Gandhinagar Enterprises Ltd Auditor Reports

GANDHINAGAR HOTELS LIMITED ANNUAL REPORT 2010-2011 AUDITORS REPORT To The members of GANDHINAGAR HOTELS LIMITED Gandhinagar (1) We have audited the attached Balance Sheet of M/S. GANDHINAGAR HOTELS LIMITED, as 31st March, 2011. 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, 2011 and Profit and Loss Account for the year ended on 31-3-2011 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, the 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 31st March, 2011; 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, 2011. 3) In the case of Cash Flow statement of the company for the financial year 2010-2011. For G J K ASSOCIATES For Manoj Lekinwala & Co. Chartered Accountants Chartered Accountants Place : Gandhinagar Date : 30.08.2011 G.J. Raghavani (CA Manoj H. Lekinwala) Partner Proprietor Membership No : 37210 Membership No : 37663. ANNEXURE TO THE AUDITORS REPORT (Annexure referred to in paragraph 3 of our report of even date) 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 programmed 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 were no 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 We have broadly reviewed the books of accounts maintained by the Company pursuant to the rules made by the Central Government. The Central Government has not prescribed the maintenance of any 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, employees 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,2011 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. 15 Therefore, the provisions of the clause 4(xiv) of the Companies (Auditors Report) order 2004 are not applicable to the Company. 16. 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. 17. 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. 18. 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. 19. 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. 20 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 (Auditors Report) Order,2003 are 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. For G J K ASSOCIATES For Manoj Lekinwala & Co. Chartered Accountants Chartered Accountants Place : Gandhinagar G.J. Raghavani (CA. Manoj H. Lekinwala) Date : 30.08.2011 Partner Proprietor Membership No : 37210 Membership No : 37663.