To the Members of
M/s.Le Waterina Resorts & Hotels Ltd.
Report on the Financial Statements
We have audited the accompanying financial statements of M/s.Le Waterina Resorts &Hotels Ltd. which comprise the Balance Sheet as at March 31 2014 and the Statement ofProfit and Loss and Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.
Management Responsibility for the Financial Statement
Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position financial performance and cash flows of theCompany in accordance with the Accounting Standards referred to in sub-section (3C) ofsection 211 of the Companies Act 1956. This responsibility includes the designimplementation and maintenance of internal control relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommatehal misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management aswell as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit qualified audit opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
a. in the case of the Balance Sheet of the state of affairs of the Company as at March31 2014;
b. in the case of the Profit and Loss Account of the profit for the year ended on thatdate; and
c. in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2003 issued by the CentralGovernment of India in terms of sub-section (4A) of section 227 of the Act we give in theAnnexure a statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act we report that:
a. we have obtained all the information and explanations which to the best of ourknowledge 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 appears from our examination of those books
c. the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account.
d. in our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards referred to in subsection (3C) of section211 of the Companies Act 1956;
e. on the basis of written representations received from the directors as on March 312014 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2014 from being appointed as a director in terms of clause (g) ofsub-section (1) of section 274 of the Companies Act 1956
f. Since the Central Government has not issued any notification as to the rate at whichthe cess is to be paid under section 441A of the Companies Act 1956 nor has it issued anyRules under the said section prescribing the manner in which such cess is to be paid nocess is due and payable by the Company.
For N.BALASUBRAMANIAM ASSOCIATES
Place : Chennai
Date : 30-05-2014
The Annexure referred to in paragraph 1 of the Our Report of even date to the membersof M/s .Le Waterina Resorts & Hotels Ltd. on the accounts of the company for the yearended 31st March 2014.
On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit we report that:
1. a. The company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.
b. As explained to us fixed assets have been physically verified by the management atreasonable intervals; no material discrepancies were noticed on such verification.
c. In our opinion and according to the information and explanations given to us nofixed asset has been disposed during the year and therefore does not affect the goingconcern assumption.
2. a. As explained to us inventories have been physically verified during the year bythe management at reasonable intervals.
b. In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness.
c. In our opinion and on the basis of our examination of the records the Company isgenerally maintaining proper records of its inventories. No material discrepancy wasnoticed on physical verification of stocks by the management as compared to book records.
3. a. According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not granted any loans secured orunsecured to companies firms or other parties listed in the register maintained underSection 301 of the Companies Act 1956. Consequently the provisions of clauses iii (b)iii (c) and iii (d) of the order are not applicable to the Company.
b. According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not taken loans from companies firmsor other parties listed in the register maintained under Section 301 of the Companies Act1956 except from the Managing Director. The unsecured loan from the Managing Director isinterest free and is not prejudicial to the interest of the company.
4. In our opinion and according to the information and explanations given to us thereis generally an adequate internal control procedure commensurate with the size of thecompany and the nature of its business for the purchase of inventories & fixed assetsand payment for expenses & for sale of goods. During the course of our audit no majorinstance of continuing failure to correct any weaknesses in the internal controls has beennoticed.
5. a. Based on the audit procedures applied by us and according to the information andexplanations provided by the management the particulars of contracts or arrangementsreferred to in section 301 of the Act have been entered in the register required to bemaintained under that section.
b. As per information & explanations given to us and in our opinion thetransaction entered into by the company with parties covered u/s 301 of the Act have beenmade at prevailing market prices which are reasonable. However during the year underaudit the Managing Director of the company has reduced his business charges for thecurrent year and ensuing year in view of the large repairs and renovation expenditureincurred by the company for upgradation and expansion of the business.
6. The Company has not accepted any deposits from the public covered under section 58Aand 58AA of the Companies Act 1956.
7. As per information & explanations given by the management the Company has aninternal audit system commensurate with its size and the nature of its business.
8. As per information & explanation given by the management maintenance of costrecords has not been prescribed by the Central Government under clause (d) of sub-section(1) of section 209 of the Act and we are of the opinion that prima facie the prescribedaccounts and records have been made and maintained.
9. a. According to the records of the company undisputed statutory dues includingProvident Fund Investor Education and Protection Fund Employees' State InsuranceIncome-tax Sales-tax Wealth Tax Service Tax Custom Duty Excise Duty Cess to theextent applicable and any other statutory dues have generally been regularly depositedwith the appropriate authorities. According to the information and explanations given tous there were no outstanding statutory dues as on 31s' of March 2014 for aperiod of more than six months from the date.
b. According to the information and explanations given to us there is no amountspayable in respect of income tax wealth tax service tax sales tax customs duty andexcise duty which have not been deposited on account of any disputes.
10. The Company does not have any accumulated loss and has not incurred cash lossduring the financial year covered by our audit and in the immediately preceding financialyear.
11. Based on our audit procedures and on the information and explanations given by themanagement we are of the opinion that the Company has not defaulted in repayment of duesto a financial institution bank or debenture holders.
12. According to the information and explanations given to us the Company has notgranted loans and advances on the basis of security by way of pledge of shares debenturesand other securities.
13. The Company is not a chit fund or a nidhi /mutual benefit fund/society. Thereforethe provision of this clause of the Companies (Auditor's Report) Order 2003 (as amended)is not applicable to the Company.
14. According to information and explanations given to us the Company is not tradingin Shares Mutual funds & other Investments. Proper records & timely entries havebeen maintained in this regard & further investments specified are held in their ownname.
15. According to the information and explanations given to us the Company has notgiven any guarantees for loan taken by others from a bank or financial institution.
16. Based on our audit procedures and on the information given by the management thecompany has raised Rs.1111 lakhs from M/s Vijaya bank for repairs renovation upgradationand expansion of business. Except for the balance amount kept in separate account with M/sVijaya Bank rest of monies have been spent on the objectives for which loan has beenraised.
17. Based on the information and explanations given to us and on an overall examinationof the Balance Sheet of the Company as at 31sl March 2014 we report that nofunds raised on short-term basis have been used for long-term investment by the Company.
18. Based on the audit procedures performed and the information and explanations givento us by the management we report that the Company has not made any preferentialallotment of shares during the year.
19. The Company has no outstanding debentures during the period under audit.
20. The Company has not raised any money by public issue during the year.
21. Based on the audit procedures performed and the information and explanations givento us we report that no fraud on or by the Company has been noticed or reported duringthe year nor have we been informed of such case by the management.
For N.BALASUBRAMANIAN ASSOCIATES
Place : Chennai
Date : 30-05-2014