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Sayaji Hotels Ltd.

BSE: 523710 Sector: Services
NSE: SAYAJIHOTL ISIN Code: INE318C01014
BSE 00:00 | 22 Feb 275.00 7.15
(2.67%)
OPEN

254.50

HIGH

275.00

LOW

254.50

NSE 05:30 | 01 Jan Sayaji Hotels Ltd
OPEN 254.50
PREVIOUS CLOSE 267.85
VOLUME 70
52-Week high 329.00
52-Week low 218.85
P/E
Mkt Cap.(Rs cr) 482
Buy Price 255.05
Buy Qty 10.00
Sell Price 276.50
Sell Qty 46.00
OPEN 254.50
CLOSE 267.85
VOLUME 70
52-Week high 329.00
52-Week low 218.85
P/E
Mkt Cap.(Rs cr) 482
Buy Price 255.05
Buy Qty 10.00
Sell Price 276.50
Sell Qty 46.00

Sayaji Hotels Ltd. (SAYAJIHOTL) - Auditors Report

Company auditors report

To The Members Sayaji Hotels Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of SayajiHotels Limited (the Company) which comprise the Balance Sheet as at March 31 2018 theStatement of Profit and Loss (including Other Comprehensive Income) the Cash FlowStatement and the statement of Changes in Equity for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Ind AS 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 Ind AS financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting 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 standalone Ind AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based 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 standalone Ind AS financial statements are free from material misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the standalone Ind ASfinancial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at 31st March 2018 and its profit and its cash flows for the year ended onthat 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 CashFlow Statement dealt with by this Report are in agreement with the books of account; d) Inour opinion the aforesaid standalone Ind AS financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act. e) On the basis of thewritten representations received from the directors as on 31st March 2018 taken on recordby the Board of Directors none of the directors is disqualified as on 31st March 2018from being appointed as a director in terms of Section 164 (2) of the Act. f) With respectto the adequacy of the internal financial controls over financial reporting of the Companyand the operating effectiveness of such controls refer to our separate report in“Annexure B”; and g) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinion and to the best of our information and according to the explanationsgiven to us: i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone Ind AS financial statements Refer Notes 48 to thestandalone Ind AS financial statements; ii. The Company did not have any long-termcontracts including derivative contracts for which there were any material foreseeablelosses. iii. There has been no delay in transferring amounts required to be transferredto the Investor Education and Protection Fund by the Company.

For K.L. Vyas & Company
Chartered Accountants
FRN: 003289C
(K.L. Vyas)
Place of Signature : Indore Partner
Date : 30 May 2018 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 STANDALONE INDAS FINANCIAL STATEMENT FOR THE YEAR ENDED 31ST MARCH 2018.

(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 to us and on the basis of ourexamination of the conveyance deed provided to us we report that the title deedscomprising of all the immovable properties of land and buildings which are freehold arein 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 Lakhs which company is contesting. (ii) (a) The physical verification of theinventory is being conducted on a monthly basis by the management and no materialdiscrepancies 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) ofthe Order are not applicable to be Company.

(iv) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans and investments made.

(v) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 73 to 76 or any other relevantprovisions of the Companies Act 2013 and the Rules framed there under with regard to thedeposits accepted from the public. According to information and explanations given to usno order has been passed by the Company Law Board or the National Company Law Tribunal orthe Reserve Bank of 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 amounts payablein respect of income tax wealth tax sales tax customs duty wealth tax excise duty andcess were in arrears as at 31.03.2018 for a period of more than six months from the datethey became payable. (b) According to the information and explanations given to usdetails 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 Lakhs)
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 High Court of M.P. Indore Bench Indore 800.74
Service Tax 2009-2013 Honourable CESTAT Mumbai. 39.27
Service Tax Apr.'11-Jun.'12 High Court of M.P. Indore Bench Indore 538.54
Service Tax Apr'12 Mar.15 Honourable CESTAT Ahmedabad 2.02
Service Tax Apr'10 Mar.15 Honourable CESTAT Indore 46.05
Income Tax Act 1961. Tax deducted at Source A.Y.09-10 Commissioner of Income 2.15
A.Y.10-11 Tax (Appeals) Indore.
A.Y.14-15 Commissioner of Income Tax (Appeals) Vadodara 1.09
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
2015-16 3.61
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
2015-2016 26.04
M.P. Entry Tax Act 1976 Entry Tax 2012-2013 Commissioner (Appeal) 0.01
2014-2015 Commercial Taxes Indore 1.76
2015-2016 17.00
M.P. Municipal Corporation Act 1956 Property Tax 2015-16 The Mayor-In-Council Indore Municipal Corporation Indore 46.39
TOTAL 1934.43

(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 or furtherpublic offer (including debt instruments) during the year however the Company has raisedterm loans during the year and were applied for the purposes for which those were raised.

(x) According to the information and explanations given to us no fraud on or by thecompany 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 the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe 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 under section 45-IA of the ReserveBank of India Act 1934.

For K.L. Vyas & Company
Chartered Accountants
FRN: 003289C
(K.L. Vyas)
Place of Signature : Indore Partner
Date : 30 May 2018 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 2018 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 audit involves performing procedures 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 includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement 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 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 2018 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 2018 th M. No. 072043