Report on the Audit of the Standalone Ind AS Financial Statement
We have audited the Standalone Ind AS FinancialStatements of INDIA TOURISMDEVELOPMENT CORPORATION LIMITED New Delhi ("the Company") which comprisethe Balance Sheet as at March 31 2019 and Statement of Profit & Loss (including OtherComprehensive Income) Statement of Change in Equity and Statement of Cash Flow for theyear then ended and Notes to the Standalone Financial Statements including a summary ofSignificant Accounting Policies and other explanatory information (hereinafter referred toas "Standalone Ind AS Financial Statements").
In our opinion and to the best of our information and according to the explanationsgiven to usthe aforesaid Standalone Ind AS Financial Statements give the informationrequired by the Companies Act 2013 ("the Act") in the manner so required andgive a true and fair view in conformity with the Accounting Principles generally acceptedin India of the state of affairs (Financial Position) of the Company as at 31st March2019 and Profit (Financial Performance including other Comprehensive Income) changes inthe equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our Audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theStandalone Ind AS Financial Statements section of our Report. We are independentof the Company in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our auditof the Standalone Ind AS Financial Statements under the provisions of the Act and theRules thereunder and we have fulfilled our other Ethical Responsibilities in accordancewith these requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key Audit Matters are those matters that in our professional judgment were of mostsignificance in our audit of the Financial Statements of the current period. These matterswere addressed in the context of our audit of the Financial Statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.
Information other than the Standalone Financial Statements and Auditor's Report thereon
The Company's Management and Board of Directors are responsible for the OtherInformation. The Other Information comprises the information included in the Company'sAnnual Report but does not include the Financial Statements and our Auditor's Reportthereon.
The Annual Report is expected to be made available to us after the date of thisauditor's report. Our opinion on the Financial Statements does not cover the OtherInformation and we will not express any form of assurance conclusion thereon.
In connection with our Audit of the Standalone Financial Statements our responsibilityis to read the other information identified above when it becomes available and in doingso consider whether the other information is materially inconsistent with the FinancialStatements or our knowledge obtained in the audit or otherwise appears to be MateriallyMisstated.
Emphasis of Matter
Attention is drawn on the Notes to the Standalone Ind AS Financial Statements:
1. That on account of non-finalization of issue of compensation payable to thecompany for Loss of Business Opportunity arising due to the decision of the Government ofIndia for closure 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 from theGovernment as on 31.03.2019. Our opinion is not qualified in respect of this matter.
(Refer foot note no. 1 of Note No.13 & Point No.12 (c) of Note No. 39-General Notesto the Financial Statements)
2. The impact of loss/shortage/ wastage due to non-reconciliation of the resultof Physical Verification carried out for Fixed Assets with the books of accounts on theFinancial Statement of the company remains indeterminate. Our opinion is not qualified inrespect of this matter.
(Refer foot note no. g of Note No. 2 to the Financial Statements.)
3. Balance in Trade Receivables Loans and Sundry Creditors are subject toindependent confirmation. Our opinion is not qualified in respect of this matter. (ReferPoint No. 1 of Note No. 39-General Notes to the Financial Statements.)
4. An amount of ? 346.58 lakh is being shown as customer at Credit'under Note-26 "Other Current Liabilities" but in the Financial Statement notadjusted/linked with the corresponding trade receivable under Note-8 "TradeReceivables".
Our opinion is not qualified in respect of this matter. (Refer foot note to Note No. 26to the Financial Statements.)
5. The company has recognised Provision for Amount Recoverable
Sales Tax' amounting to ? 7.88 lakh as on 31st March 2019 and showing the sameas Recoverable' under the head "Other Non-Current
Assets" for sufficiently long period of time instead of writing off from the booksof accounts the recovery of which is not evidenced by the records available. Our opinionis not qualified in respect of this matter.
(Refer foot note to Note No. 6 to the Financial Statements.)
6. The consumption of stock of stores crockery cutlery etc. has been workedout by the Company by adding to the opening balances purchases made during the year anddeducting there-from the closing balance at the year-end based on physical inventoriesvalued as per the accounting policy. Accordingly separate impact of loss/shortage/wastage included in the consumption thereof in the Financial Statements of theCompany remains indeterminate. Our opinion is not qualified in respect of this matter.
(Refer Point No. 3 of Note No.39 to the Financial Statements.)
7. At Ashok International Trade Division the sum of Rs. 161 lakh paidin the year 2006-07 as security deposit in the form of fixed deposit
(FD) receipt in favour of Delhi International Airport Pvt. Ltd. (DIAL) is being shownas recoverable. Its FD was encashed during 2007-08 by DIAL on account of service-taxcharged by DIAL in billing of service provided to be Company. This is being disputed bythe Company on the ground that their service was not liable for service-tax and they arehopeful of its recovery. Our opinion is not qualified in respect of this matter. (Referfoot note to Note No.4 to the Financial Statements)
8. The TDS amounting to ? 5392.38 lakh is appearing to the debit ofaccount which does not appear to be feasible and as such the same needs a detailedscrutiny and subject to verification/reconciliation.
Further the amount of "Sundry Debtors" in the unit's Financial Statementsincludes amount of TDS deducted by the customers but no Financial Entries are beingpassed for TDS in the books of accounts. Thereafter on receipt of the TDS
Certificate to the account of the Customer and TDS Account is Debited. Our opinion isnot qualified in respect of this matter.
9. There has been a fraud for ? 87.02 lakh in ITDC Unit AshokEvents during the year ending 31st March 2019. Immediate action was taken forinvestigation of the same and recovery of the amount. The total amount of Rs. 87.02 lakh has been recovered during the F.Y. 2018-19. Management has taken necessary andrelevant measures at their end so that the same could not occur again in future. (Referpoint no. 9 of Note 39 of General Notes to the Financial Statements) 10. In AshokConsultancy and Engineering Services (ACES A Unit of ITDC) out of 70 Projects
49 Projects have been completed long back but have not been closed in the books ofaccounts as final bills are not received/settled.
Reconciliation exercise is expected to be completed by October 2019. Thereafterbalances will be squared up / adjusted after approval from higher Authorities. Our opinionis not qualified in respect of this matter. (Refer Point No. 17 of Note 39 of GeneralNotes to the Financial Statements) Further it has also been informed that the FundReceived / Receivable from different parties have been accounted for in the books ofaccounts. The present status of individual projects states in the aforesaid table has beenprovided and as such we cannot comment on the matter.
Responsibility of Management and those Charged with Governance 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 affairs (Financial Position) Profit/Loss (FinancialPerformance including other comprehensive income) changes in the equity and cash flows ofthe Company in accordance with the Accounting Principles generally accepted in Indiaincluding the Indian Accounting Standards(Ind AS) specified under Section 133 of the Actread with relevant rules issued under Companies (Accounts) Rules 2014.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that areresponsible and prudent; and design implementation and maintenance of adequate internalFinancial Controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Standalone Financial Statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
In preparing the Standalone Ind AS Financial
Statements management and Board of Directors are responsible for assessing theCompany'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. Board of Directors is also responsible for overseeing theCompany's Financial Reporting Process.
Auditor's Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the Standalone Ind ASFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's 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 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 Ind AS Financial Statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.
Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Companies Act 2013 we are also responsible for expressing ouropinion on whether the company has internal Financial controls with reference to FinancialStatements in place and the operating effectiveness of such controls.
Evaluate the appropriateness ofaccounting 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 on the Company's abilityto continue as a going concern. If we conclude that a material uncertainty exists we arerequired to draw attention in our auditor's report to the related disclosures in theStandalone Ind AS Financial Statements or if such disclosures are inadequate to modifyour opinion. Our conclusions are based on the audit evidence obtained up to the date ofour auditor's report. However future events or conditions may cause the Company to ceaseto continue as a going concern.
Evaluate the overall presentation structure and content of the Standalone Ind AS FinancialStatements including the disclosures and whether the Standalone Ind AS Financial Statements represent the underlying transactions and events in amanner that achieves fair presentation.
Materiality is the magnitude of misstatements in the Standalone Financial Statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the Financial Statements may be influenced. materialityand qualitative factors in (i) planning the scope of our audit work and in evaluating theresults of our work; and (ii) to evaluate the effect of any identified misstatements inthe
We communicate with Those Charged with Governance regarding among other matters theplanned scope and timing of the audit and significant significant deficiencies we identifyduring our audit. We also provide Those Charged with Governance with a Statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
From the matters communicated with Those Charged with Governance we determine thosematters that were of most significance in the audit of the Standalone Ind AS FinancialStatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.
We did not audit the Financial Statements/ information of 30 branches included in the
Standalone Ind AS Financial Statements of the company whose Financial Statementsreflected total assets of Rs. 16964.23 lakh as at 31st March 2019 and total revenue of Rs. 19794.67 lakh for the year ended on that date as considered in the StandaloneInd AS Financial Statements/information of these branches have been audited by the branch We consider quantitative Auditors whose reports have been furnished to us and ouropinion in so far as it relates to the amounts and disclosure included in respect of thesebranches is based solely on the report of such branch Auditors and accompanying FinancialStatements.
Report on Other Legal and Regulatory Requirements findings including 1. Asrequired by the Companies (Auditor s any in internalcontrol that Report) Order 2016("the Order") issued by the Central Government of India in terms of sub-section(11) of section 143 of the Companies Act' 2013 We give in "Annexure A" aStatement on the matters specified in paragraphs 3 & 4 of the Order to the extentapplicable.
2. As required by the 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 "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 purpose of our audit;
b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books 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 Auditor have been sent to us and have beenproperly dealt with by us in preparing this report;
d) The Balance Sheet the Statement of Profit & Loss (including other comprehensiveincome) the Statement of Changes in Equity and the Statement of Cash Flows dealt with bythis Report are in agreement with the books of accounts and with the returns received fromthe branches not visited by us; e) In our opinion the aforesaid Standalone Ind ASFinancial Statements comply with the Indian Accounting Standards specified underSection 133 of the Act; f) Being a Government Company pursuant to Notification No. GSR463(E) dated 05th June 2015 issued by the Ministry of Corporate Affairs the provisionsof Section 164(2) of the Companies Act 2013 regarding disqualification of directors arenot applicable to the Company; g) With respect to the adequacy of the internal Financialcontrols over Financial reporting of the Company and the operating effectiveness of suchcontrols refer to our separate report in "Annexure C"; (h) With respectto the other matters to be included in the Auditor's Report in accordance with Rule 11 ofthe Companies (Audit and Auditors) Rules 2014in our opinion and to the best of ourinformation and according to the explanations given to us:
i) The Company has disclosed the impact of pending litigations on its Financialposition in its Financial Statements- Refer Note 38 to Standalone Ind AS FinancialStatements;
ii) There are no long-term contracts including derivative contracts existing as on thedate of balance sheet for which provision is required to be made under the applicable lawfor any material foreseeable losses and
iii) No amount required to be transferred to the Investor Education andProtection
Fund' was outstanding at the year.
| ||For Agiwal & Associates |
| ||Chartered Accountants |
| ||(FRN. No. 000181N) |
| ||(R K Agrawal) |
|Place: New Delhi ||Partner |
|Date: 30.05.2019 ||Membership No.017020 |
"Annexure A" to the
Independent Auditor's Report
(Referred to in paragraph 1 under Report on Other Legal & RegulatoryRequirements' section of our report of even date on the accounts of India TourismDevelopment Corporation Limited for the year ended 31st March 2019):
1. Fixed Assets:
a) The 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.
Name of the Unit/Branch
1. DFS Paradip
2. DFS Kolkata
3. Hotel Samrat
5. DFS Haldia
6. Ashok Events
7. Hotel The Ashok
8. Hotel Kalinga Ashok
9. Western Court
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:
|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 acres. |
|6 Taj Restaurant ||Title deed in favour of the Corporation has not been effected. |
2. As per the information and explanation provided to us the 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.
Name of the Unit/Branch
1. Ashok Events
3. Hotel Samrat
The Company is generally maintaining proper record of inventory but the closinginventory is recorded in the books of accounts onthe basisofphysically available inventoryand no actual shortage/loss/ wastage is recorded separately.
3. As per the information and explanation given to us the Company has not granted anyloans secured or unsecured to companies firms limited liability partnership or otherparties covered in the register maintained under Section 189 of the Act thereforeClauses 3(iii) (a)
(b) and (c) of the Companies (Auditor's Report) Order 2016 are not applicable.
4. As per information and explanations given to us the Company compiled with theprovision of Section 185 and 186 of the Act.
5. As per the information and explanation given to us the Company has not accepted anydeposits from the public in term of Section 73 to 76 or any other relevant provisions ofthe Act and the Rules framed thereunder. Thus the directives of Reserve Bank of Indiaand provision of Clauses 3(v) of the Companies (Auditor's Report) Order 2016 are notapplicable.
6. 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.
7. In respect of statutory dues:
a) In our opinion the Company is generally regular in depositing undisputed statutorydues including
Provident Fund Income-tax Sales-tax Service-tax customs duty excise dutyvalue-added tax cess and any other statutory dues to the appropriate authorities and ifnot the extent of arrears of outstanding statutory dues as at the last day of financialyear concerned for a period of more than six months from the date they became payable aregiven below:
|Name of the ||Nature of Dues ||Amount (? in lakh) ||Period to which the Amount Relates |
|Unit || || || |
|Hotel Samrat ||TDS demand ||4.60 ||2007-2018 |
|Hotel Kalinga ||Works ||0.80 ||2016-17 |
|Ashok ||Contract Tax || || |
| ||Works ||0.03 ||2015-16 |
| ||Contract Tax || || |
| ||Works ||0.02 ||2017-18 |
| ||Contract Tax || || |
|AIHTM ||TDS ||1.53 ||2007-2018 |
|Hyderabad House ||ESI ||1.72 ||More than 6 months |
|Vigyan Bhawan ||ESI ||4.78 ||More than 6 months |
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 ofdispute:
|Name of the ||Nature of Dues ||Amount ||Period to which the Amount Relates ||Forum where Dispute is Pending |
|Unit || ||(? in lakh) || || |
|Hotel Kalinga Ashok ||Excise Duty (MGQ) 13.33 ||2002-03 ||Odisha High Court District Court Khurda |
| ||ESI ||1.45 ||1994-95 || |
| ||Service Tax ||105.92 ||2008-09 to 2012-13 ||Commissioner Appeals GST Bhubaneswar |
| ||Sales Tax ||0.28 ||2004-05 ||Odisha High Court Custom Assistant Commissioner |
|AITD ||Custom Duty (Demand in respect of DFS Mumbai) ||18300.00 ||2004-05 || |
| ||Custom Duty (Demand in respect of DFS Mumbai) ||146.00 ||2004-05 ||Commissioner of Customs |
| ||Custom Duty (Demand in respect of DFS Mumbai) ||29.60 ||2004-05 ||Joint Commissioner |
| ||Custom Duty (Demand in respect of DFS Kolkata) ||42.17 ||2002-03 ||Assistant Commissioner |
| ||TDS ||8.15 ||2007-12 ||Assistant Commissioner |
| ||Custom Duty (Demand in respect of DFS Mumbai) ||4.60 ||2004-05 ||Management seeking approval for filing CESTAT Appeal |
|Hotel Patliputra Ashok ||ESI ||0.67 ||Earlier Years ||ESI Labour Court |
|Hotel Samrat ||ESI Service Tax ||71.68** ||1998-2003 ||Delhi High Court |
| || ||17.02 ||2017-18 ||Commissioner of Service Tax Appeal |
|Hotel Ashok ||ESI ||423.83 ||Earlier Years ||Delhi District Court |
| || || || ||Tis Hazari Delhi |
| ||Service Tax ||10.60 ||Earlier Years ||CESTAT Delhi |
|Ashok Events ||Service-Tax ||39.65 ||2006-2009 ||Commissioner of Service Tax Appeals |
| ||TDS ||7.59 ||2007-2019 ||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 ||8.20 ||2014-15 to 2017-18 ||CPC |
|Hotel Janpath ||TDS ||21.56 ||2007-2008 to ||CPC |
| || || ||2011-12 2017-18 || |
**Unit has provided liability of ? 50.79 lakh in the books of accounts.
8. According to the information and explanations given to us the Company has not takenany loan from any financial institution Bank or issued any debentures till the end offinancial year. Hence the provisions of Clause 3(viii) of the Companies (Auditors Report)Order 2016 regarding reporting on default in repayment of dues to financial institutionor bank or debenture is not applicable.
9. 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.
10. 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 Ashok Events a unit of ITDC where a fraud for ? 87.02 lakh has taken place.Immediate action was taken for investigation of the same and recovery of the amount. Thetotal amount of ? 87.02 lakh has been recovered during the F.Y. 2018-19. Management hastaken necessary and relevant measures at their end so that the same could not occur againin future.
11. 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.
12. The Company is not a Nidhi Company so the provisions of Clause 3 (xii) of theCompanies (Auditors Report) Order 2016 are not applicable.
13. 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.
14. 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.
15. 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.
16. 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 Agiwal & Associates Chartered Accountants (FRN. No. 000181N)
| ||(R K Agrawal) |
|Place: New Delhi ||Partner |
|Date: 30.05.2019 ||Membership No.017020 |
"Annexure B" to the Independent Auditor's Report ended 31.03.2018
(Referred to in paragraph 2 under Report on Other Legal and RegulatoryRequirements' section of our report of even date on the accounts of India TourismDevelopment Corporation Limited we report on the directions/sub-direction given by theComptroller and Auditor General of India under section 143(5) of the Companies Act 2013):
|Direction/Sub-directions ||Comments |
|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. ||Yes. As per the information and explanation given to us the company maintains all accounting related records in computer accounting software. There is no material impact on the integrity of the accounts or financial implication on the processing of these accounting transactions outside IT systems. |
|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. ||No Loan has been taken by the Company and as such it is not applicable. |
|3. Whether 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. ||Yes The fund received/receivable from Central/ State Agencies have been accounted for /utilized as per its terms and conditions for the works of the period ended 31st March 2019. Except In the case of followings: |
| ||1.) ACES || || |
| ||Particulars ||Operative Projects ||Non- operative/ closed Project |
| ||No. of Projects Outstanding/to be utilized ||14 ||32 |
| ||(? in lakh) ||3315.99 ||1370.24 |
|Direction/Sub-directions ||Comments || |
| ||No. of Projects 07 ||17 |
| ||Amount receivable || |
| ||(? in lakh) 106.65 ||437.47 |
| ||2.) AIH&TM || |
| ||It was observed that amount from Ministry of Tourism in March 2013 for payment of stipend to students worked as volunteers in Games but this amount is not claimed by students till now and hence a credit balance of ? 15.37 lakh is reflecting in the books of accounts. || |
For Agiwal & Associates Chartered Accountants
Firm Regn. No. : 000181N
(R K Agrawal) Partner M.No. 017020
Place: New Delhi Date: 30.05.2019
"Annexure C" to the
Independent Auditor's Report
(Referred to in paragraph 3(g) under Report on Other Legal and RegulatoryRequirements' section of our report of even date on the accounts of India TourismDevelopment Corporation Limited for the year ended 31st March 2019)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the Internal Financial Controls over Financial Reporting of IndiaTourism Development Corporation Limited New Delhi as of March 31 2019 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("ICAI"). These responsibilities include the design implementation andmaintenance of adequate Internal Financial Controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence to theCompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.
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 and the Standards onAuditing issued by ICAI and deemed to be prescribed under Section 143(10) of the Act tothe extent applicable to an audit of Internal Financial
Controls both applicable to an audit of Internal Financial Controls and both issuedby the ICAI. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate Internal Financial Controls over Financial Reporting was established andmaintained and if such controls operated effectively in all material respects.
Our 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 Reporting assessing the risk that a material weakness existsand testing and evaluating the design and operating effectiveness of internal controlbased on the assessed risk. The procedures selected depend on the auditor's judgmentincluding the assessment of the risks of material misstatement of the financialstatements 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 Financial Reportingincludes those policies and procedures that (1) pertain to the maintenance of recordsthat 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 Financial Reporting including the possibility of collusion orimproper management override of controls material misstatements due to error or fraud mayoccur and not be detected. Also projections of any evaluation of the internal financialcontrols over financial reporting to future periods are subject to the risk that theinternal financial control over financial reporting may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.
In our opinion the Company has in all material respects an adequate InternalFinancial Controls system over Financial Reporting and such internal financial controlsover financial reporting were operating effectively as at March 31st 2019 based on"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 of Chartered Accountants of India".
Nevertheless the implementation of the same needs an improvement. Further in order tostrengthen internal financial control as informed the management has already initiatedthe process for engaging an external agency to make it more efficient and meaningful.
For Agiwal & Associates Chartered Accountants
Firm Regn. No. : 000181N
(R K Agrawal) Partner M.No. 017020
Place: New Delhi