To The Members of Tourism Finance Corporation of India Limited Report on the FinancialStatements
We have audited the accompanying financial statements of Tourism Finance Corporation ofIndia Limited (the Company') which comprise the Balance Sheet as at 31stMarch 2018 the Statement of Profit and Loss and Cash Flow Statement for the year thenended and notes to financial statements comprising of a summary of significant accountingpolicies and other explanatory information Management's Responsibility for the FinancialStatements The Company's Board of Directors is responsible for the matters stated inSection 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation and presentation of these financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
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 judgements and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error. Auditor's Responsibility
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 thereunder.
We conducted our audit in accordance with the Standards onAuditing 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 misstatement.
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 the 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 accounting policies used and reasonableness of the accounting estimatesmade by the Company's Director as well as evaluating the overall presentation of thefinancial 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.
In our opinion and to the best of our Information and according
to the explanations given to us the aforesaid financial statements give theInformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2018 its profit and loss and its cashflows 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 and on the basis of such checks of the books and records of the Company as weconsidered appropriate and according to the information and explanation given to us wegive in the Annexure-A a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable.
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 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 the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account;
d) In our opinion the aforesaid financial statements comply with the accountingstandards specified under Section 133 of the Act read with Rule 7 of Companies (Accounts)Rules 2014;
e) On the basis of written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in termsof Section 164(2) of the Act;
f) With repsect to the adequacy of the Internal Financial Control over financialreporting of the company and the operating effectiveness of such controls refer toAnnexure - B to the Auditors Report;
g) With respect to the other matters to be included in the Auditors report inaccordance with the Rule 11 of the Company (Audit and Auditors) Rules 2014 in ouropinion and to the best of our information and according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations on its financialposition in its financial statements;
ii. the Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts;
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
For Suresh Chandra & Associates Chartered Accountants Firm Reg. No: 001359N
Place : New Delhi Partner
Date : May 26 2018 M.No.: 090205
ANNEXURE TO THE AUDITOR'S REPORT
The Annexure referred to in our Independent Auditors Report to the members of TourismFinance Corporation of India Limited
on the financial statements for the year ended 31st March 2018 we report that:
i. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed assets.
b) The Company has a regular system of physical verification of its fixed assets everyyear. Accordingly fixed assets were verified during the year and no materialdiscrepancies were noticed on such verification. In our opinion this periodicity ofphysical verification is reasonable having regard to the size of the Company and thenature of its assets.
c) The title deeds of immovable properties are held in the company's name.
ii. The nature of the company's business/activities/ transactions does not require itto hold inventories. Hence the provisions of Clause 3(ii) of the Order are not applicableto the company
iii. The company has not granted any loan secured or unsecured to the companiesfirms limited liability partnership or other parties covered in the register maintainedunder section 189 of the Companies Act 2013. Hence the provisions of Clause 3(iii) (a)(b) & (c) of the Order are not applicable to the Company.
iv. There is no transaction during the year which attracts the provision of Section 185& 186 of the Companies Act 2013.
v. The Company has not accepted any deposits from the public and consequently thedirectives issued by the Reserve Bank of India and the provisions of Section 73 to 76 orany other relevant provisions of the Companies Act and rules framed there under are notapplicable to the Company.
vi. According to Information and explanation given to us the Central Government hasnot prescribed the maintenance of cost records under sub section (1) of Section 148 of theCompanies Act 2013 in respect of business carried out by the Company. Thereforeprovisions of Clause 3(vi) of the Order are not applicable to the Company.
vii. (a) The Company has generally been regular in depositing
with appropriate authorities undisputed statutory dues including provident fund Incometax service tax cess and any other statutory dues as applicable to it with appropriateauthorities.
(b) There were no undisputed amount payable in respect of provident fund Income taxservice tax cess and any other statutory dues in arrears as at 31st March 2018 for aperiod more than six months from the date they became payable.
(c) According to the Information and explanations given to us dues of Income taxwhich have not been deposited on account of a dispute as at 31st March 2018 are asfollows:
|Name of Statute ||Assess |
|Forum where the dispute is pending |
|Income Tax ||2008-09 ||13851455 ||ITAT Delhi |
|Income Tax ||2009-10 ||31256600 ||A.O.* |
|Income Tax ||2010-11 ||18317884 ||ITAT Delhi |
|Income Tax ||2011-12 ||221610 ||A.O. (for rectification) |
|Income Tax ||2012-13 ||915920 ||CIT (A)- Delhi |
|Income Tax ||2013-14 ||13418600 ||CIT (A)- Delhi |
|Income Tax ||2014-15 ||6724850 ||ITAT Delhi |
|Income Tax ||2015-16 ||4446264 ||CIT (A)- Delhi |
*ITAT Delhi had set aside the order or A.O. / CIT (A) and directed Assessing Officerto decide the matter afresh by giving the assessee an opportunity of being heard.
viii. The Company has not defaulted in repayment of loans or borrowings to a financialinstitutions banks Government or dues of debenture holders.
ix. The company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans were applied for the purposes forwhich those are raised.
x. To the best of our knowledge and according to the information and explanation givento us no fraud by the company or any fraud on the Company by its officers or employeeshas been noticed or reported during the year;
xi. In our opinion and according to the information and explanation given to us thecompany has paid / provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.
xii. Since the company is not a Nidhi Company therefore provisions of Clause 3(xii)of the Order are not applicable to the Company.
xiii. In our opinion and according to the information and explanation given to us allthe transactions with the related parties entered into by the company are in compliancewith Sections 177 and 188 of Companies Act 2013 and the details of which have beendisclosed in the financial statements etc. as required by the applicable accountingstandards;
xiv. The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review and hence reportingunder clause 3 (xiv) of the order is not applicable to the company;
xv. In our opinion and according to the information and explanation given to us duringthe year the company has not entered into any non-cash transactions with directors orpersons connected to its directors and hence provisions of section 192 of the CompaniesAct 2013 is not applicable to the company;
xvi. The company is registered under section 45-IA of the Reserve Bank of India Act1934 as NBFC-SI-ND vide Registration No.:B.14.00005 dated 08.05.2009.
For Suresh Chandra & Associates Chartered Accountants Firm Reg. No: 001359N
Place : New Delhi Partner
Date : May 26 2018 M.No.: 090205
"Annexure B" to the Independent Auditor's Report on the Financial Statementsof Tourism Finance Corporation of India Ltd.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act") as referred to in paragraph 2(f) ofReport on Other Legal and Regulatory Requirements' section
We have audited the internal financial controls over financial reporting of TourismFinance Corporation of India Ltd ("the Company") as of March 31 2018 inconjunction with our audit of the financial statements of the Company for the year endedon 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 responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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 Reportingand the Standards on Auditing issued by ICAI and deemed to be prescribed under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. 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 obtainaudit evidence about the adequacy of the internal financial controls system over financialreporting and their operating effectiveness. Our audit of internal financial controls overfinancial reporting included obtaining an understanding of internal financial controlsover financial reporting assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the financial statements whether dueto 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 operating effectively as at 31st March 2018 based on thereporting 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.
For Suresh Chandra & Associates
Chartered Accountants Firm Reg. No: 001359N
Place: New Delhi Partner
Date : May 26 2018 M.No.: 090205