To
The Members of,
MAHASAGAR TRAVELS LIMITED
Report on the Financial Statements
We have audited the accompanying (Standalone) financial statements of
MAHASAGAR TRAVELS LIMITED ("the Company") which comprise the Balance Sheet as at
March 31, 2023, the Statement of Profit and Loss, Cash Flow Statement, statement of change
in equity for the year then ended, and a summary of significant accounting policies and
other explanatory information.
Managements Responsibility for the Standalone Financial Statements
The Companys Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the
preparation of these (Standalone) financial statements that give a true and fair view of
the financial position, financial performance and cash flows of the Company in accordance
with the accounting principles generally accepted in India, including the Accounting
Standards specified under Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2015. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding the
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
adequate internal financial controls, that were operating effectively for ensuring the
accuracy and completeness of the 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.
Auditors Responsibility
Our responsibility is to express an opinion on these (Standalone)
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in the audit report
under the provisions of the Act and the Rules made there under.
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 the disclosures in the financial statements. The procedures selected
depend on the auditors 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 financial control relevant to the
Companys preparation of the financial statements that give a true and fair view in order
to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating effectiveness of such
controls. An audit also includes evaluating the appropriateness of the accounting policies
used and the reasonableness of the accounting estimates made by the Companys Directors,
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 (Standalone) financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid (Standalone) 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, of the state of
affairs of the Company as at March 31, 2023, and its Profit/Loss and its Cash Flow for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2016
("the Order"), as amended, issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the "Annexure A" a
statement on the matters specified in paragraphs 3 and 4 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 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 it appears from our examination of those books;
c. the Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the books of account:
d. in our opinion, the aforesaid (Standalone) financial statements
comply with the Accounting Standards specified under section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2015.
e. On the basis of written representations received from the directors
as on March 31, 2023 taken on record by the Board of Directors, none of the directors is
disqualified as on March 31, 2023 from being appointed as a director in terms of Section
164 (2) of the Companies Act.
f. With respect to the adequacy of the internal financial controls over
financial reporting of the Company and the operating effectiveness of such controls, refer
to our separate Report in "Annexure B".
g. With respect to the other matters to be included in the Auditors
Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in
our opinion and to the best of our information and according to the explanations given to
us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its standalone Ind AS financial statements. Refer note to the
standalone Ind AS financial statements.
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses.
iii. There are no such instances which requires transferring unclaimed
amounts to the Investor Education and Protection Fund by the Company.
"Annexure A" to the Independent Auditors Report
[Referred to in paragraph 1 under Report on Other Legal and Regulatory
Requirements in the Independent Auditors Report]
i.(a) A. The company has maintained proper records showing full
particulars including quantitative details and situation of Property, Plant and Equipment.
B. The company does not have any Intangible assets so records showing
particulars of Intangible assets is not applicable.
(b) All the Property, Plant and Equipment were physically verified by
the management in the previous year in accordance with a planned program of verifying them
once in three years 4 which, in our opinion, is reasonable having regard to the size of
the Company and the nature of its assets. The amount of Depreciation has been understated
by Rs.2676430/=.
(c) According to the information and explanations given to us and on
the basis of our examination of the records of the Company, the title deeds of immovable
properties (other than properties where the company is the lessee and the lease agreements
are duly executed in favour of the lessee) as disclosed in the financial statements are
held in the name of the Company.
(d) According to the information and explanations given to us, the
Company has not revalued its property, plant and Equipment (including Right of Use assets)
and its intangible assets. Accordingly, the requirements under paragraph 3(i)(d) of the
Order are not applicable to the Company.
(e) According to the information and explanations given to us, no
proceeding has been initiated or pending against the Company for holding benami property
under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.
Accordingly, the provisions stated in paragraph 3(i) (e) of the Order are not applicable
to the Company.
ii.(a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification, coverage & procedure of
such verification is reasonable and appropriate. No material discrepancies were noticed on
such verification.
(b) According to the information and explanations provided to us, the
Company has not been sanctioned working capital limits in excess of Rs. 5 crores in
aggregate from banks or financial institutions anytime during the financial year.
Accordingly, the requirements under paragraph 3(ii)(b) of the Order is not applicable to
the Company.
iii. According to the information explanation provided to us, the
Company has not made any investments in, provided any guarantee or security or granted any
loans or advances in the nature of loans, secured or unsecured, to companies, firms,
Limited Liability Partnerships or any other parties. Hence, the requirements under
paragraph 3(iii) of the Order are not applicable to the Company.
iv. In our opinion and according to the information and explanations
given to us, the Company has not either directly or indirectly, granted any loan to any of
its directors or to any other person in whom the director is interested, in accordance
with the provisions of section 185 of the Act and the Company has not made investments
through more than two layers of investment companies in accordance with the provisions of
section 186 of the Act. Accordingly, provisions stated in paragraph 3(iv) of the Order are
not applicable to the Company.
v. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public within the meaning
of Sections 73, 74, 75 and 76 of the Act and the rules framed there under.
vi. The provisions of sub-section (1) of section 148 of the Act are not
applicable to the Company as the Central Government of India has not specified the
maintenance of cost records for any of the products of the Company. Accordingly, the
provisions stated in paragraph 3 (vi) of the Order are not applicable to the Company.
vii. According to the information and explanations given to us,
undisputed dues in respect of provident fund, employees state insurance, income-tax,
service tax, sales-tax, duty of custom, duty of excise, value added tax, goods and service
tax, cess and other statutory dues which were outstanding, at the year end, for a period
of more than six months from the date they became payable.
Statutory dues which were outstanding, as at March 31, 2023 for a
period of more than six months from the date they became payable are as follows:
| Name of the statute |
Nature of the dues |
Amount Rs. |
Period to which the amount relates |
Due Date |
Date of Payment |
Remarks, if any |
| The Gujarat Tax on Profes sions, Trades, Callings and
Employment Rules, 1976 |
Professional tax |
1,04,970/- |
2021- 22 to 2022- 23 |
15th of next month |
Not paid |
|
(a) According to the information and explanation given to us and
examination of records of the Company, the outstanding dues of income-tax, goods and
service tax, customs duty, cess and any other statutory dues on account of any dispute,
are as follows:
| Name of the statute |
Nature of dues |
Amount Rs. |
Period to which the amount relates |
Forum where dispute is pending |
Remarks , if any |
| The Income Tax Act, 1961 |
Income Tax |
71,62,051.00 |
A.Y. 07 -08 & 08-09 |
Gujarat High Court |
|
viii. According to the information and explanations given to us, there
are no transactions which are not accounted in the books of account which have been
surrendered or disclosed as income during the year in Tax Assessment of the Company. Also,
there are no previously unrecorded income which has been now recorded in the books of
account. Hence, the provision stated in paragraph 3(viii) of the Order is not applicable
to the Company.
ix. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of loans or borrowings or in
payment of interest thereon to any lender. Company has not paid banking dues as per terms
as agreed upon. However as per RBI guild lines bank has granted restructuring options to
cope up with the situations.
(a) According to the information and explanations given to us and on
the basis of our audit procedures, we report that the company has not been declared
willful defaulter by any bank or financial institution or government or any government
authority.
(b) In our opinion and according to the information explanation
provided to us, money raised by way of term loans during the year have been applied for
the purpose for which they were raised.
(c) According to the information and explanations given to us, and the
procedures performed by us, and on an overall examination of the standalone! financial
statements of the company, we report
that no funds raised on short-term basis have been used for long-term
purposes by the company.
(d) According to the information explanation given to us and on an
overall examination of the standalone financial statements of the Company, we report that
the company has not taken any funds from any entity or person on account of or to meet the
obligations of its subsidiaries, associates or joint ventures.
(e) According to the information and explanations given to us and
procedures performed by us, we report that the Company has not raised loans during the
year on the pledge of securities held in its securities, joint ventures or associate
companies.
x.
(a) The Company did not raise any money by way of initial public offer
or further public offer (including debt instruments) during the year. Accordingly, the
provisions stated in paragraph 3 (x)(a) of the Order are not applicable to the Company.
(b) According to the information and explanations given to us and based
on our examination of the records of the Company, the Company has not made any
preferential allotment or private placement of shares or fully, partly or optionally
convertible debentures during the year. Accordingly, the provisions stated in paragraph 3
(x)(b) of the Order are not applicable to the Company.
xi.
(a) During the course of our audit, examination of the books and
records of the Company, 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 instance of fraud by the Company nor on the Company.
(b) We have not come across of any instance of fraud by the Company or
on the Company during the course of audit of the standalone financial statement for the
year ended March 31, 2023, accordingly the provisions stated in paragraph (xi)(b) of the
Order is not applicable to the Company.
(c) As represented to us by the management, there are no whistle-blower
complaints received by the Company during the year. Accordingly, the provisions stated in
paragraph (xi)(c) of the Order is not applicable to company.
xii.
(a) In our opinion and according to the information and explanations
given to us, the Company is not a Nidhi Company. Accordingly, the provisions stated in
paragraph 3(xii) (a) to (c) of the Order are not applicable to the Company.
xiii. According to the information and explanations given to us and
based on our examination of the records of the Company, transactions with the related
parties are in compliance with sections 177 and 188 of the Act where applicable and
details of such transactions have been disclosed in the standalone1 financial statements
as required by the applicable accounting standards have been disclosed by the company so
not applicable.
xiv.
(a) In our opinion and based on our examination, the Company has an
internal audit system commensurate with the size and nature of its business.
(b) We have considered internal audit reports issued by internal
auditors during our audit.
xv. According to the information and explanations given to us, in
our opinion during the year the Company has not entered into non-cash transactions with
directors or persons connected with its directors and hence, provisions of section 192 of
the Act are not applicable to company. Accordingly, the provisions stated in paragraph
3(xv) of the Order are not applicable to the Company.
xvi.
(a) In our opinion, the Company is not required to be registered under
section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions
stated in paragraph clause 3 (xvi)(a) of the Order are not applicable to the Company.
xvii. Based on the overall review of standalone financial statements,
the Company has not incurred cash losses in the current financial year and in the
immediately preceding financial year. Hence, the provisions stated in paragraph clause 3
(xvii) of the Order are not applicable to the Company.
xviii. There has been no resignation of the statutory auditors during
the year. Hence, the provisions stated in paragraph clause 3 (xviii) of the Order are not
applicable to the Company.
xix. According to the information and explanations given to us and
based on our examination of financial ratios, ageing and expected date of realisation of
financial assets and payment of liabilities, other information accompanying the
standalone1 financial statements, our knowledge of the Board of Directors and management
plans, we are of the opinion that no material uncertainty exists as on the date of audit
report and the Company is capable of meeting its liabilities existing at the date of
balance sheet as and when they fall due within a period of one year from the balance sheet
date.
xx.
(a) According to the information and explanations given to us, the
provisions of section 135 of the Act are not applicable to the Company. Hence, the
provisions of paragraph (xx)(a) to (b) of the Order are not applicable to the Company.
xxi. The reporting under clause 3(xxi) of the Order is not applicable
in respect of audit of standalone financial statements. Accordingly, no comment in respect
of the said clause has been included in the report.
"Annexure B" to the Independent Auditors Report of even date
on the Standalone Financial Statements of MAHASAGAR TRAVELS LIMITED
Report on the Internal Financial Controls under Clause (i) of
Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial
reporting of Mahasagar Travels Limited ("the Company") as of March 31, 2023 in
conjunction with our audit of the standalone financial statements of the Company for the
year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and
maintaining internal financial controls based on the internal control over financial
reporting criteria established by the Company considering the essential components of
internal control stated in the Guidance Note on Audit of Internal Financial Controls Over
Financial Reporting issued by the Institute of Chartered Accountants of India. These
responsibilities include the design, implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to companys policies, the safeguarding of
its assets, the prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records, and the timely preparation of reliable financial
information, as required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal
financial controls over financial reporting based on our audit. We conducted our audit in
accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI
and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the
extent applicable to an audit of internal financial controls, both applicable to an audit
of Internal Financial Controls and, both issued by the Institute of Chartered Accountants
of India. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about
the adequacy of the internal financial controls system over financial reporting and their
operating effectiveness. Our audit of internal financial controls over financial reporting
included obtaining an understanding of internal financial controls over financial
reporting, assessing the risk that a material weakness exists, and testing and evaluating
the design and operating effectiveness of internal control based on the assessed risk. The
procedures selected depend on the auditors judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the Companys internal financial
controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companys internal financial control over financial reporting is a
process designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles. A companys internal financial control over
financial reporting includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting principles, and that receipts
and expenditures of the company are being made only in accordance with authorizations of
management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the
companys assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial
Reporting
Because of the inherent limitations of internal financial controls over
financial reporting, including the possibility of collusion or improper management
override of controls, material misstatements due to error or fraud may occur and not be
detected. Also, projections of any evaluation of the internal financial controls over
financial reporting to future periods are subject to the risk that the internal financial
control over financial reporting may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate
internal financial controls system over financial reporting and such internal financial
controls over financial reporting were operating effectively as at March 31, 2023, based
on the internal control over financial reporting criteria established by the Company
considering the essential components of internal control stated in the Guidance Note on
Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of
Chartered Accountants of India.
| For and on behalf of |
| B.H. Advani & Associates |
| Chartered Accountants |
| (B H ADVANI) |
| PARTNER |
| M. No:102464 |
| FRN: 0117127W |
| UDIN: 23102464BGVITI5996 |
| Place: JUNAGADH |
| Date: 29/05/2023 |
+91-9892691696
