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TajGVK Hotels & Resorts Ltd.

BSE: 532390 Sector: Services
NSE: TAJGVK ISIN Code: INE586B01026
BSE 00:00 | 16 Nov 156.10 0.15
(0.10%)
OPEN

156.80

HIGH

160.05

LOW

155.50

NSE 00:00 | 16 Nov 156.30 0.85
(0.55%)
OPEN

157.00

HIGH

160.00

LOW

156.00

OPEN 156.80
PREVIOUS CLOSE 155.95
VOLUME 2319
52-Week high 263.80
52-Week low 150.00
P/E 43.36
Mkt Cap.(Rs cr) 979
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 156.80
CLOSE 155.95
VOLUME 2319
52-Week high 263.80
52-Week low 150.00
P/E 43.36
Mkt Cap.(Rs cr) 979
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

TajGVK Hotels & Resorts Ltd. (TAJGVK) - Auditors Report

Company auditors report

To the Members of TAJGVK Hotels & Resorts Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying Standalone Ind AS Financial Statements of TAJGVKHotels & Resorts Limited ("the Company") which comprise the Balance Sheetas at March 31 2018 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Cash Flow Statement and the Statement of Changes in Equity for the year thenended and a summary of the significant accounting policies and other explanatoryinformation (herein referred to as "the Standalone Ind AS FinancialStatements").

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 Ind AS Financial Statements that give a true and fair view of the stateof affairs (financial position) profit/ (loss) (financial performance including othercomprehensive income) cash flows and changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) prescribed under section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities selection and application ofappropriate accounting policies making judgments and estimates that are reasonable andprudent and design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the Standalone Ind ASFinancial 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 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 of the Standalone Ind AS Financial Statements in accordance withthe 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 Standalone Ind AS Financial Statements are freefrom material misstatement.

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 sufficient and appropriate toprovide a basis for our audit opinion on the Standalone Ind AS Financial Statements.

Opinion

In our opinion and to the best of our information and according to the explanationsfurnished 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 including the Ind AS of thestate of affairs (financial position) of the Company as at March 31 2018 and its Profit(financial performance including other comprehensive income) its cash flows and thechanges in equity for the year ended on that date.

Emphasis of matter

Without qualifying our opinion we draw attention to Note No.24 to the FinancialStatements about the excess remuneration paid to the Managing Director during the year andthe application to the Central Government is in process for waiver of recovery thereof.

Other Matters

The financial statements of the Company for the year ended March 31 2017 were auditedby another firm of Chartered Accountants who were the immediate preceding statutoryauditors who expressed an unmodified opinion thereon.

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 in terms of Section 143(11) of the Act we give in"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

2. 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 purposes of our audit.

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss the Cash Flow Statement andStatement of Changes in Equity dealt with in this Report are in agreement with the booksof account

(d) In our opinion the afore said Standalone Ind AS Financial Statements comply withthe Indian Accounting Standards prescribed under section 133 of the Act.

(e) On the basis of the written representations received from the directors as on March31 2018 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2018 from being appointed as a director in terms of Section 164(2) of theAct.

(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 A".

(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 furnished to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its Standalone Ind AS Financial Statements; Refer Note 23 to the StandaloneInd AS Financial Statements.

ii. The Company did not as at March 31 2018 have any material foreseeable lossesrelating to long-term contracts.

iii. There were no amounts as at 31st March 2018 which are required to be transferredto the Investor Education and Protection Fund by the Company.

Annexure-A to Independent Auditors' Report

((Referred to in paragraph 1(f) under 'Report on Other Legal and RegulatoryRequirements' section of our report to the Members of TAJGVK Hotels & Resorts Limitedof even date)

Report on the Internal Financial Controls under Clause

(i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of TAJGVKHotels & Resorts Limited ("the Company") as of March 31 2018 in conjunctionwith our audit of the Standalone Ind AS Financial Statementsof the Company for the yearended 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 FinancialReporting" issued 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 FinancialReporting" (the "Guidance Note") and the Standards on Auditing issued byICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively 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 includesobtaining an understanding of internal financial controls over financial reportingassessing the risk whether a material weakness exists and testing and evaluating thedesign and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditors' judgement including the assessment of therisks of material 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 opinionbased on our audit of the evidence obtained by us from it the Companyhas in all material respects an adequate internal financial controls system overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as at March 31 2018 based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India.

Annexure-B to Independent Auditors' Report

(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date)

(i) In respect of its fixed assets:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situationof its fixed assets.

(b) The Company has a program of verification to cover all the items of fixed assets ina phased manner which in our opinion is reasonable having regard to the size of theCompany and the nature of its assets. Pursuant to the said program of verification thecompany has not physically verified its fixed assets during the year under report.

(c) According to the information and explanations furnished to us and based on therecords examined by us the title deeds of immovable properties included in the fixedassets register are held in the name of the Company.

(ii) According to the information and explanations furnished to us the Company'sManagement has physically verified its inventories. In our opinion having regard to thenature of its business and location of its stocks the frequency of verification isreasonable. As per the information and explanations furnished there were no materialdiscrepancies and the other discrepancies if anynoticed on such verification have beenproperly dealt with in the books of account.

(iii) According to the information and explanations furnished to us the Company hasnot granted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the Register maintained under Section 189 of theCompanies Act 2013. Accordingly reporting pursuant to the provisions of Clause 3

(iii) (iii) (a) (iii) (b) and (iii) (c) of the said Order does not arise.

(iv) In our opinion and according to the information and explanations furnished to usthe Company has not granted any loans or made any investments or provided any guaranteesor security during the year to any of the parties specified in Sections 185 and 186 of theCompanies Act 2013. Accordingly reporting pursuant to the provisions of Clause 3

(iv) of the said Order does not arise.

(v) In our opinion and according to the information and explanations furnished to usthe Company has not accepted any deposits from public within the meaning of Sections 7374 75 and 76 of the Act and the Rules framed thereunder to the extent notified.Accordingly reporting pursuant to theprovisions of paragraph 3(v) of the Order does notarise.

(vi) According to the information furnished to us maintenance of Cost Records has notbeen specified by the Central Government under Section 148(1) of the Companies Act 2013for the business carried out by the company. Accordingly reporting pursuant to Clause3(vi) of the Order does not arise.

(vii) According to the information and explanations furnished to us

(a) The Company has generally beenregular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income-tax Sales Tax Goods andService Tax Wealth Tax Service Tax Customs Duty Excise Duty Value Added Tax Cess andother material statutory dues applicable to it with the appropriate authorities and therewere no such dues on the date of the Balance Sheet.

(b) Details of disputed dues of Income Tax Sales Tax Service Tax Customs DutyExcise Duty Value added Tax which have not been deposited as on March 31 2018 are asbelow:

Name of the statute Nature of the dues Amount Rs (in lacs) Period to which the amount relates Forum where the dispute is pending
Income Tax Act 1961 Income Tax 7.60 2009-10 Assessing officer
51.57 2006-07 CIT (Appeals)
66.69 2009-10 ITAT Hyderabad
151.08 2012-13 ITAT Hyderabad
86.12 2013-14 CIT (Appeals)
AP VAT Act VAT 210.21 2008-09 to Hon'ble High Court of
2010-11 Andhra Pradesh
10.02 2008-09 Sales Tax Tribunal
37.24 2012-13 Appellate DC
Service Tax Service Tax 0.57 2005-06 to Commissioner of Appeals
2008-09 Chandigarh
2477.10 2006-2011 CESTAT Hyderabad
64.08 2009-10 to CESTAT Hyderabad
2011-12

(viii) According to the information and explanations furnished to us and based on therecords examined by us the Company has not defaulted in repayment of borrowings tofinancial institutions and banks. The Company has not issued debentures.

(ix) According to the information furnished to us during the year under report thecompany did not have any moneys raised from Initial Public Offering or Further PublicOffering that remained to be applied for the purposes for which they were raised.Accordingly reporting pursuant to Clause 3(ix) of the Order does not arise.

(x) To the best of our knowledge and according to the information and explanationsfurnished to us no fraud by the Company and no material fraud on the Company by itsofficers or employees has been noticed or reported during the year.

(xi) According to the information and explanations given to us and based on the recordsexamined by us with regard to the Managerial Remuneration we report that the requisiteapprovals from the Central Government mandated by the provisions of section 197 readwithSchedule V to the Companies Act 2013 are yet to be obtained by the Company.

(xii) The Company is not a Nidhi Company.

(xiii) In our opinion and according to the information and explanations furnished tous the Company is in compliance with Section 177 and 188 of the

Companies Act 2013 where applicable for all transactions with the related partiesand the details of related party transactions have been disclosed in the Standalone Ind ASFinancial Statements as required by the applicable Accounting Standards.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures.

(xv) In our opinion and according to the information and explanations furnished to usduring the year the Company has not entered into any non-cash transactions to which theprovisions of Section 192 0f the Companies Act 2013 apply with its directors or personsconnected with them.

(xvi) In our opinion based on the information and explanations furnished to us theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.

For M. Bhaskara Rao & Co.
Chartered Accountants
Firm Registration No: 000459S
M Bhaskara Rao
Place : Hyderabad Partner
Date : May 17 2 0 1 8 Membership No:005176