| We have audited the accompanying financial statements of M/s.Velan
Hotels Limited which comprise the Balance Sheet as at 31st March 2015,
the Statement of Profit and Loss and Cash Flow Statement for the year
then ended and a summary of significant accounting policies and other
explanatory information.
Management's Responsibility for the Financial Statements
The Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position and
financial performance of the company in accordance with the Accounting
Principles generally accepted in India, including the Accounting
Standards specified under Section 133 of the Companies Act, 2013, read
with rule 7 of the Companies (Accounts) Rules, 2014. This
responsibility includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding assets of
the company and for preventing and detecting frauds and other
irregularities, selection and application of appropriate accounting
policies, making judgments and estimates that are reasonable and
prudent and design, implementation and maintenance of internal
financial control that were operating effectively for ensuring the
accuracy and completeness of accounting records relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, 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 have taken into account the
provisions of the Act, accounting and auditing standards and matters
which are required to be included in the audit report under the
provisions of the Act and Rules made thereunder. We conducted our audit
in accordance with the Standards on Auditing specified under Section
143 (10) of the Act. 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 material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company's preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstance, but not for the
purpose of expressing an opinion on whether the company has in place
adequate internal control system over financial reporting and the
operating effectiveness of such controls An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by the Management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
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:-
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2015;
ii) in the case of Profit and Loss Account , of the loss for the year
ended on that date; and
iii) in the case of Cash Flow Statement, of the Cash Flow for the year
ended on that date Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015, issued
by the Central Government of India in terms of sub-section (11) of
Section 143 of the Companies Act 2013, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order
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 best of our knowledge and belief were necessary for the
purpose of our audit;
b. in our opinion proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
those books;
c. the Balance Sheet ,Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d. in our opinion, the financial statements comply with the Accounting
Standards specified under section 133 of the Companies Act,2013, read
with rule 7 of the Companies (Accounts) Rules, 2014.
e. on the basis of written representations received from the directors
as on 31st March, 2015 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2015, from
being appointed as a director in terms of sub-section(2) of Section 164
of the Companies Act, 2013.
ANNEXURE
i) a) In respect of Fixed Assets :
a) The Company is maintaining proper records showing full particulars
including quantitative details and situation of Fixed Assets.
b) The Fixed Assets have been physically verified by the management at
reasonable intervals and we are informed that no material discrepancies
have been noticed on such verification.
ii) a) In respect of Inventories :
a) Stock of stores, provisions, crockeries, beverage, etc., have been
physically verified by the management at reasonable intervals during
the year.
b) In our opinion, 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 company is maintaining proper records of inventory and no
material discrepancies have been noticed on physical verification.
iii) The Company has not granted any loans, secured or unsecured to
Companies/ firms or other parties covered in the registered maintained
under section 189 of the Companies Act 2013.
iv) 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, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
v) In respect of statutory dues:
a) The company is not generally regular in depositing the undisputed
statutory dues, i.e. Provident Fund, Employees State Insurance, Income
tax, Sales Tax, , Wealth Tax ,Service Tax, Duties of Customs, Duty of
Excise, Value Added Tax, Cess and any other statutory dues with
appropriate authorities.
b) In our opinion and according to the information and explanations
given to us, there are no disputed statutory dues including Income tax,
Sales Tax, , Wealth Tax ,Service Tax, Duties of Customs, Duty of
Excise, Value Added Tax, Cess as at the year end.
c) In our opinion and according to the information and explanation
given to us , the company is not required to transfer amounts to
Investor Education and Protection Fund.
vi) The accumulated losses at year end are however less than fifty
percent of its networth. However during the year the company has
incurred cash losses. The company has not incurred cash losses during
the immediately preceding previous year.
vii) The Company has defaulted in repayment of dues to Banks, which has
been classified as NPA Since 01.04.2014:
Name of Bank Balance due (Rs. Balance due
in Crore) Principal (Rs. in Crore)
Interest
Allahabad Bank - Tirupur Branch 42.43 8.62
Andhra Bank - Coimbatore Branch 39.74 7.04
viii) According to the information and explanations given to us, no
fraud on or by the company has been reported during the year.
ix) According to information and explanation furnished to us , clauses
(v) (vi) (x) and (xi) of the Order 2015 are not applicable to the
entity.
P.S.KRISHNAN & CO
Chartered Accountants
FRN 001532S
(G.Krishnamurthi)
Place : TIRUPUR Partner
Date : 28.05.2015 (Membership No. 23896)
|