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Sayaji Hotels Ltd.

BSE: 523710 Sector: Services
NSE: SAYAJIHOTL ISIN Code: INE318C01014
BSE 00:00 | 22 Jun 255.00 -0.55
(-0.22%)
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NSE 05:30 | 01 Jan Sayaji Hotels Ltd
OPEN 255.00
PREVIOUS CLOSE 255.55
VOLUME 176
52-Week high 329.00
52-Week low 225.00
P/E
Mkt Cap.(Rs cr) 447
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 255.00
CLOSE 255.55
VOLUME 176
52-Week high 329.00
52-Week low 225.00
P/E
Mkt Cap.(Rs cr) 447
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sayaji Hotels Ltd. (SAYAJIHOTL) - Auditors Report

Company auditors report

To The Members Sayaji Hotels Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Sayaji HotelsLimited (the Company) which comprise the Balance Sheet as at March 31 2017 theStatement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.

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 statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement 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 misstatements.

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 of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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.

Opinion

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 Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2017 and its loss and its cash flows for the year ended on that date.

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 sub-section (11) of section 143 ofthe Act we give in the Annexure A a statement on the matters specified in the paragraph3 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 andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination 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 aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 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”; and g) With respect to the other matters to beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 in our opinion and to the best of our information and according tothe explanations given to us: i. The Company has disclosed the impact of pendinglitigations on its financial position in its financial statements Refer Note 29.1 to thefinancial statements; ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses; iii. There hasbeen no delay in transferring amounts required to be transferred to the InvestorEducation and Protection Fund by the Company; and iv. The Company has provided requisitedisclosures in its standalone financial statements as to holdings as well as dealings inSpecified Bank Notes during the period from 8th November 2016 to 30th December 2016 andthese are in accordance with the books of accounts maintained by the Company. Refer Note29.4 to the standalone financial statements.

For K.L. Vyas & Company
Chartered Accountants
FRN: 003289C
(K.L. Vyas)
Place of Signature : Indore Partner
Date : 30 May 2017 th M. No. 072043

ANNEXURE A TO THE AUDITORS' REPORT

ANNEXURE REFERRED TO IN CLAUSE 1 OF REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTSOF OUR REPORT OF EVEN DATE TO THE MEMBERS OF SAYAJI HOTELS LIMITED ON THE STANDALONEFINANCIAL STATEMENT FOR THE YEAR ENDED 31ST MARCH 2017.

(i) (a) The company has maintained proper records showing full particulars includingquantitative details of fixed assets however for some fixed assets situation of theassets is not given and identification numbers are also not been given which need to beupdated. We have been informed by Management that above Work is in progress. (b) Physicalverification of fixed assets has been carried out by the Management at most of the Unitsin accordance with a phased programme of verification which in our opinion provides forphysical verification of all the fixed assets at reasonable intervals which in ouropinion is reasonable having regard to the size of the company and nature of its assets.According to the information and explanations given to us no material discrepancies werenoticed on such verification. (c) According to the information and explanations given tous and on the basis of our examination of the conveyance deed provided to us we reportthat the title deeds comprising of all the immovable properties of land and buildingswhich are freehold are in the name of the Company as at the balance sheet date.

In respect of immovable properties been taken on lease and disclosed as fixed assets inthe standalone financial statements the lease agreements are in the name of the Companyhowever there is a notice for cancellation of lease by the Indore Development Authorityfor cancelling the lease of one leasehold land situated in Indore with carrying value ofRs. 2291.62 Lacs which company is contesting.

(ii) (a) The physical verification of the inventory is being conducted on a monthlybasis by the management and no material discrepancies were noticed.

(iii) (a) Company has not granted any loan to any Company firm LLP or any other partyrequired to be covered in register maintained under section 189 of the Companies Act2013. In view of situation explained as above provisions of clause 3 (iii) (b) & (c)of the Order are not applicable to be Company. (iv) In our opinion and according to theinformation and explanations given to us the company has complied with the provisions ofsection 185 and 186 of the Act with respect to the loans and investments made. (v) In ouropinion and according to the information and explanations given to us the Company hascomplied with the provisions of Sections 73 to 76 or any other relevant provisions of theCompanies Act 2013 and the Rules framed there under with regard to the deposits acceptedfrom the public. According to information and explanations given to us no order has beenpassed by the Company Law Board or the National Company Law Tribunal or the Reserve Bankof India or any Court or any other Tribunal.

(vi) Central Government has not prescribed for the maintenance of cost records undersub-section 1 of section 148 of the Companies Act 2013 for any of the business activitycarried by the Company during the year under review.

(vii) (a) The Company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund investor education protection fundemployees' state insurance income tax sales tax wealth tax custom duty excise dutyservice tax & cess and other material statutory dues as may be applicable to it.

According to the information and explanations given to us no undisputed amountspayable in respect of income tax wealth tax sales tax customs duty wealth tax exciseduty and cess were in arrears as at 31.03.2017 for a period of more than six months fromthe date they became payable. (b) According to the information and explanations given tous details of the dues of sale tax income tax customs duty wealth tax excise duty andcess which have not been deposited on account of any dispute are given below.

Name of Statue Nature of Dues Period to which the amount relates Forum where the dispute is pending Total Amount (Rs. In Lacs)
Finance Act 1994 and Service Tax laws Service Tax Mar.'05-Mar.'09 High Court of M.P. Indore Bench Indore 256.78
Service Tax 2009-2011 To be preferred before High 800.74
Court of M.P. Indore Bench
Indore within stipulated time.
Service Tax 2009-2013 Honourable CESTAT Mumbai. 39.27
Service Tax Apr.'11-Jun.'12 To be preferred before High 538.54
Court of M.P. Indore Bench
Indore within stipulated time
Service Tax Apr'12 Mar.15 Commissioner (Appeals) 2.02
Ahmedabad
Income Tax Act 1961. Tax deducted at A.Y.15-16 Commissioner of Income Tax 3.60
Source (Appeals) Ahmedabad
A.Y.09-10 Commissioner of Income 2.15
A.Y.10-11 Tax (Appeals) Indore.
A.Y.14-15 Commissioner of Income 92.31
Tax (Appeals) Vadodara
M.P. Value Added Tax Value Added Tax 2010-11 Appelate Tribunal Commercial 0.56
Act 2002 2011-12 Taxes Indore. 10.91
2011-12 Commissioner (Appeal) 37.72
2012-13 Commercial Taxes Indore 2.87
2013-14 0.52
2014-15 2.94
M.P. Luxury Entertainment Luxury Tax 2012-2013 Commissioner (Appeal) 40.60
& Advertisement Tax Act 2013-2014 Commercial Taxes Indore 30.85
2011 2014-2015 26.00
M.P. Entry Tax Act 1976 Entry Tax 2012-2013 Commissioner (Appeal) 0.01
2014-2015 Commercial Taxes Indore 1.76
M.P. Municipal Property Tax 2015-16 The Mayor-In-Council 32.70
Corporation Act 1956 Indore Municipal
Corporation Indore
TOTAL 1922.85

(viii)Based on our audit procedures and according to the information and explanationsgiven to us we are of the opinion that the Company has not defaulted in repayment ofloans or borrowing to financial institutions banks Government or dues to debentureholders. (ix) The Company did not raise any money by way of initial public offer orfurther public offer (including debt instruments) during the year however the Companyhas raised term loans during the year and were applied for the purposes for which thosewere raised. (x) According to the information and explanations given to us no fraud on orby the company has been noticed or reported during the course of our audit.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act. (xii) In our opinion and according to theinformation and explanations given to us the Company is not a nidhi company. Accordinglyparagraph 3(xii) of the Order is not applicable. (xiii) According to the information andexplanations given to us and based on our examination of the records of the Companytransactions with the related parties are in compliance with sections 177 and 188 of theAct where applicable and details of such transactions have been disclosed in the financialstatements as required by the applicable accounting standards. (xiv) According to theinformation and explanations given to us and based on our examination of the records ofthe Company the company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable. (xvi) The Company is not required to be registered undersection 45-IA of the Reserve Bank of India Act 1934.

For K.L. Vyas & Company
Chartered Accountants
FRN: 003289C
(K.L. Vyas)
Place of Signature : Indore Partner
Date : 30 May 2017 th M. No. 072043

ANNEXURE B TO THE AUDITORS' 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 SayajiHotels Limited (“the Company”) as of 31 March 2017 in conjunction with our auditof the standalone financial statements of the Company for the year 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 (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation 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 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 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a 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 31 March 2017 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.L. Vyas & Company
Chartered Accountants
FRN: 003289C
(K.L. Vyas)
Place of Signature : Indore Partner
Date : 30 May 2017 th M. No. 072043