The Members of
LORDS ISHWAR HOTELS LIMITED
Report on the Audit of the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Lords IshwarHotels Limited ("the Company") which comprise the Balance Sheet as at 3P'March2022. the Statement of Profit and Loss (including other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flow for the year ended on thatdate and notes to the financial statements including a summary of the significantaccounting policies and other explanatory information.
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 Companies Act. 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at 3 P'March. 2022. the profit and othercomprehensive income changes in equity and its Cash Flows for the year ended on thatdate.
Basis of Opinion
We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Standalone Financial Statements section of our report. We are independent ofthe Company in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India (ICAI) together with the independence requirements that are relevantto our audit of the standalone financial statements under the provisions of the CompaniesAct 2013 and the Rules made there under and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the ICAI's Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the standalone financial statements.
Emphasis of matter
We draw attention to notes of the accompanying Audited Financial Results whichdescribes the possible effect of uncertainties relating to COVID-19 pandemic on theCompany's financial performance as assessed by the management.
Our opinion is not modified in respect of the above matter.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.
|Key Audit matter ||Auditor's Response |
|1 Revenue Recognition ||Principal Audit Procedures |
|To ensure accuracy of recognition measurement presentation and disclosures of revenues and related accounts || We have assessed the Compain's internal controls surrounding its revenue transactions; |
| || We tested the key controls identified. |
| || We performed substantive detail testing by selecting a sample of revenue transactions that we considered appropriate to test the evidence of effectiveness of the internal controls and adherence to accounting policies in recognising the revenue and the rebates and discounts there against. |
|2 Impact of COVID-19 pandemic on Going Concern ||Our audit procedures included the following; |
|The Government had imposed travel restrictions in the country during the 1st Quarter of the financial year due to the second wave as well as certain part of 3rd Quarter due to the third wave and then had released the same in a phased manner. These have posed challenges to the business of the Company. This required the Company to assess impact of COVID-19 on its operations. || Obtain an understanding of the key controls relating to the Company's forecasting process. |
| || Obtain an understanding of key assumptions adopted by the Company in preparing the forecasted statement of profit and loss and cash flow and assessed the consistency thereof with our expectations based on our understanding of the Compain's business. |
| || Assessed the forecasted statement of profit and loss and cash (low by considering plausible changes to the key assumptions adopted by the Company . |
|The Company has assessed the impact of COVID-19 on the future cash flow projections. The Company has also prepared a range of scenarios to estimate financing requirements. ||Performed the following procedures as mitigating factors: |
| || Obtained understanding of new' borrowing facilities availed including additional credit pronounced under the government scheme. |
|In view of the above we identified impact of COVID-19 on going concern as a key audit matter. ||* Assessed Government's efforts to counter the impact of resurgence in COVID-19 cases and the impact of the same on future projections. |
| ||* Assessed disclosures made in the standalone financial statements with regard to the above. |
Information Other than the Standalone Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis. Board s Report including Annexures to Board's Report. CorporateGovernance and Shareholder's Information but does not include the standalone financialstatements and our auditor's report thereon.
Our opinion on the standalone financial statements does not cover the other informationand we do 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 and in doing so. consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise 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.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the act") with respect to the preparation ofthese standalone financial statemer-' that give a true and fair view of the financialposition financial performance total comprehendc income changes in equity and cashflows of the Company in accordance with the Ind AS and other accounting principlesgenerally accepted in India. 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 frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone financial statements that give a true and fair view andart- free from material misstatement whether due to fraud or error.
In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company's financialreporting process.
Auditor's Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements and 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 standalone 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 standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act. we are also responsible for expressing our opinion on whether theCompany has an 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 standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.
* Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transaction' and events in a manner that achieves fairpresentation.
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. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work: and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.
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.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence 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 financial statementsof the current period and are therefore the key audit matters We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
L 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 lavs have been kept by theCompany so far as 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 Statement of Cash Flow dealt with by thisReport are in agreement with the relevant books of account;
d) in our opinion the aforesaid Standalone financial Statements comply w ith the IndAS specified under Section 133 of the Act read w ith the Rules made there under and inforce for the time being;
e) on the basis of written representations received from the Directors as on 3 Is'March. 2022 and taken on record by the Board of Directors none of the Directors isdisqualified as on 31 "March 2022. from being appointed as a director in terms ofSection 164(2) of the Act;
0 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" Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting.
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 opinion and to the best of our information and according to the explanationgiven to us. Company is not paying any remuneration to its Directors including ManagingDirector.
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 Standalone financial statements.
ii. The Company didn't have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There were no amounts which required to be transferred to the investor Educationand Protection Fund by the Company.
Annexure "A" to the Independent Auditors' Report
Report on the matters specified in paragraph 3 of the Companies (Auditor'sReport) Order 2020 ("the order") issued by the Central Government ofIndia in terms of Section 143(11) of the Companies Act 2013 ("the Act")as referred to in Paragraph 1 of Report on Other Legal and Regulatory Requirements'section.
To the best of our information and according to the explanations provided to us by theCompany and the books of account and records examined by us in the normal course of auditwe state that:
a. In respect of the Company's Property Plant and Equipment and intangible Assets:
(a) (A) The Company has maintained proper records show ing full particulars includingquantitative details and situation of Property Plant and Equipment and relevant detailsof right-of-use assets.
(B) The Company has maintained proper records show ing full particulars of intangibleassets.
(b) As explained to us Property. Plant and Equipment have been physically verified bythe management at reasonable intervals: no material discrepancies were noticed on suchverification.
(c) The title deeds of all the Immovable properties (other than properties where theCompany is the lessee and the lease agreements are duly executed in favor of the lessee)are held in the name of the Company.
(d) The Company has not revalued any of its Property Plant and Equipment (includingright-of-use assets) and intangible assets during the year.
(e) No proceedings have been initialed during the year or are pending against theCompany as at March 31 2022 for holding any benami property under the Benami Transactions(Prohibition) Act 1988 (as amended in 2016) and rules made thereunder.
b. (i) As explained to us inventories have been physically verified during the year bythe management at reasonable intervals and in our opinion the coverage and procedure ofsuch verification by the management are appropriate; no discrepancies of 10% or more inthe aggregate for each class of inventory were noticed on such verification.
(ii) During any point of time of the year the Company has not been sanctioned anyworking capital limit in excess of five erore rupees in aggregate from banks orfinancial institutions on the basis of security of current assets hence this clause notapplicable for the reporting period.
c. According to the information and explanations given to us and on the basis of ourexamination of the books of account during the year the Company has neither made any investmentin. nor provided any guarantee or security nor granted any loans or advances in thenature of loans secured or unsecured to Companies Firms Limited Liability Partnershipsor other parties.
d. According to the information and explanation given to us and on the basis of ourexamination of the books of accounts the Company has duly complied with the provisions ofSection 185 and 186 of the Companies Act 2013 in respect of loans investmentsguarantees and securities.
e. Based on the audit procedures applied by us and according to the information andexplanations provided by the management the Company has not accepted deposits from publicwithin the meaning of directives issued by the Reserve Bank of India and provisions ofSections 73 to 76 or any other relevant provisions of the Act and the Rules framedthereunder are not applicable.
f. As per information and explanation given by the management maintenance of costrecords has not been prescribed by the Central Government under sub-section (1) of Section148 of the Companies Act 2013 for the Company's activities. Hence the provisions ofclause 3(vi) of the Order are not applicable to the Company.
g. (a) According to the records of the Company undisputed statutory dues includingProv ident f und. Employees' State Insurance. Income-tax. Sales-tax. Service Tax LuxuryTax Duty of Custom Excise Duty Value added tax Good and Service Tax. 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 at 3lsl of March 2022 for aperiod of more than six months from the date they became payable.
(b) According to the information and explanations given to us. the amounts payable inre'pe-' Income Tax Service Tax Sales Tax Luxury l ax. Goods and Service tax. CustomsDuty and I xv -e Duty which have not been deposited on account of disputes andthe forum w here dispute is pending are given below:-
|Name of the statute ||Nature of Dispute ||Amount (Rs.) ||Period ||Forum where dispute is pending ||Progress and Remarks |
|Central Excise & Customs Act ||Service Tax & Penalty ||407758 ||2004-05 & 2005- 06 ||Commissioner (Appeals) Central Excise & Customs Baroda ||Out of total demand of Rs. 815.516 raised. Rs. 407.758 is paid. Rest Rs. 407.758 is under dispute & pending at appeal level. |
h. There were no transactions relating to previously unrecorded income that weresurrendered or disclosed as income in the tax assessments under the Income Tax Act. 1961(43 of 1961) during the year.
i. In our opinion and according to the information and explanation given to us. theCompany has not taken any loans or borrowing from the financial institution bank.Government and there is no debenture holder in the Company so the provisions of Clause3(viii) of the Order are not applicable to the Company.
j. (a) In our opinion and according to information and explanation given to us. theCompany has not raised any money by way of initial public offer/further public offer(including debt instruments) during the year under consideration.
(b)During the year the Company has not made any preferential allotment or privateplacement of shares or convertible debentures (fully or partly or optionally).
k. Based on our audit procedures and on the basis of information and explanation givenby the management! we are of the opinion that no fraud by the Company or on the Companyhas been noticed or reported during the year.
l. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company and therefore the provisions of clause 3(xii) of the Orderare not applicable to the Company.
m. Based on the information and explanations given to us the Company has complied withSection 177 and 188 of the Companies Act. 2013 wherever applicable for all transactionswith the related parties and the details of related party transactions have been disclosedin the financial statements etc. as required by the applicable accounting standards.
n. (a) In our opinion the Company has an adequate internal audit system commensuratewith the si/e and the nature of its business.
(b)We have considered the internal audit reports issued to the Company during the yearand covering the period up to March. 2022.
o. Based on the information and explanations given to us. the Company has not enteredinto any noncash transaction w ith directors or persons connected with him as per Section192 of the Companies Act 2013.
p. According to the information and explanation given to us. the Company is notrequired to be registered under Section 45-1A of the Reserve Bank of India Act. 1934.Hence reporting under clause (xvi) (a) (b) (c) and (d) of the Order is not applicable.
q. The Company has not incurred cash losses during the financial year covered by ouraudit and the immediately preceding financial year.
r. On the basis of the financial ratios ageing and expected dates of realization offinanc ial 3sseis a >d payment of financial liabilities other information accompanyingthe financial statements arc - knowledge of the Board of Directors and Management plansand based on our examination of the evidence supporting the assumptions nothing has cometo our attention which causes us to believe that any material uncertainty exists as onthe date of the audit report indicating that Company is not capable of meeting itsliabilities existing at the date of balance sheet as and when they fall due within aperiod of one year from the balance sheet date. We however state that this is not anassurance as to the future viability of the Company. We further state that our reportingis based on the facts up to the date of the audit report and we neither give any guaranteenor any assurance that all liabilities falling due within a period of one year from thebalance sheet date w ill get discharged by the Company as and when they fall due.
s. Prov isions of Section 135(5) are not applicable to the Company: hence reportingunder this clause of the Order is not applicable for the year.
t. As the Company is not in holding relationship of holding-subsidiary with any otherCompany and hence consolidated financial statements are not to be prepared; reportingunder this clause of the Order is not applicable for the year.
Annexure "B" to the Independent Auditors' Report
Report on the Internal Financial Controls under clause (i) of Sub-Section 3 ofSection 143 of the Companies Act 2013 ("the Act") as referred toin paragraph 2(f) of Report on Other Legal and Regulatory Requirements'section.
We have audited the internal financial controls over financial reporting of Lordslshwar Hotels Limited ("the Company") as of 3Is1 March. 2022 inconjunction with our audit of the Standalone financial statements of the Company for theyear 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 Reportingissued by the Institute of Chartered Accountants of India These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timelv preparations of reliable financial information asrequired under the Companies Act. 2013.
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 accordance with the Guidance Note on audit of InternalFinancial Controls over Financial Reporting (the "Guidance Note") and thestandards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) ofthe Act to the extent applicable to an audit of Internal Financial Controls bothapplicable to an audit of Internal Financial Controls and. both issued by the Institute ofChartered Accountants of India. Those Standards and the Guidance Note require that wecomply with etlucal requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.
Our audit involves performing procedure 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 included obtainingunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgments including the assessment of the risks of materialmisstatement 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 financial reporting includes those policies& procedures that:
(a) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transaction & disposition of the assets of Company;
(b) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditure of the Company are being made only inaccordance with authorizations of management and directors of Company; and
(c) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use. or disposition of Company's assets that could have amaterial effect on the tlnancial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting:
Because of inherent limitation of internal financial controls over financial reportingincluding the possibility of collusion or improper management override of controlsmaterial misstatements due to error or fraud may occur and not be detected. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree ot compliance with the policies or procedures may 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 31* March. 2022. based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.
| ||For K. K. Harvani & Co. Chartered Accountants |
| ||FRN: 121950W |
|Place: Mumbai ||(CA. Kishor Harvani) (Proprietor) |
|Date: 30th May 2022 ||Membership No. 110780 |
| ||1CAI LDIN: 221I0780AJVTRF818I |