You are here » Home » Companies » Company Overview » KDJ Holidayscapes & Resorts Ltd

KDJ Holidayscapes & Resorts Ltd.

BSE: 530701 Sector: Services
NSE: N.A. ISIN Code: INE089E01025
BSE LIVE 10:17 | 06 Dec 6.45 0.03
(0.47%)
OPEN

6.45

HIGH

6.45

LOW

6.45

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 6.45
PREVIOUS CLOSE 6.42
VOLUME 1
52-Week high 6.60
52-Week low 5.71
P/E
Mkt Cap.(Rs cr) 35
Buy Price 0.00
Buy Qty 0.00
Sell Price 6.45
Sell Qty 6264.00
OPEN 6.45
CLOSE 6.42
VOLUME 1
52-Week high 6.60
52-Week low 5.71
P/E
Mkt Cap.(Rs cr) 35
Buy Price 0.00
Buy Qty 0.00
Sell Price 6.45
Sell Qty 6264.00

KDJ Holidayscapes & Resorts Ltd. (KDJHOLIDAY) - Auditors Report

Company auditors report

To

The Members of KDJ HOLIDAYSCAPES & RESORTS LIMITED Report on the FinancialStatements

We have audited the accompanying financial statements of KDJ HOLIDAYSCAPES &RESORTS LIMITED ("the Company") which comprise the Balance Sheet as at March31 2017 the Statement of Profit & Loss Cash Flow Statement for the year ended onthat date and a summary of significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Financial Statements

The Company's Board of Directors are responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese 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 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.

Auditor's Responsibility

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 accordance with the Standards on Auditing specified under143(10) of the Act. Those Standards require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the financialstatements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.

Basis for Qualified Opinion

Attention is invited to:

1. Note No. 1(J) regarding non-provision of gratuity and leave encashment as requiredby Accounting Standard 15 (AS 15) relating to Employees Benefits. We are unable to commentupon the resultant effect on Liabilities and Profit of the year as the amount of suchbenefit is presently not ascertainable;

2. Note No. 29 regarding accounting of Deferred Revenue expenses which is not inaccordance with Accounting Standard - 26 "Intangible Assets" notified under theAct. Due to this Loss for the year is higher by ' 762236/- with consequential effect onReserves & Surplus; the Other Non-Current Assets are higher by ' 3048943/-; theOther Current Assets are higher by ' 762236/-;

3. Note No. 33 regarding non-provision for diminution in the value of Investment inSubsidiaries We are unable to comment upon the resultant effect on Assets and Profit ofthe year as the amount of such erosion in value is presently not ascertainable;

4. Note No. 35 (i) regarding non-provision of advances considered doubtful of recoveryof ' 136879936/-. Due to this Loss for the year is lower with consequential effect onReserves & Surplus and Long Term loans and advances are higher by ' 136879936/-;and also Note No. 35

(ii) regarding non accounting of interest accrued on such loans due to uncertainty ofrealisation amount not ascertained ;

5. Note No. 36 regarding non provision of trade receivables considered doubtful ofrecovery of ' 2547200/- Due to this Loss for the year is lower with consequentialeffect on Reserves & Surplus and Trade Receivables are higher by ' 2547200/-.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except

for the effects of the matters described in the clauses 1 2 3 4 and 5 of the Basisfor Qualified Opinion

paragraph the financial statements give the information required by the Act in themanner so required

give a true and fair view in conformity with the accounting principles generallyaccepted in India:

(a) In the case of the Balance Sheet of the state of affairs of the Company as atMarch 31 2017;

(b) In case of the Statement of Profit and Loss 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 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 section 143(11) of the CompaniesAct 2013 we give in the "Annexure A" hereto a statement on the mattersspecified in paragraphs 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 and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit;

(b) Except for the possible effects of the matter described in the clauses 1 2 34 and 5 of the Basis for Qualified Opinion paragraph above in our opinion properbooks of account as required by law have been kept by the Company so far as appears fromour examination of those books;

(c) The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;

(d) Except for the possible effects of the matter described in the Clauses 1 2 34 and 5 of the Basis for Qualified Opinion paragraph above in our opinion theaforesaid the Balance Sheet Statement of Profit and Loss and Cash Flow Statement complywith Accounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

(e) On the basis of written representations received from the directors as on March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of section 164(2) of theAct.

(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" to this report.

(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 has disclosed the impact of pending litigations on its financialposition in its financial Statements - Refer Note Nos. 30 and 37 to the financialstatements

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There are no amounts required to be transferred to the Investor Education andProtection Fund by the Company.

iv. As per information and explanation given to us and relying on the managementrepresentation the Company has provided requisite disclosures in its financial statements(Refer Note No. 38) as to holdings as well as dealings in Specified Bank Notes during theperiod from 8th November 2016 to 30th December 2016 and these are in accordance with thebooks of account maintained by the Company and produced before us.

For ASL & Co.

Chartered Accountants

(Regn. No. 101921 W)

(Saurabh P. Shah)

PARTNER

Membership No. : 041749

Place: - Mumbai.
Dated: - 30th May 2017.

Annexure "A" referred to in paragraph 1 under the heading "Report onOther Legal and Regulatory Requirements" of the Independent Auditors' report of evendate on the Financial Statements of KDJ Holidayscapes & Resorts Limited for the YearEnded 31st March 2017.

On the basis of such checks as considered appropriate and in terms of the informationand explanations given to us we state as under. Matters specified in clauses i(c) (v)(vi) (ix) (xi) (xii) (xiv) (xv) & (xvi) of paragraph 3 of the Companies(Auditor's Report) Order 2016 do not apply to the Company. Accordingly no comments havebeen made on the matters not applicable to the company.

(i)

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed Assets.

(b) As per the information and explanations given to us fixed assets have beenphysically verified by the management during the year. According to the information andexplanations given to us no material discrepancies were noticed on such verification.

(ii) As per the information and explanations given to us the inventory has beenphysically verified by the management during the year at reasonable intervals. In ouropinion and according to the information and explanations given to us the discrepanciesnoticed on verification between the physical stock and the book records were notmaterial and the same have been properly dealt with in the books of accounts.

(iii)

(a) According to the information and explanations given to us in respect of loansgiven to the subsidiaries there is no stipulation as to the schedule of repayment ofprincipal and payment of interest however the other terms and conditions on which loanshave been given to the parties are not prima facie prejudicial to the interest ofthe Company. Attention is also invited to Note No. 35 of the financial statements.

(b) According to the information and explanations given to us since there is nostipulation as to the schedule of repayment of principal and payment of interest for theloans given by the Company to its subsidiaries we are unable to make specific comment onregularity of repayment of principal and payment of interest. Attention is also invited toNote No. 35 of the financial statements.

(c) According to the information and explanations given to us since there is nostipulation as to the schedule of repayment of principal and payment of interest for theloans given by the Company to its subsidiaries we are unable to make specific comment onthe overdue amount in respect of the same. Attention is also invited to Note No. 35 of thefinancial statements.

(iv) According to the information and explanations given to us in respect ofcompliance with the provisions of sections 185 & 186 of the Companies Act 2013 forthe Loans & advances given and Investments made attention is invited to the Note No.34 of the financial statements.

(v)

(a) As per the records of the Company and according to the information and explanationsgiven to us the Company is regular in depositing with appropriate authorities undisputedstatutory dues including provident fund employees' State Insurance Income Tax SalesTax Service Tax Duty of custom Duty of excise Value Added Tax cess and otherstatutory dues to the extent applicable to it except the following arrears of outstandingstatutory dues as on last day of

the financial year 2016-17 for period of more than six months from the date they becamepayable Service tax of ' 2024074/- ESIC of ' 152361/- Provident fund of ' 474852/-Professional Tax of ' 8375/- TDS of ' 389284/- Vat of ' 161456/- and Luxury tax of '48408/-.

(b) According to the records of the Company and as per the information and explanationsgiven to us there are no dues of Sales tax Income tax Service tax Custom tax Wealthtax Excise duty Cess which have not been deposited on account of any dispute. Attentionis also invited to the Note No. 30(ii) of the financial statements.

(vi) According to the records of the Company and as per the information andexplanations given to us the Company has defaulted in payment of dues to its bank inrespect of Working Capital facility from the TJSB Sahakari Bank Ltd. and with effect from30th September 2015 the account has been classified as an NPA. As per the records ofthe company the total outstanding as on 31st March 2017 is ' 45002939/-

(vii) As per information and explanations given by the management no fraud by thecompany or any fraud on the Company by its officers or employees has been noticed orreported during the year under review.

(viii) Based on our audit procedures and on the basis of information and explanationsgiven by the management the transactions with the related parties are in compliance withSection 188 of Companies Act 2013 and the details have been disclosed in the FinancialStatements as required by the applicable accounting standards.

For ASL & Co.

Chartered Accountants

(Regn. No 101921 W)

(Saurabh P. Shah)

PARTNER

Membership No. : 041749

Place: - Mumbai.
Dated: - 30th May 2017.

Annexure "B" to the Independent Auditor's Report of Even Date on theFinancial Statements of KDJ Holidayscapes & Resorts Limited

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 KDJHolidayscapes & Resorts Limited ("the Company") as of March 31 2017 inconjunction with our audit of the standalone financial statements of the Company for theyear 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 accordance with the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting (the "Guidance Note") and theStandards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial Controls and both issued bythe Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 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 judgment 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 authorizations 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 ASL & Co.

Chartered Accountants

(Regn. No 101921 W)

(Saurabh P. Shah)

PARTNER

Membership No. : 041749

Place: - Mumbai.
Dated: - 30th May 2017