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India Tourism Development Corporation Ltd.

BSE: 532189 Sector: Services
NSE: ITDC ISIN Code: INE353K01014
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OPEN 246.80
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VOLUME 18743
52-Week high 412.00
52-Week low 152.15
P/E 77.82
Mkt Cap.(Rs cr) 1,929
Buy Price 224.90
Buy Qty 25.00
Sell Price 226.30
Sell Qty 50.00
OPEN 246.80
CLOSE 249.85
VOLUME 18743
52-Week high 412.00
52-Week low 152.15
P/E 77.82
Mkt Cap.(Rs cr) 1,929
Buy Price 224.90
Buy Qty 25.00
Sell Price 226.30
Sell Qty 50.00

India Tourism Development Corporation Ltd. (ITDC) - Auditors Report

Company auditors report

TO THE MEMBERS OF INDIA TOURISM DEVELOPMENT CORPORATION LIMITED NEW DELHI

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements ofINDIATOURISM DEVELOPMENT CORPORATION LIMITED New Delhi which comprise the Balance Sheetas at March 31 2018 and Statement of Profit & Loss (including Other ComprehensiveIncome) the Statement of Cash Flows and the Statement of Change in Equity for the yearthen ended and a summary of Significant Accounting Policies and other explanatoryinformation in which are incorporated the returns of 38 branches for the year ended onthat date audited by the Branch Auditors of the Company's branches at locations as perExhibit A.

Management's Responsibility for the Standalone 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 standalone Ind AS financial statements that give a true and fairview of financial position financial performance including other comprehensive incomecash flows and changes in the equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)prescribed under Section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015.

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 responsible andprudent; and design implementation and maintenance of adequate internal financial controlthat were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the standalone 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 standalone Ind AS financialstatements based on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the standalone Ind AS financial statements. The procedures selected dependon the auditor's judgment including the assessment of the risks of material misstatementof the standalone Ind AS financial statements whether due to fraud or error. In makingthose risk assessments the auditor considers internal financial control relevant to theCompany's preparation of the standalone Ind AS financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstances.An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the standalone Ind AS financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the Ind AS of thestate of Affairs (financial position) of the Company as at 31st March2018 its profit(financial performance including other comprehensive income) its cash flows and changesin the equity for the year ended on that date.

Emphasis of Matter

Attention is drawn to the Notes to the Financial Statements :

a) That on account of non-finalization of the issue of compensation payable to theCompany for loss of business opportunity arising due to the decision of the Government ofIndia for closer of operation of the Hotel Janpath New Delhi w.e.f. from 30.10.2017 andhanding over the property to the Ministry of Urban Development the sum of ` 585.74lakh paid to the employees who opted for VRS is being shown as recoverable fromthe Government as on 31.03.2018. Our opinion is not qualified in respect of this matter.[Refer Point no. 1 of Note no. 13 & Point no. 10 (c) of Note no. 39-General Notes tothe financial statements]

b) The impact of loss/shortage/ wastage due to non-reconciliation of the results ofphysical verification carried out for fixed assets with the books of accounts on thefinancial statements of the Company remains indeterminate. Our opinion is not qualified inrespect of this matter. [Refer Point no. (g) of Note no. 2 to the financial statements]

c) Balances in trade receivables loans and advances deposits trade payables andsundry creditors are subject to independent confirmation. Our opinion is notqualified in respect of this matter. [Refer Point no. 1 of Note no. 39-General Notes tothe financial statements]

d) In the case of Vigyan Bhawan Unit contract agreement with the Directorate ofEstates to provide catering services expired on 17.11.2015 and the Unit is operatingwithout any formal agreement since then. The renewal process is going on and as per thecorrespondence on file the agreement will be extended upto 30th November 2018. Ouropinion is not qualified in respect of this matter. [Refer Point no. 2 of Note no. 27 tothe financial statements]

e) For Hyderabad House New Delhi the Unit continues providing management servicesunder an agreement with the Ministry of External Affairs Govt. of India which hadexpired on 31.03.2017.

The renewal process is going on and as per the correspondence on file the agreementwill be extended upto 31st March 2020. Our opinion is not qualified in respect of thismatter. [Refer Point no. 3 of Note no. 27 to the financial statements]

f) An amount of ` 113.82 lakh is being shown as ‘Customers atCredit' under Note-26 "Other Current Liabilities" but in the financialstatements not adjusted/linked with the corresponding trade receivable under Note-08"Trade Receivable". Our opinion is not qualified in respect of this matter.[Refer Note no. 26 to the financial statements]

g) The Ashok Hotel Vigyan Bhawan Lalita Mahal Palace Hotel & Head Quarterrecognized "Provision for Doubtful Debts" amounting to ` 620.04 lakh (outof total provision of ` 4760.36 lakh for trade receivables more than six monthsold) as on 31st March 2018 against its debts of equal amount by showing them asreceivable for sufficiently long period of time instead of writing them off from the booksof accounts as the recovery of which is not evidenced by the records available. Ouropinion is not qualified in respect of this matter. [Refer Note no. 8 to the financialstatements]

h) The Company has recognized

"Provision for amount recoverable - sales tax" amounting to ` 7.88lakh as on 31st March 2018 against the recoverable of equal amount by showing them asreceivable for sufficiently long period of time instead of writing off from the books ofaccounts the recovery of which is not evidenced by the records available. Our opinion isnot qualified in respect of this matter. [Refer Point no. 1 of Note no. 6 to the financialstatements]

i) 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 deductingthere-from the closing balance at the year-end based on physical inventories valued as perthe accounting policy. Accordingly separate impact of loss/ shortage/wastage included inthe consumption thereof in the financial statements of the Company remains indeterminate.Our opinion is not qualified in respect of this matter. [Refer Point no. 3 of Note no.39-General Notes to the financial statements]

j) The Ashok Hotel Unit has recognized `16.90 lakh as inventory of liquor atleased out restaurant viz. "Capitol" on the basis of their records; however theactual realizable amount is not ascertainable since the restaurant has been sealed by theState Excise Department. Our opinion is not qualified in respect of this matter. [ReferPoint no. 2 of Note no.7 to the financial statements]

k) In Ashok Consultancy and Engineering Services Unit out of 100 projects 71 projectswere completed long back but not closed in the books of accounts as final bills werereportedly not received/ settled. Reconciliation exercise is expected to be completed byOctober 2018. Thereafter balances will be squared up/adjusted after approval by higherauthorities. Our opinion is not qualified in respect of this matter. [Refer Point no. 14of Note no. 39 to the financial statements]

l) At Ashok International Trade Division the sum of ` 161 lakh paid in the year2006-07 as security deposit in the form of fixed deposit (FD) receipt in favour of DelhiInternational Airport Pvt. Ltd. (DIAL) is being shown as recoverable. Its FD was encashedduring 2007-08 by DIAL on account of service- tax charged by DIAL in billing of servicesprovided to the Company. This is being disputed by the Company on the ground that theirservice was not liable for service-tax and they are hopeful of its recovery. Our opinionis not qualified in respect of this matter. [Refer Note no. 4 to the financial statements]

m) In the case of Duty Free Shops at Seaport inventories are valued at cost which doesnot include other costs such as C&F cost freights etc. for bringing the inventoriesto current location and condition as per Ind AS-2. Our opinion is not qualified in respectof this matter. [Refer Point no. 1 of Note No.-07 to the financial statements]

n) In the case of Units Taj Restaurant and Kosi-Tourist complex VAT and Service- taxreturns are not reconciled with financial books as on 31/03/2018 for Taj Restaurant theservice tax amount refundable is ` 0.81 lakh and of Kosi-Tourist complex Servicetax paid in advance is ` 3.42 lakh and sales tax paid in advance of ` 0.04lakh due to which the correct profitability of the units remain unascertain. Our opinionis not qualified in respect of this matter. [Refer Point no. 4 of Note no. 13 to thefinancial statements].

Other Matter

a. The comparative financial information of the Company for the year ended 31st March2017 and the transition date opening balance sheet as at 1st April 2016 included in thesestandalone Ind AS financial statements are based on the previously issued statutoryfinancial statements prepared in accordance with the Companies (Accounting Standards)Rules 2006 audited by us and our report for the year ended 31st March 2017 and 31stMarch 2016 dated 19th July 2017 (date of revised audit report) and 30th May 2016 (readwith addendum dated 19th July 2016) respectively expressed an unmodified opinion andqualified opinion respectively on those standalone financial statements as adjusted forthe differences in the accounting principles adopted by the Company on transition to theInd AS which have been audited by us.

b. We did not audit the financial statements/ information of 38 branches included inthe standalone Ind AS financial statements of financial statements the Company whosereflect total assets of` 20537.80 lakh as at 31st March 2018 and total revenue of `16645.57 lakh for the year ended on that date as considered in the standalone Ind ASfinancial statements. The financial statements/information of these branches have beenaudited by the branch Auditors whose reports have been furnished to us and our opinion inso far as it relates to the amounts and disclosures included in respect of these branchesis based solely on the report of such branch Auditors and accompanying financialstatements.

Our opinion is not modified in respect of these Matters

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Government of India in terms of sub-section (11) of Section 143 of the Actand on the basis of such checks of the books and records of the Company as we consideredappropriate and according to the information and explanation given to us we give in the"Annexure A" a statement on the Matters specified in paragraphs 3 and 4 of thesaid Order.

2. As required by Section 143 (5) of the Act and on the basis of such checks of thebooks and records of the Company as we considered appropriate and according to theinformation and explanations given to us we give in the "Annexure B" ofour report on the compliances of the directions/sub-directions indicating the areas to beexamined 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 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 and proper returnsadequate for the purpose of our audit have been received from the branches not visited byus;

(c) The reports on the accounts of branch offices/ units of the Company audited underSection 143 (8) of the Act by the branch Auditors have been sent to us and have beenproperly dealt with by us in preparing this report;

(d) The Balance Sheet the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Cash Flows and the Statement of Changes in Equity dealt with bythis Report are in agreement with the books of account and with the returns received fromthe branches not visited by us;

(e) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Indian Accounting Standards specified under Section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules2015;

(f) Being a Government Company pursuant to Notification No. GSR 29(E) dated 21stOctober 2003 issued by the Government of India provisions of sub-section (2) of Section164 of the Companies Act 2013 are not applicable to the Company;

(g) With respect to the adequacy of the internal financial control over financialreporting of the Company and the operating effectiveness of such control refer to ourseparate report in "Annexure C".

(h) With respect to the other Matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements Refer Note 38 to the standalone Ind AS financialstatements;

ii) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses; and

iii) No amount required to be transferred to the Investor Education and Protection Fundwas outstanding at the year.

For Kishore & Kishore
Chartered Accountants
(FRN. No. 000291N)
Anshu Gupta
Place: New Delhi (Partner)
Date: 30.05.2018 Membership No.077891

"Annexure A" to Independent Auditor's Report for the year ended 31.03.2018

The Annexure 'A' referred to in our report of even date on the accounts of IndiaTourism Development Corporation Limited New Delhi for the year ended 31st March 2018 wereport that;

i) (a) The Company has generally maintained proper records showing fullParticulars including quantitative details and situation of fixed assetsexcept infollowing units/branches where records were incomplete in respect of quantitative detailssituation etc.:

S. No. Name of the Unit/Branch
1. DFS Tuticorin Seaport
2. Hotel Samrat
3. DFS Krishnapatnam
4. DFS CPT Seaport
5. DFS Kakinada
6. Western court
7. Hotel Kalinga Ashok
8. ATT Chennai
9. DFS Vishakhapatnam
10. Taj Restaurant
11. Kosi Restaurant
12. Hotel The Ashok New Delhi
13. Vigyan Bhawan

(b) As per the information & explanation given to us the fixed assets have beenphysically verified by the management generally at interval of one year. In most of theunits/ branches as well as in Head-office the book balance and physical balances have notbeen reconciled and hence the discrepancies have not been ascertained for necessaryadjustments in the books of accounts.

(c) The title deeds of immovable properties in the following cases are not held inthe name of the Company:

S. No. Name of the Unit Status of the Title Deed
1 The Ashok New Delhi Lease deed is respect of land of Ashok Hotels Ltd. is registered in the name of Ashok Hotel Limited erstwhile which was merged with the Company on 28.03.1970 and not being transferred in the name of the Company. The total area of leasehold land is 21.155 acres.
2 Hotel Jammu Ashok Jammu Lease deed expired on 11.01.2010. The total area of lease hold is 60 Kanals & 4 marlas.
3 Hotel Patliputra Ashok Patna Lease deed has not been executed in favour of the Company
4 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. The original title deed was seized by the CBI in a complaint case no. RC-
10(A)/2013-CBI-ACB-DLI
5 Hotel Samrat New Delhi Title deed of leasehold land of the unit is not executed. Area involved is 4.01 acre.
6 Taj Restaurant Title deed in favour of the Corporation has not been effected.

ii) As per the information & explanation provided to us inventories have beenphysically verified by the management generally once in a year. In case of followingunits/branch Auditors have reported that physical verification report was not availablefor verification:

S. No. Name of the Unit/Branch
1. Hotel Samrat
2. ATT Delhi
3. Ashok Events
4. Hotel Janpath
5. Western Court
6. ACES
7. AIHTM
8. DFS Delhi
9. Vigyan Bhawan

The Company is generally maintaining proper record of inventory but the closinginventory is recorded in the books of accounts on the basis of physically availableinventory and no actual shortage/loss/wastage is recorded separately.

iii) As per the information and explanations given to us the Company has not grantedany loan secured or unsecured to companies firms limited liability partnerships orother parties covered in the register maintained under Section 189 of the Act thereforeclause 3(iii) (a) (b) and (c) of the Companies (Auditors Report) Order 2016 are notapplicable.

iv) As per the information and explanations given to us the Company has complied withthe provisions of Section 185 and 186 of the Act.

v) As per the information and explanation given to us the Company has not accepted anydeposit from the public in terms of Section 73 to 76 or any other relevant provisions ofthe Act and the Rules framed there under. Thus the directives of Reserve Bank of Indiaand provisions of clause 3 (v) of the Companies (Auditors Report) Order 2016 are notapplicable. vi) As per the information and explanation given to us maintenance of costrecords has not been prescribed by the Central Government under sub-Section (1) of Section148 of the Act.

vii) (a) In our opinion the Company is generally regular in depositing undisputedstatutory dues including Provident Fund Income-tax Sales-tax Service-tax customs dutyexcise duty value-added tax cess and any other statutory dues to the appropriateauthorities and if not the extent of arrears of outstanding statutory dues asat the last day of financial year concerned for a period of more than six months from thedate they became payable are given below:

(b) Cess dues of Income Tax or Sales Tax or Wealth Tax or Service Tax or duty

Name of the Unit Nature of Dues Amount (` in lakh) Period to which the Amount Relates
Hotel Samrat TDS demand 4.60 2007-2018
Hotel Kalinga Ashok Lease Rent of Land Payable to Govt. 0.195 Earlier years
Works Contract Tax 0.798 2016-17
Works Contract Tax 0.0288 2015-16
Works Contract Tax 0.019 2017-18
Labour Cess 0.0048 2015-16
Labour Cess 0.0122 2016-17
Service-Tax 0.30362 2017-18
TDS 0.0059 2017-18
AIHTM TDS 0.087 2016-17
Hyderabad House ESI 1.72 More than 6 months
VigyanBhawan ESI 4.78 More than 6 months

of customs or duty of excise or value added tax have not been deposited on account ofany dispute:

Name of the Unit Nature of Dues Amount (` in lakh) Period to which the Amount Relates Forum where Dispute is Pending
Hotel Kalinga Ashok Excise Duty (MGQ) 13.33 2002-03 Odisha High Court
ESI 1.45 Earlier Years District Court Khurda
Service Tax 105.92 2008-09 to 2012-13 Commissioner Appeals GST Bhubaneswar
AITD Custom Duty (Demand for DPS Mumbai) 18478.67 2004-05 Custom Assistant Commissioner
Custom Duty (Demand for DFS Kolkatta) 42.17 2003 Commissioner of Customs
Sales Tax/VAT 1343.96 1995-2008 Joint Commissioner
TDS 8.15 2007-12 Assistant Commissioner
Hotel Patliputra Ashok ESI 0.67 Earlier Years ESI Labour Court
VAT 3.09 Earlier Years Bihar VAT Department
Hotel Samrat ESI 71.68** 1998-2003 Delhi High Court
Hotel Ashok ESI 708.52 Earlier Years In process of appeal to High Court
Service Tax 23.95 Earlier Years CESTAT Delhi
Ashok Events Service-Tax 39.65 2006-2009 Commissioner of Service Tax appeals
TDS 7.24 2007-2017 CPC/Income Tax Department
Taj Restaurant Trade Tax 0.50 30.09.2002 Department of VAT
Trade Tax 0.71 12.02.2003 Department of VAT
LMPH Service Tax 2.54 2010-11 to 2011-12 CESTAT Bangalore
Service Tax 3.60 2012-13 and 2013-14 CESTAT Bangalore
Service Tax 1.84 2014-15 CESTAT Bangalore
ACES TDS 8.19 2014-15 to 2017-18 CPC
Hotel Janpath TDS 21.56 2007-2008 to 2011-12 2017-18 CPC
ATT Delhi TDS 5.72 2007-08 to 2016-17 CPC

**Unit has provided liability of ` 50.79 lakh in the books of account. viii) Accordingto the information and explanations given to us the Company has not taken any loan fromany financial institution Bank or issued any debentures till the end of financial year.

Hence the provisions of clause 3(viii) of the Companies (Auditors Report) Order 2016regarding reporting on default in repayment of dues to financial institution or bank ordebenture is not applicable.

ix) According to the information provided and explanations given to us no moneys havebeen raised by way of initial public offer or further public offer (including debtinstruments) nor any term loan from any bank or financial institutions. Thus provisions ofclause 3 (ix) of the Companies (Auditors Report) Order 2016 are not applicable to theCompany.

x) As per the information provided and explanation given to us no fraud by or on theCompany by its Officers or employees has been noticed or reported during the year exceptin case of Unit - Hotel Patliputra Ashok where a theft of ` 2.88 lakh has beentaken place on 11.02.2018 by one of contractual staff named Deepak kumar deployed bymanpower supply agency "Service Master Clean" having employee code PSW001035.FIR has been lodged against him with FIR No. 89/18.

xi) As per the information and explanation given to us the provisions of Section 197read with Schedule V to the Act are not applicable on Government Company.

Thus the provisions of clause 3 (xi) of the Companies (Auditors Report) Order 2016are not applicable to the Company.

xii) The Company is not a Nidhi Company so the provisions of clause 3 (xii) of theCompanies (Auditors Report) Order 2016 are not applicable.

xiii) According to the information and explanations given to us all transactions withthe related parties are in compliance with Section 177 and 188 of the Act and whereverapplicable the details have been disclosed in the financial statements as required by theapplicable accounting standards.

xiv) According to the information and explanations provided to us the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year under review so the requirement of Section 42 ofthe Act are not applicable on it; therefore clause 3 (xiv) of the Companies (AuditorsReport) Order 2016 are not applicable to the Company.

xv) According to information and explanations given to us the Company has not enteredinto any non-cash transactions with directors or persons connected with him thereforeclause 3 (xv) of the Companies (Auditors Report) Order 2016 are not applicable to theCompany.

xvi) According to information and explanations given to us the Company is not requiredto be registered under Section 45-IA of the Reserve Bank of India Act 1934 thereforeclause 3 (xvi) of the Companies (Auditors Report) Order 2016 are not applicable to theCompany.

For Kishore & Kishore
Chartered Accountants
(Firm Regn. No. : 000291N)
(Anshu Gupta)
Place: New Delhi Partner
Date: 30.05.2018 M.No. 077891

"Annexure B" to Independent Auditor's Report for the year ended 31.03.2018

The Annexure 'B' referred to in our report of even date on the accounts of IndiaTourism Development Corporation Limited New Delhi for the year ended 31st March2018 we report on the directions/ sub-directions given by the Comptroller and AuditorGeneral of India under Section 143(5) of the Companies Act 2013:

S. No. Direction/Sub-directions Comments
1. Whether the Company has clear title/lease deeds for freehold and leasehold land respectively? As per the information and explanation given to us the Company has clear title/lease deeds for freehold and leasehold except in the following cases:
If not please state the area of freehold and leasehold for which title/lease deeds are not available.
S.No Unit Name Remarks
1. The Ashok Lease deed is respect of land of Hotel Ashok is registered in the name of Ashok Hotel Limited erstwhile which was merged with the Company on 28.03.1970 and not being transferred in the name of the Company. The total area of leasehold land is 21.155 acres
2. Hotel Samrat Title deed is not executed. Area involved is 4.01 acre.
3. Hotel Patliputra Ashok Patna Lease deed has not been executed in the favour of the Company. Area involved is 1.5 acre.
4. Hotel Jammu Ashok Jammu Lease deed expired on 11.01.2010. The total area of lease hold is 60 Kanals & 4 Marlas.
5. 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. The original title deed was seized by CBI in a complaint case no. RC- 10(A)/2013-CBI-ACB-DLI
6. Taj Restaurant Title deed in favour of the Company has not been effected nor information as to the area of the property made available to us.
2. Whether there are any cases of waiver/write off of debts/loans/ interest etc. If yes the reasons therefore and the amount involved. During the course of audit write off of debts made by the Company are as follows:
S.No. Unit Name Remarks
1. Western Court The Unit has written off bad debts (old balance detail is not available) amounting to ` 0.06 lakh.
2. The Ashok The Unit has written off bad-debts amounting to ` 54.69 lakh during the year ended 31st March 2018. A Unit level committee was formed for the purpose of reviewing the doubtful debts remaining outstanding for a period of more than 3 years. The committee after examining and justifying that the debts have become irrecoverable and barred by time recommended writing off of debts for total amount of ` 54.69 lakh which was duly approved by the competent authority.c
3. ATT-Delhi Debts which are more than 5 years old and are not recoverable have been written off as per the recommendation of the committee constituted for this purpose and subsequent approval of the competent authority. The financial implication in this regard is to the tune of ` 18.16 lakh (9 parties in all) and the individuals cases of these 9 parties are less than ` 0.40 lakh- in each which falls in the DOP of General Manager of the unit.
3. Whether proper records are maintained for inventories lying with third parties & assets received as gift/grant(s) from Govt. or other authorities. As per the information and explanations provided by the Management no inventory is lying with third parties and no assets were received as gifts/grants(s) from Govt. or other authorities except in cases of the Hotel The Ashok and Hotel Samrat New Delhi. The inventory of wine beer and beverages is lying with the leased out restaurants for which proper records are maintained by these Units/branches except in case of Hotel The Ashok for one leased out restaurant viz. M/s. Prerna Marketing -Capitol where liquor has been sealed and seized by the excise department and the actual value and quantity of the inventory seized is not ascertainable. However the Unit Hotel The Ashok has recorded the inventory amounting to ` 16.90 lakh of Capitol restaurant in the books of accounts as per the records available with them.c

 

For Kishore & Kishore
Chartered Accountants
Firm Regn. No. : 000291N
(Anshu Gupta)
Place: New Delhi Partner
Date: 30.05.2018 M.No. 077891

"Annexure C" to Independent Auditor's Report of even date on Standalone INDAS Financial Statements of India Tourism Development Corporation Limited New Delhi

Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section143 of the Act

We have audited the internal financial controls over financial reporting of IndiaTourism Development Corporation Limited New Delhi as of March 31 2018 inconjunction with our audit of the standalone Ind AS financial statements of the Companyfor 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 Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India.These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to the Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit and considering the reports of thebranch Auditors. We conducted our audit in accordance with the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting (the "Guidance Note") andthe 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 the Institute ofChartered Accountants of India.

Those Standards and the Guidance Note require that we comply with ethical requirementsand plan and perform the audit to obtain reasonable assurance about whether adequateinternal financial controls over financial reporting was established and maintained and ifsuch controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing 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 auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficientand 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorizations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company generally has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31st 2018 basedon "the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India".

For Kishore & Kishore
Chartered Accountants
Firm Regn. No. : 000291N
(Anshu Gupta)
Place: New Delhi Partner
Date: 30.05.2018 M.No. 077891