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Jindal Hotels Ltd.

BSE: 507981 Sector: Services
NSE: N.A. ISIN Code: INE726D01016
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NSE 05:30 | 01 Jan Jindal Hotels Ltd
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VOLUME 1446
52-Week high 54.95
52-Week low 21.75
P/E
Mkt Cap.(Rs cr) 28
Buy Price 40.25
Buy Qty 2.00
Sell Price 40.95
Sell Qty 16.00
OPEN 40.00
CLOSE 40.00
VOLUME 1446
52-Week high 54.95
52-Week low 21.75
P/E
Mkt Cap.(Rs cr) 28
Buy Price 40.25
Buy Qty 2.00
Sell Price 40.95
Sell Qty 16.00

Jindal Hotels Ltd. (JINDALHOTELS) - Auditors Report

Company auditors report

TO THE MEMBERS OF JINDAL HOTELS LIMITED

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of Jindal Hotels Limited("the Company") which comprise the Balance Sheet as at 31st March 2021 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year then ended and notes to thefinancial statements including a summary of significant accounting policies and otherexplanatory information. (Hereinafter referred to as "the financialstatements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 (the "Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at 31st March 2021 the loss and total comprehensiveincome changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the Companies Act 2013. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India together with the independence requirements that arerelevant to our audit of the financial statements under the provisions of the CompaniesAct 2013 and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion on the financial statements.

Emphasis of Matter

We draw attention to Note 39 to these financial statements which explains themanagement's assessment of going concern assumption and financial impact on account ofCOVID 19 pandemic situation and its assertion that based on best estimates made by it theCompany will continue as a going concern i.e. continue its operations and will be able todischarge its liabilities and realise its assets for the foreseeable future despite thesignificant impact of COVID-19 and factors which continue to evolve and are thereforehighly dependent on future circumstances.

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. Wehave determined the matters described below to be the key audit matters to be communicatedin our report.

Sr. No. Key Audit Matter Auditor's Response
1. Recognition and measurement of deferred tax assets including unused tax credit: Principal Audit Procedures:
As at 31st March 2021 the Company has deferred tax asset of Rs. 46.04 lakhs relating to unabsorbed depreciations and recorded deferred tax assets related to unused tax credits of Rs. 56.00 lakhs considering that future taxable profit will be available against which such unused tax losses can be utilized. Our procedures in relation to management's assessment about the recoverability of deferred tax assets including unused tax credits included:
We identified the recoverability of these deferred tax assets as a key audit matter as recognition of these assets involves judgment by management as to the likelihood of the realization of these deferred tax assets which is based on a number of factors including whether there will be sufficient taxable profits in future periods to support recognition. • Evaluating management's assessment on the sufficiency of future taxable profits in support of the recognition of deferred tax assets by comparing management's forecasts of future profits to historical results and evaluating the assumptions used in those forecasts.
Refer note 2 (M) and 19 to the financial statements. • Obtaining the communications between the Company and taxation authorities regarding tax positions.

Information other than the Financial Statement and Auditor's Report thereon

The Company's Board of Directors is responsible for preparation the other information.The other information comprises the information included in Board's Report includingAnnexure to Board's Report Corporate Governance and Shareholder's Information but doesnot include the financial statements and our auditor's report thereon; Our opinion on thefinancial statements does not cover the other information and we will not express any formof assurance conclusion thereon. In connection with our audit of the financial statementsour responsibility is to read the other information identified above when it becomesavailable and in doing so consider whether the other information is materiallyinconsistent with the financial statements or our knowledge obtained in the audit orotherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the FinancialStatements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance total comprehensive income changes in equity and cash flows of theCompany in accordance with the Ind AS and other accounting principles generally acceptedin India including the accounting Standards specified under Section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror; In preparing the financial statements management is 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; The Board of Directors are also responsible for overseeing thecompany's financial reporting process.

Auditor's Responsibilities for the Audit of Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of 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 our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such controls;

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management;

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern;

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation;Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in

(i) planning the scope of our audit work and in evaluating the results of our work; and

(ii) to evaluate the effect of any identified misstatements in the financialstatements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit; W e alsoprovide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards; From the matters communicated withthose charged with governance we determine those matters that were of most significancein the audit of the financial statements of the current period and are therefore the keyaudit matters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of subsection (11) of section 143 ofthe Companies Act 2013 we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143(3) of the Act we report that:

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the 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;

(c) The Balance Sheet the Statement of Profit and Loss including other comprehensiveincome statement of changes in equity and the Cash Flow Statement dealt with by thisReport are in agreement with the books of account;

(d) 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;

(e) On the basis of the written representations received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on31st March 2021 from being appointed as a director in terms of Section164(2) of the Act;

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B";

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended: In our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 of the Act; and

(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 35 (A) to the financial statements;

ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For Modi & Joshi
Chartered Accountants
FRN: 135442W
Mitul Modi
Partner
Place: Vadodara Membership No.: 154342
Date: 8th June 2021 UDIN: 21154342AAAAAT1042

ANNEXURE "A" TO THE INDEPENDENT AUDITOR’S REPORT

Referred to in Para 1 ‘Report on Other Legal and Regulatory Requirements’ inour Independent Auditor’s Report to the members of the Company on the Ind ASFinancial Statements for the year ended March 31 2021.

On the basis of such checks as considered appropriate and in terms of the informationand explanations given to us we state as under:

I. The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipments; As informed to usthe company has regular programme of physical verification of its fixed assets by whichthe fixed assets are verified in phased manner over a period of time. In accordance withthis programme certain fixed assets were verified during the year and no materialdiscrepancies were noticed on such verification. In our opinion this periodicity ofphysical verification is reasonable having regard to the size of the company and thenature of its assets; According to the information and explanations given to us and on thebasis of our examination of the records of the Company we report that the title deeds ofimmovable properties are held in the name of the Company;

II. As per the information and explanations given to us physical verification ofinventory has been conducted at reasonable intervals by the management and No materialdiscrepancies were noticed on physical verification;

III. According to the information and explanations given to us the Company has notgranted any secured or unsecured loans to Companies Firms Limited Liability Partnershipor any other parties covered in the register maintained under section 189 of the CompaniesAct 2013.

Therefore the requirements of sub-clause (a) (b) and (c) of clause (iii) are notapplicable to the Company.

IV. In our opinion and according to the information provided to us there are no loansto directors including entities in which they are interested in respect of which provisionof section 185 are applicable and hence not commented upon. Further in our opinion andaccording to information and explanation given to us provision of section 186 in respectof loans and advances given and investment made have been complied with by the Company.There are no guarantees and securities given in respect of which provision of section 186of the Act are applicable and hence not commented upon;

V. In our opinion and as explained to us the Company has not accepted any depositsduring the year and therefore the provisions of sections 73 to 76 or any other relevantprovisions of the Companies Act 2013 and the rules framed thereunder are not applicableto the company;

VI. The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Companies Act 2013 for any services rendered by the company;

VII. According to the information and explanations given to us in respect of statutorydues:

a) According to the information and explanation given to us and on the basis of ourexamination of the records of the Company the Company is generally regular in depositingundisputed statutory dues including Provident Fund Employees' State Insurance IncomeTax Goods and Service Tax (GST) Customs Duty Cess income tax and any other statutorydues and there are no undisputed statutory dues outstanding as at 31st March 2021 for aperiod of more than six months from the date they became payable;

b) According to the information and explanations given to us and the records examinedby us there are following disputed dues of Service tax that have not been deposited onaccount of dispute;

Name of the statute Nature of dues Amounts (Rs.) Period to which the amounts relates Forum where dispute is pending
Service Tax Service Tax Interest and penalty Demand of `16704998/- to be reduced by amount paid `1252875/- April 2009 to March 2014 CESTAT Ahmedabad

VIII. Based on our audit procedure and according to the information and explanationgiven by the management we are of the opinion that the company has not defaulted inrepayment of dues to financial institutions or banks Government or dues to debentureholders;

IX. According to the information and explanations given to us no moneys were raised byway of initial public offer or further public offer (including debt instruments) and theterm loans were applied for the purpose for which the loan were obtained during the year;

X. During the course of our examination of the books of account and records of thecompany carried out in accordance with the generally accepted auditing practices in Indiaand according to the information and explanations given to us we have neither came acrossany incidence of fraud on or by the company noticed or reported during the year nor wehave been informed of any such case by the management;

XI. In our opinion and according to the information and explanations given to us theCompany has paid/provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act;

XII. In our opinion and according to the information and explanation given to us theCompany is not a Nidhi company. Accordingly this clause of the Order is not applicable;

XIII. In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the Ind AS financial statements as required by theapplicable accounting standards;

XIV. During the year the company has made preferential allotment of warrants topromoters / promoter group entities numbering 650000 warrants at Rs. 20 each totaling toRs. 130 Lakhs which were converted into 650000 Equity Shares with Face Value of Rs.10/-each at premium of Rs. 10/- each. The Company has complied with the requirement of section42 of the Companies Act 2013 for the allotment of warrants/shares and has applied thefunds received there from for the purpose for which the funds were raised.

XV. According to the information and explanation given to us and based on ourexamination of the records the Company has not entered into non-cash transactions withthe directors or persons connected with him. Hence the provisions of Section 192 of theAct are not applicable; XVI. The Company is not required to be registered under section45-IA of the Reserve Bank of India Act 1934.

For Modi & Joshi
Chartered Accountants
FRN: 135442W
Mitul Modi
Place: Vadodara Partner
Date: 8th June 2021 Membership No.: 154342
UDIN: 21154342AAAAAT1042

ANNEXURE "B" TO THE INDEPENDENT AUDITOR’S REPORT

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 JINDALHOTELS LIMITED ("the Company") as of 31st March 2021 in conjunction withour audit of the Ind AS financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of internal financialcontrols with reference to financial statements of the company that were operatingeffectively for ensuring the orderly and efficient conduct of its business 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 Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing prescribed under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether internal financial controls with reference to financial statements of the companywere established and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the internalfinancial controls with reference to financial statements of the company and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal 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 to the best of our information and according to the explanations givento usthe Company has in all material respects an internal financial controls withreference to financial statements of the company and such internal financial controls overfinancial reporting were operating effectively as at March 31 2021 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Modi & Joshi
Chartered Accountants
FRN: 135442W
Mitul Modi
Partner
Place: Vadodara Membership No.: 154342
Date: 8th June 2021 UDIN: 21154342AAAAAT1042

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