| (1) We have audited the attached Balance Sheet of M/S. GANDHINAGAR
HOTELS LIMITED, as 31st March, 2012, the Profit and Loss Account and
the Cash Flow statement for the year ended on that date annexed
thereto. These financial statements are signed under reference to this
report. These financial statements are the responsibility of the
management of the Company. Our responsibility is to express an opinion
on these financial statements based on our audit.
(2) We have conducted audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes, examining on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statements
presentation. We believe that our audit provides reasonable basis for
our opinion.
(3) As required by the Companies (Auditors Report) Order, 2003 as
amended by the Companies (Auditors Report) Amended order 2004 issued by
the Central Government of India in terms of section 227(4A) of The
Companies Act, 1956 and on the basis of such checks as we considered
appropriate and according to information and explanation given to us,
we enclose in the annexure a statement on the matters specified in
paragraphs (4) and (5) of the said order to the extent applicable to
the Company, for the year under consideration.
(4) Further to our report as stated above in para (3) of this report
and subject to notes on accounts & significant accounting policies, we
further broadly report that :-
4.1 In our opinion and to the best of our information and according to
the explanations given to us Balance Sheet as at 31st March, 2012 and
Profit and Loss Account for the year ended on 31-3-2012 and Cash Flow
statement dealt by this report, read with the notes to Accounts and
Accounting policies, comply with the applicable Accounting Standards
defined in Sub Section (3C) of Section 211 of the Companies Act, 1956.
And gives information required by the Companies Act, 1956 in the manner
so required.
4.2 We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
4.3 In our opinion, proper books of accounts as required by law have
been kept by the Company so far as it appears from our examination of
those books.
4.4 The Balance Sheet, Profit and Loss Account & Cash Flow statement
dealt with by this report are in agreement with the books of accounts
of the Company.
4.5 Based on the representations made by all the Directors of the
Company and taken on records by the Board of Directors of the company
and in accordance with the information and explanations as made
available, the Directors of the Company do not, prime facie, have any
disqualification as referred to in clause (q) of subsection 274 of the
Act.
4.6 In our opinion and the best of our information and according to the
explanation given to us, they said accounts, subject to notes to the
accounts and the accounting policies, give the information required by
the Companies Act, 1956 in the manner so required and give a true and
fair view in conformity with the accounting principles generally
accepted in India:-
1) In the case of Balance sheet, of the state affairs of the Company as
at 31st March, 2012;
2) In the case of Profit and Loss Account of the Company of the profit
earned by the company for the Financial year ended on 31st March, 2012.
3) In the case of Cash Flow statement of the company for the financial
year 2011-2012
1( a) The company has maintained proper records showing full
particulars including quantitative details and Situation of Fixed
Assets.
(b) Fixed Assets have been physically verified by the management
according to the regular programme of periodical verification in phased
manner which in our opinion is reasonable having regard to the size of
the Company and the nature of its fixed assets. There was no material
discrepancies noticed on such physical verification.
(c) There was no disposal of fixed assets during the year.
2 (a) The Stock of Inventories, Stores, Spare parts, Raw Material and
Building Materials have been physically verified during the year by the
management. In our opinion the frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) The Purchase of stock, Raw Material and Spares are used for the
construction works, for which no specific stock record is maintained.
In our opinion, the Company has maintained proper records of
inventories. As explained to us, the discrepancies between the physical
stocks and the book stocks were not material and have been properly
dealt with in the books of account.
3 According to the information and explanation given to us, the Company
has received interest free deposit from the promoters and has not
granted any loans secured or unsecured to / from companies, firms, or
other parties listed in Register maintained under Section 301 of the
Company Act, 1956 or from the Companies under the same management as
defined under sub-section (1B) of section 370 of the Companies Act,
1956.
4 In our opinion and according to the information and explanation given
to us there are adequate internal control procedures commensurate with
the size of the Company and the nature of the business for the purchase
of inventory and fixed assets and for the sale of goods, office
premises or shops. During the course of our audit, no major weakness
has been notice in the internal control system in respect of these
areas.
5 In our opinion and according to the information and explanations
given to us, no transactions have been made in pursuance of contracts
or arrangements that needed to be entered into the register maintained
under Section 301 of the Companies Act, 1956.
6 In our opinion and according to the information and explanation given
to us, the Company has not accepted any deposits from the Public within
the meaning of Section 58A, 58AA or any other relevant provisions of
The companies Act, 1956 and as per applicable Rules under the Companies
(Acceptance of Deposits) Rules 1975 . We are informed that no order has
been passed by the Company Law Board or Reserve Bank of India or any
Court or any other Tribunal against the Company.
7 The Company has an Internal Audit Department, which in our opinion is
commensurate with its size and nature of business.
8 The Central Government has not prescribed the maintenance of cost
records under Section 209(1)(d) of the Companies Act, 1956 for the
hotel industry.
9 (a) The company is generally regular in depositing with appropriate
authorities undisputed statutory dues including Provident fund,
investor education and protection fund, employee's state insurance,
income tax, value added tax, Central Sales Tax, service tax, luxury
tax, wealth tax, custom duty, Excise Duty, cess and other material
statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, value added tax, ,
Central Sales Tax, service tax, luxury tax, wealth tax, custom duty,
Excise Duty, cess were in arrears as at 31st March,2012 for a period of
more than six months from the date they become payable.
(c ) According to the information and explanations given to us, there
is no outstanding dues in respect of income tax, value added tax,
Central Sales Tax, service tax, luxury tax, wealth tax, custom duty,
Excise Duty, cess, which have not been deposited on account of any
dispute.
10 The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the current and
immediately preceding financial year.
11 The company has taken Term Loan for expansion and up gradation from
State Bank of India and the borrowings amount are used for the purpose
for which loan is taken. The company has paid Interest and Installment
of the said loans regularly. The Company does not have any borrowings
by way issue of debentures.
12. According to the information and explanation given to us, the
Company has not granted any loans and advance on the basis of security
by way of pledge of shares, debentures and other securities.
13 The Company is not a chit fund or a Nidhi / Mutual fund / society,
therefore, the clause 4(xiii) of the order is not applicable to the
Company.
14 In our opinion, the Company is not dealing in or trading in share,
securities, debentures and other investment, hence, the provisions of
the clause 4(xiv) of the Companies (Auditors Report) order 2004 are not
applicable to the Company.
15. According to the information and explanation given to us, during
the year the Company has not given any guarantee for loans taken by
others, from banks or financial institutions.
16. According to the information and explanations given to us, the
term loan taken during the year have been broadly applied for the
purpose for which the loans were obtained.
17. According to the information and explanations given to us, and on
the basis of the Cash Flow Statement and other records examined by us,
as well as on an overall basis, we report that the broadly funds raised
on long term basis have not prima-facie been used for short term
investment and vice versa.
18. According to information and explanation given to us, during the
year the Company has not made preferential allotment of convertible
warrants and / or shares to parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
19 According to information and explanation given to us, the Company
has not issued any debentures during the year and hence the question of
creating any security or charge in respect thereof does not arise and
hence the provisions of clause 4(xix) of the companies (Auditor's
Report) Order, 2003 are not applicable to the company.
20. During the year company has not raised money through public issue
& hence the provision of the clause 4(XX) of the Companies (Auditor
Report) order 2004 not applicable to the company.
21. During the course of our examination of books of accounts carried
out in accordance with the generally accepted auditing practices in
India and according to the information and explanations given to us, we
have neither come across any instances of fraud on or by the Company,
during the year, nor have we been informed of such case by the
management.
By Order of the Board
For GANDHINAGAR HOTELS LTD
Place: Gandhinagar Pritesh V Joshi
Date : 14.08.2012 Chairman & Managing Director | 