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Polo Hotels Ltd.

BSE: 526687 Sector: Services
NSE: N.A. ISIN Code: INE084C01012
BSE 00:00 | 05 Dec 3.36 0
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3.52

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3.52

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3.36

NSE 05:30 | 01 Jan Polo Hotels Ltd
OPEN 3.52
PREVIOUS CLOSE 3.36
VOLUME 1007
52-Week high 7.37
52-Week low 2.95
P/E
Mkt Cap.(Rs cr) 8
Buy Price 3.36
Buy Qty 51.00
Sell Price 3.36
Sell Qty 750.00
OPEN 3.52
CLOSE 3.36
VOLUME 1007
52-Week high 7.37
52-Week low 2.95
P/E
Mkt Cap.(Rs cr) 8
Buy Price 3.36
Buy Qty 51.00
Sell Price 3.36
Sell Qty 750.00

Polo Hotels Ltd. (POLOHOTELS) - Auditors Report

Company auditors report

To The Members of M/s POLO HOTELS LIMITED

Report on the Financial Statements

We have audited the accompanying standalone financial statements of M/s POLO HOTELSLIMITED which comprise the Balance Sheet as at 31st March 2016 the Statement ofProfit and Loss the Cash Flow Statement for the year then ended and a summary of thesignificant accounting policies and other explanatory information.

Management’s Responsibility for the Standalone Financial Statements

The Company’s Management is responsible for the matters stated in Section 134(5)ofthe Companies Act2013 ("the Act") with respect to the preparation andpresentation of these financial statements that give a true and fair view of the financialpositionfinancial performanceand Cash Flows of the Company in accordance with theAccounting Principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Companies Act2013 read with Rule 7 of the Companies(Accounts) Rules 2014. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularitiesselection and application of appropriate accounting policies making judgments andestimatesthat 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 financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company’s Directors as well as evaluating theoverall presentation of the financial statements.

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

Basis of Qualified Opinion

1. Out of total borrowings from NBFC Religare Finvest Ltd. a part of the borrowinghave been utilised for the new hotel project under construction. The company has chargedpart of the interest to statement of profit and loss and balance amount has beencapitalised. However the interest charged to P&L a/c on proportionate basis is lowerby Rs. 22.13 Lacs. Had this amount been charged to statement of profit and loss theprofit would have been lower to that extent.

Subject to the qualification above in our opinion and to the best of our informationand according to the explanations given to us the financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India.

(a) in the case of the Balance Sheet of the State of Affairs of the Company as at 31stMarch 2016;

(b) In the case of the Statement of Profit and Loss of the Profit of the Company forthe year ended on that date and

(c) in the case of the Cash Flow Statement of the Cash Flows of the Company for theyear ended on that date.

Other Matter

We draw attention to the fact that the trade receivable includes an amount ofRs.5092237 due from Hot Millions Food Pvt. Ltd. is pending realization and the samebeing disclosed in the Note 27 of the financial statements.

Our opinion is not modified in respect to the above matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of Sub Section (11) ofSection 143 of the Act we give in the Annexure -2 a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143(3) of the Actand Companies (Audit and Auditors) Rule2014 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 accounts as required by law have been kept by theCompany so far as it appears from our examination of those books.

(c) The Balance Sheet Statement of Profit and Loss and the Cash Flow Statement dealtwith by this Report are in agreement with the books of accounts.

(d) In our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards specified under Section 133 of the Actread with Rule 7 of the Companies (Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms of Section164(2) of the Act and

(f) Our separate report on adequacy of internal financial control system and operatingeffectiveness of such controls is enclosed in Annexure 1.

(g) with respect to the other matters included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to best of our information and according to the explanation given to us.

i. The company has no pending litigation impacting its financial position in itsfinancial statement and therefore no disclosure was required under this clause.

ii. The Company did not have any long term contracts including derivative contracts assuch the question of commenting on any material foreseeable losses does not arise.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For Ashwani K. Gupta & Associates
Chartered Accountants
Firm Regn. No. 003803N
Date : 20th August 2016 Arvinder Singh
Place: Panchkula Partner
Membership Number: 091721

Annexure - 1

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 M/s PoloHotels Limited ("the Company") as of 31st March 2016 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

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 company’s policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired 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 issued by ICAI and deemedto be prescribed under Section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding 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 judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company’s internal financial controls system over financialreporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting 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 authorizations of management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company’s assets that could havea 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 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 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 31st March 2016 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 Ashwani K. Gupta & Associates
Chartered Accountants
Firm Regn. No. 003803N
Arvinder Singh
Partner
Membership Number: 091721
Panchkula
20th August 2016

Annexure 2

Auditor’s Report as per the Companies (Auditor’s Report) Order 2016

The Annexure referred to in our Independent Auditor’s Report to the members of theCompany on the statements for the year ended 31st March 2016 we report that

1. In respect of fixed assets:

a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.

b) As explained to us the management during the year has physically verified the fixedassets in a phased periodical manner which in our opinion is reasonable having regard tothe size of the Company and nature of its assets. According to the information andexplanation given to us no material discrepancies were noticed on such physicalverification.

c) In our opinion and according to the information and explanation given to us thecompany has not disposed of substantial part of fixed assets during the year and the goingconcern status of the Company is not affected.

2. In respect of its Inventories:

a) As explained to us inventories have been physically verified by the management atreasonable interval during the year.

b) In our opinion and according to the information and explanation 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 according to the information and explanation given to us thecompany has maintained proper records of inventories. As explained to us there was nomaterial discrepancies noticed on physical verification of inventory as compared to thebook records.

3. According to the Information and explanation given to us the company has during theyear not granted any unsecured loan to anyparty covered in the register maintained underSection 189 of the Companies Act 2013 during the year and in our opinion hence Para (a)and (b) are not applicable.

4. According to the Information and explanation given to us guarantees provided forthe persons in which directors are interested have been disclosed in Note 31 to thefinancial statements.

5. In our opinion and according to the information and explanation given to us thecompany during the year has not accepted any deposits in contravention of the directivesissued by the Reserve Bank of India and the provisions of sections 73 to 76 or any otherrelevant provisions of the Companies Act 2013 and the rules framed there under whereapplicable have been complied with. No order has been passed by the Company Law Board orNational Company Law Tribunal or RBI or any court or any other tribunal.

6. According to the information and explanation given to us government has notprescribed maintenance of cost records under sub section (1) of section 148 of theCompanies Act 2013 for the products of the company.

7A. According to the information and explanation given to us and on the basis of ourexamination of the records of the Company is not regular in depositing the undisputedstatutory dues including Income Tax Sales Tax Service Tax Cess and other statutory duesas applicable to it.

7B. According to the information and explanation given to us and the records of thecompany examined by us there are no material dues of Sales Tax Service Tax and Cess asMarch 31 2016 which have not been deposited on account of a dispute.

7C. According to information and explanation given to us there was no amount which isrequired to be transferred to Investor Education and Protection Fund in accordance withthe relevant provisions of the Companies Act 2013 and rules made thereunder.

8. According to information and explanations given to us the company has defaulted inrepayment of dues to banks or financial institutions during the year of audit. Furtherthe Company has not issued any debentures.

9. In our opinion and according to the information given to us the term loans havebeen applied for the purpose for which they were taken. Further the company has notraised funds by way of Initial Public Offer or further public offer during the year underconsideration.

10. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud on or by the company noticed or reported during the year norhave we been informed of such case by the management.

11. The company has paid themanagerial remuneration during the period underconsideration as per the provisions of Section 197 and 198 relating to payment ofmanagerial remuneration.

12. As the company is not a Nidhi company hence this clause is not applicable.

13. All transactions with the related parties are in compliance with sections 177 and188 of Companies Act 2013 and the details have been disclosed in the Financial Statementsas required by the applicable accounting standards.

14. The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review hence; theprovisions of Section 42 of Companies Act 2013 are not required to be complied with.

15. The company has not entered into any non-cash transactions with directors orpersons connected with him. Hence the provisions of section 192 of Companies Act 2013are not applicable to the company.

16. The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934 as it is not a NBFC.

For Ashwani K. Gupta & Associates
Chartered Accountants
Firm Regn. No. 003803N
Date : 20th August 2016 Arvinder Singh
Place: Panchkula Partner
Membership Number : 091721