The Members of India Tourism Development Corporation Limited
Revised Report on the Audit of the Standalone Financial Statements
Our report dated 30th July 2020 on the Standalone financial statements for the yearended 31st March 2020 has been revised to give effect to the observations made by theComptroller & Auditor General of India in the supplementary audit carried out by themunder Section 143(6)(a) of the Companies Act 2013.
We have audited the Standalone financial statements of India Tourism DevelopmentCorporation Limited ("the Company") which comprise the Balance Sheet as at March31 2020 the Statement of Profit and Loss (including Other Comprehensive Income)Statement of Changes in Equity and Statement of Cash Flows for the year then ended andnotes to the financial statements including a summary significant accounting policies andother explanatory information (hereinafter referred to as "the Standalone FinancialStatements"). 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 sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs (financial position) of the Companyas at March 31 2020 and its profit (financial performance including other comprehensiveincome) changes in equity and its . cashflowsforthe year ended onthat date
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditors' Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India (ICAI) togetherwith the ethical requirements that are relevant to our audit of the Standalone FinancialStatements under the provisions of the Act and the Rules there under and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate basis for our opinion.
Emphasis of Matter
We draw attention to the following notes on the Standalone Financial Statements beingmatters pertaining to India Tourism Development Corporation Limited requiring emphasis byus: i) The Company does not collate maintain and present the details of dues to itsvendors who are registered under Micro Small and Medium Enterprises Development (MSMED)Act 2006. Hence correctness of provision for interest if any on outstanding dues toMSME could not be verified and we are unable to determine whether there was delay inmaking payment to such entities in accordance with section 22 of the Micro Small andMedium Enterprises Development (MSMED) Act 2006. (Refer point no. 27 to note no. 39 ofthe Standalone Financial Statements) ii) Unlinked Receipts of Rs 80.57 lakh on account ofreceipts from debtors against billing by the Company which could not be matched with theamount standing to the debit of the receivables is appearing as liabilities "Advancefrom
Customers" in the financial statements of the Company. To that extent the tradereceivables and current liabilities are overstated. (Also refer foot note to note no. 26of the Standalone Financial Statements). iii) The Company does not follow a system ofobtaining confirmations and performing reconciliation of balances in respect of amountreceivable from trade receivables deposits with Government departments and others amountrecoverable from suppliers employees and other parties and amount payable to tradepayables Government Department and other parties. Accordingly amount receivable from andpayables to various parties are subject to confirmation and reconciliation. Pending suchconfirmation and impact thereof on the Standalone Financial Statements are notascertainable and quantifiable. (Also refer point no. 1 to note no. 39 of the StandaloneFinancial Statements). iv) TDS Receivable in respect of years prior to F.Y. 2018-19amounting to Rs 3925.52 lakh is appearing in the books as on March 31 2020 for which noreconciliation is available. Further year wise details of assessments completed andadjustment of provision for tax in respect of completed assessments has not beenmaintained. (Refer point no. 2 to the footnote of note no. 13 of the Standalone FinancialStatements). v) On account of non-finalization of issue of compensation payable to thecompany for loss of business opportunity arising due to decision of the Government ofIndia for closure of operation of Hotel Janpath New Delhi w.e.f. 30.10.2017 and handingover the property to the Ministry of Urban Development the sum of Rs 585.74 lakh paid toemployees for VRS is being shown as recoverable from the government as on 31.03.2020.(Refer point no. 1 to the footnote of note no. 13 of the Standalone Financial Statements).vi) The impact of loss/shortage/wastage due to non-reconciliation of the result ofphysical verification carried out for fixed assets with the books of accounts on thefinancial statements of the Company remains indeterminate.
vii) The consumption of stock of stores crockery cutlery etc. has been worked out bythe Company by adding to the opening balances purchases made during the year and deductingtherefrom the closing balance at the year-end based on physical verification of theinventories valued as per the accounting policy of the Company. Accordingly separateimpact of the loss/shortage/wastage included in the consumption thereof in the financialthestatements of the Company remains indeterminate. (Refer point no. 3 to note no. 39 ofthe Standalone Financial Statements). viii) A fire accident occurred at Unit of ITDC DFSChennai on April 27 2020. Company filed an Insurance claim for the loss of stock andproperty plant & equipment at the site cause was stated as electrical short circuit.The same is under investigation. Proclaim surveyors and loss adjusters were appointed assurveyors by the Insurer (National Insurance Company Limited) the amount claimed by theCompany amounts to Rs 58.41 lakh. (Refer point no. 12 to note no. 39 of the StandaloneFinancial Statements). ix) Due to Covid-19 we were not able to physically observe thephysical verification of inventory that out carried out by the management at the year end.We however performed alternate procedures to obtain audit evidence as prescribed in the SA501 "Audit Evidence-Specific Consideration for Selected Items". x) At AshokInternational Trade Division (AITD-A unit of ITDC) the sum of Rs 160.97 lakh paid in theyear 2006-07 as security deposit in the form of fixed deposit (FD) receipt in favour ofDelhi International Airport Private Limited (DIAL) is being shown as recoverable. Its FDwas encashed during 2007-08 by DIAL on account of service tax charged by DIAL in billingof service provided to the Company. This is being disputed by the Company on the groundthat their service was not liable for service tax and they are hopeful of its recovery.(Please refer point no. 1 to note no. 38 of the Standalone Financial Statements). xi) InAshok Consultancy and Engineering Services (ACES-A unit of ITDC) out of total 69projects 51 projects were completed/ closed but not closed in the books of accounts asfinal bills were reportedly not received/ settled. (Refer point no. 20 of note no. 39 ofthe Standalone Financial Statements). xii) In respect of Ashok Tours & Travels(ATT-Chennai-A unit of ITDC) out of total amount of Rs 200 lakh appearing in their booksas "Advance Others" being amount deposited with "The Registrar GeneralHigh Court Chennai 104" an amount of Rs 100 lakh has been withdrawn by the landladyas per the court order dated 25.09.2019 the same has been booked as expense during thecurrent financial year. (Refer point no. 3 to note no. 38 of the Standalone FinancialStatements). xiii) There has been an incidence of theft at Hotel Jammu Ashok (A unit ofITDC) on May 09 2020 the same is evidenced by the FIR dated May 11 2020 wherein theftof inventory has been reported however the amount had been later recovered. (Refer pointno. 13 to note no. 39 of the Standalone Financial Statements). xiv) The management of theCompany has availed the benefit of Sabka Vishwas
(Legacy Dispute Resolution) Scheme 2019 (SVLDRS) in respect of pending service taxdisputes in relation to its units wherein the dispute was settled for Rs 28.84 lakh.(Refer point no.11 to note no. 39 of the Standalone Financial Statements).
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 communicated in our report:
|Sl. Key Audit Matter ||How our audit addressed the |
|No. ||Key Audit Matter |
|1. Deferred Tax Asset: ||Deferred Tax Asset: |
|The Company has recognised deferred tax asset. The recoverability of this deferred tax asset is dependent upon the generation of sufficient future taxable profit to utilise such entitlement within the stipulated period prescribed under the Income Tax Act 1961. ||We have assessed the management's judgement relating to the forecasts of future revenue taxable profits and evaluated the reasonableness of the considerations/ assumptions underlying the preparation of these forecasts. |
|We identified this as a key audit matter because significant judgement isrequired in forecasting future taxable profits for recognition of deferred tax asset. ||Based on the above procedures performed the recognition and measurement of deferred tax asset relating to MAT credit entitlement are considered adequate and reasonable. |
|2. Contingent Liabilities : ||Deferred Tax Asset: |
|There are various litigations pending before various forums against the Company and management's judgement is required for estimating the amount to be disclosed as contingent liability. ||We have obtained an understanding of the Company's internal instructions and procedures in respect of estimation and disclosure of contingent liabilities and adopted the following audit procedures: |
|We identified this as a key audit matter because the estimates on which these amounts are based involve a significant degree of management judgement in interpreting the cases and it may be subject to management bias. ||- understood and tested the design and operating effectiveness of controls as established by the management for obtaining all relevant information for pending litigation cases; |
|Refer note no. 38 of the Standalone Financial Statements. ||- discussing with management any material developments and latest status of legal matters; |
| ||- read various correspondences and related documents pertaining to litigation cases produced by the management and relevant external legal opinions obtained by the management and performed substantive procedures on calculations supporting the disclosure of contingent liabilities; |
| ||- examining management's judgements and assessments whether provisions are required; |
| ||- considering the management assessments of those matters that are not disclosed as the probability of material outflow is considered to be remote; |
| ||- reviewing the adequacy and completeness of disclosures; |
| ||Based on the above procedures performed the estimation and disclosures of contingent liabilities are considered to be adequate and reasonable. |
|3. Discontinued Operations and Assets ||Discontinued Operations and Assets Held |
|Held for Sale: ||for Sale: |
|Assets of the Company continue to be held for sale and discontinued operations as at the balance sheet date. ||We analyzed the management's estimate of realizable value. |
|Refer to note no. 36 and point no. 16 to note no. 39 of Standalone Financial Statements. ||Based on our procedures we noted no exceptions and consider management's approach and assumptions to be reasonable. |
|4. Uncertain Taxation Matters ||Uncertain Taxation Matters |
|The Company has material uncertain tax matters under dispute which involves significant judgement to determine the possible outcome of these disputes. ||We assessed the management's underlying assumptions in estimating the tax provision and the possible outcome of the disputes. |
|Refer note no. 38 of the Standalone Financial Statements. ||We also considered legal precedence and other rulings including in the Company's own case in evaluating management's position on these uncertain tax positions. |
|5. Investments in Subsidiaries ||Uncertain Taxation Matters |
|The Company holds investments in Subsidiaries of Rs 927.98 lakh (equity and preference) out of which investments of Rs 846.38 lakh (equity and preference) pertains to Subsidiaries which has significant subsidiaries are currently under disinvestment. ||We assessed the management's assumptions and the past trends wherein the amount received on disinvestment by the Company were much more than the amount originally invested in the said accumulated subsidiary Companies. losses. These |
|Refer footnote to note no. 3 of the Standalone Financial Statements. ||As a result of aforesaid we agree with the management that the carrying values of these investments held by the Company are supportable in the context of Company's Financial Statements. |
We did not audit the Financial Statements of 29 branches included in the StandaloneFinancial
Statements of the Company whose Financial Statements reflected total assets of Rs16004.33 lakh as at March 31 2020 and total revenue of Rs 18388.68 lakh for the yearended on that date as considered in the Standalone Financial Statements of these brancheshave been audited by the respective branch auditors whose reports have been furnished tous and our opinion in so far as it relates to the amounts and disclosure included inrespect of these branches is based solely on the report of such branch auditors.
Information Other than the Standalone Financial Statements and Auditors' 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
Management Discussion and Analysis Board's Report including Annexures to Board'sReport Business Responsibility Report Corporate Governance and Shareholder'sInformation but does not include the
Standalone Financial Statements and our auditors' report thereon. Our opinion on theStandalone Financial Statements does not cover the other information and we do not expressany form of assurance conclusion thereon. In connection with our audit of the StandaloneFinancial Statements our responsibility is to read the other information and in doingso consider whether the other information is materially inconsistent with the StandaloneFinancial Statements or our knowledge obtained during the course of our audit or otherwiseappears to be materially misstated. If based on the work we have performed we concludethat there is a material misstatement of this other information; we are required to reportthat fact. We have 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 stated in Section134(5) of the Act with respect to the preparation of these Standalone Financial Statementsthat give a true and fair view of the financial positionfinancial performance totalcomprehensive income changes in equity and cash flows of the Company in accordance withaccounting principles generally accepted in India including the
Indian Accounting Standards (Ind AS) prescribed under
Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively completeness of the accountingrecords relevant to the preparation and presentation of the Standalone
Financial Statements 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 is responsible forassessing the
Company's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so. The Board of Directors is also responsible for overseeing theCompany's financial reporting process.
Auditors' Responsibility 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 auditors' report that includes our opinion. Reasonable assuranceis a high 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 Standalone Financial
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 control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate Internal Financial Controls with respect to
Standalone Financial Statements in place and the operating effectiveness of suchcontrols.
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 a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditors' report to the related disclosures inthe Standalone Financial Statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditors' report. However future events or conditions may cause the Company to cease tocontinue as a going concern.
Evaluate the overall presentation structure and content of the Standalone Financial
Statements including the disclosures and whether the Standalone Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation. Materiality is the magnitude of misstatements in the Standalone FinancialStatements that individually or in aggregate makes it probable that the economicdecision of a reasonably knowledgeable user of the Standalone Financial Statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the Standalone FinancialStatements.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant including any significant controlthat we identify during our audit. We also provide those charged with governance with astatement that we have complied with relevant ethical requirements regarding independenceand to communicate with them all relationships and other matters that may reasonably bethought to bear on our independence 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 Statements of the current period and are therefore the key auditmatters. We describe these matters in our auditors' report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors'
Report) Order 2016 ("the Order") issued by the Central Government of Indiain terms of sub-section (11) of section 143 of the Act and on the basis of such checks ofthe books and records of the Company as we considered appropriate and according to theinformation and explanations given to us we give in the Annexure 1' a statement onthe matters specified in paragraphs 3 and 4 of the said
2. We are enclosing our report in terms of Section 143(5) of the Act on the basis ofsuch checks of the books and records of the Company as we considered appropriate andaccording to the information and explanations given to us in the Annexure 2' ondirections and sub-directions issued by the Comptroller and Auditor General of India.
3. As required by Section 143(3) of the Act we report that: (a) We have sought andobtained all the audit findings information and explanations which to deficiencies ininternal 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 have been kept by theCompany so far as it appears from our examination of those books. c) The Balance Sheetthe Statement of Profit and Loss (including Other Comprehensive Income) the Statement ofChange in Equity and the Statement of Cash Flow dealt with by this Report are in agreementwith the books of account. d) In our opinion the aforesaid Standalone FinancialStatements comply with the Indian Accounting Standards specified under Section 133 of theAct read with the Companies (Indian Accounting Standards) Rules 2015 as amended. e)Being a Government Company pursuant to June 5 2015 issued by the Ministry of CorporateAffairs Government of India provisions of sub-section (2) of Section 164 of the Act arenot applicable to the Company. f) With respect to the adequacy of the internal financialcontrols over financial reporting of the Company and the operating controls refer to ourseparate Report in Annexure 3'. g) As per Notification No. GSR 463(E) dated June 052015 issued by the Ministry of Corporate Affairs Government of India Section 197 of theAct is not applicable to the Government Companies.
Accordingly reporting in accordance with requirement of provisions of section 197(16)of the Act is not applicable on the Company. h) With respect to the other matters to beincluded in the Auditors' Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 in our opinion and to the best of our information and according tothe explanations given to us: i) i.the Company has disclosed the impact of pendinglitigations on its financial position in its
Standalone Financial Statements. Refer Note No. 38 to the
Standalone Financial Statements; ii. the company did not have any long-term contractincluding derivative contracts for which there were any material foreseeable losses; andiii. there has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.
| ||For Agiwal & Associates |
| ||No. GSR 463(E) dated Chartered Accountants |
| ||(FRN. No. 000181N) |
|UDIN: 20080475AAAADM7455 (CA P. C. Agiwal) || |
|Place: New Delhi ||Partner |
|Date: November 6 2020 ||Membership No. 080475 |
"Annexure 1" to the
Independent Auditor's Report
Referred to in paragraph 1 under Report on Other
Legal and Regulatory Requirements' section of our report of even date to the members ofIndia Tourism Development Corporation Limited on the Standalone FinancialStatements for the year ended on March 31 2020
1. In respect of its fixed assets:
a) Company has generally maintained proper records showing full particularsincluding quantitative details and situation of fixed assets except in few units/brancheswhere records were incomplete in respect of quantitative details situation etc.
|S. No. Name of the Unit/Branch |
|1. Hotel Ashok |
|2. ATT Kolkata |
|3. DFS Kolkata |
|4. DFS Paradip |
|5. ATT Patna |
|6. DFS Haldia |
|7. Hotel Kalinga Ashok |
|8. Ashok International |
|Trade Division |
|9. Ashok Consultancy and |
|Engineering Services |
|10. Ashok Event |
|11. Ashok Institute of Hospitality & Tourism Management |
|12. Western Court |
b) The Company has a regular programme of physical verification of all the fixedassets which in our opinion is reasonable having regard to the size of the Company andthe nature of its assets. No material discrepancies were noticed on such verificationexcept in the below mentioned units:
|S. No. Name of the Unit/Branch |
|1. ATT Chennai |
|2. DFS Chennai |
|3. DFS Cochin |
|4. DFS Ennore |
|5. DFS Kakinada |
|6. DFS Krishnapatnam Port Trust |
|7. DFS Tuticorin |
|8. DFS Vishakapatnam Port Trust |
|9. ATT Kolkata |
|10. DFS Paradip |
|11. DFS Kolkata |
|12. DFS Haldia |
|13. Ashok Event |
|14. Ashok Institute of Hospitality & Tourism Management |
|15. Western Court |
(c) The title deeds of immovable properties in following cases are not held in the nameof the company:
| || || ||(Rs in lakh) |
|S. Name of ||Particulars ||Gross Block ||Net Block |
|No. the Unit || ||March 31 2020 ||March 31 2020 |
|1 Hotel Ashok New Delhi ||Lease deed in respect of land of Ashok Hotels Ltd. is registered in the name of Ashok Hotel Limited erstwhile which was merged with the Company on March 28 1970 and not being transferred in the name of Company. The total area of leasehold land is 21.155 acres. ||10.58 ||10.58 |
|2 Hotel Jammu Ashok ||Lease deed expired on January 11 2010. Unit has been discontinued w.e.f. June 17 2020 || || |
|3 ATT Delhi ||Leasehold land at C-119 Naraina Industrial Area Phase-I Naraina New Delhi measuring 8566 sq. yards is leased by DDA for 99 years. ||1.63 ||1.59 |
| ||The original title deed was seized by the CBI in a complaint case no. RC-10(A)/2013-CBI-ACB-DLI || || |
|4 Hotel Samrat New Delhi ||Title deed of leasehold of the Unit is not executed. Area involved is 4.01 acres. ||161.75 ||151.89 |
|5 Taj Restaurant Agra ||Title deed in favour of the Corporation has not been affected. ||0.93 ||0.93 |
|6 Scope Complex 7 AIH&TM (Qutub Inst. Area) and Tennis Court ||Title deed in favour of the Corporation has not been affected. Title deed in favour of the Corporation has not been affected. ||26.35 ||24.67 |
ii) As per the information and explanation provided to us the inventories have beenphysically verified by the management at reasonable intervals however in case offollowing branches the respective auditors of the branches have reported that physicalverification report was not made available to them for verification:
|S. No. Name of the Unit/Branch |
|1. DFS Haldia |
|2. DFS Kolkata |
|3. DFS Paradip |
iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured loan to companies firms limited liabilitypartnerships or other parties covered in the register maintained under Section 189 of theAct. Therefore the provisions of clause 3(iii)(a) 3(iii)
(b) and 3(iii)(c) of the Order are not applicable.
iv) The Company has complied with the provisions of section 185 and 186 of the Act asapplicable in respect of loans advanced to subsidiary companies. The Company has notgiven any guarantee or provided any security to any party covered under Section 185 and186 of the Act.
v) The Company has not accepted any deposits from the public during the year. Hencethe directives issued by the Reserve Bank of India and the provisions of section 73 to 76or any other relevant provisions of the Companies Act 2013 and the rules framedthere-under are not applicable to the Company.
vi) Maintenance of cost records has not been prescribed by the Central Government undersub-section (1) of Section 148 of the
Act. Accordingly the provisions of clause
3(vi) of the Order are not applicable to the Company.
vii) a) The Company is generally regular in depositing undisputed statutory duesincluding provident fund employees' state insurance income-tax sales-tax service taxduty of customs duty of excise value added tax goods and services tax cess and anyother statutory dues to the appropriate authorities and there are no undisputed statutorydues outstanding as on March 31 2020 for a period of more than six months from the datethey became payable except for the cases as given below;
| || || ||(in lakh) |
|Sl Name of the No. Unit ||Nature of Dues ||Gross Amount Amount Relates (F.Y.) ||Period to which the |
|1. DFS Goa ||GST Liability ||1.087 ||2019-2020 |
|2. DFS Mumbai ||GST Liability ||0.316 ||2019-2020 |
|3. AIH&TM ||Labour Cess ||0.0084 ||2019-2020 |
|4. DFS Manglore ||GST Liability ||2.31 ||2019-2020 |
b) According to the information and explanations given to us the following dues ofincome tax sales tax goods and services tax custom duty service tax employees' stateinsurance excise duty and value added tax have not been deposited by the Company onaccount of disputes:
|Sl. Name No. of the Unit ||Nature of the Dues ||Forum where dispute is pending ||Gross Amount ||Amount deposited under protest/ adjusted by the tax authorities ||Net Amount ||Period to which amount relates (F.Y.) |
| ||Income Tax ||ITAT ||388.15 ||388.15 ||- ||2013-14 |
| ||Income Tax ||CIT (A) ||107.65 ||21.53 ||86.12 ||2014-15 |
| ||Income Tax ||Joint Commissioner ||250.37 ||- ||250.37 ||1997-98 |
| ||Income Tax ||Joint Commissioner ||239.27 ||- ||239.27 ||2002-03 |
|1. ITDC ||Income Tax ||Joint Commissioner ||119.08 ||- ||119.08 ||2004-05 |
|Headquarter ||Income Tax ||Joint Commissioner ||20.80 ||- ||20.80 ||2006-07 |
| ||Income Tax ||CIT (A) ||8.35 ||- ||8.35 ||2017-18 |
| ||Income Tax ||CIT (A) ||70.73 ||70.73 ||- ||2016-17 |
| || ||Commisioner ||136.42 ||- ||136.42 ||2014-15 |
| || ||(Luxury Tax) || || || || |
| || ||Commisioner ||62.45 ||- ||62.45 ||2015-16 |
| || ||(Luxury Tax) || || || || |
| ||Service Tax ||Commissioner of Central GST Audit II ||2919.28 ||- ||2919.28 ||2014-15 to 2017-18 |
|2. Hotel Ashok ||Employees State Insurance ||Delhi District ||423.83 ||- ||423.83 ||Not Known |
| ||Service Tax ||CESTAT Delhi ||10.60 ||- ||10.60 ||2003-04 to |
| || || || || || ||2007-08 |
| ||TDS Demand ||Under Follow Up ||20.10 ||- ||20.10 ||2007-08 to |
| || || || || || ||2018-19 |
|3. DFS Goa ||GST ||Nil ||2.017 ||- ||2.017 ||2018-19 |
|4. DFS Mumbai ||GST ||Nil ||0.296 ||- ||0.296 ||2018-19 |
|5. DFS Mangalore ||GST ||Nil ||4.48 ||- ||4.48 ||2018-19 |
|6. ATT Kolkata ||Service Tax ||Nil ||0.023 ||- ||0.023 ||2017-18 |
| || ||Management is seeking approval for filing CESTAT ||4.60 ||- ||4.60 ||2004-05 |
| || ||Appeal || || || || |
|6. AITD ||Custom Duty ||Pending before ||0.18 ||- ||0.18 ||2004-05 |
| || ||Customs Assistant || || || || |
| || ||Commissioner || || || || |
| || ||Pending before ||146 ||- ||146 ||2004-05 |
| || ||Customs Assistant Commissioner || || || || |
| || ||Pending for Order in High Court ||29.06 ||- ||29.06 ||2004-05 |
| || ||Pending before ||42.17 ||- ||42.17 ||2003 |
| || ||CESTAT || || || || |
| ||TDS ||Demand raised by department repaly sent by speed post yet to be decided by Department ||8.15 ||- ||8.15 ||2007-12 |
|8. Hotel Kalinga ||ESI ||High Court ||2.18 ||- ||2.18 ||2014 |
| || ||District Court ||1.45 ||- ||1.45 ||1944-95 |
| ||Sales Tax ||Sales Tax (Appeal) ||0.28 ||- ||0.28 ||No data |
| || || || || || ||Available |
| ||Excise Duty ||High Court ||13.33 ||- ||13.33 ||2002-03 |
|9. Taj Restaurant ||Sales Tax ||Vat Deptt ||0.50 ||- ||0.50 ||2002 |
| ||Deptt ||Vat Deptt ||0.71 ||- ||0.71 ||2003 |
|10. ACES ||TDS ||Under Follow Up ||8.2 ||- ||8.2 ||2007-08 to 2017-18 |
|11. Hotel Samrat ||TDS ||Under Follow Up ||2.28 ||- ||2.28 ||2007-08 to 2018-19 |
| ||Service Tax ||Commissioner of Service Tax Appeals ||17.02 ||- ||17.02 ||2017-18 |
| ||ESI ||Case is in appeal in Delhi High Court ||71.68 ||- ||71.68 ||1998-03 |
|12. Ashok Event ||Service Tax ||Commissioner of Service Tax Appeals ||39.65 ||- ||39.65 ||2006-09 |
| ||Service Tax Payable ||Under Follow Up ||60.37 ||- ||60.37 ||Not Known |
| ||TDS ||Under Follow Up ||7.59 ||- ||7.59 ||2007-08 to 2018-19 |
|13. AIH&TM ||TDS ||NIL ||1.53 ||- ||1.53 ||2007-08 to 2017-18 |
8. In our opinion and according to the information given to us the Company has nottaken any loans or has not borrowed any amount from financial institutions banks or fromdebenture holders. Accordingly Clause 3(viii) of the Order is not applicable on theCompany.
9. The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments). Accordingly Clause 3(ix) of the Order is notapplicable on the Company.
10. According to the information and explanations given to us and as represented by theManagement and based on our examination of the books and records of the Company and inaccordance with generally accepted auditing practices in India no case of frauds by theCompany or any fraud on the Company by its officers or employees has been noticed orreported during the year.
11. As per Notification No. GSR 463(E) dated June 5 2015 issued by the Ministry ofCorporate Affairs Section 197 of the Act is not applicable to the Government Companies.Accordingly provisions of Clause 3(xi) of the Order are not applicable to the Company.
12. The provisions of Clause 3 (xii) of the Order for Nidhi Company are notapplicable to the Company.
13. The Company has complied with the provisions of Section 177 and 188 of the Actw.r.t. transactions with the related parties wherever applicable. Details of thetransactions with the related parties have been disclosed in the Standalone FinancialStatements as required by the applicable Indian Accounting Standards.
14. Company has not made any preferential allotment or private placement of shares orfully or partly convertible debentures during the year under review. Accordinglyprovisions of Clause 3(xiv) of the Order are not applicable to the Company.
15. The Company has not entered into any non-cash transactions with the directors orpersons connected with them as covered under Section 192 of the Act. Accordingly 16.According to information and explanation given to us the Company is not required to beregistered under section 45-IA of Reserve Bank of India Act 1934. Accordingly provisionsof Clause 3(xvi) of the Order are not applicable to the Company. of India
| ||For Agiwal & Associates |
| ||Chartered Accountants |
| ||(FRN. No. 000181N) |
|UDIN: 20080475AAAADM7455 ||(CA P. C. Agiwal) |
|Place: New Delhi ||Partner |
|Date: November 6 2020 ||Membership No. |
| ||080475 |
"ANNEXURE 2" TO THE INDEPENDENT AUDITORS' REPORT
Referred to in paragraph 2 under Report on Other Legal and RegulatoryRequirements' section of our report of even date to the members of India TourismDevelopment Corporation Limited on the Standalone Financial Statements for the year endedMarch 31 2020
|S. No. Directions u/s 143(5) of the Companies Act 2013 ||Auditors' Reply on action taken on the directions |
|1. Whether the Company has system in place to process all the accounting transactions through IT system? If yes the implications of processing of accounting transactions outside IT system on the integrity of the accounts along with the financial implications if any may be stated. ||As per the information and explanation given to us the Company has a system in place to process all accounting transactions through IT system. |
| ||Based on the audit procedures carried out and as per the information and explanations given to us no accounting transactions have been processed/ carried out outside the IT system. Accordingly there are no implications on the integrity of the accounts. |
|2. Whether there is any restructuring of an existing loan or cases of waiver/write off of debts /loans/ interest etc. made by a lender to the company due to the company's inability to repay the loan? If yes the financial impact may be stated. ||There are no loans appearing in the books of the Company and as such the same is not applicable. |
|3. Whether the funds received/ receivable for specific schemes from central/ state agencies were properly accounted for/ utilized as per its term and conditions? List the cases of deviation. ||The fund received/ receivable from central/ state agencies have been accounted for/ utilized as per its term and conditions except in the following cases: |
| ||A) ACES division |
| || ||(Rs in lakh) |
|Particulars ||Operative Projects ||Non- operative/ closed Project |
|No. of Projects ||12 ||34 |
|Outstanding/to be utilized ||2236.64 ||2247.27 |
|No. of Projects ||6 ||17 |
|Amount receivable ||95.40 ||404.09 |
B) AIH&TM division
It was observed that amount from Ministry of Tourism was received in March 2013 forpayment of stipend to students who worked as volunteers in the commonwealth games butthis amount has not been claimed by the students till March 31 2020 and hence a creditbalance of Rs 15.37 lakh is being reflected in the books of accounts.
For Agiwal & Associates Chartered Accountants
Firm Regn. No. : 000181N UDIN: 20080475AAAADM7455 (CA P. C. Agiwal) Place: New DelhiPartner Date: November 6 2020 M.No. 080475
"ANNEXURE 3" TO THE INDEPENDENT AUDITORS' REPORT
Referred to in paragraph 3(f) under Report on Other Legal and RegulatoryRequirements' section of our report of even date to the members of India TourismDevelopment Corporation Limited for the year ended March 31 2020
Report on Internal Financial Controls with reference to Standalone Financial Statementsunder Clause (i) of Sub-section 3 of Section 143 of the Act
We have audited the internal financial controls with reference to Standalone Financial
Statements of India Tourism Development Corporation Limited ("the Company")as of
March 31 2020 in conjunction with our audit of the Standalone Financial Statements ofthe 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 with reference to the Standalone
Financial Statements based on the internal controls over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by The Institute of Chartered Accountants of India (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.
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 on Auditing issued by ICAI and deemed to be prescribed under section 143(10)of the Act to the extent applicable to an audit of internal financial controls bothapplicable to an audit of Internal Financial Controls and both issued by ICAI. ThoseStandards and the
Guidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlswith reference to the Standalone Financial Statements was established and maintained andif such controls operated effectively material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system with reference to the Standalone FinancialStatements and their operating effectiveness. Our audit of internal financial controlswith reference to the Standalone Financial Statements included obtaining an understandingof internal financial controls with reference to the Standalone Financial Statementsassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditors' judgment including the assessment of the risks ofmaterial misstatement of the Standalone Financial Statements whether due to fraud orerror.
We believe that the audit evidence we have obtained is sufficientand a basis for ouraudit opinion on the Company's internal financial controls system with reference to theStandalone Financial Statements.
Meaning of Internal Financial Controls with reference to Standalone FinancialStatements
A Company's internal financial control with reference to the Standalone Financial
Statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting Standalone Financial Statements for external purposesin accordance with generally accepted accounting principles. A Company's internalfinancial control with reference to theStandalone Financial Statements includes thosepolicies and procedures that 1) pertain to the maintenance of records that in reasonabledetail accurately and fairly reflect the transactions and dispositions of the assets ofthe Company; 2) provide reasonable assurance that transactions are recorded as necessaryto permit preparation of Standalone Financial Statementsinall in accordance with generallyaccepted accounting principles and that receipts and expenditures of the Company arebeing made only in accordance with authorisations of management and directors of theCompany; and 3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company's assets that could have amaterial effect on the Standalone Financial Statements.
Inherent Limitations of Internal Financial
Controls with reference to Standalone
Because of the inherent limitations of internal financial controls with reference tothe Standalone Financial Statements including the possibility of collusion or impropermanagement override of controls material misstatements due to provide error or fraud mayoccur and not be detected. Also projections of any evaluation of the internal financialcontrols with reference to the Standalone Financial Statements to future periods aresubject to the risk that the internal financial control with reference to the
Standalone Financial Statements may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion the preparation of the Company has in all material respects anInternal Financial Controls system with reference to the Standalone Financial Statementsand such internal financial controls with reference to the Standalone Financial Statementswere operating as at March 31 2020 based on the internal controls over financialreporting criteria established by the Company considering the components of internalcontrols stated in the Guidance Note on Audit of InternalFinancialControlsoverFinancialReportingissued by the ICAI. Nevertheless theimplementation of the same needs an improvement.
Further in order to strengthen internal financial control as informed the managementhas already appointed an external agency to make it more efficient and meaningful and thereport of the same is awaited.
|For Agiwal & Associates |
|Chartered Accountants |
|Firm Regn. No. : 000181N |
|UDIN: 20080475AAAADM7455 ||(CA P. C. Agiwal) |
|Place: New Delhi ||Partner |
|Date: November 6 2020 ||M.No. 080475 |