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Sayaji Hotels Ltd.

BSE: 523710 Sector: Services
NSE: SAYAJIHOTL ISIN Code: INE318C01014
BSE LIVE 15:18 | 16 Nov 240.00 4.00
(1.69%)
OPEN

244.50

HIGH

244.50

LOW

232.00

NSE 00:00 | 16 Jan Stock Is Not Traded.
OPEN 244.50
PREVIOUS CLOSE 236.00
VOLUME 136
52-Week high 314.75
52-Week low 139.05
P/E
Mkt Cap.(Rs cr) 420
Buy Price 239.00
Buy Qty 7.00
Sell Price 244.00
Sell Qty 5.00
OPEN 244.50
CLOSE 236.00
VOLUME 136
52-Week high 314.75
52-Week low 139.05
P/E
Mkt Cap.(Rs cr) 420
Buy Price 239.00
Buy Qty 7.00
Sell Price 244.00
Sell Qty 5.00

Sayaji Hotels Ltd. (SAYAJIHOTL) - Auditors Report

Company auditors report

To

The Members

Sayaji Hotels Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Sayaji HotelsLimited (the Company) which comprise the Balance Sheet as at March 31 2016 theStatement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible forthe matters stated in Section134(5) of the Companies Act 2013 (the Act) with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe 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 financial statementsbased 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 financial statements are free from material misstatements.

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 ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company'spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall 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 on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act 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 profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 (theOrder) issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure A a statement on the matters specified inthe paragraph 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 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 Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby 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 31 stMarch 2016 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 of Section164 (2) of the Act.

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 has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note 29.1 to the financial statements;

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

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For K.L. Vyas & Company
Chartered Accountants
FRN: 003289C
(K.L. Vyas)
Place of Signature: Indore Partner
Date: 30h May 2016 M. No. 072043

ANNEXURE-A TO THE AUDITORS' REPORT

ANNEXURE REFERRED TO IN CLAUSE 1 OF REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTSOF OUR REPORT OF EVEN DATE TO THE MEMBERS OF SAYAJI HOTELS LIMITED ON THE STANDALONEFINANCIAL STATEMENT FOR THE YEAR ENDED 31ST MARCH 2016.

(i) (a) The company has maintained proper records showing full particulars including quantitative details of fixed assets however forsome fixed assets situation of the assets is not given and identification numbers arealso not been given which need to be updated. We have been informed by Management thatabove Work is in progress.

(b) Physical verification of fixed assets has been carried out by the Management atmost of the Units in accordance with a phased programme of verification which in ouropinion provides for physical verification of all the fixed assets at reasonableintervals which in our opinion is reasonable having regard to the size of the companyand nature of its assets. According to the information and explanations given to us nomaterial discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the conveyance deed provided to us we report that the title deedscomprising of all the immovable properties of land and buildings which are freehold arein the name of the Company as at the balance sheet date.

In respect of immovable properties been taken on lease and disclosed as fixed assets inthe standalone financial statements the lease agreements are in the name of the Companyhowever there is a notice for cancellation of lease by the Indore Development Authorityfor cancelling the lease of one leasehold land situated in Indore with carrying value ofRs. 2291.62 Lacs which company is contesting.

(ii) (a) The physical verification of the inventory is being conducted on a monthlybasis by the management and no material discrepancies were noticed.

(iii) (a) Company has granted loan to One Company

(Previous Year 3 Companies) required to be covered in register maintained under section189 of the Companies Act 2013 the year end balance outstanding is Rs. Nil (Previous YearRs. 17.62 Lacs) and maximum amount outstanding is Rs. 17.62 Lacs (Previous Year Rs. 17.62Lacs).

The above loans granted was considered doubtful and provision for the same was madeduring the earlier years and during the year under review same has been written off.

In view of situation explained as above provisions of clause 3 (iii) (b) & (c) ofthe Order are not applicable to be Company.

(iv) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.

(v) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 73 to 76 or any other relevantprovisions of the Companies Act 2013 and the Rules framed there under with regard to thedeposits accepted from the public. According to information and explanations given to usno order has been passed by the Company Law Board or the National Company Law Tribunal orthe Reserve Bank of India or any Court or any other Tribunal.

(vi) Central Government has not prescribed for the maintenance of cost records undersub-section 1 of section 148 of the Companies Act 2013 for any of the business activitycarried by the Company during the year under review.

(vii) (a) The Company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund investor education protection fundemployees' state insurance income tax sales tax wealth tax custom duty exciseduty service tax & cess and other material statutory dues as may be applicable to it.

According to the information and explanations given to us no undisputed amountspayable in respect of income tax wealth tax sales tax customs duty wealth tax exciseduty and cess were in arrears as at 31.03.2016 for a period of more than six months fromthe date they became payable.

(b) According to the information and explanations given to us details of the dues ofsale tax income tax customs duty wealth tax excise duty and cess which have not beendeposited on account of any dispute are given below.

Name of Statue Nature of Dues Period to which the amount relates Forum where the dispute is pending Total Amount (Rs. In Lacs)
Finance Act 1994 and Service Tax laws Service Tax Mar.'05-Mar.'09 High Court of M.P Indore Bench Indore 256.78
Service Tax 2009-2011 Honourable CESTAT Delhi. 800.74
Service Tax 2009-2013 Honourable Commissioner (Appeals) Pune. 39.27
Service Tax Apr.'11-Jun.'12 Honourable CESTAT Delhi. 538.54
Income Tax Act 1961. Tax deducted at Source A.Y.11-13 Commissioner of Income Tax Pune 1.02
A.Y. 08-09 Commissioner of Income Tax Indore 0.95
M.P. Value Added Tax Act 2002 Value Added Tax 2010-11 Appelate Tribunal Commercial Taxes Indore. 0.56
2011-12 Commissioner (Appeal) 37.72
2012-13 Commercial Taxes 2.87
2013-14 Indore 0.52
M.P. Luxury Entertainment & Advertisement Tax Act 2011 Luxury Tax 2011-2012 Commissioner (Appeal) 2.35
2012-2013 Commercial Taxes Indore 40.60
M.P. Municipal Corporation Act 1956 Property Tax 2015-16 The Mayor-In-Council 32.70
Indore Municipal Corporation Indore
TOTAL 1754.62

(viii) Based on our audit procedures and according to the information and explanationsgiven to us we are of the opinion that the Company has not defaulted in repayment ofloans or borrowing to financial institutions banks Government or dues to debentureholders.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year however the Company has raisedterm loans during the year and were applied for the purposes for which those were raised.

(x) According to the information and explanations given to us no fraud on or by thecompany has been noticed or reported during the course of our audit.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the company has made private placement ofpreference shares and the requirement of section 42 of the Companies Act 2013 have beencomplied with and the amount raised have been used for the purposes for which the fundswere raised.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For K.L. Vyas & Company
Chartered Accountants
FRN: 003289C
(K.L. Vyas)
Place of Signature : Indore Partner
Date: 30h May 2016 M. No. 072043

ANNEXURE-B TO THE AUDITORS' REPORT

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 SayajiHotels Limited (the Company) as of 31 March 2016 in conjunction with our auditof the standalone financial 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 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 (`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 safeguardingof its 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 Reporting(the Guidance Note) and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require 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 includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement 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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 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 31 March 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.

For K.L. Vyas & Company
Chartered Accountants
FRN: 003289C
(K.L. Vyas)
Place of Signature: Indore Partner
Date: 30th May 2016 M. No. 072043