TO THE MEMBERS OF WEST LEISURE RESORTS LIMITED Report on Audit of the FinancialStatements Opinion
We have audited the financial statements of WEST LEISURE RESORTS LIMITED ("theCompany") which comprise the Balance Sheet as at 31st March 2021 the Statement ofProfit and Loss (including Other Comprehensive Income) the Statement of Changes in Equityand the Statement of Cash Flows for the year ended on that date and a summary of thesignificant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at 31st March 2021 the profit and totalcomprehensive loss changes in equity and its cash flow for the year ended on that date.
Basis for Opinion
We conducted our audit of the financial statements in accordance with the Standards onAuditing (SAs') specified under section 143(10) of the Act. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Financial Statements section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia ('ICAI') together with the ethical requirements that are relevant to our audit ofthe financial statements under provisions of the Act and the Rules made thereunder and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the ICAI's Code of Ethics. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our opinion on the financial statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the matters described below to be the key audit matters to be communicatedin our report.
|The Company's investment portfolio consists of Non-Current investments. ||Our audit procedures for this area included: |
|Total investment portfolio of the Company represents 91.78 per cent of the Company's total assets. || We assessed appropriateness of the pricing methodologies with reference to Company's accounting and valuation policy; |
|Investments are stated at fair value determined on an individual investment basis. || For unquoted investments the Company has obtained Valuation report of most of the investments held by it. According to the said valuation reports the necessary adjustments is done in the accounts in the value of these investments. |
The Company's Board of Directors is responsible for preparation of the otherinformation. Other information comprises the information included in the Board's Reportincluding Annexures thereto but does not include the financial statements and ourauditor's report thereon.
Our opinion on the financial statements does not cover the other information and wewill not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements our responsibility is to readthe other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained during the course of our audit or otherwise appearsto be materially misstated.
Responsibilities of Management and those charged with Governance for the FinancialStatements
The Company's Board of Directors are responsible for the matters stated in section134(5) of the Act with respect to preparation of these Financial Statements that give atrue and fair view of the financial position financial performance total comprehensiveincome changes in equity and cash flows of the Company in accordance with the Ind AS andother accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate accounting records inaccordance with provisions of the Act for safeguarding assets of the Company and forpreventing 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 financialcontrols that were operating effectively for ensuring accuracy and completeness of theaccounting records relevant to preparation and presentation of the financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.
In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.
The Board of Directors is also responsible for overseeing the Company's financialreporting process. Auditor's Responsibilities for Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditors' report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or override of internal control.
Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143 (3)(i) of the Act we are also responsible for expressing our opinion on whether the Companyhas adequate internal financial controls with reference to financial statements in placeand the operating effectiveness of such controls.
Evaluate appropriateness of accounting policies used and reasonableness ofaccounting estimates and related disclosures made by management.
Conclude on appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditors'report. However future events or conditions may cause the Company to cease to continue asa going concern.
Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016' issued by the CentralGovernment of India in terms of sub-section (11) of section 143 of the Act (hereinafterreferred to as "the Order") and on the basis of such checks of the books andrecords of the Company as we considered appropriate and according to the information andexplanations given to us we give in the Annexure A' a statement on the mattersspecified in paragraph 3 of the Order.
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 appears from our examination of those books of accounts;
c) The Balance Sheet Statement of Profit and Loss (including other comprehensiveincome) the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account;
d) In our opinion the aforesaid Ind AS financial statements comply with the accountingstandards specified under section 133 of the Act;
e) On the basis of written representations received from the directors as on 31st March2021 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31st March 2021 from being appointed as a director in terms of sub section (2) ofSection 164 of the Act;
f) With respect to adequacy of the internal financial control over financial reportingof the Company and operating effectiveness of such control refer to our separate Reportin Annexure 'B'; and
g) With respect to other matters to be included in the Auditor's Report in accordancewith the requirements of section 197(16] of the Act as amended:
In our opinion and to the best of our information and according to the explanationsgiven to us no remuneration has been paid by the Company to its directors during theyear.
h) 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; and
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
ANNEXURE A1 TO INDEPENDENT AUDITOR'S REPORT
Annexure referred to in Paragraph 1 of Report on Other Legal And RegulatoryRequirements in our report to members of WEST LEISURE RESORTS LIMITED ("theCompany") for the year ended 31st March 2021.
We report that:
i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets;
(b) Fixed assets have been physically verified by the management at reasonableintervals. According to information and explanations given to us no discrepancies werenoticed on such verification. In our opinion having regard to size of the Company andnature of its assets the periodicity of verification of fixed assets of the Company isreasonable;
ii. The Company does not have inventories and hence provisions of Clause 3(ii) of theCompanies (Auditor's Report Order 2016 ('the Order') are not applicable to the Company;
iii. The Company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013 ('the Act') hence paragraph 3 (iii) of the Order isnot applicable;
iv. The Company has not granted loans to or provided any guarantee or security onbehalf of the parties covered under section 185 of the Act and in respect of investmentsmade the Company has complied with provisions of sections 186 of the Act;
v. The Company has not accepted any deposits from public during the year and henceparagraph 3 (v) of the Order is not applicable;
vi. The Central Government of India has not specified under sub-section (1) of section148 of the Act to maintain cost records for any of the activities of the Company and henceparagraph 3 (vi) of the Order is not applicable;
vii. (a) According to the information and explanations given to us and according to therecords of the Company the Company is regular in depositing with appropriate authoritiesundisputed statutory dues including income-tax profession tax cess and any otherstatutory dues applicable to it;
(b) According to the information and explanations given to us no undisputed amounts inrespect of the statutory dues referred to above were outstanding as at 31stMarch 2021 for a period of more than six months from the date they became payable;
viii. The Company has not borrowed any money from any financial institution or bank orthrough debentures hence paragraph 3 (viii) of the Order is not applicable;
ix. The Company has not raised any moneys by way of initial public offer furtherpublic offer (including debt instruments) and term loans hence paragraph 3 (ix) of theOrder is not applicable;
x. According to the information and explanations given to us by the Management wereport that no fraud on or by the Company has been noticed or reported during the courseof the audit;
xi. The Company has not given any managerial remuneration covered by provisions ofsection 197 read with Schedule V to the Act hence paragraph 3 (xi) of the Order is notapplicable;
xii. The Company is not a nidhi company and so Nidhi Rules 2014 are not applicable tothe Company nor paragraph 3 (xii) of the Order is applicable;
xiii. According to the information and explanations given to us by the Management wereport that all transactions with related parties are in compliance with Sections 177 and188 of the Act and details thereof have been disclosed in the Financial Statements;
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 paragraph3 (xiv) of the Order is not applicable;
xv. According to information and explanations given to us by the Management theCompany has not entered into any non-cash transactions with the directors orpersons connected with them and hence paragraph 3 (xv) of the Order is not applicable; and
xvi. The Company is not required to be registered under section 451A of Reserve Bank ofIndia Act 1934 and hence paragraph 3 (xvi) of the Order is not applicable.
ANNEXURE 'B' TO INDEPENDENT AUDITOR'S REPORT
We have audited the internal financial controls over financial reports of WESTLEISURE RESORTS LIMITED ('the Company') as of 31st March 2021 in conjunction with ouraudit of the 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'). These responsibilitiesinclude design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring orderly and efficient conduct of itsbusiness including adherence to Company's policies safeguarding of its assetsprevention and detection of frauds and errors accuracy and completeness of the accountingrecords and timely preparation of reliable financial information as required under theCompanies Act 2013 (the Act).
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 Act to the extent applicable to an audit ofinternal financial controls . Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial control over financial reporting was establishedand maintained and if such control operated effectively in all material respects.
Our audit involved performing procedures to obtain audit evidence about adequacy of theinternal 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 risk of materialmisstatement 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 reliability of financial reporting andpreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles.
A company's internal financial control over financial reporting includes those policiesand procedures that (1) pertain to maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial 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 2021based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.