TO THE MEMBERS OF WEST LEISURE RESORTS LIMITED
Report on Audit of the Financial Statements
We have audited the financial statements of WEST LEISURE RESORTS LIMITED ("theCompany") which comprise the Balance Sheet as at 31st March 2020 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 Act2013 ("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 2020 the Loss 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 theCompany in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India (ICAI') together with the ethical requirements that arerelevant to our audit of the financial statements under provisions of the Act and theRules made thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the ICAI's Code of Ethics. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for ouropinion on the financial statements.
Emphasis of Matter
We draw attention to Note No. 33 of the financial statements which describes thepossible effect of uncertainties relating to COVID-19 pandemic on the Company's financialperformance as assessed by the management. Our opinion is not modified in this matter.
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 93.53 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 quoted investments recalculated the valuations of investments with independent pricing sources; |
| || 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 includesmaintenance of adequate accounting records in accordance with provisions of the Act forsafeguarding assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring accuracy and completeness of the accounting records relevant to preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error. In preparing the financialstatements management is responsible for assessing the Company's ability to continue as agoing concern disclosing as applicable matters related to going concern and using thegoing concern basis of accounting unless management either intends to liquidate theCompany or to cease operations or has no realistic alternative 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 Company hasadequate internal financial controls with reference to financial statements in place andthe 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 bythe Central Government of India in terms of sub-section (11) of section 143 of the Act(hereinafter referred to as "the Order") and on the basis of such checks of thebooks and records of the Company as we considered appropriate and according to theinformation and explanations given to us we give in the Annexure A' a statement onthe matters specified in paragraph 3 of the Order.
2. As required by section 143(3) of the Act we report that: a) We havesought and obtained all the information and explanations which to the best of ourknowledge 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 bythe Company so far as appears from our examination of those books of accounts;
c) The Balance Sheet Statement of Profit and Loss (including othercomprehensive income) the Cash Flow Statement and Statement of Changes in Equity dealtwith by this Report are in agreement with the books of account;
d) In our opinion the aforesaid Ind AS financial statements comply with theaccounting standards specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014; e) On the basis of written representationsreceived from the directors as on 31st March 2020 and taken on record by the Board ofDirectors none of the directors is disqualified as on 31st March 2020 from beingappointed as a director in terms of sub section (2) of Section 164 of the Act;
f) With respect to adequacy of the internal financial control over financialreporting of the Company and operating effectiveness of such control refer to ourseparate Report in Annexure B'; and
g) With respect to other matters to be included in the Auditor's Report inaccordance with 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 itsfinancial position;
ii. The Company did not have any long-term contracts including derivativecontracts for which there were any material foreseeable losses; and
iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company.
ANNEXURE A' TO 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 2020.
We report that:
i. (a) The Company has maintained proper records showing full particularsincluding quantitative 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 the
Companies (Auditor's Report Order 2016 (the Order') are not applicable to theCompany;
iii. The Company has not granted any loans secured or unsecured to companiesfirms limited liability partnerships or other parties covered in the register maintainedunder section 189 of the Companies Act 2013 (the Act') hence paragraph 3 (iii) ofthe Order is not applicable;
iv. The Company has not granted loans to or provided any guarantee or securityon behalf of the parties covered under section 185 of the Act and in respect ofinvestments made 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 andhence paragraph 3 (v) of the Order is not applicable;
vi. The Central Government of India has not specified under sub-section (1) ofsection 148 of the Act to maintain cost records for any of the activities of the Companyand hence paragraph 3 (vi) of the Order is not applicable;
vii. (a) According to the information and explanations given to us and accordingto the records of the Company the Company is regular in depositing with appropriateauthorities undisputed statutory dues including income-tax profession tax cess and anyother statutory 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 2020 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 offerfurther public offer (including debt instruments) and term loans hence paragraph 3 (ix)of the Order is not applicable;
x. According to the information and explanations given to us by the Managementwe report that no fraud on or by the Company has been noticed or reported during thecourse of the audit;
xi. The Company has not given any managerial remuneration covered by provisionsof section 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 notapplicable to the Company nor paragraph 3 (xii) of the Order is applicable;
xiii. According to the information and explanations given to us by theManagement we report that all transactions with related parties are in compliance withSections 177 and 188 of the Act and details thereof have been disclosed in the FinancialStatements;
xiv. The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review and henceparagraph 3 (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 or personsconnected 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 45IA of ReserveBank of India Act 1934 and hence paragraph 3 (xvi) of the Order is not applicable.
ANNEXURE B' TO AUDITOR'S REPORT
We have audited the internal financial controls over financial reports of WEST LEISURERESORTS LIMITED (the Company') as of 31st March 2020 in conjunction with our auditof 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'). Theseresponsibilities include design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring orderly and efficientconduct of its business including adherence to Company's policies safeguarding of itsassets prevention and detection of frauds and errors accuracy and completeness of theaccounting records and timely preparation of reliable financial information as requiredunder the Companies 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 financialreporting includes those policies and procedures that
(1) pertain to maintenance of records that in reasonable detail accurately and fairlyreflect 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 2020based 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.
| ||For Bhatter & Company |
| ||Chartered Accountants |
| ||Firm Regd. No. 131092W |
|UDIN:- 20016937AAAADL9483 || |
|Place: Mumbai ||D.H. Bhatter |
|Dated: 15th June 2020 ||Proprietor |
| ||Membership No. 016937 |