Landmarc Leisure Corporation Ltd.
|BSE: 532275||Sector: Media|
|NSE: N.A.||ISIN Code: INE394C01023|
|BSE LIVE 15:26 | 07 Aug||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
|BSE: 532275||Sector: Media|
|NSE: N.A.||ISIN Code: INE394C01023|
|BSE LIVE 15:26 | 07 Aug||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
To the Members
Landmarc Leisure Corporation Limited.
I. Report on the Financial Statements
We have audited the attached financial statements of Landmarc Leisure CorporationLimited (hereinafter referred to as the Company) comprising of the Balance Sheet as at31st March 2016 the Statement of Profit and Loss and the Cash Flow Statement for the yearended along with the Significant Accounting Policies and other explanatory informationforming an integral part thereof.
II. Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the Accounting Standardsreferred to in Section 133 of the Companies Act 2013 (hereinafter referred to as theAct) read with Rule 7 of the Companies (Accounts) Rules 2014 and in accordance with theaccounting principles generally accepted in India. This responsibility also includes themaintenance of adequate accounting records in accordance with the provision of the Act forsafeguarding of the assets of the Company and for preventing and detecting the frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of internal financial control that were operating effectively for ensuringthe accuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
III. Auditors' 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 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 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 financial control relevant to the Company's preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a reasonable basis for our audit opinion.
Basis for Qualified Opinion
As stated in the Notes No. 35 and 36 respectively of the financial statementsregarding;
(i) Non-provision in the Company's books in respect of an Interest free Securitydeposit given by the Company based on an MOU with a body corporate amounting to Rs.1500.00 Lacs against which the Company is expected to derive benefits in the future yearsand hence in the management's view the same is fully recoverable.
(ii) Capitalization under the fixed assets in respect of expenses incurred on Publicityand Promotion including satellite rights instead of charging the same to revenue inearlier years in departure from the recommendations of Accounting Standard- 26Intangible Assets on account of the which fixed assets are overstated to an extent ofRs. 199.76 Lacs.
Accordingly (i) Loans and Advances has been overstated and provision for doubtfuladvances have been understated to an extent of Rs 1500.00 Lacs (ii) Intangible Assets havebeen overstated and expenses have been understated by Rs 199.76 Lacs
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 Basis for QualifiedOpinion paragraph the aforesaid financial statements give the information required by theAct 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 2016 and its Loss and its cash flows for the year ended on that date.
IV. 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 enclose inthe Annexure a statement on the matters specified in paragraphs 3 and 4 of the said Orderto the extent applicable to the Company during the year under review.
2. Further to our comments in the Annexure referred to in 1. above as per therequirements of Section 143(3) of the Act we report as follows:
(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 sofar as 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) Except for the matter stated in basis of qualified opnion para In our opinion theBalance Sheet Statement of Profit and Loss and the Cash Flow Statement dealt with by thisreport comply with the Accounting Standards referred to in Section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014;
(e) On the basis of written representations received from the respective directors ason 31st March 2016 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms ofsub-section (2) of Section 164 of the Act;
(f) With respect to the adequacy of the internal financial control over financialreporting of the company and the operating effectiveness of such controls refer to ourseparate report in "Annexure A".
(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 pending litigations which would impact its financialposition;
ii) The Company does not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses; and
iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
Annexure to the Auditors' Report
(Referred to in paragraph V(1) of our report of even date)
In terms of the information and explanations given to us and the books and recordsexamined by us and on the basis of such checks as we considered appropriate we furtherreport as under
1. Fixed Assets
(a) The Company has updated its Fixed Assets Register to show full particularsincluding quantitative details and situation of fixed assets. As explained to us thesefixed assets have been physically verified by the management at reasonable intervalsduring the year and that no material discrepancies were noticed on such verification.
(b) No significant part of fixed assets has been disposed off by the Company during theyear under review.
During the year the management has conducted physical verification of inventoriescomprising of shares and CDs at regular intervals. As explained to us there were nodiscrepancies noticed upon physical verification conducted by the management.
3. Loans to parties of Directors' interest
During the year the Company has not granted any loans secured or unsecured to theparties covered in the register maintained under Section189 of the Act.
4. Loans/Guarantees/Investments in / Provision of Security to certain parties
Based on the information and explanation given to us and on the basis of recordsverified by us the company has complied with the provision of sec 185 and 186 of the actto the extent applicable.
5. Acceptance of Deposits
The Company has not accepted deposits as per the directives issued by Reserve Bank ofIndia and the provisions of Sections 73 to 76 or any other relevant provisions of the Actand the rules framed there under.
6. Maintenance of Cost Records
As explained to us maintenance of cost records has not been prescribed by the CentralGovernment for the Company under Section 148(1) of the Act.
7. Undisputed & Disputed Statutory Dues
As per the records verified by us the Company is generally regular in depositing theundisputed statutory dues involving Provident Fund Employees' State Insurance Incometax Service Tax and Value Added Tax with the appropriate authorities during the yearunder review and there were no outstanding undisputed statutory dues with the Company fora period of more than six months as at the close of the year except Tax deducted at sourceamounting to Rs 15.81 Lacs. The provisions of the statutes governing Wealth Tax CustomsDuty Investor Education and Protection Fund Excise Duty and Cess are as explained tous not applicable to the Company during the year under review.
As per the records of the Company except for the disputed dues aggregating to Rs.58.27relating to Income Tax as given below there are no disputed dues relating to Value AddedTax Customs duty Wealth tax Excise duty.The details of the disputed Income Tax duesbefore Income Tax authorities are as follows:
8. Loans from Banks/Financial Institutions/ Government/Debentures
The Company has not borrowed from any financial institution or bank nor has it issuedany debentures during the year under review.
9. Proceeds of Public issue (including debt instruments) /Term Loans
The Company has not raised any money during the year through initial / further publicoffer (including debt instruments) nor the Company has availed any term loan during theyear under review.
10. Frauds on or by the Company
During the course of our examination of the books and records of the Company carriedout in accordance with the generally accepted auditing practices in India and accordingto the information and explanations given to us we have neither come across any instanceof fraud on or by the Company or its officers/employees noticed or reported during theyear nor have we
been informed of such case by the management.
11. Managerial Remuneration
As per the Company's records managerial remuneration paid by the Company is inaccordance with section 197 of the Act read with schedule V.
12. Nidhi Companies
The Company is not a Nidhi company during the year under review and hence the criteriaas stipulated under Nidhi Rules 2014 is not applicable to the Company.
13. Related Party Transactions
As per the information and explanations given during the course of our verification inour opinion all transactions with the related parties made by the Company were incompliance with Sections 177 and 188 of the Act to the extent applicable to the Companyduring the year. The relevant details in respect of the same have been appropriatelydisclosed as per the requirements of the Accounting Standard- 18.
14. Preferential Issue
During the year the Company has not made any preferential allotment or privateplacement of shares or convertible debentures and hence the requirements of Section 42 ofthe Act are not applicable.
15. Non-cash Transactions with Directors etc.
As per the information and explanations provided to us during the year the Companyhas not entered into any non-cash transactions with directors or persons connected withthe directors within the purview of Section 192 of the Act.
16. Provisions of 45-IA of the Reserve Bank of India Act1934
As per the information and explanations provided to us and based on the overalloperations of the Company during the year the Company is not required to be registeredunder Section 45-IA of the Reserve Bank of India Act 1934.
Annexure A to the independent Auditor's Report of even date on the financial statementof the Landmarc Leisure Corporation Limited.
Report on the Internal Financial Controls under Section 143(3)(i) of the Companies Act2013 ("the Act")
We have audited the internal financial controls over financial reporting of LandmarcLeisure Corporation Limited ("the Company") as of 31st March 2016 inconjunction with our audit of the financial statements of the Company comprising of theBalance Sheet as at March 31st 2016 the Statement of Profit and Loss and the Cash FlowStatement for the period then ended.
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 (the ICAI). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to Company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required 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 Reportingand the Standards on Auditing issued by the ICAI deemed to be prescribed under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the ICAI. Those standards and the Guidance Note 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 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(2) Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations 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 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.
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 31st 2016 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 the Institute of CharteredAccountants of India.