Report on the Financial Statements
We have audited the accompanying Financial Statements of M/s. Supreme Holdings &Hospitality (India) Limited ("the Company") which comprise the Balance Sheet asat March 31 2018 the Statement of Profit and Loss (including other comprehensiveincome) the Statement of Cash Flows and the statement of changes in equity for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation (herein after referred to as "financial statements").
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of theseFinancial Statements that give a true and fair view of the financial position financialperformance including other comprehensive income cash flows and changes in equity of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) prescribed under Section 133 of theAct read with relevant rules issued there under. This responsibility also includes themaintenance of adequate accounting records in accordance with the provision of the Act forsafeguarding of the assets of the Company and for preventing and detecting the frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial control that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Financial Statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these Financial Statements based on ouraudit. 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 there under We conducted our audit in accordancewith the Standards on Auditing specified under section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Financial Statements are free from materialmisstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Financial Statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the FinancialStatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of theFinancial Statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and thereasonableness of the accountingestimates made by Company's Directors as well as evaluating the overall presentation ofthe Financial Statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Financial Statements.
Basis for qualified opinion
The Company has made provision for gratuity as per current employee and salary insteadof recognizing liability as per the present value of defined benefit obligation at thebalance sheet date calculated on the basis of actuarial valuation in accordance with IndAS 19 "Employee Benefits". The Consequential impact of adjustment if any owingto this non- compliance on the financial statement is presently not ascertainable.
In our opinion and to the best of our information and according to the explanationsgiven to us read with the matter described in the emphasis of matter herein belowtogether with the notes thereon the above said Financial Statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith Ind AS and 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 March31 2018;
b) in the case of the Statement of Profit and Loss (including other comprehensiveincome) of the profit for the year ended on that date;
c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate; and
d) in the case of the statement of changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
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 Companies Act 2013 we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.
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 law have been kept by theCompany so far as appears from our examination of those books
c) the Balance Sheet and the Statement of Profit and Loss dealt with by this Reportare in agreement with the books of account
d) In our opinion the aforesaid Financial Statements comply with the Indian AccountingStandards prescribed under Section 133 of the Act read with relevant rules issued thereunder
e) On the basis of written representations received from the directors as on 31 March2018 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2018 from being appointed as a director in terms of Section 164(2) of theAct;
f) As required under sub-clause (i) of the said section we give report on InternalFinancial Control in the "Annexure B" to this report; and
g) 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 does not have any pending litigations which would impact its financialposition.
ii) The Company did not 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.
Annexure 'A' to Auditors Report
Annexure referred to in Independent Auditors' Report to the members of Supreme Holdings& Hospitality (India) Limited ("the Company") on the financial statementsfor the year ended 31st March 2018 we report that:
(i) a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b) The Company has a phased programme of physical verification of fixed assets whichin our opinion is reasonable having regard to the size of the Company and the nature ofits assets. In accordance with this programme the fixed assets in the Company werephysically verified by the Management during the year and no material discrepancies werenoticed on such verification.
c) As per information and explanation provided to us and on the basis of ourexamination of records produced us for verification by the Company the title deeds ofimmovable properties are held in the name of the Company.
(ii) The inventories have been physically verified by the management at reasonableinterval and discrepancies noticed on verification between physical stock & book stockwere not material and have been properly dealt with in the books of accounts.
(iii) As informed and explanation provided to us the Company has not granted anyloans secured or unsecured to the companies firms limited liabilities partnerships orother parties covered in the register maintained under section 189 of the Companies Act2013 hence clause (iii)
(a) (iii) (b) and (iii) (c) of the Order are not applicable to the Company.
(iv) According to the information and explanations provided to us the Company has notgiven any loan or guarantee or security to/ for any person or entity covered underprovisions of section 185 of the Companies Act 2013 after the enactment thereof.
According to information and explanation provided to us loans given security providedand investments done by the Company are in compliance with the provisions of section 186of the Companies Act 2013 wherever applicable.
(v) As per the information and explanation given to us the Company has not acceptedany deposits from the public and consequently the directives issued by the Reserve Bankof India the provision of sections 73 to 76 or any other relevant provisions of theCompanies Act 2013 and rules made there under are not applicable.
(vi) In our opinion as per the explanation and information provided to us requirementregarding maintenance of cost records under sub section (1) of section 148 of theCompanies Act 2013 does not apply to the company
(vii) a) According to the information and explanationgiven to us and on the basis ofour examination of records of the Company amounts deducted/accrued in the books ofaccounts in respect of undisputed statutory dues including provident fund employees stateinsurance income-tax sales tax service tax duty of custom duty of excise value addedtax cess and any other statutory dues have been regularly deposited during the year bythe Company with the appropriate authorities. According to the information and explanationgiven to us no undisputed amounts payable in respect of provident fund employees stateinsurance income-tax sales tax service tax duty of custom duty of excise value addedtax cess and any other statutory dues were in arrear as at 31st March 2018 for a periodof more than six months from the date they became payable. b) According to the informationand explanation given to us and on the basis of our examination of books of accountsthere are no dues of income tax sales tax service tax duty of custom and duty of exciseand value added tax as at the end of financial year which have not been deposited onaccount of any dispute except as below:
|Sr. No. ||Name of Statute ||Amount (Rs) ||Period to which the amount relates ||Forum where dispute is pending |
|1. ||Income Tax ||23767710/- ||Assessment Year 2010-11 ||CIT (Appeal) |
* Rs. 4753542/- has been deposited against the same demand.
(viii) According to the information and explanations given to us the Company has notdefaulted in repayment of loans or borrowing to financial institutions bank governmentand dues to debentures holders wherever availed.
(ix) In our opinion and according to the information and explanations given to us theCompany did not raise any money by way of initial public offer or further public offerduring the year and money raised by way of Term loan were applied for the purposes forwhich those are raised.
(x) According to information and explanation given to us no fraud by the Company or onthe Company by its officers or employee has been noticed or reported during the yearcourse of our audit.
(xi) In our opinion and according to the information and explanations given to us theCompany has provided or paid managerial remuneration in terms of provisions of section 197read with Schedule V of the Companies Act 2013.
(xii) The company is not a Nidhi Company hence clause (xii) of the Order is notapplicable.
(xiii) In our opinion and according to the information and explanations provided to usall the transactions with related parties are in compliance with section 177 and 188 ofthe Companies Act 2013 wherever applicable and the details has been disclosed in thefinancial statements etc. as required by the applicable accounting standards.
Annexure 'B' to Auditors Report
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTSOF SUPREME HOLDINGS & HOSPITALITY (INDIA) LIMITED.
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 SupremeHoldings & Hospitality (India) Limited
("the Company") as of March 31 2018 in conjunction with our audit of thefinancial 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". These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including 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.
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.
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 commensurate with the nature of the business of the Companyand operating effectively as at March 31 2018 based on "the internal control overfinancial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia"
| ||For K C P L And Associates LLP |
| ||Chartered Accountants |
| ||Firm Regn. No.: 119223W/W100021 |
| ||Rakesh Agarwal |
|Place: Mumbai ||Partner |
|Date: 30th May 2018 ||M. No.: 170685 |