The Members of
Best Eastern Hotels Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Best Eastern HotelsLimited ("the Company") which comprise the Balance Sheet as at 31st March2018 the Statement of Profit and Loss (including Other Comprehensive income) theStatement of Changes in Equity and the Statement of Cash Flow for the year then ended anda summary of the significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone 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 of thesestandalone financial statements that give a true and fair view of the financial positionfinancial performance including other comprehensive income Cash Flow and changes inequity of the Company in accordance with the Indian Accounting Standards (IND AS)prescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia.
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; design implementation and maintenance of adequate internal financial controlsthat are operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
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 accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone financial statements are free frommaterial 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 a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's management and Board of Directors as well as evaluatingthe 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 on the financial statements.
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 Company as at 31st March2018 its Profit total comprehensive income the changes in equity and its Cash flows forthe year ended on that 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 sub-section (11) of section 143 ofthe Act we give in the Annexure-A' a statement on the matters Specified inparagraphs 3 and 4 of the Order to the extent applicable.
2. As required by section 143(3) of the Act we further 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 the Statement of Profit and Loss including Other ComprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the books of account;
d. In our opinion the aforesaid financial (IND AS)financial statements comply with theapplicable Accounting Standards specified under Section 133 of the Act;
e. On the basis of written representations received from the directors as on March 312018 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2018 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"
g. In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014:
i. The Company does not have any pending litigations which would impact its financialposition except as stated otherwise.
ii. The Company did not have any long-term contracts including derivative contracts; assuch the question of commenting on any material foreseeable losses thereon does not arise.
iii. There has not been an occasion in case of the Company during the year under reportto transfer any sums to the Investor Education and Protection Fund. The question of delayin transferring such sums does not arise.
|FOR AMAR BAFNA & ASSOCIATES |
|CHARTERED ACCOUNTANTS |
|Firm Registration No: 114854W |
|Amar Bafna |
|Membership No. 048639 |
|Place: Mumbai |
|Date: 30/05/2018 |
ANNEXURE TO THE INDEPENDENT AUDITORS REPORT.
(Annexure "A" Referred to in Paragraph 1 under the heading "Report onother legal and regulatory requirements" of Our Report of Even Date.)
On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit we state that:
|Clause ||Sub Clause ||Particulars |
|1. || ||In Respect of Fixed Assets |
|(i) ||(a) ||The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets; |
| ||(b) ||The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years. In accordance with this programme certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion the periodicity of physical verification is reasonable having regard to size of the Company and the nature of its assets. |
| ||(c) ||According to the records of the company examined by us and as per the information and explanations given to us title deeds of immovable properties are held in the name of the company. |
|2. || ||As explained to us the inventory has been physically verified during the year by the directors in our opinion the frequency of verification is reasonable. No material discrepancies were observed during physical verification of inventory. |
|3. || ||According to information and explanations given to us the Company has not granted any loan secured or unsecured to companies firms or other parties covered under section 189 of the Act. Accordingly paragraph 3(iii) (a) to (c) of the said Order is not applicable to the Company and hence not commented upon. |
|4. || ||In our opinion and according to the information and explanations given to us the Company has compiled with the provisions of section 185 and 186 of the Act in respect of loans investments guarantees and security to the extent applicable to it. |
|5. || ||According to information and explanations given to us the Company has not accepted any deposits from the public covered under section 73 to 76 of the Companies Act 2013 and the rules framed there under. Therefore the provision of clause 3(v) of the Order is not applicable. |
|6. || ||To the best of our knowledge and as explained Central Government has not prescribed the maintenance of cost records under sub-section (1) of Section 148 of the Act for the products of the Company therefore the provision of clause 3(vi) of Order is not applicable to the Company. |
|7. ||(a) ||According to information and explanations given to us and on the basis of our examination of the books of account and records the Company has been generally regular in depositing undisputed statutory dues including Provident Fund Employees State Insurance Income-Tax Sales Tax Service Tax Duty of Customs Duty of Excise Value Added Tax Cess Goods and Service Tax wherever applicable any other applicable statutory dues with the appropriate authorities. According to the information and explanations given to us no undisputed amounts payable in respect of the above were in arrears as at March 31 2018 for a period of more than six months from the date on when they become payable except the following: |
| ||(b) ||According to the information and explanation given to us there are no dues of Income tax Sales tax Service tax duty of customs duty of excise value added tax Goods and Service tax outstanding on account of any dispute. |
|8. || ||Based on our audit procedures and as per the information and explanations given by the management the Company has not made any default in repayment of dues to a financial institution or any loans from banks government or has not issued debentures during the year. |
|9. || ||According to the information and explanations given to us and as per the records verified by us the Company has not raised any money during the year through initial/further public offer (including debt instruments). Therefore the provision of clause 3(ix) of the Order is not applicable to the Company. |
|10. || ||According to the information and explanations given to us and as per the records verified by us carried out in accordance with the generally accepted auditing practices in India we have neither come across any instance of fraud on or by the company or its officers noticed or reported during the year nor have we been informed of such case by the management. |
|11. || ||According to the records of the company examined by us and as per the information and explanations given to us the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act. |
|12. || ||In our opinion the Company is not a chit fund or a Nidhi/mutual benefit fund / society. Therefore the provision of clause 3 (xii) of the Order is not applicable to the Company. |
|13. || ||As per the information and explanations given during the course of our verification in our opinion all transactions with the related parties made by the company were in compliance with section 177 and 188 of the Act to the extent applicable to the company during the year the relevant details in respect of which have been appropriately disclosed in the financial statement. |
|14. || ||According to the information and explanations given to us The company has not made any preferential allotment or private placement of shares or partly convertible debentures during the year; therefore reporting under Clause (3) (xiv) of the Order is not applicable to the Company. |
|15. || ||According to the information and explanations given to us we report that the company has not entered into any non-cash transaction with directors or persons connected with him. Accordingly the provisions of clause 3(xv) of the Order are not applicable to the Company. |
|16. || ||According to the information and explanations given to us during the year the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934. |
|For Amar Bafna & Associates |
|Chartered Accountants |
|Firm Registration No. 114854W |
|Amar Bafna |
|Membership No. 048639 |
|Place: Mumbai |
|Date: 30/05/2018 |
INDEPENDENT AUDITORS' REPORT
TO THE MEMBERS OF BEST EASTERN HOTELS LIMITED
Annexure "B" to the Independent Auditor's Report of even date on theIND AS financial statements of Best Eastern Hotels 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 BestEastern Hotels Limited ("the Company") as of 31st March 2018 inconjunction with our audit of the IND AS financial statements of the Company for the yearended on that date.
Management's Responsibility for Internal Financial Controls
The Respective Board of Directors of the Company are responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India("ICAI'). These responsibilities include the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.
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") issued by ICAI and the Standards on Auditing issued byICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both issued by the Instituteof Chartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.
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 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 unauthorized 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.
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 2018 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 ICAI.
|FOR AMAR BAFNA& ASSOCIATES |
|CHARTERED ACCOUNTANTS |
|Firm Registration No: 114854W |
|Amar Bafna |
|Membership No: 048639 |
|Place: Mumbai |
|Date: 30/05/2018 |