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India Tourism Development Corporation Ltd.

BSE: 532189 Sector: Services
NSE: ITDC ISIN Code: INE353K01014
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NSE 00:00 | 13 Jul 414.05 -14.05
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OPEN 427.30
PREVIOUS CLOSE 428.50
VOLUME 11352
52-Week high 657.90
52-Week low 343.80
P/E 943.30
Mkt Cap.(Rs cr) 3,560
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 427.30
CLOSE 428.50
VOLUME 11352
52-Week high 657.90
52-Week low 343.80
P/E 943.30
Mkt Cap.(Rs cr) 3,560
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

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

Company auditors report

Independent Auditor's Report to the Members of India Tourism Development CorporationLimited

Revised Report on the Standalone Financial Statements

Our report dated 30.05.2017 on the accounts for the year ended 31st March 2017 hasbeen revised to give effect to the observations made by the Comptroller & AuditorGeneral of India in the supplementary audit carried out by them under Section 143(6)(a) ofthe Companies Act 2013.

We have audited the accompanying financial statements of INDIA TOURISM DEVELOPMENTCORPORATION LIMITED New Delhi which comprise of Balance Sheet as at 31st March2017 the Statement of Profitand Loss the Cash Flow Statement and a summary of theSignificant Accounting Policies and other explanatory information for the year then endedin which are incorporated the Returns of 36 units for the year ended on that date auditedby Branch Auditors of the Company at locations as per Exhibit A.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters in Section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation andpresentation of these Standalone financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting the frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Standalone financial statementsbased 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 in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2017 cash flow for the year ended on its profit that date.

Emphasis of Matter

a) In respect of Ashok Hotel notices of eviction/termination having been served on twolicensees viz. M/s. Mayar Health Resort and M/s. Jain Restaurant (Shraman) in the year2014 and 2012 respectively and the matter have become sub-judice having gone underlitigation accordingly the amounts of Rs. 77.11 lakh and Rs. 24.80 lakhreceived from them during the year 2016-17 are adjusted against their past dues. Ouropinion is not qualified in respect of this matter [Refer Point 7 of Note No. 32 to thefinancial statements].

b) In respect of ACES unit of the Companywedrawattentiontowards "TradePayables" Note-9 in the Standalone Financial Statements against which outstandingdues for more than 3 years amounting to Rs. 1987.64 lakh are adjusted withoutreconciliation/approval from the management the reconciliation being still in progress.Our opinion is not qualified in respect of this matter.

c) The amount of consumption of stock of stores crockery cutlery etc. has beenworked out by adding to the opening balances purchases made during the year and deductingthere from the closing balance at the year end based on the physical inventories valued asper the accounting policy and accordingly no separate impact of loss/shortage/wastage isincluded in the consumption thereof in the financial statements. Our opinion is notqualified in respect of this matter. [Refer Point no. 3 of Note No.32 to financialstatements]

d) In most of the cases the impact of loss/shortage due to non-reconciliation of theresults of physical verification carried out for fixed assets with the books of accountson the financial statements remains indeterminate. Our opinion is not qualified inrespect of this matter. [Refer Note No. 11 to the financial statements ]. e) Balances intrade receivables loans and advances deposits trade payables and sundry creditors(other than trade payables) are subject to independent confirmation. opinion is notqualified in respect of this matter. [Refer Point no. 1 of Note No. 32 to the financialstatements].

f) Amounts aggregating Rs. 156.60 lakh included under "Advances fromcustomers" (Note No. 10 "Other Liabilities") remain unadjusted/ unlinkedagainst "Trade Receivables" (Note No. 17). g) At Vigyan Bhawan a Unit of theCompany the contract agreement with the Directorate of Estates for providing cateringservices expired on 17th November 2015 and the Unit is operating without any formalagreement. Our opinion is not qualified in respect of this matter. [Refer Point 2 of Note20 to the financial statements].

Other Matter

We did not audit the financial statements /information of 36 branches included in theStandalone financial statements of the statements/financial Company whose financialinformation reflect total assets of Rs. 26154.14 lakh as at 31st March 2017 and totalrevenues of Rs. 31231.89 lakh for the year ended on that date as considered in theStandalone financial statements. The financial statements/ information of these brancheshave been audited by the branch auditors whose reports have been furnished to us and ouropinion in so far as it relates to the disclosure of amounts included in respect of thesebranches is based solely on the report of such branch auditors. Our opinion is notqualified in respect of this matter.

Report on Other Legal and Regulatory Requirements

Our

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 and on the basis of such checks of the books and records of the Company asconsidered appropriate by us and according to the information and explanation given to uswe give in the "Annexure A" a statement on the matters specified in paragraphs 3and 4 of the said 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" of ourreport 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 ouropinion proper books of account as required by law have been kept by the Company so faras it appears from our examination of those books; (c) The reports on the accounts ofbranch offices of the Company audited under Section 143(8) of the Act by branch auditorshave been sent to us and have been properly dealt with by us in preparing this report;

(d) The Balance Sheet and the

Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report arein agreement with the books of account and with the returns received from the branchesnot visited by us.

(e) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;

(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 Act are not applicable to the Company ;

(g) With respect to the adequacy of the internal financial financial reporting and theoperating effectiveness of such control refer to our separate report in "AnnexureC".

(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 31 to the financial statements;

ii) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses; iii) No amount required to betransferred to the Investor Education and Protection Fund was outstanding at the year end;and

iv) The Company has provided requisite disclosures in the financial statements withrespect to Units as to holdings as well as dealings in Specified Bank Notes during theperiod from 8th November 2016 to 30th December 2016. Based on audit procedures andrelying on the management representation we report that the disclosures are in accordancewith books of account maintained by the Company and as produced to us by the Management.However amounts aggregating Rs. 3919000 were received from transactions not permittedduring the period 8th November 2016 to control over 30th December 2016 which were theCompany duly deposited into the Bank– Refer

Point 16 of Note 32 to the financial statements.

For Kishore & Kishore
Chartered Accountants
(FRN. No. 000291N)
S.C. Kishore
Place: New Delhi (Partner)
Date: 19.07.2017 Membership No. 003390

"Annexure A" to Independent Auditor's Report for the year ended 31.03.2017

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 31stMarch 2017 we report that;

i) (a) The Company has generally maintained proper records showing fullparticulars including quantitative details and situation of fixed assets except in fewunits/branches where records were incomplete in respect of quantitative detailssituation etc.

(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 deed of immovable properties in following cases are not held in thename of the Company:

S. No. Name of the Unit Status of the Title Deed
1 The Ashok Lease deed is in the
New Delhi name of Ashok
Hotels Ltd. which
merged with the
Company on 28.03.1970
and not transferred in
the name of the
Company.
2 Hotel Jammu Lease deed expired on
Ashok 11.01.2010
Jammu
3 Hotel Lease deed has not been
Patliputra executed in favour of the
Ashok Patna 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 Samrat Hotel Title deed of leasehold
New Delhi land (4.01 acre) not
executed
6 ACES Registration of Title
Deed in favour of the
Company has not
been effected in respect
of leasehold land
measuring 64 Kanals at
Gulmarg.
7 Taj Title Deed in favour of
Restaurant 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. Few of the branchauditors have reported that physical verification report was not available forverification.

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 cost records hasnot been prescribed by the Central Government under sub-section (1) of Section 148 of theAct.

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 as at thelast day of financial year concerned for a period of more than six months from the datethey became payable are given below:

Name of the Unit Nature of Dues Amount ( Rs. in lakh) Period to which the Amount Relates
ATT Patna Service-Tax 0.0068 More than 6
months
Hotel Kalinga Ashok Lease Rent of 0.0195 More than 6
Land Payable months
to Govt.
Name of the Unit Nature of Dues Amount ( Rs. in lakh) Period to which the Amount Relates
Works 0.7401 2015-16
Contract Tax
Works 0.0288 2016-17
Contract Tax
Labour Cess 0.0048 2015-16
Labour Cess 0.0122 2016-17
VAT 0.7288 More than 6
months
AIHTM TDS 0.74 More than 6
months
Name of the Unit Nature of Dues Amount ( Rs. in lakh) Period to which the Amount Relates
Hyderabad House ESI 1.72 More than 6
months
Vigyan Bhawan ESI 4.78 More than 6
months
Hotel Ashok Property Tax 306.93 For earlier
years

(b) Cess dues of Income Tax or Sales Tax or Wealth Tax or Service Tax or duty ofcustoms or duty of excise or value added tax have not been deposited on account of anydispute:

Name of the Unit Nature of Dues Amount ( Rs. 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 52.91 Earlier Years Addl. Director
General DGCEI
Kolkata
AITD Custom Duty 18478.67 2004-05 CESTAT
(Demand for
DPS Mumbai)
Custom Duty 42.17 2003 Committee
(Demand for of Dispute
DFS Kolkatta)
Sales Tax/VAT 2465.12 1995-2008 Commissioner
Appeals
Hotel Patliputra Ashok ESI 0.67 Earlier Years ESI Labour Court
VAT 3.09 Earlier Years Bihar VAT Act JCCT
Patna
Hotel Samrat ESI 71.68** 1998-2003 Delhi High Court
EPF 17.91 1982-1985 Supreme Court

 

Name of the Unit Nature of Dues Amount ( Rs. in lakh) Period to which the Amount Relates Forum where Dispute is Pending
Hotel Ashok ESI 686.32 Earlier Years Delhi High Court
Tis Hazari Delhi
Service Tax 22.04 Earlier Years CESTAT Delhi
Ashok events Service-Tax 39.65 2006-2009 Additional
Commissioner of
Service Tax
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 7.99 2010-11 to 2014-15 CESTAT
Service Tax 5.89 2015-16 Commissioner of
Service Tax

**Unit has provided liability of Rs. 50.79 lakh in the books of account.

viii) According to the information and explanations given to us the Company has nottaken any loan from any financial institution Bank or issued any debentures till the endof financial year. Hence the provisions of Clause 3(viii) of the Companies (Auditor'sReport) Order 2016 regarding reporting on default in repayment of dues to financialinstitution or bank or debenture 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 of Clause 3 (ix) of the Companies (Auditor's Report) Order 2016 arenot applicable to the Company.

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.

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 theprovisions of Clause 3 (xi) of the Companies (Auditor's Report) Order 2016 are notapplicable to the Company.

xii) The Company is not a Nidhi Company so the provisions of Clause 3 (xii) of theCompanies (Auditor's Report) Order 2016 are not applicable. xiii) According to theinformation and explanations given to us all transactions with the related parties are incompliance with Section 177 and 188 of the Act and wherever applicable the details havebeen disclosed in the Financial Statements as required by the applicable accountingstandards.

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 (Auditor'sReport) 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 (Auditor's 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 (Auditor's Report) Order 2016 are not applicable to theCompany.

For Kishore & Kishore
Chartered Accountants
(Firm Regn. No. : 000291N)
(S.C. Kishore)
Place: New Delhi Partner
Date: 19.07.2017 M.No. 003390