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Fomento Resorts & Hotels Ltd.

BSE: 503831 Sector: Services
NSE: N.A. ISIN Code: INE241E01014
BSE 13:11 | 26 Mar 108.30 -5.70
(-5.00%)
OPEN

108.40

HIGH

116.75

LOW

108.30

NSE 05:30 | 01 Jan Fomento Resorts & Hotels Ltd
OPEN 108.40
PREVIOUS CLOSE 114.00
VOLUME 191
52-Week high 140.70
52-Week low 75.05
P/E 22.42
Mkt Cap.(Rs cr) 173
Buy Price 108.30
Buy Qty 30.00
Sell Price 116.30
Sell Qty 2.00
OPEN 108.40
CLOSE 114.00
VOLUME 191
52-Week high 140.70
52-Week low 75.05
P/E 22.42
Mkt Cap.(Rs cr) 173
Buy Price 108.30
Buy Qty 30.00
Sell Price 116.30
Sell Qty 2.00

Fomento Resorts & Hotels Ltd. (FOMENTORESORTS) - Auditors Report

Company auditors report

To

The Members of

Fomento Resorts and Hotels Limited

Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of Fomento Resorts andHotels Limited ("the Company") which comprise the Balance Sheet as at March 312018 and the Statement of Profit and Loss (including Other Comprehensive Income) theCash-Flow Statement and the Statement of Changes in Equity for the year then ended and asummary of significant accounting policies and other explanatory information (hereinafterreferred to as "Ind AS financial statements")

Management's Responsibility for the Ind AS 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 preparationand presentation of these Ind AS financial statements that give a true and fair view ofthe financial position financial performance including other comprehensive income cashflows and changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) prescribedunder Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended.

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; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the Ind ASfinancial 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 Ind AS financial statements basedon our audit.

In conducting our audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder and the Orderissued under Section 143(11) of the Act.

We conducted our audit of the Ind AS financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Ind AS financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial controls relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit 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 Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the Ind AS of the state ofaffairs of the Company as at March 31 2018 and its profit including other comprehensiveincome its cash flows and the changes in equity 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 ("the Order")issued by the Central Government of India in terms of Section 143 (11) of the Act we givein the "Annexure A" a statement on the matters specified in paragraphs 3 and 4of 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 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 the Statement of Profit and Loss including Other ComprehensiveIncome the Statement of Cash-Flow and Statement of Changes in Equity dealt with thisReport are in agreement with the books of account;

d) in our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards prescribed under Section 133 of the Act;

e) on the basis of written representations received from the directors of the Companyas on March 31 2018 taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2018 from being appointed as a director in terms of Section164(2) of the Act;

f) with respect to the adequacy of internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i The Company has disclosed the impact of pending litigations on its financial positionin its financial statements - Refer Note 34 to the Ind AS financial statements;

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

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

For Sudha Suresh Pai & Associates
Chartered Accountants
Firm Regn. No. 118006W
Suresh M V Pai
Partner
Membership No. 046235
Place: Margao-Goa
Date : May 30 2018.

Annexure "A" to the Independent Auditor's Report The Annexure referred to inparagraph 1 of our report of even date to the members of Fomento Resorts and HotelsLimited for the year ended 31st March 2018:

On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we report that:

I. (a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.

(b) As explained to us considering the nature of fixed assets the same have beenphysically verified by the Management at reasonable intervals during the year which in ouropinion is reasonable. No material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

II. According to the information and explanations given to us the managementhas conducted physical verification of inventories at reasonable intervals and no materialdiscrepancies were noticed between the physical stock and book records on such physicalverification.

III. The Company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under Section 189 of the Companies Act2013 (‘the Act') and hence reporting under Clause III of the order is not applicable

IV The Company has not granted any loans made any investments or provided guaranteesand hence reporting under Clause IV of the order is not applicable.

V. According to information and explanations given to us the company has not acceptedany deposits from the public during the year.

VI. The Central Government has not prescribed the maintenance of cost records underSection 148 (1) of the Act for the Company.

VII. (a) The Company is regular in depositing with appropriate authoritiesundisputed Statutory dues including provident fund employees state insurance income taxsales tax service tax customs duty excise duty cess goods and service tax valueadded tax and other material statutory dues applicable to it. According to the informationand explanations given to us there are no undisputed amounts payable in respect of incometax service tax sales tax customs duty excise duty goods and service tax value addedtax and cess which were outstanding as at 31st March 2018 for a period of more than sixmonths from the date they became payable.

(b) According to the information and explanations given to us the following are thedisputed statutory dues which have not been deposited on account of disputed matterspending before the appropriate authorities:

(Rs. in lakhs)
Name of the Statute Nature of dues Forum where dispute is Pending Amount Period to which the amount relates
1. Expenditure Tax Act Expenditure Tax High Court of Bombay Panaji Bench Goa. Rs. 676.88 Assessment Years 1996-97 to 2002-03
2. Income Tax Act Income Tax Commissioner of Income Tax (Appeals) Panaji Goa. Rs.4.91 Assessment Year 2012-13
3. Income Tax Act Income Tax Commissioner of Income Tax (Appeals) Panaji-Goa. Rs. 5.84 Assessment Year 2013-14
4. Income Tax Act Income Tax Commissioner of Income Tax (Appeals) Panaji-Goa. Rs. 10.77 Assessment Year 2014-15
5. Income Tax Act Income Tax Commissioner of Income Tax (Appeals) Panaji-Goa. Rs. 11.56 Assessment Year 2015-16

VIII. The Company has not taken any loans from Banks/Financial institutions/Debentureholders. Hence reporting under Clause VIII of the order is not applicable.

IX. The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyclause IX of the order is not applicable.

X. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

XI. According to the information and explanations given 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 clause XII of the order is not applicable.

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 wherever applicable and the details ofsuch transactions have been disclosed in the financial statements as required by theapplicable accounting standards.

XIV According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year and hence reporting under Clause XIV of the order is not applicable.

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 any non-cashtransactions with directors or persons connected with him. Accordingly clause XV of theorder is not applicable.

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

For Sudha Suresh Pai & Associates
Chartered Accountants
Firm Regn. No. 118006W
Suresh M V Pai
Place: Margao-Goa Partner
Date : May 30 2018. Membership No. 046235

Annexure "B" to the Independent Auditor's Report

The Annexure referred to in paragraph 2 (f) of our report of even date to the membersof Fomento Resorts and Hotels Limited for the year ended 31st March 2018

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 with reference to financial statementsof Fomento Resorts and Hotels Ltd. ("the Company") as at 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 Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal controls with reference to financial statementscriteria established by the Company considering the essential components of internalcontrols stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting ("the Guidance Note") issued by the Institute of CharteredAccountants of India (‘ICAI'). These responsibilities include design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note and 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 ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls withreference to financial statements was established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to financial statements and their operatingeffectiveness. Our audit of internal financial controls with reference to financialstatements included obtaining an understanding of internal financial controls withreference to financial statements assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal controls basedon the assessed risk. The procedures selected depend on the auditor's judgment includingthe assessment of the risks of material misstatement of the Ind AS financial statementswhether due to fraud or error.

We believe that the evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls with referenceto financial statements.

Meaning of Internal Financial Controls with reference to financial statements

A company's internal financial controls with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlswith reference to financial statements includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.

Inherent limitations of internal financial controls with reference to financialstatements

Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial controls with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls with reference to financial statements and such internal financialcontrols with reference to financial statements were operating effectively as at 31stMarch 2018 based on the internal controls with reference to financial statements criteriaestablished by the company considering the essential components of internal controlsstated in the Guidance Note issued by ICAI.

For Sudha Suresh Pai & Associates
Chartered Accountants
Firm Regn. No. 118006W
Suresh M V Pai
Place: Margao-Goa Partner
Date : May 30 2018. Membership No. 046235