The Members of
M/S Sagar Tourist Resorts Limited
Report on the Financial Statements
We have audited the accompanying financial statements of M/S Sagar Tourist ResortsLimited ("the company") which comprise the Balance Sheet as at 31stMarch 2014 and the Statement of Profit and Loss and the cash flow statement for theyear then ended annexed thereto and a summary of significant accounting policies andother explanatory information.
Management Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give atrue and fair view of financial position financial performance of the company inaccordance with the accounting standards referred to in sub - section (3C) of section 211of the Companies Act 1956 ("the Act"). The responsibility includes the designimplementation and maintenance of internal control relevant to the preparation offinancial statements that give a true and fair view and are free from materialmisstatements 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 misstatements.
Audit involves performing procedure to obtain audit evidence about the amounts anddisclosure in the financial statements. The procedure selected depends upon auditor'sjudgement including the assessment of the risk of material misstatements of the financialstatements whether due to fraud or error. In making those risk assessment the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to designs audit procedure that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of accounting estimates made by management as wellas evaluating the overall presentation of financial statements.
We believe that audit evidence we have obtained is sufficient and appropriate toprovide a basis for our 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 case of the Balance Sheet of the state of affairs of the Companies as at31/03/2014;
(b) in cases of Profit and Loss Account of the Loss for the year ended on thatdate;
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2003 ("the order")issued by Central Government of India in terms of sub-section (4A) of section 227 of theAct We give in the Annexure a statements on the matters specified in paragraphs 4 and 5of the order.
2. As required by section 227(3) of the Act we report that:
a. We have obtained all information and explanations which to the best of our knowledgeand 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 examinations of those books;
c. The Balance Sheet Statement of Profit and Loss dealt with by this Report are inagreement with the books of account;
d. In our opinion the Balance Sheet Statement of Profit and Loss comply with theAccounting Standards referred to in sub-section (3C) of section 211 of the Companies Act1956;
e. On the basis of written representations received from the directors as on 31/3/2014and taken on record by the board of directors none of the directors is disqualifiedas on 31.03.2014 from being appointed as a director in terms of clause (g) of sub-section(1) of section 274 of the Companies Act 1956.
| ||For Rajeev Singhi & Co. |
| ||(Chartered Accountants) |
|Dated: 29/05/2014 || |
|Place :Mumbai || |
| ||(Rajeev Singhi Prop.) |
| ||M.No. 81892 |
ANNEXURE I TO THE AUDITOR'S REPORT
(Referred to in paragraph 3 of report of even date)
1. i) The Company is maintaining proper records showing full particulars includingquantitative details and situation of Fixed Assets.
ii) Fixed assets are physically verified by the management at regular intervals as perthe regular programme of verification which in our opinion is reasonable having regardto the size of the Company and the nature of its assets. According to the information andexplanations given to us no material discrepancies were noticed on such verification.
iii) There was no substantial disposal of fixed assets during the year.
2. i) The Management has conducted physical verification of inventory at reasonableintervals.
ii) The procedures of physical verification of inventory followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
iii) The Company is maintaining proper records of inventory and no materialdiscrepancies were noticed on physical verification.
3. i) As informed the Company has not granted any loan secured or unsecured tocompanies firms or other parties covered in the register maintained under Section 301 ofthe Companies Act 1956. Accordingly clause (iii)(b) to (iii)(d) of Paragraph 4 of theOrder are not applicable to the company for the current year
ii) The Company has taken an unsecured loan of Rs. 150000.00 form M/s Sagar LilaFinvest India Pvt. Ltd during the year under consideration and Rs. 56926/- from SagarArts Pvt. Ltd. unsecured loans amounting to Rs.50043321.38 were taken in years prior tofinancial year ending on March 31 2014 which are outstanding as on the date of BalanceSheet from companies firm and other parties covered in the register maintained underSection 301 of the Act. The details are as under:-
|I) M/s Sagar Entertainment Limited ||Rs.26624356.25 |
|II) Late Sh. Ramanand Sagar (Ex-Chairman) ||Rs. 1290326.98 |
|III) M/s Gayatri Films and Music (P) Ltd. ||Rs.21720000.00 |
|IV) M/s Sagar Global Venture Pvt. Ltd ||Rs.l19848.75 |
|V) M/s Sagar Art Corporation ||Rs.36239.40 |
|VI) Sagar Arts Pvt. Ltd ||Rs. 252550.00 |
iii) In our opinion the terms and conditions of loans taken are not prima facieprejudicial to the interest of the Company.
iv) We are informed by the management that no interest was payable on the loans and noprincipal amount was due for repayment during the year.
4. There are no transactions made for purchase or sale of goods or services exceedingthe value of five lakh rupees in respect of any party listed in the register maintainedunder section 301 of the Companies Act 1956.
5. in our opinion and according to the information and explanations given to us thereis an adequate internal control system commensurate with the size of the Company and thenature of its business for the purchase of inventory and fixed assets and for the sale ofgoods and services. During the course of our audit no major weakness has been noticed inthe internal control systems in respect of these areas.
6. Based upon the audit procedures applied by us and according to the information andexplanations provided by the management we are of the opinion that there are no contractsor arrangements that need to be entered into the register maintained under Section 301 ofthe Companies Act 1956. Accordingly clause (v)(b) of para 4 of the Order is notapplicable to the company for the current year.
7. in our opinion and as per explanations give to us the Company has not accepted anydeposit as mentioned in the provisions of Section 58A 58AA or any other relevantprovisions of the Companies Act 1956 and rules framed there under. We are informed by themanagement that no order has been passed by the Company Law Board National Company LawTribunal or Reserve Bank of India or any Court or any other Tribunal under Section 58A and58AA of the Companies Act 1956.
8. In our opinion the Company has an internal audit system commensurate with the sizeand nature of its business.
9. in our opinion and the best of our knowledge and belief the Company is not requiredto maintain cost records under clause(d) of sub section (1) of Section 209 of theCompanies Act 1956.
10. i) According to the records of the Company the Company is occasionally irregularin depositing statutory dues which include Sales Tax Luxury Tax Services Tax andProvident Fund. Service Tax amounting to Rs 3814.71/- was due for payment for more than 6Months as on 31.03.2014.
ii) According to information and explanations given to us dues outstanding to SalesTax Income Tax Custom Duty Wealth Tax excise Duty or Cess etc are not on account ofany dispute with the concerned statutory authority.
11. The Company has accumulated loss of more than 50% of net worth. During thefinancial year ending 31.03.2014 the company incurred the cash losses amounting to Rs.1349174/- however the company did not incur cash losses in the financial year ending31.03.2013.
12. The Company has not defaulted in repayment of dues to financial institution orbanks.
13. According to the information and explanations given to us and based on thedocuments and records produced to us the Company has not granted loans and advances onthe basis of security by way of pledge of shares debentures and other securities.
14. In our opinion and according to the information and explanations given to us thenature of activities of the Company does not attract any special statute applicable tochit fund and nidhi/mutual benefit funds/societies.
15. In our opinion and as per explanations given by the management the company has notdealt in shares securities or debentures and other investments.
16. According to the information and explanations given to us the Company has notgiven any guarantee for loans taken by associates from bank or financial institution.
17. The loans were applied for the purpose for which the loans were obtained.
18. In our opinion and to the best of our knowledge and belief no funds raised on shortterm basis have been used for long term investment.
19. The Company has not made any preferential allotment of shares to parties orcompanies covered in the register maintained under section 301 of the Companies Act 1956.
20. No shares were forfeited by the company during the financial year ending 31stMarch 2014. However forfeiture of 700 forfeited shares was annulled during the currentyear.
21. The company did not have any outstanding debentures during the year.
22. The Company has not raised any money through a public issue during the year.
23. 3ased on the audit procedures performed and information and explanations given wereport that no fraud on or by the Company has been noticed or reported during the courseof audit.
| ||For Rajeev Singhi & Co. |
| ||(Chartered Accountants) |
|Dated: 29/05/2014 ||(Rajeev Singhi Prop.) |
|Place: Mumbai ||M.No. 81892 |