To the Members of CKP Leisure Limited
We have audited the accompanying financial statements of CKP Leisure Limited ("theCompany") which comprise the balance sheet as at March 31 2018 the statement ofprofit and loss and the statement of cash flows for the year then ended and a summary ofsignificant accounting policies and other explanatory information.
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 principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating 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.
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 have conducted our audit in accordance with the Standards on Auditing specifiedunder section 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 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 subject to the matter described in the point (d) below; the financialstatements give the information required by the Act in the manner so required and give atrue and fair view in conformity with the accounting principles generally accepted inIndia:
a) in the case of the balance sheet of the state of affairs of the Company as at March31 2018; and
b) in the case of the statement of profit and loss of the profit for the year ended onthat date.
c) in the case of statement of cash flows of the cash flows for the year ended on thatdate.
d) The company was required to provide for gratuity liability on the basis of actuarialvaluation as required by "AS - 15 : Employee Benefits". However the company hasnot provided for the same and it will account for gratuity as an expense as and when paidto employees.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors 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 in the paragraph3 and 4 of the 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 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 and the statement of cash flowsdealt with by this report are in agreement with the books of account.
d) in our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;
e) on the basis of written representations received from the directors as on 31 March2018 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 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) with respect to the other matters to be included in Auditors Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to explanations given to us:
i. The Company does not have any pending litigations;
ii. The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses;
iii. The Company was not required to transfer any amount to Investor Education andProtection Fund.
For R T Jain & Co LLP
FRN : 103961W / W100182
(CA Bankim Jain)
Mem No. : 139447
Mumbai May 30 2018
Annexure A to the Auditors' Report
Referred to in paragraph 1 of our report of even date on the accounts of the companyfor the year ended 31st March 2018
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 report that:
i. (a) The company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.
(b) As explained to us fixed assets have been physically verified by the management ina phased manner. To the extent of physical verification details have been compared withthe book records discrepancies noticed were not material and have been properly dealtwith in the books of accounts.
(c) Based on our audit procedures and the information and explanation received by uswe report that the company does not own any immovable properties held as fixed assets.Thus no opinion on the validity of the title of the company on immovable properties isgiven.
ii. (a) As explained to us inventories have been physically verified during the yearby the management at reasonable intervals.
(b) In our opinion and on the basis of our examination of the records no materialdiscrepancy was noticed on physical verification of stocks by the management as comparedto book records.
iii. According to the information and explanations given to us and on the basis of ourexamination of the books of account the company has given security deposit of Rs.44700200/- to associate concern covered in the register maintained under Section 189 ofthe Companies Act 2013.
iv. The company has not given any loans made any investments or provided any guaranteeand security under section 185 and section 186 of Companies Act 2013.
v. In our opinion the company has not accepted any deposits within the meaning of Rule2 (b) of Companies (Acceptances of Deposits) Rules 2014.
vi. According to the information and explanations provided by the management no costrecords have been prescribed under section 148(1) of the Companies Act 2013 in respect ofproducts manufactured by the Company.
vii. (a) According to the records of the company undisputed statutory dues includingProvident Fund Investor Education and Protection Fund Employees' State InsuranceIncome-tax Sales-tax Wealth Tax Service Tax Custom Duty Excise Duty cess to theextent applicable and any other statutory dues have generally been regularly depositedwith the appropriate authorities. According to the information and explanations given tous following are the outstanding statutory dues as on 31st of March 2018 for aperiod of more than six months from the date they became payable.
|Nature of Payment ||Amount fin Rs.) |
|Service Tax ||217964/- |
|TDS ||6566/- |
|Value Added Tax ||2345599/- |
(b) According to the information and explanations given to us there is no amountspayable in respect of income tax wealth tax service tax sales tax customs duty andexcise duty which have not been deposited on account of any disputes.
viii. Based on our audit procedures and the information and explanations given by themanagement we are of the opinion that there are no dues to any financial institutionbank or debenture holders.
ix. The company had raised Rs. 37440000/- from IPO during the year which has beenutilised as under:
|Particulars ||Proposed Utilisation ||Actual Utilisation ||Balance amount to be utilised as on March 312018 |
|Setting up of a Banquet Hall at Nashik ||29778000.00 ||29543500.00 ||234500.00 |
|General Corporate Purposes ||5262000.00 ||4880500.00 ||381500.00 |
|Issue related Expenses ||2400000.00 ||2400000.00 ||- |
|TOTAL ||37440000.00 ||36824000.00 ||616000.00 |
x. Based on the audit procedures performed and the information and explanations givento us we report that no fraud on or by the Company has been noticed or reported duringthe year.
xi. According to information and explanations given to us in our opinion the companyhas paid managerial remuneration in compliance with the provisions of section 197 of theCompanies Act 2013.
xii. The Company is not a nidhi company. Therefore the provision of this clause of theCompanies (Auditor's Report) Order 2016 is not applicable to the Company.
xiii. Based on our audit procedures and on the information given by the management thecompany has complied with the sections 177 and 188 of the Companies Act 2013 for all thetransactions with the related parties and the details of such transactions have beenproperly disclosed in the financial statements as required by the applicable accountingstandards.
xiv. The Company has not made any preferential allotment of shares during the year toparties covered in register maintained under section 189 of the Companies Act 2013.
xv. The company has not entered into any non-cash transactions with directors of thecompany or its subsidiary or persons connected with them.
xvi. The Company is not required to be registered under Section 45-IA of Reserve Bankof India Act 1934.
For R T Jain & Co LLP
FRN : 103961W / W100182 Sd/-
(CA Bankim Jain)
Mem No. : 139447
Mumbai May 30 2018
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 CKP LeisureLimited ("the Company") as of March 31 2018 in conjunction with our audit ofthe 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'). 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.
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 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 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. However the Company does not haveappropriate system manuals or predefined standard operation procedure to maintain theefficacy and effectiveness of the internal financial controls throughout the year. Thusthe company does not have formal internal financial controls over financial reportingbased on our verification.
For R T Jain & Co LLP
FRN : 103961W/W100182
(CA Bankim Jain) Partner
Mem No. : 139447
Mumbai May 30 2018