Graviss Hospitality Ltd.
|BSE: 509546||Sector: Services|
|NSE: N.A.||ISIN Code: INE214F01026|
|BSE 00:00 | 25 Jan||20.20||
|NSE 05:30 | 01 Jan||Graviss Hospitality Ltd|
Graviss Hospitality Ltd. (GRAVISSHOSPITAL) - Auditors Report
Company auditors report
The Members of Graviss Hospitality Limited
Report on the Audit of the Standalone Financial Statements
We have audited the accompanying standalone financial statements ofGraviss Hospitality Limited ( the Company ) which comprise the Balance Sheet as at 31stMarch 2021 the Statement of Profit and Loss(including Other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flows for the year then endedand a summary of significant accounting policies and other explanatory information(hereinafter referred to as the financial statements ).
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 (the Act ) in the manner so required andgive a true and fair view in conformity with Indian Accounting Standards prescribed undersection 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015as amended ( Ind AS ) and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2021 and its loss total comprehensiveincome changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing (SAs) specified under section 143(10) of theCompanies Act 2013. Our responsibilities under those Standards are further described inthe Auditor s Responsibilities for the Audit of the standalone financial statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India ( ICAI ) together withthe ethical requirements that are relevant to our audit of the standalone financialstatements under the provisions of the Act and the Rules thereunder and we have fulfilledour other ethical responsibilities in accordance with these requirements and the ICAI sCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the 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 communicated in our report.
Emphasis of Matter
Without qualifying our opinion attention of the members is drawn toNote 49 & 50 to the standalone financial statement in view of the matter statedtherein relating to the accumulated losses of two subsidiaries as at 31st March 2021keeping in mind the factors stated in the Note there is no diminution in the value ofinvestments in the subsidiaries and the loans given to the subsidiaries are consideredgood of recovery.
We also draw attention to Note 54 to the standalone financialstatement which describe the possible effect of uncertainties relating to COVID-19pandemic on the Company s financial performance as assessed by the Management.
Our opinion is not modified in respect of the above matters.
Information Other than the Financial Statements and Auditor s ReportThereon
The Company s Board of Directors is responsible for the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board s Report including Annexures to Board s Report CorporateGovernance and Shareholders Information but does not include the financial statements andour auditor s report thereon.
Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.
If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.
Management s Responsibility for the Standalone Financial Statements
The Company s Board of Directors is responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the financial position financialperformance total comprehensive income changes in equity and cash flows of the Companyin accordance with the Ind AS and other accounting principles generally accepted in India.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing 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 standalonefinancial statement that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
In preparing the standalone financial statements management isresponsible for assessing the Company s ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless the management either intends to liquidate the Company or tocease operations or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing theCompany s financial reporting process.
Auditor s Responsibilities for the Audit of the Standalone FinancialStatements
Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor s report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.
Obtain an understanding of internal financial controls relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management s use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theability of the Company to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor s report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor s report. However future events or conditions maycause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the standalone financialstatements may be influenced. We consider quantitative materiality and qualitative factorsin (i) planning the scope of our audit work and in evaluating the results of our work; and(ii) to evaluate the effect of any identified misstatements in the standalone financialstatements.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters.
We describe these matters in our auditor s report unless law orregulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor s Report) Order 2016 ( theOrder ) issued by the Central Government in terms of Section 143(11) of the Act we givein Annexure A a statement on the matters specified in paragraphs 3 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 explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.
(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books
(c) The Balance Sheet the Statement of Profit and Loss (includingOther Comprehensive Income) the Cash Flow Statement and Statement of Changes in Equitydealt with by this Report are in agreement with the books of account.
(d) In our opinion the aforesaid standalone financial statementscomply with the Indian Accounting Standards prescribed under section 133 of the Act.
(e) On the basis of the written representations received from thedirectors as on 31st March 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2021 from being appointed as a director interms of Section 164(2) of the Act.
(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in Annexure B . Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company s internal financial controls overfinancial reporting.
(g) With respect to the other matters to be included in the Auditor sReport in accordance with the requirements of section 197(16) of the Act as amended Inour opinion and to the best of our information and according to the explanations given tous the remuneration paid by the Company to its managing director 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 sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 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 financialposition in its standalone financial statements - Refer Note No 35.A of the standalonefinancial statements.
(ii) The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.
(iii) There has been no delay in transferring the amounts required tobe transferred to the Investor Education and Protection Fund by the Company.
Annexure A to Auditor s Report
Annexure A to the Independent Auditor s Report of even date on theFinancial Statements of GRAVISS HOSPITALITY LIMITED for the year ended 31st March 2021
i. (a) The company has maintained proper records showing fullparticulars including quantitative details and situation of Fixed Assets.
(b) The Company has a programme of verification of fixed assets tocover all the items in a phased manner which in our opinion is reasonable having regardto the size of the Company and the nature of its assets. Pursuant to the programmecertain fixed assets were physically verified by the Management during the year. Accordingto the information and explanations given to us no material discrepancies were noticed onsuch verification.
(c) In our opinion and according to the information and explanationsgiven to us the title deeds of immovable properties are held in the name of the company.
ii. As explained to us the inventories were physically verified duringthe year by the management at reasonable intervals and no material discrepancies werenoticed on physical verification as compared to the record of inventories.
iii. According to the information and explanations given to us thecompany has not granted any loans to companies firms or other parties covered in theregister maintained under section 189 of the Companies Act 2013.
iv. The company has not granted any loans guarantees or security andhas not made investments to which the provisions of section 185 and 186 of the CompaniesAct 2013 apply.
v. In our opinion and according to the information and explanationsgiven to us the company has not accepted deposits from the public during the year.
vi. According to the information and explanations given to us theCentral Government has not prescribed maintenance of cost records under Section 148(1) ofthe Act for the Company.
vii. (a) According to the information and explanations given to us andon the basis of our examination of the records maintained by the company the company isgenerally regular in depositing with appropriate authorities undisputed statutory duesincluding provident fund employees state insurance income tax sales tax wealth taxgoods and service tax custom duty excise duty cess and other statutory dues whereapplicable.
According to the information and explanations given to us noundisputed amounts in respect of the aforesaid statutory dues were in arrears as at 31stMarch 2021 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us and therecords of the company there are no dues of sales tax / customs duty / wealth tax / goodsand service tax / excise duty / cess which have not been deposited on account of anydispute. In case of VAT there is a disputed demand of tax and penalty of Rs. 88 lacs forthe year 2010-11 which is contested before the Appellate Tribunal.
viii. On the basis of verification of records and according to theinformation and explanations given to us the Company has not defaulted in repayment ofdues to Banks. The company has not taken any loan from any financial institution or by wayof issue of debentures.
ix. In our opinion and according to the information and explanationsgiven to us the company has not raised money by way of initial public offer or furtherpublic offer during the year. In our opinion the term loans taken have been applied forthe purpose for which they were raised.
x. According to the information and explanations given to us and basedon audit procedures performed and representations obtained from the management we reportthat no fraud on or by the company has been noticed or reported during the year underaudit.
xi. According to the information and explanations given to us and basedon verification of records the managerial remuneration has been paid in accordance withthe requisite approvals mandated by the provisions of section 197 read with Schedule V ofthe Companies Act 2013.
xii. The Company is not a Nidhi Company and hence clause (xii) of theorder is not applicable.
xiii. According to the information and explanations given to us thetransactions with related parties were entered in to at reasonable rates and were approvedby the Audit Committee or the Board of Directors in compliance with sections 177 and 188of Companies Act 2013 and the details have been disclosed in the Financial Statements asrequired by applicable Indian Accounting Standard.
xiv. The company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview.
xv. According to the information and explanations given to us and basedon verification of records the company has not entered into any non-cash transactionswith directors or persons connected with him.
xvi. According to the information and explanations given to us thecompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.
Annexure B to the Independent Auditor s Report of even date on theFinancial Statements of GRAVISS HOSPITALITY LIMITED for the year ended 31st March 2021
Report on the Internal Financial Controls over Financial Reportingunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ( the Act )
We have audited the internal financial controls over financialreporting of Graviss Hospitality Limited as of March 31st 2021 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.
Management s Responsibility for Internal Financial Controls
The Company s management is 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 . 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.
Our responsibility is to express an opinion on the Company s internalfinancial controls over financial reporting of the Company based on our audit. Weconducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the Guidance Note ) issued by the Institute ofChartered Accountants of India and the Standards on Auditing prescribed under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor s judgement including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company s internal financialcontrols system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company s internal financial control over financial reporting 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 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 FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting 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 overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion to the best of our information and according to theexplanation given to us 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 March 31 2021 based on thecriteria for internal financial control over financial reporting established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India .