of shares outstanding duringthe year are adjusted for the effects of all dilutive potential equity shares.
13) Cash Flow Statement
Cash flow Statement is prepared under the Indirect Method.
14) Initial Margin for Commodity Instruments Contract
Purchase and sale of commodity transaction is recorded at the price which is fixedbetween the buyer and the seller at the future date including the contracts open at thebalance sheet date. The income is recognised when the contract term expires. The income isclassified as other income from commoditiy gains.
Hotel Rugby Limited