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Hotel Rugby Ltd.

BSE: 526683 Sector: Services
NSE: HOTELRUGBY ISIN Code: INE275F01019
BSE 00:00 | 07 Aug 1.36 0
(0.00%)
OPEN

1.36

HIGH

1.36

LOW

1.36

NSE 00:00 | 20 Aug 1.15 0
(0.00%)
OPEN

1.15

HIGH

1.15

LOW

1.15

OPEN 1.36
PREVIOUS CLOSE 1.36
VOLUME 500
52-Week high 2.78
52-Week low 1.08
P/E
Mkt Cap.(Rs cr) 2
Buy Price 1.48
Buy Qty 18.00
Sell Price 1.36
Sell Qty 65.00
OPEN 1.36
CLOSE 1.36
VOLUME 500
52-Week high 2.78
52-Week low 1.08
P/E
Mkt Cap.(Rs cr) 2
Buy Price 1.48
Buy Qty 18.00
Sell Price 1.36
Sell Qty 65.00

Hotel Rugby Ltd. (HOTELRUGBY) - Auditors Report

Company auditors report

To the Members of Hotel Rugby Limited

Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of Hotel Rugby Limited ("theCompany") which comprise the Balance Sheet as at 31 March 2018 the Statement ofProfit and Loss including the statement of Other Comprehensive Income the Statement ofChanges in Equity and the Cash Flow Statement 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 stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) specified undersection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 and theCompanies (Indian Accounting Standards) Rules 2015 as amended.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and the design implementation and maintenance of adequateinternal financial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Ind AS financial 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. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made thereunder.

We conducted our audit of the Ind AS financial statements in accordance with theStandards on Auditing issued by the Institute of Chartered Accountants of India asspecified under Section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the 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's judgment including the assessment ofthe risks of material misstatement of the Ind AS financial statements whether due tofraud or error. In making those risk assessments the auditor considers internal financialcontrol relevant to the Company's preparation of the Ind AS financial statements that givea true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the Ind AS financialstatements.

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.

Emphasis of Matter

We draw attention to Note 31.1.A.(ii) of the financial statements which states that thecompany has adopted IND AS for the financial year commencing from April 1 2017 andaccordingly the financial statements have been prepared by the Company's management incompliance with IND AS. Our opinion is not modified in respect of this matter.

Basis for qualified opinion

(a) During the year the company has not given any loans or advances. Further no freshinvestment was made. However for the Loans and advances already given the Company hastaken the fresh approval u/s 186 of the Companies Act 2013 by way of a Special Resolutionpassed at the EGM held on March 28 2018. Hence there was a delayed compliance of section186 of the Companies Act 2013 during the year.

(b) We are unable to verify the non current investments amounting to Rs. 400000 (ReferNote No. 1) and the valuation thereof as the supporting evidences for the same has notbeen produced for our verification.

(c) The accounts are prepared on going concern basis though all the fixed assets of thecompany have been disposed off long back (Refer note no. 20).

(d) The investments in Equity Instruments are not valued at Fair Value through Profit& Loss or Fair Value thorough Other Comprehensive Income as required by IND AS 109.

Opinion

Subject to the matters specified in the basis for qualified opinion stated as above inour opinion and to the best of our information and according to the explanations given tous the Ind AS financial statements give the information required by the Act in the mannerso required and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2018& its loss including other comprehensive income its cash flows and the changes inequity for the year ended on that date.

Other Matter

The comparative financial information of the Company for the year ended March 31 2017and the transition date opening balance sheet as at April 1 2016 included in there Ind ASFinancial Statements are prepared by the management in accordance with Ind AS are basedon the statutory financial statements prepared in accordance with the Companies(Accounting Standard ) Rules 2006 which financial statements for the relevant periodswere audited by us. Adjustments made to these previously issued said financial informationprepared in accordance with the Companies (Accounting Standards) Rules 2006 to complywith Ind AS have been audited by us.

Our opinion on the Ind AS financial statements and our report on Other Legal andRegulatory Requirements below is not modified in respect of these matters and thefinancial information certified by the Management.

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 specifiedin 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 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 it appears from our examination of those books;

(c) The Balance Sheet Statement of Profit and Loss including the Statement of OtherComprehensive Income the Statement of Changes in Equity and Cash Flow Statement dealtwith by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid Ind AS financial statements comply with theAccounting Standards specified under section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended;

(e) On the basis of written representations received from the directors as at 31 March2018 and taken on record by the Board of Directors none of the directors is disqualifiedas at 31 March 2018 from being appointed as a director in terms of section 164 (2) ofthe Act;

(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" to this report;

(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 in our opinion and to the best of ourinformation and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its Ind AS financial statements.

ii. The Company is not required to make any provisions as required under theapplicable law or accounting standards for material foreseeable losses if any as thereare no long-term contracts including derivative contracts entered by the company;

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

For R K Patni & Co.

Chartered Accountants

(Firm's Registration No. 131257W)

R K Patni

Proprietor

(Membership No. 43947)

Place : Mumbai

Dated: 29 May 2018

ANNEXURE "A" OF THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the Ind AS financial statements for the year ended 31 March 2018 we report that:

1. The Company does not have any fixed assets. Therefore clause 3 (i)(a) 3(i)(b) and3(i)(c) of the Order are not applicable to the company.

2. The Company is not dealing in any goods and therefore there is no inventory held bythe company. Therefore Clause 3 (ii)(a) and 3(ii)(b) of the Order are not applicable tothe company.

3. The Company has not granted any loans secured or unsecured to companies firms LLPor other parties covered in the registered maintained under Section 189 of the CompaniesAct 2013. Accordingly Clause 3 (iii)(a) 3(iii)(b) and 3(iii) (c) of the Order are notapplicable to the company.

4. In our opinion and according to information and explanations given to us theCompany has complied with provisions of Section 185 and 186 of the Act in respect of grantof loans investments guarantees and securities as applicable.

5. The company has not accepted any deposits covered under the directives issued by theReserve Bank of India and the provisions of sections 73 to 76 or any other relevantprovisions of the Act and the rules framed thereunder. No order has been passed by CompanyLaw Board or National Company Law Tribunal or Reserve Bank of India or any court or anyother tribunal to be complied by the company.

6. As per the information and explanations given to us the Central Government has notspecified maintenance of cost records under sec 148 (1) of Companies Act 2013 for thecompany. Accordingly Clause 3(vi) of the Order is not applicable to the company.

7. In our opinion and according to the information and explanations given to us:

(a) the company is generally regular in depositing undisputed statutory dues with theappropriate authorities including income tax and there are no arrears of outstandingstatutory dues as at the last day of the financial year concerned for a period of morethan six months from the date they become payable. The Company is not liable for Providentfund Employees State Insurance fund sales tax service tax duty of custom duty ofexcise value added tax cess or any other statutory dues.

(b) according to the records of the company and information and explanations given tous the dues of income tax or sales tax or service tax or duty of customs or duty ofexcise or value added tax which have not been deposited on account of any dispute are asunder:

Name of Statute Nature of the dues *Amount (In Rs.) Period to which amount relates Forum where the pending Dispute is
Finance Act 1994 Interest on Service tax Penalty on Service tax 707394 October 2004 to July 2006 Commissioner Mumbai (Appeals)
1641776

*Rs.234917 has been deposited against the above disputed liabilities

8. In our opinion and according to the information and explanations given to usthe company has not taken any loans from any financial institution banks government orissued any debentures. Therefore Clause 3 (viii) of the Order is not applicable to thecompany.

9. In our opinion and according to the information and explanations given to usthe company has neither raised any money by way of initial public offer or further publicoffer nor taken any term loans. Therefore Clause 3 (ix) of the Order is not applicable tothe company.

10. As per the information and explanations given to us no fraud by the company oron the company by its officers and employees has been noticed or reported during the year.

11. As per the information and explanations given to us no managerial remunerationhas been paid by the company during the year.

Therefore Clause 3 (xi) of the Order is not applicable to the company.

12. In our opinion and according to the information and explanations given to usthe company is not a Nidhi Company and therefore Clause 3 (xii) of the Order is notapplicable to the company.

13. As per the information and explanations given to us all transaction with therelated party is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable and the details have been disclosed in the financial statements as required bythe applicable accounting standard.

14. In our opinion and according to the information and explanations given to usthe company has not made any preferential allotment or private placement of shares orfully or partly convertible debentures during the year under review. Therefore Clause 3(xiv) of the Order is not applicable to the company.

15. In our opinion and according to the information and explanations given to usthe company has not entered into any non-cash transaction with a director or any personconcerned with him. Therefore Clause 3 (xv) of the order is not applicable to thecompany.

16. In our opinion and according to the information and explanations given to usthe company's financial assets are not more than 50 per cent of its total assets (nettedoff by intangible assets if any) though the income from financial assets is more than 50per cent of the gross income. Since the company does not fulfill both the conditions thecompany is not required to be registered under Section 45 IA of Reserve Bank of India Act1934.

FOR R. K. Patni & Co.

Chartered Accountants

Firm Registration no. 131257W

R K Patni

Proprietor

Membership No. 043947

Place: Mumbai

Date: 29th May 2018

ANNEXURE "B" OF THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 (f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

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 Hotel RugbyLimited ("the Company") as of 31 March 2018 in conjunction with our audit of theInd AS 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'). 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 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting 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 standalone Ind AS 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 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 financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations 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 FinancialControls Over Financial Reporting Because of the inherent limitations of internalfinancial controls over financial reporting including the possibility of collusion orimproper management override of controls material misstatements due to error or fraud mayoccur and not be detected. Also projections of any evaluation of the internal financialcontrols over financial reporting to future periods are subject to the risk that theinternal financial control over financial reporting may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay 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 over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31 March 2018 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

FOR R. K. Patni & Co.

Chartered Accountants

Firm Registration no. 131257W

R K Patni

Proprietor

(Membership No. 043947)

Place: Mumbai

Date: 29th May 2018