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Crown Tours Ltd.

BSE: 538521 Sector: Services
NSE: N.A. ISIN Code: INE969E01010
BSE 00:00 | 02 Dec 21.50 -0.70
(-3.15%)
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NSE 05:30 | 01 Jan Crown Tours Ltd
OPEN 21.15
PREVIOUS CLOSE 22.20
VOLUME 1128
52-Week high 30.95
52-Week low 17.00
P/E
Mkt Cap.(Rs cr) 7
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 21.15
CLOSE 22.20
VOLUME 1128
52-Week high 30.95
52-Week low 17.00
P/E
Mkt Cap.(Rs cr) 7
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Crown Tours Ltd. (CROWNTOURS) - Auditors Report

Company auditors report

To

the Members of

Crown Tours Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying Standalone Financial Statements of Crown Tours Limited("the Company") which comprise the Balance Sheet as at March 31 2021 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year ended on that date and asummary of the significant accounting policies and other explanatory information(hereinafter referred to as "the Standalone 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 Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards specified under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ('Ind AS") and other accounting principles generally accepted in India ofthe state of affairs of the Company as at March 312021 and its profit (including othercomprehensive income) the changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the Standalone Financial Statements in accordance with theStandards on Auditing (S As) specified under section 143( 10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the Standalone Financial Statements under the provisionsof the Act and the Rules made thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion on the Standalone Financial Statements.

Emphasis of Matter

I. We draw attention to Note No. 36 which describes the managements' assessment of theimpact of COVID-19 pandemic on the business operations of the company which has impactedits consumer demand revenues etc. As stated in the said Note based on prevailingcircumstances the management expects no significant impact of Covid-19 on the continuityof its operations on long term basis.

ii. We draw attention to Note No. 36 where company has recognised impairment provisionaggregating to Rs 32640.00 thousands against outstanding Inter Corporate loans and dueinterest in accordance with applicable Ind AS expecting a credit Impairment on accountof reasons of non- payment/non-confirmation/default/past dues and the same has beendisclosed as an exceptional item the in Statement of Profit and Loss. Due to default/pastdues/prudence and uncertainty of collection the interest for the financial year of Rs.2550.00 thousands on such loans has not been accounted for as Income.

Our opinion is not modified in respect of these matters.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Standalone Financial Statements of the current period.These matters were addressed in the context of our audit of the Standalone FinancialStatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be commun icated in our report.

Key Audit Matter Auditor's Response
Revenue From Operations: Our audit procedures to assess revenue recognition include the following:
- The Company's Revenue from sale of goods is recognized when all risks and rewards are transferred to the buyer as per the terms of the contracts and significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of goods. - Assessing the design implementation existence and operating effectiveness of internal control procedures implemented as well as test of details to ensure accurate processing of revenue transactions.
- Revenue from fixed-price contracts (rendering of services) where the performance obligations are satisfied over time and where there is no uncertainty as to measurement or collectability of consideration is recognized as per the percentage- of-completion method. When there is uncertainty as to measurement or ultimate collectability revenue recognition is postponed until such uncertainty is resolved. - Performing analytical procedures on revenue by developing an expectation for each type of revenue using independent inputs and information generated from company's ERP system and comparing such expectations withrecorded revenue.
- Revenue is an important measure used to evaluate the performance of the Company. There is a risk that the revenue is presented for amounts higher than what has been actually generated by the Company. Consequently we considered revenue recognition to be a significant key audit matter. - Inspecting underlying documentation for any book entries which were considered to be material or met other specified risk-based criteria on a sample basis.
- Inspecting the key terms and conditions of agreements with maj or customers on a sample basis to assess if there were any terms and conditions that may have affected the accounting treatment of the revenue recognition.
The accuracy and completeness of revenue was verified through cut-off test analytical reviews and balance confirmation.
Inventories We understood and tested the design and operating effectiveness of controls as established by the management in determination ofNet Realizable value of Inventory of precious/ Semi- precious Stones (Gems and Jewellery).
The inventory of Precious/SemiPrecious Stones (Gems and Jewellery) is valued at lower of Cost and Net Realizable Value. We have considered the value of Inventory of precious/ semiprecious stones (Gems and Jewellery) as a key audit matter given the relative size of Balance Sheet in the Financial Statements and significant judgment involved in the consideration of factors to determination ofNet Realizable Valu We considered various factors including the actual selling price prevailing around and subsequent to the year end and our related aspects. Based on the above procedure performed the management's determination of the Net Realizable Value of the inventory of Precious and Semi- precious stones (Gems and Jewellery) as at the yearend in comparison with the cost for valuation of inventory if considered to be reasonable

Information Other than the Standalone Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the Board'sReport including Annexures to Board's Report Management Discussion & Analysis Reportand Other Company Related Information but docs not include the Standalone FinancialStatements and our auditor's report thereon. The other information is expected to be madeavailable to us after the date of this Auditor's Report.

Our opinion on the Standalone Financial Statements does not cover the other informationand we will not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial Statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the Standalone Financial Statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated.

When we read the Other Information if we conclude that there is a materialmisstatement therein we arc required to communicate the matter to those charged withgovernance and take appropriate actions if required.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance total comprehensiveincome changes in equity and cash flows of the Company in accordance with the Ind AS andother accounting principles generally accepted in India. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Standalone Financial Statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

In preparing the Standalone Financial Statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the StandaloneFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis ahigh level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Standalone Financial Statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the StandaloneFinancial Statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as agoing concern.

• If we conclude that a material uncertainty exists we are required to drawattention in our auditor's report to the related disclosures in the Standalone FinancialStatements or if such disclosures arc inadequate to modi fy our opinion. Our conclusionsare based on the audit evidence obtained up to the date of our auditor's report. Howeverfuture events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the StandaloneFinancial Statements including the disclosures and whether the Standalone FinancialStatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the Standalone Financial Statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidenti tied misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identi fy during our audit. We alsoprovide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Standalone Financial Statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1) As required by the Companies (Auditor's Report) Order 2016f‘the order) issuedby the Central Government in terms of Section 143(11) of the act we give in"Anncxure I" a statement on the matters specified in paragraph 3 and 4 of theOrder.

2) As required by section 143(3) of the Act based on our audit we report:

(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 accounts as requ i red by law have been kept by theC ompany 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 relevant books of account.

(d) In our opinion the aforesaid Standalone Financial Statements comply with the IndAS 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 March312021 and taken on record by the Board of Directors none of the Directors are disqual ilied as on March 312021 from being appointed as a director in terms of section 164 (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 rc fcr Annex ure' 11' to this report.

(g) With respect to the other matter to be included in the Auditor's Report inaccordance with the requirements of section 197( 16) of the Act as amended:

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.

(h) 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 Standalone Financial Statements. (Refer Note No. 29 of StandaloneFinancial Statements)

ii) There are no long term contracts for which provision is required under theapplicable law on accounting standard for material forcible losses.

iii) There are no amounts which are required to be transferred to the InvestorEducation and Protection Fund by the Company.

ANNEXURE T TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'section of our report to the Members of Crown Tours Limited of even date)

i. Inrespect of the Company's fixed assets:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets (Property Plant & Equipment).

(b) The fixed assets (Property Plant & Equipment) have been physically verified bythe management at reasonable intervals. According to the information and explanationsgiven to us no material discrepancies were noticed on such verification.

(c) The Company does not own any immovable property: hence this clause is notapplicable.

ii. In respect of services rendered by the Company of tourism it does not hold anyphysical inventories in respect of such tourism business. The company has also dealt inGems and Jewellery during the year the inventory thereof has been physically verifiedduring the year at reasonable intervals by management. As informed to us no materialdiscrepancies have been noticed on such verification.

iii. The Company has not granted any loans secured or unsecured to any companiesfirms limited liability partnership or other parties covered in register maintained underSection 189 of the Compan i cs Act 2013.

iv. The company has complied with the provisions of section 186 of the Companies Act2013 in respect of short term Loans given. No loans have been given to parties coveredunder section 185 of the Companies Act 2013. The company has not given any guarantee orprovided any security to any party covered under section 185 or 186 of the Companies Act2013.

v. The company has not accepted deposits from the public within the meaning of Sections73 to 76 of the Companies Act 2013 and the rules made there under hence this clause isnot applicable.

vi. The maintenance of cost records has not been prescribed by the Central Governmentunder section 148(1) of the Companies Act 2013 for any of the services rendered by theCompany. Thus reporting under clause 3(vi) of the order is not applicable to the Company.

vii. (a) According to records of the Company undisputed statutory dues includingProvident

Fund Income Tax Sales Tax Service Tax Duty of Customs Duty of Excise Value AddedTax Goods and Service Tax Cess and other statutory dues have generally been regularlydeposited with the appropriate authorities. According to the information and explanationsgiven to us no undisputed amounts payable in respect of the aforesaid dues wereoutstanding as at March 312021 for a period more than six months from the date ofbecoming payable.

(b) According to the information and explanations given to us there were no dues inrespect of Income Tax Duty of Excise Duty of Customs Sales Tax Service Tax ValueAdded Tax and Goods and Service Tax which have not been deposited on account of anydispute.

viii. In our opinion and according to the information and explanations given to us theCompany has not made any borrowings from financial institutions banks or debentureholders.

ix. The Company has not raised any money by way of initial public offer or furtherpublic offer.

x. To the best of our knowledge and according to the information and explanations givento us no fraud by the Company or no material fraud on the Company by its officers oremployees has been noticed or reported during the year.

xi. In our opinion and according to the information and explanations given to us theCompany has paid/provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act.

xii. The Company is not a Nidhi Company and hence reporting under clause 3 (xii) of theOrder is not applicable to the Company.

xiii. The Company has complied with Section 177 and 188 ofthe Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the Standalone Financial Statements as required by theapplicable Indian Accounting Standards.

xiv. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly paid convertible debentures and hence reportingunder clause 3 (xiv) of the Order is not applicable to the Company.

xv. The Company has not entered into any non-cash transactions with its Directors orpersons connected to its directors and hence provisions of section 192 of the CompaniesAct 2013 are not applicable to the Company.

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

Annexure "II" forming part of Independent Auditor's Report

Referred to in Paragraph 2 (f) under "Report on Other Legal and RegulatoryRequirements" section of our report on even date to the members of CROWN TOURSLIMITED on the Standalone Financial Statements for the year ended 31st March2021.

Report on the Internal Financial Controls with reference to Standalone FinancialStatements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013("the Act").

We have audited the Internal Financial Controls with reference to Standalone FinancialStatements of Crown Tours Limited ("the Company") as of March 31 2021 inconjunction with our audit of the Financial Statements of the Company for the year endedon that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining InternalFinancial Controls with reference to Standalone Financial Statements based on the internalcontrol established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India. 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 with reference to Standalone Financial Statements based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the "Guidance Note") and the Standards onAuditing issued by ICAI and deemed to be prescribed under section 143( 10) of theCompanies Act 2013 to the extent applicable to an audit of Internal Financial Controlsboth applicable to an audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India. Those Standards and the Guidance Note requirethat 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 with reference to Standalone Financial Statementsand their operating effectiveness. Our audit of Internal Financial Controls with referenceto Standalone Financial Statements included obtaining an understanding of InternalFinancial Controls with reference to Standalone Financial Statements 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 IInancial 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 with reference to Standalone FinancialStatements

A company's internal financial control with reference to Standalone FinancialStatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of Standalone Financial Statements for externalpurposes in accordance with generally accepted accounting principles. A company's internalfinancial control with reference to Standalone Financial Statements includes thosepolicies 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 Standalone Financial Statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorizations of management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to StandaloneFinancial Statements

Because of the inherent limitations of Internal Financial Controls with reference toStandalone Financial Statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the Internal FinancialControls with reference to Standalone Financial Statements to future periods are subjectto the risk that the internal financial control with reference to Standalone FinancialStatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanation givento us the Company has in all material respects an adequate Internal Financial Controlssystem in place with reference to Standalone Financial Statements and such InternalFinancial Controls with respect to Standalone Financial Statements were operatingeffectively as at March 31 2021 based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India.

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