| Report on the Financial Statements
We have audited the accompanying financial statements of M/S Sagar
Tourist Resorts Limited, ("the company") which comprise the Balance
Sheet as at 31st March, 2014, and the Statement of Profit and Loss and
the cash flow statement for the year then ended annexed thereto, and a
summary of significant accounting policies and other explanatory
information.
Management Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of financial position,
financial performance of the company in accordance with the accounting
standards referred to in sub - section (3C) of section 211 of the
Companies Act 1956 ("the Act"). The responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation of financial statements that give a true and fair view and
are free from material misstatements, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit We conducted our audit in accordance with
the standards on auditing issued by the Institute of Chartered
Accountants of India. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from misstatements.
Audit involves performing procedure to obtain audit evidence about the
amounts and disclosure in the financial statements. The procedure
selected depends upon auditor's judgement, including the assessment of
the risk of material misstatements of the financial statements, whether
due to fraud or error. In making those risk assessment, the auditor
considers internal control relevant to the Company's preparation and
fair presentation of the financial statements in order to designs audit
procedure that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of accounting estimates made by management, as well
as evaluating the overall presentation of financial statements.
We believe that audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) In case of the Balance Sheet, of the state of affairs of the
Companies as at 31/03/2014;
(b) in cases of Profit and Loss Account, of the Loss for the year ended
on that date;
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003 ("the
order") issued by Central Government of India in terms of sub-section
(4A) of section 227 of the Act, We give in the Annexure a statements on
the matters specified in paragraphs 4 and 5 of the order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all information and explanations which to the best
of 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 the Company so far as appears from our examinations of those
books;
c. The Balance Sheet, Statement of Profit and Loss dealt with by this
Report are in agreement with the books of account;
d. In our opinion, the Balance Sheet, Statement of Profit and Loss
comply with the Accounting Standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956;
e. On the basis of written representations received from the directors
as on 31/3/2014, and taken on record by the board of directors, none of
the directors is disqualified as on 31.03.2014 from being appointed as
a director in terms of clause (g) of sub-section (1) of section 274 of
the Companies Act, 1956.
ANNEXURE I TO THE AUDITOR'S REPORT
(Referred to in paragraph 3 of report of even date)
1. i) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of
Fixed Assets.
ii) Fixed assets are physically verified by the management at regular
intervals as per the regular programme of verification which, in our
opinion, is reasonable having regard to the size of the Company and the
nature of its assets. According to the information and explanations
given to us, no material discrepancies were noticed on such
verification.
iii) There was no substantial disposal of fixed assets during the year.
2. i) The Management has conducted physical verification of inventory
at reasonable intervals.
ii) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
iii) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
3. i) As informed, the Company has not granted any loan, secured or
unsecured to companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956. Accordingly
clause (iii)(b) to (iii)(d) of Paragraph 4 of the Order are not
applicable to the company for the current year
ii) The Company has taken an unsecured loan of Rs. 1,50,000.00 form M/s
Sagar Lila Finvest India Pvt. Ltd during the year under consideration
and Rs. 56,926/- from Sagar Arts Pvt. Ltd. unsecured loans amounting to
Rs.5,00,43,321.38 were taken in years prior to financial year ending on
March 31, 2014 which are outstanding as on the date of Balance Sheet
from companies,firm and other parties covered in the register
maintained under Section 301 of the Act. The details are as under:-
I) M/s Sagar Entertainment Limited Rs.2,66,24,356.25
II) Late Sh. Ramanand Sagar (Ex-Chairman) Rs.12,90,326.98
III) M/s Gayatri Films and Music (P) Ltd. Rs.2,17,20,000.00
IV) M/s Sagar Global Venture Pvt Ltd Rs.l,19,848.75
V) M/s Sagar Art Corporation Rs.36,239.40
VI) Sagar Arts Pvt. Ltd Rs. 2,52,550.00
iii) In our opinion, the terms and conditions of loans taken are not
prima facie prejudicial to the interest of the Company.
iv) We are informed by the management that no interest was payable on
the loans and no principal amount was due for repayment during the
year.
4. There are no transactions made for purchase or sale of goods or
services exceeding the value of five lakh rupees in respect of any
party listed in the register maintained under section 301 of the
Companies Act,1956.
5. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal control systems in respect of these areas.
6. Based upon the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that there are no contracts or arrangements that need to be
entered into the register maintained under Section 301 of the Companies
Act, 1956. Accordingly, clause (v)(b) of para 4 of the Order is not
applicable to the company for the current year.
7. In our opinion and as per explanations give to us the Company has
not accepted any deposit as mentioned in the provisions of Section 58A,
58AA or any other relevant provisions of the Companies Act, 1956 and
rules framed there under. We are informed by the management that no
order has been passed by the Company Law Board, National Company Law
Tribunal or Reserve Bank of India or any Court or any other Tribunal
under Section 58A and 58AA of the Companies Act, 1956.
8. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
9 |In our opinion and the best of our knowledge and belief the Company
is not required to maintain cost records under clause(d) of sub section
(1) of Section 209 of the Companies Act, 1956.
10. i) According to the records of the Company, the Company is
occasionally irregular in depositing statutory dues which include Sales
Tax, Luxury Tax, Services Tax, and Provident Fund. Service Tax
amounting to Rs 3,814.71/- was due for payment for more than 6 Months
as on 31.03.2014.
ii) According to information and explanations given to us, dues
outstanding to Sales Tax, Income Tax, Custom Duty, Wealth Tax, excise
Duty or Cess etc are not on account of any dispute with the concerned
statutory authority.
11. The Company has accumulated loss of more than 50% of net worth.
During the financial year ending 31.03.2014 the company incurred the
cash losses amounting to Rs. 13,49,174/-, however the company did not
incur cash losses in the financial year ending 31.03.2013.
12. The Company has not defaulted in repayment of dues to financial
institution or banks.
13. According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
14. In our opinion and according to the information and explanations
given to us, the nature of activities of the Company does not attract
any special statute applicable to chit fund and nidhi/mutual benefit
funds/societies.
15. In our opinion and as per explanations given by the management the
company has not dealt in shares, securities or debentures and other
investments.
16. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by associates from
bank or financial institution.
17. The loans were applied for the purpose for which the loans were
obtained.
18. In our opinion and to the best of our knowledge and belief no
funds raised on short term basis have been used for long term
investment
19. The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act, 1956.
20. No shares were forfeited by the company during the financial year
ending 31st March 2014. However, forfeiture of 700 forfeited shares
was annulled during the current year.
21. The company did not have any outstanding debentures during the
year.
22. The Company has not raised any money through a public issue during
the year.
23. 3ased on the audit procedures performed and information and
explanations given we report that no fraud on or by the Company has
been noticed or reported during the course of audit.
For Rajeev Singhi & Co.,
(Chartered Accountants)
Dated: 29/05/2014
(Rajeev Singhi, Prop.)
Place : Mumbai M.No. 81892 | 