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Inox Leisure Ltd.

BSE: 532706 Sector: Media
NSE: INOXLEISUR ISIN Code: INE312H01016
BSE 00:00 | 26 Apr 259.35 0.05
(0.02%)
OPEN

255.65

HIGH

260.50

LOW

255.65

NSE 00:00 | 26 Apr 260.10 1.70
(0.66%)
OPEN

261.00

HIGH

261.00

LOW

256.70

OPEN 255.65
PREVIOUS CLOSE 259.30
VOLUME 2562
52-Week high 326.00
52-Week low 213.30
P/E 43.74
Mkt Cap.(Rs cr) 2,502
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 255.65
CLOSE 259.30
VOLUME 2562
52-Week high 326.00
52-Week low 213.30
P/E 43.74
Mkt Cap.(Rs cr) 2,502
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Inox Leisure Ltd. (INOXLEISUR) - Auditors Report

Company auditors report

to the members of Inox Leisure Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financialstatements of Inox LeisureLimited ("the Company") which comprise the Standalone Balance Sheet as at 31stMarch 2017 the Standalone Statement of Profit Comprehensive Income) the Standalone CashFlow Statement and the Standalone Statement of Changes in Equity for the year then endedand a summary of the significant accounting policies and other explanatory information("Standalone Ind AS financial statements").

Management's Responsibility for the Standalone Ind AS 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 Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards (Ind AS) prescribed underSection 133 of the Act.

This responsibility also 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; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone IndAS 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 Ind AS financialstatements based 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 standalone Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on these standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS 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 including the Ind AS of thefinancial position of the Company as at 31st March 2017 and its financial performanceincluding other comprehensive income its cash flows and changes in equity for the yearended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of sub-section (11) of section 143 of the Act we give in theAnnexure I a statement on the matters specified 3 and 4 of the said 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 Standalone Balance Sheet the Standalone Statement of Profit and Loss includingOther Comprehensive Income the Standalone Cash Flow Statement and the StandaloneStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account.

(d) In our opinion the aforesaid financialstatements comply with thestandalone IndianAccounting AS

Standards prescribed under Section 133 of the Act.

(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 terms of Section164(2) of the Act.

(f) With respect to the adequacy of the internal financial financialreporting of theCompany and the controlsover operating effectiveness of such controls refer to ourseparate Report in Annexure II.

(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. TheCompany has disclosed the impact of pending litigations on its financial position in itsstandalone Ind AS financial statements refer Note 48 to the standalone Ind AS financialstatements; ii. The Company did not have any long-term contracts including derivativecontracts for which there were any material foreseeable losses; iii. There has been nodelay in transferring amounts required to be transferred to the Investor Education andProtection Fund by the Company; and iv. The Company has provided requisite disclosures inthe standalone Ind AS financial statements as to holdings as well as dealings in SpecifiedBank Notes during the period from 8th November 2016 to 30th December 2016 and these are inaccordance with the books of account maintained by the Company refer Note 52 to thestandalone Ind AS financial statements.

For Patankar & Associates

Chartered Accountants Firm's Registration No. 107628W

S S Agrawal

Partner Membership No. 049051

Place: Pune Date: 2nd May 2017

Annexure to Independent Auditor's Report

to the members of Inox Leisure Limited

Annexure I to Independent auditor's report to the members of Inox Leisure Limited onthe standalone Ind AS financial statements for the year ended 31st March 2017 –referred to in paragraph 1 under the heading "Report on Other Legal and RegulatoryRequirements" of our report of even date.

In term of the Companies (Auditor's Report) Order 2016 ("the Order") on thebasis of information and explanation given to us and the books and records examined by usin the normal course of audit and such checks as we considered appropriate to the best ofour knowledge and belief we state as under:

1. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. The fixed assets have been physicallyverified by the management at reasonable intervals and no material discrepancies have beennoticed on such verification. The title deeds of all immovable properties are held in thename of the Company except as under:

(` in Lakhs)
Particulars No. of cases Original cost Carrying amount Remarks
Leasehold land 1 181.45 140.90 In the name of erstwhile amalgamated company and yet to be transferred in the name of the Company
Building 2 7331.20 6170.17 Conveyance deed is yet to be executed
1 828.57 661.80 In the name of erstwhile amalgamated company and yet to be transferred in the name of the Company
1 1763.73 1486.40 In the name of erstwhile amalgamated company and conveyance deed is yet to be executed
Building total 9923.50 8318.37

2. The inventories were physically verified by the management at reasonable intervalsduring the year and no material discrepancies were noticed on physical verification ofinventories as compared to book records.

3. The Company has not granted any loan secured or unsecured to companiesfirmsLimited Liability Partnerships or other parties covered in the register maintainedunder section 189 of the Companies Act 2013 and hence the provisions of clause 3(iii) ofthe Order are not applicable to the Company

4. The Company has complied with the provisions of Section 185 and section 186 of theAct in respect of investments made or loans given or guarantee or security provided.

5. The Company has not accepted any deposits within the meaning of section 73 to 76 ofthe Companies Act 2013 and the Rules framed thereunder and hence the provisions of clause3(v) of the Order are not applicable to the Company.

6. The Central Government has not prescribed maintenance of cost records under section148(1) of the Companies Act 2013 for the activities of the Company and hence theprovisions of clause 3(vi) of the Order are not applicable to the Company.

7. The Company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund employees' state insuranceincome-tax sales tax service tax duty of customs duty of excise value added taxcess entertainment tax and other material statutory dues applicable to it. There are noundisputed amounts payable in respect of such statutory dues which were in arrears as at31st March 2017 for a period of more than six months from the date they become payable.

Particulars of dues of income-tax service tax duty of customs and value added taxwhich have not been deposited on account of disputes are as under:

Name of the Statute Nature of dues and the period to which the amount relates Amount Forum where dispute is pending
(` in Lakhs)
Service-tax (Finance Act 1994) Service tax on renting of immovable properties for the period August 2008 to September 2011 1042.44 Supreme Court of India
Service tax on film distributors' payments
For the period May 2009 to June 2012 571.90 Central Excise and Service Tax
Appellate Tribunal Hyderabad.

 

Name of the Statute Nature of dues and the period to which the amount relates Amount
(` in Lakhs) Forum where dispute is pending
For the period May 2008 to March 2014 2997.22 Central Excise and Service Tax
Appellate Tribunal New Delhi.
For the period July 2012 to December 2014 7201.55 Central Excise and Service Tax
Appellate Tribunal Mumbai.
For the period May 2008 to March 2014 4630.08 Commissioner of Service Tax Mumbai.
Customs Act 1962 Custom duty Amount not ascertainable Commissioner Appeal Central Board of Excise and Customs
Custom duty for the period 2005-06 4.36 Asst. Commissioner of Customs
Jawaharlal Nehru Custom House
JNPT Nhava Sheva
Maharashtra Assessment dues for the year 2008-09 235.06 Deputy Commissioner of Sales Tax
Value (Appeals 4) Mazgaon Mumbai
Added Tax
Act 2002
Income Tax Penalty u/s 271(1)(c) for the year 2010-11 200.00 Commissioner of Income-tax (Appeals)
Act 1961 Assessment dues for the year 2012-13 216.16 - Vadodara
Re-assessment dues for the year 2010-11 183.19
Re-assessment dues for the year 2009-10 12.07 Income Tax Appellate Tribunal Ahmedabad

There are no dues of sales tax or duty of excise which have not been deposited onaccount of disputes.

8. The Company has not defaulted in repayment of loans and borrowings to banks and theCompany did not have any borrowings from financial institutions Government or by way ofdebentures.

9. The Company has applied the moneys raised by way of term loans for the purpose forwhich these loans were raised. The Company did not raise moneys by way of initial publicoffer or further public offer (including debt instruments). 10. No fraud by the Company oron the Company by its officers or employees has been noticed or reported during the courseof our audit.

11. The Company has not paid any managerial remuneration and hence the provisions ofclause 3(xi) of the Order are not applicable to the Company.

12. The Company is not a Nidhi Company and hence the provisions of clause 3(xii) of theOrder are not applicable to the Company.

13. All transactions with the related parties are in compliance with sections 177 and188 of Companies Act 2013 and the details have been disclosed in the standalone financialstatements etc. as required by the applicable accounting standards.

14. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year and hence the provisions ofclause 3(xiv) of the Order are not applicable to the Company.

15. The Company has not entered into any non-cash transactions with directors orpersons connected with them and hence the provisions of clause 3(xv) of the Order are notapplicable to the Company.

16. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934 and hence the provisions of clause 3(xvi) of the Order are notapplicable to the Company.

For Patankar & Associates

Chartered Accountants Firm's Registration No. 107628W

S S Agrawal

Partner Membership No. 049051

Place: Pune Date: 2nd May 2017

Annexure II to Independent auditor's report to the members of Inox Leisure Limited onthe standalone Ind AS financial statements for the year ended 31st March 2017 –referred to in paragraph 2(f) under the heading "Report on Other Legal and RegulatoryRequirements" of our report of even date.

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 InoxLeisure Limited ("the Company") as of 31st March 2017 in conjunction with ouraudit of the standalone Ind AS financial statements of the Company for the year ended onthat 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 Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence toCompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013("the Act").

Auditor's 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 and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequateinternal financialreportingwas controlsover established and maintained and if such controls operated effectivelyin all material respects.

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

Our audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a 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 judgement including the assessment of the risks of materialmisstatement 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 financialcontrols 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 financialcontrolover 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 31st March 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by ICAI.

For Patankar & Associates

Chartered Accountants Firm's Registration No. 107628W

S S Agrawal

Partner Membership No. 049051

Place: Pune
Date: 2nd May 2017