India Tourism Development Corporation Ltd Auditor Reports

To

The Members of India Tourism Development Corporation Limited

Report on the Audit of the Standalone Financial Statements

Qualified Opinion

We have audited the Standalone financial statements of India Tourism Development Corporation Limited (“the Company”) which comprise the Balance Sheet as at March 31, 2024, the Statement of Profit and Loss (including Other Comprehensive Income), Statement of Changes in Equity and Statement of Cash Flows for the year then ended and notes to the financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as “the Standalone Financial Statements”).

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 Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (“Ind AS”) and other accounting principles generally accepted in India, of the state of affairs (financial position) of the Company as at March 31, 2024, and its profit (financial performance including other comprehensive income), changes in equity and its cash flows for the year ended on that date except for the possible effects of the matters described in the Basis for Qualified Opinion section of our report.

Basis for Qualified Opinion

A. MSMED Act Compliances:

As per the information provided to us, the Company has identified suppliers registered under the MSMED Act, 2006, by obtaining confirmation from suppliers and information has been collated to the extent of information received.

In the absence of the requisite audit evidence, we are unable to determine the delay in making payment to MSME entities, liability of interest and compliance on such delayed payments in terms of provisions of MSMED Act (Refer point No. 31 to Note No. 39 of the Standalone Financial Statements).

B. Revenue from License fee

The Company has not generated invoices for license fees on licensees of units, viz. Ashok Hotel, Samrat Hotel & Taj Restaurant (units of ITDC) to the tune of Rs. 1292.59 lakhs during the year 2020-21 on account of Covid-19 pandemic, and hence not considered in Books of Accounts. The matter is still under consideration before the board of Directors of ITDC. Thus, the sale of services from license fees and trade receivables of the Company continued to be understated to this extent. (Refer Point no. 11 of Note 39 to the Standalone Financial Statements).

C. Ashok Tours and Travels (ATT) Delhi

1. ATT has entered into arrangements for marketing of travel related business with M/S Shree Plan Your Journey Pvt. Ltd (SPYJ), the GSA dated September 2019. The commission for the said business was to be shared equally with them. We observed the following:-

i. The agency was to make interest free cash deposit of Rs. 180 lakh and furnish a Bank Guarantee for Rs. 120 lakh for the purpose of buying air tickets and other travel- related services up to a sum of Rs. 300 lakhs. Out of the said amount, Rs. 30 lakhs were to be kept as security deposit leaving a balance of Rs. 270 lakhs. The said amount was required to be increased additionally through the deposit of funds as and when required by the business. As per the agreement, the evaluation is to be made by the Company on a monthly basis, and in case of its non-compliance, the issue of all travel-related services would be stopped till funds are received But we observed that in view of the jump in the business envisaged at Rs. 300 lakhs initially, having gone up to Rs. 9,416 lakhs as of 31st March 2024, the said terms relating to deposit of additional funds by the agency is not being complied with. ATT has kept on “HOLD” Only an amount of Rs. 800 lakhs stands withheld/kept which includes Rs. 560 lakhs in the form of a Security Deposit and a balance of Rs. 240 lakhs in the form of a Bank Guarantee to cover increased business volume, which is not exactly in consonance with terms of extension letter and directives of Board.

ii. We continue to observe that various conditions of the agreement with SPYJ were not complied &/ or not enforced like credit limit, reconciliation, monthly evaluation, additional Bank Guarantee (BG) etc. Despite raising the issues in the previous years and also in the current year. There is periodical reconciliation of PLB from Airlines, identification of unlinked receipts, credit note delays, settlement of commission bills after receiving full payment from SPYJ clients, compliance of SoP etc. There is progress in reconciliation of account with SPYJ, however, still there is a gap of Rs 11.69 lakhs (PY Rs. 34.95 lakhs). Above mentioned deficiencies have repercussions on timely compliance of TDS and provisions under GST Act.

2. ATT (ITDC) has entered into Memorandum of understanding (MOU)/ Travel Services Agreement (TSA) with its various customers comprising of mainly Ministries/Govt. Departments/ Government organisations for rendering travel related services of Domestic and International Air Ticketing at “00”/ Nil charge. Further an Office Memorandum (OM) was issued by MoF on 16th June,2022 for non-levy of any agency charges/ convenience fee. In few cases/services the company is yet to implement such clauses of TSA and aforementioned (OM).

In view of circumstances stated in para 1 and 2 above, we are unable to comment on the final outcome of non- compliance of terms of Agreement, confirmations, reconciliations and/or assessment of recoverability of outstanding in the accounts pertaining to SPYJ and ATT customers and its consequential impact on the Standalone Financial Statements.

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditors Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the Standalone Financial Statements under the provisions of the Act and the Rules there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our Qualified opinion, except as stated elsewhere in the report.

Emphasis of Matters

We draw attention to the following notes on the standalone financial statements being matters pertaining to India Tourism Development Corporation Limited requiring emphasis by us:

1. Disinvestments

Pursuant to decision of the Government of India, ministry of Tourism is under process of examining the proposals of sale/lease of hotel properties of the Company including properties of Subsidiary Companies. (Refer point No. 15(a) to (i) of Note No. 39 to the Standalone Financial Statements)

2. Status of Joint Venture Company

The Company formed Joint Venture Company with Aldeasa of Spain by making of investment in 5000 equity shares of Rs. 10/- each, for which provision has been made for 100% diminution in value of investment. The said Company has been struck off by the Registrar of Companies and dissolved w.e.f. 21^st Aug, 2017. The liability Rs.226.51 lakhs as on 31^st March,2024 is outstanding towards ITDC Aldeasa, including amount deposited of Rs. 108.38 lakhs. (Refer point no.14 of note no.39 and foot note to note no.10 of the Standalone Financial Statements) Further, the disclosure under point no. 31(IV)(d) to note no.39 is limited to the extent of one party as mentioned above and in the absence of required information with regards to identifying such balances and transactions with other struck off parties (if any), we are unable to comment in absence of any audit evidence in this regard.

3. Amount due from Subsidiaries

Management fee amounting to Rs 65.50 lakhs and interest of Rs 312.46 lakhs on Loans given to Subsidiary prior to 01.04.2016 being prior to Ind AS Transition has not been recognized in the Standalone Financial Statements. (Refer point no. 12 to Note 39 to the Standalone Financial Statements).

No provision for outstanding dues from subsidiaries exceeding 3 years was made, for which management represented that the same will be recovered on settlement of Disinvestments.

4. Amount Receivables:

• The Company has sent letters for confirmation of balances, but response is negligible and hence no exercise was possible for performing reconciliations and/ or assessment in respect of amount recoverable from Trade Receivables; Deposits with Government Departments and others; amount recoverable from suppliers/ vendors, employees and other parties. However, the whole process of obtaining confirmations need to be further strengthened.

Pending such confirmations, reconciliations and/ or assessment, the impact thereof on Standalone Financial Statements are not ascertainable and quantifiable. We are unable to obtain audit evidence for the amount recoverable and periodicity thereof. (Refer Point No. 1 to Note 39 of the Standalone Financial Statements)

• Regular Customers (Government and others) are having debit balances beyond credit policy for which no check chart is prepared for adequate recovery steps, if, taken. Provision for making them as doubtful debts are made as per the company policy. However, the recovery process needs be strengthened. In the absence of any adequate audit evidence with regards to recoverability, periodicity or otherwise, we are unable to comment whether the same are disputable or not. (Refer Point No. 28(I) to Note No.39 of Standalone Financial Statements)

• The Company has made provision for Bad & doubtful debts to the extent of Rs. 301.50 lakhs on account of legal notice/ cases pertaining to few parties apart from provision made in accordance with the usual policy of the Company. (Refer point No. 20 of Note 39 to Standalone Financial Statements)

5. Property tax

There is a dispute regarding the assessment of property tax done by NDMC for The Ashok Hotel, Samrat Hotel & Janpath Hotel. The same has been challenged by the company by filing a writ petition with the Honble High Court of Delhi and the same is still pending with the Honable Delhi High Court. (Refer to point no 3 of Note no 38 to the Standalone Financial Statements).

6. Amount Payables:

• Company does not follow a proper system of obtaining confirmations and performing reconciliations and/ or assessment of correct balances in respect of amount payable to Trade Payables; Deposits received (SD/ EMD); Government Departments and other parties. Process was initiated by the company for obtaining balance confirmation, however, without disclosing balances in the books of accounts of the company, response whereof is also negligible. Accordingly, amount payable to various parties are subject to confirmations, reconciliations and/ or assessments. Pending such confirmations, reconciliations and/ or assessments, impact thereof on the Standalone Financial Statements is not ascertainable and quantifiable. (Refer Point No. 1 to Note 39 of Standalone Financial Statements)

• Trade Payables have been bifurcated into two parts i.e., MSME and others and further sub-divided as disputable or otherwise. Disputed trade payables taken only in cases where matter is under litigation. In case of delayed outstanding against MSME/ others, beyond the period of credit policy of the Company have been considered as undisputable by the management. Assessment for identifying disputable one is not available. In absence of any audit evidence with regards to assessment of disputable or otherwise, we are unable to comment thereon and impact thereof on standalone financial statements. (Refer point no 28(II) to note 39 of Standalone Financial Statements)

7. Unlinked receipts

Unlinked receipts of Rs 371.96 Lakhs from debtors against billing by the Company, which could not be matched with the amount standing to the debit of the receivables is appearing as liabilities “Advance from Customers” in the standalone financial statements of the Company. To that extent, the Trade Receivables and Current Liabilities are overstated. (Refer footnote to note number 26 of the standalone financial statements)

8. Inventory

The consumption of stocks, stores, crockery, cutlery, etc. is being arrived by adding opening balances to the purchases and deducting therefrom closing balances as per practice being followed from the past. In absence of maintenance of proper record on day-to-day basis for receipts, issues and closing balances, the shortage, scrap, misuse or theft of inventory is not ascertainable and quantifiable. (Refer Point no.3 to the Note No. 39 of Standalone Financial Statements).

Further the valuation is continued in certain cases at cost instead of lower the cost or NRV in terms of policy of the Company. Impact thereof is not ascertainable and quantifiable. (Refer Note 7 of Standalone Financial Statements)

9. TDS Receivable/ income tax assessments

TDS Receivable appearing in the books of accounts, for which reconciliation between books of accounts, 26AS, and claim made in Income Tax Returns is in progress. Correctness of TDS receivable could not be verified, and hence we are unable to ascertain the impact thereof in the standalone financial statements (Refer foot note no. 2 to note no.13 of Standalone Financial Statements).

10. Loss/shortage of Property, Plant & Equipment

Records for Property Plant Equipment (Fixed Assets) are not properly maintained and updated at various units. Further, statements wherever, prepared for physical verification has no base and as such verification is not capable of reconciliations either with the Books of Accounts or Fixed Assets Records, wherever, maintained. Hence impact of loss/ shortage/ scrap of assets remains indeterminable. (Refer foot note (e) of Note no.2 of Standalone Financial Statements)

11. Security deposit with DIAL

At Ashok International Trade Division (AITD- A unit of ITDC), the sum of 160.97 lakhs paid in the year 2006-07 as security deposit in the form of fixed deposit (FD) receipt in favour of Delhi International Airport Private Limited (DIAL) was shown as recoverable. The of FD was encashed during 2007-08 by DIAL on account of service tax charged by DIAL in billing of service provided to the Company. The management, after making due assessment, has made provision for doubtful debts in the F.Y. 2020-21. However, the matter is being disputed by the Company, as it was in the past (Refer to point no.1 to note no.38 of the Standalone Financial Statements)

12. Samrat Hotel (A Unit of ITDC)

At Samrat Hotel (a unit of ITDC), a licensee viz, Good Times Restaurant Pvt. Ltd filed claim towards refund of licensee fee. A sum of Rs 904.16 Lakhs has been deposited by the Company as per interim orders of High Court dated 24.12.2020 (including interest). The matter is in appeal before Honble High Court, Delhi Good Times Restaurant Pvt. Ltd has also filed an execution petition, proceedings whereof has been listed for 03.08.2022. Management is confident for no liability and hence no provision has been considered. (Refer point no 4 of Note no 38 to the Standalone Financial Statements).

13. Ashok Consultancy and Engineering Services (ACES)

a) In Ashok Consultancy and Engineering Services (ACES- A unit of ITDC), out of total 79 projects, 56 projects were completed/ closed but not closed in books of accounts as final bills were reportedly not received/settled. (Refer point no 18 to note no 39 of the standalone financial statements)

b) Dues recoverable from DDA MoU was signed between ITDC and DDA, as a special business dealing for furnishing DDA Flats with furniture and fixtures during Commonwealth Games 2010 (CWG). Litigations were raised by the vendors/ parties engaged by ITDC (for supply of furniture & fixtures), due to non-receipt of their ordered items by DDA. Subsequent payments were made by ITDC to vendors as per the Court Orders from time to time. Recovery proceedings were initiated by ITDC from DDA as per the MoU. Thereafter, the matter is under dispute between ITDC and DDA, and is further referred to Administrative Mechanism for Resolution of CPSEs Disputes (AMRCD). Department of Public Enterprise (MoF) further issued a notification dated 10^th February2023 whereby a committee is formed to examine and submit its recommendations within the stipulated time period of three months from the date of notification of the committee.

During the year the company has further debited DDA with Rs 185.67 lacs with the payment to its vendors on passing court orders in their favor and legal cost incurred thereon. Total amount recoverable from DDA is Rs 1,882.09 lakhs (PY Rs 1,696.42 Lakhs). (Refer point no. 19 to Note no. 39 of Standalone Financial Statements)

ITDC policy and practice adopted for provisioning of receivables, disclosed under Point No. 4 to General Note No. 39, is for transactions entered into during the normal course of business and the transaction entered is not covered under the same. The matter is under consideration before the AMRCD and the management is very confident of recovery of the amount involved, therefore, no provision was considered necessary as per the company policy.

c) Ministry of Tourism has appointed ITDC as Central Nodal Agency for Central Sector Schemes from F.Y. 2022-23, i.e., Swadesh Darshan Scheme and PRASAD (Pilgrimage Rejuvenation and Spiritual Augmentation Drive) for monitoring over the expenditure limits allotted to the State Tourism Board and to resolve day to day queries raised by Sub Nodal Agency. The amount received against the same has been shown under earmarked balance on the face of the balance sheet separately and corresponding amount is shown under “other financial liability” (Refer foot note to note no. 10(A), footnote to note no. 24 of the standalone financial statements).

14. Legal / interest etc. on contingent liabilities

Amount indicated as contingent liabilities/ claims against the company reflects basic values. Legal expenses interest and other costs not considered being indeterminable. (Refer footnote 2 of note 38 to the standalone financial statement)

Our opinion is not modified in respect of these matters.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Standalone Financial Statements of the current period. These matters were addressed in the context of our audit of the Standalone Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report:

SI. No. Key Audit Matter	How our audit addressed the Key Audit Matter
1 Contingent Liabilities:
There are various litigations (incl. direct/ indirect tax) pending before various forums against the Company and managements judgement is required for estimating the amount to be disclosed as contingent liability.	We have obtained an understanding of the Companys internal instructions and procedures in respect of estimation and disclosure of contingent liabilities and adopted the following audit procedures:
We identified this as a key audit matter because the estimates on which these amounts are based involve a significant degree of management judgement in interpreting the cases and it may be subject to management bias.	- understood and tested the design and operating effectiveness of controls as established by the management for obtaining relevant information for pending litigation cases.
Refer note no. 38 of the Standalone Financial Statements.	We assessed the managements underlying assumptions in estimating the tax provision and the possible outcome of the disputes.
	We also considered legal precedence and other rulings, including in the Companys own case, in evaluating managements position on these uncertain tax positions.
	- discussing with management any material developments and latest status of legal matters;
	- read various correspondences and related documents pertaining to litigation cases produced by the management and relevant external legal opinions obtained by the management and performed substantive procedures on calculations supporting the disclosure of contingent liabilities;
	- examining managements judgements and assessments whether provisions are required;
	- considering the management assessments of those matters that are not disclosed as the probability of material outflow is considered to be remote;
	- reviewing the adequacy and completeness of disclosures;
	Based on the above procedures performed, the estimation and disclosures of contingent liabilities are considered to be adequate and reasonable.

 

2 Discontinued Operations and Assets Held for Sale:
Assets of the Company continue to be held for sale and discontinued operations as at the balance sheet date.	We analyzed the managements estimate of realizable value.
Refer to note no. 36 and point no. 16 and 17 to note no. 39 of Standalone Financial Statements.	Based on our procedures, we noted no exceptions and consider managements approach and assumptions to be reasonable.

 

3. Investments in Subsidiaries
The Company holds investments in Subsidiaries of Rs 879.87 lakh (equity and preference) out of which investments of Rs. 800.48 lakh (879.8779.38) (equity and preference) pertains to Subsidiaries which has significant accumulated losses. These subsidiaries are currently under disinvestment. However, Company has received Rs. 306 lakhs in payment against of investment of Rs. 249.88 in Ranchi Ashok Bihar Corporation Ltd and shown as liability till the completion of share transfer formalities. Assessment of the recoverable amount of the investments due to the reasons given in Footnote to the note No 3 of the standalone financials statement has been identified as a key audit matter.	We assessed the managements assumptions and the past trends wherein the amount received on disinvestment by the Company were much more than the amount originally invested in the said subsidiary Companies.
	As a result of aforesaid, we agree with the management that the carrying values of these investments held by the Company are supportable in the context of Companys Financial Statements except in case of Punjab Ashok Hotel Co. Ltd, where State Government has proposed to pay reduced amount, which has been accepted by the Company and provision for shortfall has been made in the Books of 2021-22.

 

4. Information Technology:
The company key financial accounting and reporting processes are dependent on the Tally Prime Software (latest version) and the company also uses other software/ applications for inventories and billing, i.e., Champagne and Protel respectively for each purpose at the unit level which are not integrated with accounting software. However, the company is in the process for implementation of integration of Protel software, which is used for billing purposes with Tally Prime Software.	Our procedures included but were not limited to:
The IT system in the company are not fully automated and manual interventions are in place in preparing and reporting of financial statements. We focused our audit on those IT systems and controls that are significant to the Corporations financial reporting process.	• Discussing with management and IT department on the IT environment and consideration of the key financial processes to understand where IT systems were integral to the financial reporting process.
Accordingly, we considered this as a Key Audit Matter.	• Testing the design of the key IT controls relating to financial reporting systems of the company.
	• We also tested the companys controls around system interfaces, and the transfer of data from one system to another.
	We applied substantive audit procedures to ensure that areas where there are manual controls are operating effectively.

Our opinion is not modified with respect to above key matters.

Other Matters

A. Goods and Service Tax

• The company has a mechanism for the collection of GST input and output data from the respective Delhi based unit on a monthly basis for the compilation and submission of GST returns and payment of GST taxes, which is being reconciled by the above units and Delhi Head Quarter from time to time and the differences arising in such reconciliation are not being properly traced.

• Further Company has availed GST Input (ITC) on the invoices of the Creditors/ Vendors but the same has not been surrendered back in case payment has not been made within 180 days. The amount where of is not ascertainable and quantifiable in the absence of due records.

In both the above cases, GST liability has not been provided which will impact on the results of Standalone Financial Statements, but the amount thereof is not ascertainable/ determinable in absence of availability of records.

B. Sale of Air Tickets from ATT units

The Contract or arrangement is between Airlines and Ashok Tours and Travels (ATT- units of ITDC) for the purchase of tickets in the name of customers of ATT and accordingly accounts are settled between the two for purchase of tickets and make payment after deductions /adjustments for refund of tickets cancelled and/or incentives. ATT has arrangement with its customers for sale of air tickets for which invoices are generated. Based on experts opinion, the amount of services charges made over and above the cost of Air tickets is being shown as revenue, while the cost of Air tickets is neither shown as purchases nor turnover of the Company. The management represented that this is the practice of the industry. This does not affect the profitability of the Company but Turnover and purchases are understated to that extent.

Refer note 39 (24) regarding system of bifurcation in Debtors and other receivables for year 2023-24 and previous years. The closing balance of receivables against sales is bifurcated in debtors and other receivables on the basis of average margin as per internal working done by the Company.

Our opinion is not modified with respect of above matters.

Information other than the standalone Financial Statements and Auditors Report thereon

The Companys Management and Board of Directors are responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Boards Report including Annexures to Boards Report, Business Responsibility Report, Corporate Governance and Shareholders Information, but does not include the Standalone Financial Statements and our auditors report thereon.

Our opinion on the Standalone Financial Statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other information and in doing so consider whether the other information is materially inconsistent with the Standalone Financial Statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Managements and Board of Directors Responsibility for the Standalone Financial Statements

The Companys Management and Board of Directors is responsible for the matters stated in section 134(5) of 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, total comprehensive income, changes in equity and cash flows of the Company in accordance with accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies ( Indian Accounting Standards ) Rules 2015 as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the company and for preventing and detecting frauds and other irregularities, selection and application of appropriate accounting policies; making judgements 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 Standalone Financial Statements that give a true and fair view and are free from material misstatements, whether due to fraud or error.

In preparing the Standalone Financial Statements, management is responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease the operations or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Companys financial reporting process.

Auditors Responsibility for the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone Financial Statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3) (i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate Internal Financial Controls system with respect to Standalone Financial Statements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of managements use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companys ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the standalone Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the Standalone financial statements, including the disclosures, and whether the standalone Ind As financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of reasonably knowledgeable user of the Standalone Financial Statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Standalone Financial Statements.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were most significance in the audit of standalone Ind AS financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditors report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so we would reasonably be expected to outweigh the public interest benefits of such communication.

Report on other Legal and Regulatory

Requirements

1. As required by the Companies (Auditors Report) Order, 2020 (“the Order”) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act and on the basis of such checks of the books and records of the Company as we have considered appropriate and according to the information and explanation given to us, we give in the “Annexure-A” statement on the matters Specified in paragraphs 3 and 4 of the Order to the extent applicable.

2. We are enclosing our report in terms of section 143(5) of the Act, on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanation given to us, in the “Annexure-B” on the directions/ sub directions issued by the Comptroller and Auditor General of India.

3. (A) As required by section 143(3) of the Act read with Companies (Audit and Auditors) Rules 2014 and amendments therein, subject to matters of qualification, emphasis, key matters & other matters stated above, in our opinion and to the best of our information and according to the explanations given to us:

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

b) 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.

c) The Balance Sheet, the Statement of Profit and Loss (Including other Comprehensive Income), the Statement of Change in equity and the Statement of Cash Flow 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 Indian Accounting Standards specified under section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015 as amended.

e) Being a Government Company, pursuant to notifications NO. GSR 463(E) dated 05^th June, 2015 Issued by the Ministry of corporate Affairs, Government of India, provisions of sub section (2) of section 164 of the Act, are not applicable to the Company.

f) Matters of Qualifications have been stated above under qualified opinion.

g) 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.

h) As per Notification no. GSR 463(E) dated June 05, 2015 issued by the Ministry of Corporate Affairs, Government of India, Section 197 of the Act is not applicable to the Government Companies. Accordingly reporting in accordance with requirement of provisions of section 197(16) of the Act is not applicable on the Company.

i) With respect to other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014(as amended), 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 as at 31^st March, 2024 on its financial position in Standalone Financial Statements - Refer note no -38 of the standalone financial statements.

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses; and

iii. There has been no delay in transfer of amount required to be transferred, to the Investor Education and Protection Fund by the Company.

iv. a. The Management has represented that,the Company has not used an Intermediary for advancing /loaning/ investing funds to/ in an ultimate beneficiary or has not provided any guarantee /security or the like on behalf of the ultimate beneficiary.

b. The Management has represented that, the Company has not acted as an intermediary for advancing / loaning / investing funds to / in an ultimate beneficiary identified by the Funding Party or has not provided any guarantee/security or the like on behalf of the Funding party.

c. Based on such audit procedures as considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (iv)(a) and (iv)(b) contain any material misstatement.

v. As stated in foot note to note no. 15 to the standalone financial statements, the Board of Directors of the Company has proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with Section 123 of the Act to the extent it applies to declaration of dividend.

vi. Based on our examination, which included test checks, the company has used accounting software for maintaining its books of account for the financial year ended March 31 ^st, 2024 which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in software. Further during the course of our audit, we did not come across any instance of the audit trail feature being tampered with.

As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 1, 2023, reporting under 11(g) of the Companies (Audit and Auditors) Rules, 2014 on preservation of audit trail as per the statutory requirements for the record retention is not applicable for the financial year ended March 31, 2024.

For HDSG & ASSOCIATES
Chartered Accountants
Firm Registration No: 002871N
Sd/-
Harbir Singh Gulati
(Partner)
Membership No: 084072	Place: New Delhi
UDIN: 24084072BKAJUU3873	Date: May 11, 2024

“Annexure A” to the Independent Auditors Report

Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements section of our report of even date to the members of India Tourism Development Corporation Limited on the Standalone Financial Statements for the year ended on March 31, 2024.

i) In respect of its Property plant and Equipment (PPE):

a) (A) Company has generally maintained proper records showing full particulars, including quantitative details and situation of PPE except in few units/branches where records were incomplete in respect of quantitative details, situation, etc. as stated hereunder: - However, no tagging system exists to identify the specific asset at the time of sale/disposal/ scrap/lost etc., otherwise.

S. No	Name of the Unit/Branch
1	Taj Restaurant
2	ATT Kolkata
3	ATT Hyderabad
4	Ashok Events
5	Ashok Hotel
6	ATT Delhi
7	ACES
8	Kalinga Ashok
9	Vigyan Bhawan
10	ATT Chennai
11	ATT Bengaluru
12	Head Quarter

(B) Company has generally maintained proper records showing full particulars of intangible assets except in certain Units/Branches stated hereunder -

S. No	Name of the Unit/Branch
1	DFS Goa
2	ATT Kolkata
3	ATT Delhi
4	DFS JNPT
5	DFS Mangalore
6	DFS Mumbai
7	Kalinga Ashok
8	ATT Chennai
9	ATT Bengaluru
10	Head Quarter

b) The Company has a regular programme of physical verification of all the PPE, which in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification except in the below mentioned units: where the physical verification is subject to reconciliation.

S. No	Name of the Unit/Branch
1	ATT Delhi
2	Western Court
3	Ashok Hotel
4	Ashok Institute of Hospitality and Tourism Management
5	Ashok International Trade Division
6	Ashok Events
7	Vigyan Bhawan
8	All DFS Units
9	Taj Restaurant

Wherever physical verification has been done, a futile exercise was made considering the statements having no base and which are not reconcilable with the incomplete records and books of accounts.

c) The title deeds of immovable properties in following cases are not held in the name of the Company Other than those where company is the lessee and the lease agreements are duly executed in favour of the lessee.

Relevant line item in the Balance Sheet	Description of item of property	Gross carrying value (In lakhs)	Title Deeds held in the name of	Property held since which date	Reason for not being in the name of the company
	Hotel Ashok 50-B, Chanakyapuri, New Delhi Area: 21.476 Acres	10.58	M/s Ashoka Hotels Limited	22-Nov-55	Owned by way of Perpetual Lease. Perpetual Lease executed on August 1, 1963 in the name of M/s Ashoka Hotels Ltd. (a Public Company Ltd. By shares) to hold the premises from November 22, 1955. The company was dissolved in March 1970 and merged in ITDC.
Land (Leased) PPE - Tangible Assets	Hotel Jammu Ashok Khasra No. 644/1/ min in the Village and Tehsil Jammu Area: 60 Kanals 4 Marlas	-	-	22-Jan-70	Leased by the Government of Jammu & Kashmir to ITDC for a period of 40 years w.e.f. January 12, 1970 with the option of renewal. Lease deed was executed on November 2, 1981. Lease Deed expired on January 11, 2010.
	Nariana, Garage- cum-Workshop Plot No. C-119, Nariana Ind. Area, Phase-I, New Delhi Area: 8,566 sq. yards	1.63	-	Not available	Title deed of Leasehold land at C-119, Naraina Industrial Area, Phase-I, Naraina, New Delhi measuring 8,566 sq. yards is owned by way of perputual lease by DDA. The original title deed was seized by the CBI in a complaint case no. RC-10(A)/2013-CBI- ACB-DLI.
	Taj Restaurant, Agra Agra Cannt. Near Taj Mahal	0.93	-	20-Jul-82	Purchased from the GOI in a package. Transfer Deed is in the name of ITDC. Title deed in favour of the Corporation has not been affected.
	Land at Gwalior Race Course Road, Near Agriculture College and PWD Rest House, Thastipur Village, Gwalior Area: 6 Bigas 23 Biswas	0.40	-	01-Jan-69	Purchased from the GOI in a package. Transfer Deed is in the name of ITDC. Title deed in favour of the Corporation has not been affected.
	Land for Kosi Restaurant Delhi-Agra Higway, Kosi Kalan Area: 12.16 acres	-	-	22-Jul-76	Title deed in favour of the Corporation has not been affected. Property was handed over by Irrigation Depat. (U.P.) to the Dept. of Tourism, GoI which was further handed over to ITDC on 22-Jul-1976.
	Manpower Development Centre (AIH&TM Qutub Inst. Area) Area: 1,383 sq. mtrs. (Premises of erstwhile Qutub Hotel)	-	-	Not available	Title deed in favour of the Corporation has not been affected.
	Tennis Court Land Area: 1,964 sq. mtrs. (Premises of erstwhile Qutub Hotel)	-	-	Not available	Title deed in favour of the Corporation has not been affected.
Building (PPE) - Tangible Assets	SCOPE Complex 4th, 5th and 6th Floors SCOPE Complex, 7 Lodhi Road New Delhi - 110 003	137.32	Standing Conference of Public Enterprises (SCOPE)	Not available	Title deed in favour of the Corporation has not been affected. ITDC Limited is deemed owner of premises at Scope Complex for the allotted area.
	Hotel Samrat 50-B, Chanakyapuri, New Delhi Area: 4.074 acres	161.75	-	19-Feb-81	Land was allotted to ITDC by the Ministry of Works & Housing, L&DO, Nirman Bhawan, New Delhi vide letter dated February 19, 1981. Licence fees is payable. Perpetual lease deed is to be executed. Building is erected on Ashoka Land.

Note: None of the title deed holder is a promoter, director or relative of promoter/ director or employees of promoter/ director as informed.

d) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not revalued its Property, Plant and equipment (including Right -of -use assets) or Intangible assets or both during the year.

e) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there are no proceedings initiated or pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.

ii) Verification of Inventories:

a) As per the information and explanation given to us, the inventories have been physically verified by the management at the end of the Financial Year.

Further as per prevailing practice of the Company, Consumption of stocks, stores, crockery, cutlery etc. is being worked out by adding opening balances to purchases and deducting therefrom Closing Stock based on Physical Verification and hence shortage, misuse, theft, wastage etc. is not identified but considered as consumption.

b) The Company has not been sanctioned any working capital limits at any points of time during the year, from banks or financial institutions on the basis of security of current assets and hence reporting under clause 3(ii)(b) of the Order is not applicable.

(iii) Investments, Guarantees, Loans and Advances

a) (A) Based on the audit procedures carried by us and as per information and explanations given to us, the Company has granted loans to its Subsidiaries during the year

(Rs in Lakhs)

Name of Company	Opening Balance	Loan Given	Loan received	Closing Balance
Pondicherry Ashok Hotel Corporation Limited	12.43		12.43
Ranchi Ashok Bihar Corporation Limited	835.47	19.32		854.79
Utkal Ashok Hotel Corporation Limited	1059.22	10.81		1070.03
Punjab Ashok Hotel Corporation Limited		0.51		0.51
Total	1907.12	30.64	12.43	1925.33

Interest on above loans

(Rs in Lakhs)

Name of Company	Opening Balance	For the year	Received	Closing Balance
Pondicherry Ashok Hotel Corporation Limited	2.52	-	2.52	-
Ranchi Ashok Bihar Corporation Limited	32.64	68.55	-	101.19
Utkal Ashok Hotel Corporation Limited	799.45	86.38	-	885.83
Punjab Ashok Hotel Corporation Limited	-	0.01	-	0.01
Total	834.61	154.93	2.52	987.03

Note: Amount recoverable from subsidiaries on account of Management fee and other expenses are not included above.

(B) Based on the audit procedure carried out by us and as per the information and explanations given to us, the Company has granted advances in the natures of loans to other parties other than subsidiaries, joint ventures and associates as below:

(Rs in Lakhs)

	Advance in the nature of loans- Employee advances
Aggregate amount granted / provided during the year - Other Parties	213.78
Balance Outstanding as at the balance sheet date - Other Parties	2.77

b) The earlier loans to subsidiaries were given on interest @12.5% per annum, which was later on reduced to 9% per annum and further loans were given bearing simple interest @9% per annum. As the investments in aforesaid subsidiaries are held for sale and management represented that the same are not prejudicial to the interests of the Company in view of past experiences of settlements on disinvestments.

c) According to the information and explanation given to us and on the basis of our examination of the records of the Company that, the loans were given to meet statutory liabilities, hence no schedule for repayment of Loan and payment of interest has been stipulated as the same will be recovered on disinvestment of the same.

d) According to the information and explanations given to us and based on our examination, the amount of loans and interest thereon will be realized on disinvestments and hence issue of overdue is not relevant in above stated cases.

e) According to the information and explanations given to us and based on our examinations, the same will be recovered on disinvestments. No provision has been made for the interest outstanding exceeding 3 years as per policy of the Company.

f) According to the information and explanations given to us and based on our examination, the above loans given without specifying any term or period of repayment. The total amount of loans granted along with interest thereon comes to Rs. 2912.36 lakhs as on 31.03.2024 to Subsidiary Companies. The interest prior to 01.04.2016 (prior to implementation of Ind AS) amounting to Rs 312.43 lakhs, has not been considered in the Financial Statements.

iv) Compliances of Section 185/ 186 of Companies Act, 2013:

In our opinion and according to the information and explanations given to use, the company has complied with the provisions of sections 185 & 186 of companies act, in respect of loans, investments, guarantees & security.

v) Acceptance of Public Deposits:

As per the information and explanation provided to us, the Company has not accepted any deposits from public and outstanding during the year. Hence the Directives issued by Reserve Bank of India and the provisions of Section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and Rules made thereunder are not attracted to the Company. Accordingly, Clause 3 (v) of the order is not applicable.

vi) Maintenance of Cost Records:

As per the information and explanation given to us, maintenance of Cost records has not been prescribed by the Central Government under Section 148(1) of the Companies Act, 2013. Accordingly, the provisions of Clause 3(vi) of the Order are not applicable to the Company.

vii) Statutory dues:

(a) The Company is generally regular in depositing undisputed statutory dues including provident fund, employees state insurance, income tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, goods and services tax, cess and any other statutory dues to the appropriate authorities and there are no undisputed statutory dues outstanding as on March 31, 2024 for a period of more than six months from the date they became payable, except stated hereunder

S. No. Unit Name	Nature of the Dues	Amount (Rs in Lakhs)	Period to which the amount pertains (F.Y.)
1 Ashok Events	Service Tax Payable	60.37	No Details Provided
	Income Tax (Tds)	0.9	As on 31st March 2024
2 Samrat Hotel	Income Tax (Tds)	3.38	As on 31st March 2024
3 The Ashok Hotel	Income Tax (Tds)	1.01	As on 31st March 2024
4 ATT Hyderabad	Professional Tax	0.01	20-21 to 21-22
5 DFS Deendayal	Professional Tax	0.06	21-22 to 23-24
6 DFS Mumbai	Professional Tax	0.01	22-23 to 23-24
7 DFS Jawaharlal Nehru Port	Professional Tax	0.03	22-23 to 23-24

(b) According to the information and explanations given to us, the following dues of Income tax, sales tax, goods and services tax, custom duty, service tax, employees state insurance, excise duty and value added tax have not been deposited by the Company on account of disputes.

S. No. Unit Name	Nature of Duties	Forum where Dispute is pending	Amount (Rs. In Lakhs)	Year to which amount pertains (F.Y.)
	Employee State Insurance	High Court	2.18	2014
1 Kalinga Ashok	Employee State Insurance	District Court	1.45	1994-1995
	Sales Tax	Sales Tax (Appeal)	0.28	No Data available
	Excise Duty (Penal)	High Court	13.33	2003
2 Taj Restaurant	VAT	Vat Department	0.50	2002
	VAT	Vat Department	0.71	2003
3 Vigyan Bhawan	Employee State Insurance	ESIC Authority	4.79	No Data available
4 Hyderabad House	Employee State Insurance	ESIC Authority	1.72	No Data available
5 Ashok Events	Service Tax Payable	Commissioner of service tax appeal	39.65	Various years 2006-2009
	Custom Duty	Custom assistant commissioner	18,300.00	2004-05
	Custom Duty	Custom assistant commissioner	146.00	2004-05
6 AITD	Custom Duty	Pending Before CESTAT	42.17	2003
	Custom Duty	Custom assistant commissioner	29.60	2004-05
	Custom Duty	Custom assistant commissioner	4.60	2004-05
7 Samrat Hotel	Employee State Insurance	Case is in appeal in Delhi High Court	71.68	1998-2003
8 Ashok Hotel	Employee State Insurance	Delhi District Court, Tis Hazari	275.46	2005
	Service Tax	CESTAT	10.60	2006
	Service Tax	Central Tax Audit	496.18	2014-15 to 2017-18
	Luxury Tax	Commissioner of Luxury Tax	198.87	F.Y. 2014-15 & 2015-16
	Income Tax Dues	CIT(A)	107.65	2015-16
	Income Tax Dues	Joint Commissioner	250.37	1998-99
	Income Tax Dues	Joint Commissioner	239.27	2003-04
	Income Tax Dues	Joint Commissioner	119.08	2005-06
9 Head Quarter	Income Tax Dues	Joint Commissioner	20.80	2007-08
	Income Tax Dues	CIT(A)	8.35	2018-19
	Income Tax Dues	CIT(A)	70.73	2017-18
	Income Tax Dues	CIT(A)	114.15	2018-19
	Income Tax Dues	CIT(A)	167.98	2019-20
	Income Tax Dues	CIT(A)	499.81	2020-21

viii) Transactions not recorded in Book:

According to information and explanations given to us and based on our examination of records of the Company, the Company has not surrendered or disclosed any transactions, previously unrecorded as income in the books of accounts, in the tax assessments under the Income Tax Act, 1961 as income during the year. Accordingly, clause3(viii) of the order is not applicable.

ix) Borrowings from Banks/ Financial Institutions:

a) According to the information given to us and based on our examination of Books and records of the Company, the Company has not defaulted in the repayment of loans or other borrowings or in the payment of interest thereon to any lender and hence, reporting under clause 3(ix) (a) of the Order is not applicable.

b) According to the information given to us and based on our examination of Books and records of the Company, the Company has not been declared willful defaulter by any bank or financial institution or other lender and hence, reporting under clause 3(ix) (b) of the Order is not applicable.

c) According to the information given to us and based on our examination of Books and records of the Company, the Company has not taken any term loan during the year and hence, reporting under clause 3(ix) (c) of the Order is not applicable.

d) On an overall examination of the financial statement of the Company, we reported that the company has not raised any short- term funds during the year and hence reporting under clause 3(ix) (d) of the order is not applicable.

e) On an overall examination of the financial statement 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 companies and hence, reporting under clause 3(ix)(e) of the Order is not applicable.

f) According to the information given to us and based on our examination of Books and records of the Company, the Company has not raised any loans during the year on the pledge of securities held in its subsidiaries companies and hence reporting on clause 3(ix) (f) of the Order is not applicable

x) Public Offer/ Preferential allotment/ Private Placement/ convertible debentures:

(a) The Company has not raised any money by way of initial public offer or further public offer (including debt instruments). Accordingly, Clause 3(x)(a) of the Order is not applicable on the Company.

(b) As per the information and explanation given to us, and based on our examination of records, Company has not made any preferential allotment or private placement of shares or convertible debentures (fully or partly or optionally) under Section 42 and 62 of the Companies Act, 2013. Accordingly, Clause 3(x) (b) of the order is not applicable to the Company.

xi) Fraud by the Company/ on the Company:

(a) According to information and explanation given to us, and as represented by the Management and based on our examination of the books and records of the Company and in accordance with generally accepted auditing practices in India, and considering the principles of materiality outlined in Standards on Auditing no case of frauds by the Company or any fraud on the Company by its officers or employees has been noticed or reported during the year.

(b) According to information and explanations given to us, no Report under Section 143(12) of the Companies Act, 2013 has been filed with the Central Government,

(c) As per the information and explanation given to us, no whistle blower Complaint has been received during the year 2023-24.

xii) Provisions applicable to Nidhi Company:

According to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, provisions of Clause 3(XII)(a)(b)(c) of the Order, for Nidhi Company, are not applicable to the Company.

xiii) Compliances of Sections 177/188 of COs Act:

In our opinion and according to the information and explanations given to us, all transactions with related parties are in compliance with sections 177 and 188 of the Companies Act, where applicable and the details have been disclosed in notes to the financial statements, etc as required by the applicable accounting standards.

xiv) Internal Audit:

(a) As per the information and explanation given to us, the Company has internal audit system commensurate with the size and nature of its business.

(b) We have considered the internal audit reports issued to the Company during the year.

xv) Non-Cash Transactions with Directors:

As per the information and explanation given to us, the Company has not entered into any non-cash transactions with Directors or persons connected with them and hence provisions of Section 192 of the Companies Act are not applicable.

xvi) Applicability of Section 45-IA of RBI:

As per the information and explanation given to us-

(a) Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, Clause 3 (xvi)(a) of the order is not applicable.

(b) Company has not conducted any Non- Banking Financial or Housing Finance activities. Accordingly, Clause 3 (xvi)(b) of the order is not applicable.

(c) Company is not a Core Investment Company (CIC) as defined in the Regulations made by Reserve Bank of India. Accordingly, Clause (3) (xvi) (c) of the order is not applicable.

(d) Group has no CIC as part of Group. Accordingly, clause 3 (xvi)(d) of the order is not applicable.

xvii) Cash Losses:

The Company has not incurred cash losses during the financial year covered by our audit and the immediately preceding financial year.

xviii) Resignation of Statutory Auditors:

As per the information and explanation given to us, there has been no resignation of Statutory Auditors during the year. Accordingly, Clause 3 (xviii) of the order is not applicable.

xix) Capability of meeting the liabilities:

As per the information and explanation given to us and on the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the financial statements and our knowledge of the Board of Directors and Management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report indicating that Company is not 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) CSR compliances:

a) There is no unspent amount towards Corporate Social Responsibility (CSR) on other than ongoing projects requiring a transfer to a Fund specified in schedule VII to the Companies Act in compliance with second proviso to sub section (5) of Section 135 of the said Act. Hence, reporting under clause 3(xx) (a) of the Order is not applicable.

b) The unspent amount in respect of ongoing projects, has been transferred to a Special account within a period of 30 days from the end of the financial year in compliance with the provision of section 135(6) of the said Act.

Financial year	Amount unspent on Corporate Social Responsibility activities for “Ongoing Projects” (Rs. In Lakhs)	Amount Transferred to Special Account within 30 days from the end of the Financial Year. (Rs. In Lakhs)	Amount Transferred after the due date (specify the date of transfer)
2023-24	46.51	46.51	-

 

For HDSG & ASSOCIATES
Chartered Accountants
Firm Registration No: 002871N
Sd/-
Harbir Singh Gulati
(Partner)
Membership No: 084072	Place: New Delhi
UDIN: 24084072BKAJUU3873	Date: May 11, 2024

Annexure B to the Independent Auditor Report

Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements section of our report of even date to the member of ITDC Ltd. on the Standalone Financial Statements for the year ended 31^st March 2024

S. Directions u/s 143(5) of the No. Companies Act, 2013	Comments
1. Whether the Company have system in place to process all the accounting transactions through IT system? If Yes, the implications of processing of accounting transactions outside IT system on the integrity of the accounts along with the financial implications, if any, may be stated.	As per the information and explanation given to us, the Company has system in place to process all the accounting transactions through IT system. .
	The company uses two other softwares for inventory and billing i.e.; Champagne and Protel respectively for each purpose. It has no direct integration with accounting software. Financial impact of the inventory and revenue from operations is manually updated in “Tally ERP” software. There is no material impact on the integrity of the accounts or financial implication on the processing of these accounting transactions outside IT systems
2. Whether there is any restructuring of an existing loan or cases of waiver/ write off of debts/ loans/ interests etc. made by a lender to the company due to the Companys inability to repay the loan? If yes, the financial impact may be stated. Whether such cases are properly accounted for? (In case, lender is a government company, then this direction is also applicable for Statutory Auditor of lender company).	There are no loan appearing in the books of the Company and as such the same is not applicable.
	The company ITDC has given interest bearing loans to its Subsidiaries/Joint venture companies Repayment of loan and payment of interest thereon will be recoverable on their disinvestments as explained by the management.

 

S. Directions u/s 143(5) of the No. Companies Act, 2013	Comments
3. Whether funds (grants/subsidy etc.) received / receivable for specific schemes from Central/State Government or its agencies were properly accounted for/utilized as per its term and conditions? List the cases of deviation.	The fund received/ receivable from Central/ State agencies have been accounted for/ utilized as per its term and conditions, except in the following cases:
	(a) ACES Division
	(Rs. in lakh)
	Particulars	Operative Projects	Non- Operative/ closed projects
	No. of projects	14	35
	Outstanding/ to be utilized	909.13	1461.98
	No. of Projects	12	18
	Amount Receivable	255.95	612.31
	(b) AIH & TM Division
	It was observed that amount from Ministry of Tourism was received in March, 2013, for the payment of stipend to students who worked as volunteers in the common wealth games, but this amount has not been claimed by students till March 31, 2024 and hence, a credit balance of Rs. 15.37 Lakhs is being reflected in the books of accounts.

 

For HDSG & ASSOCIATES
Chartered Accountants
Firm Registration No: 002871N
Sd/-
Harbir Singh Gulati
(Partner)
Membership No: 084072	Place: New Delhi
UDIN: 24084072BKAJUU3873	Date: May 11, 2024

“Annexure C” to the Independent Auditors Report

Referred to in paragraph 3(g) under ‘Report on Other Legal and Regulatory Requirements section of our report of even date to the members of India Tourism Development Corporation Limited for the year ended 31 March 2024

Report on the internal financial controls with reference to Standalone Financial Statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013(“The Act”)

We have audited the internal financial controls with reference to Standalone Financial Statements of India Tourism Development Corporations Limited (“the Company”) as of March 31 2024. 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 with reference to the Standalone Financial Statement based on the internal controls 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 control over financial reporting issued by the Institute of Chartered Accountant of India (ICAI). 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 with reference to Standalone Financial Statements based on our audit. We conducted our audit in accordance with the Guidance note on Audit of internal financial control 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 Act, to the extent applicable to an audit of internal financial control, both applicable to an audit of Internal Financial Controls and, both issued by ICAI. 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 with reference to the Standalone Financial Statements was established and maintained and if such controls operated effectively in all material respect.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to Standalone Financial Statements and their operating effectiveness. Our audit of internal financial controls with reference to Standalone Financial Statements included obtaining an understanding of internal financial controls with reference to Standalone Financial Statements, 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 judgement, 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 Qualified audit opinion on the Companys internal financial controls System over financial statements.

Meaning of Internal Financial Controls with Reference to Standalone Financial Statements

A Companys internal financial controls with reference to Standalone Financial Statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Standalone Financial Statements for external purposes in accordance with generally accepted accounting principles. A Companys internal financial controls with reference to Standalone Financial Statements include 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 Standalone 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 Standalone Financial Statements.

Inherent Limitations of Internal Financial Controls with Reference to Standalone Financial Statements.

Because of the inherent limitations of internal financial controls with reference to Standalone Financial Statements, 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 with reference to Standalone Financial Statements to future periods are subject to the risk that the internal financial controls with reference to Standalone Financial Statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Qualified opinion

According to the information and explanations given to us and based on our audit, the following material weakness has been identified as at March 31, 2024:

1. The Company does not have an appropriate internal control system to ensure the timely payment or payment of interest due in case of overdue payment to the Micro and Small enterprises Vendors, as required under the MSMED Act, 2006.

2. The Company does not have an appropriate internal control system in few units/ branches where proper records in respect of intangible assets are not maintained. In few units/branches proper records in case of property plant and equipment (tangible assets) pertaining to quantitative details and situations are not maintained and no tagging systems exists to identify the specific assets at the time of sale/disposal/ scrap/lost etc.

The above could potentially result in the Company recognizing intangible assets and Property, Plant and Equipment (Tangible Assets), which may not exist or are not in control of the Company.

A ‘material weakness is a deficiency, or a combination of deficiencies, in internal financial control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Companys annual or interim financial statements will not be prevented or detected on a timely basis.

In our opinion, except for the possible effects of the material weakness described above on the achievement of the objectives of the control criteria, the Company has maintained in all material respects, adequate internal financial controls with reference to Standalone financial statements and such internal financial controls with reference to Standalone financial statements were operating effectively as of March 31, 2024. based on the internal Control with reference to Standalone Financial Statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal financial control over financial reporting issued by the Institute of Chartered Accountant of India.

We have considered the material weaknesses identified and reported above in determining the nature, timing, and extent of audit tests applied in our audit of the March 31, 2024 Standalone Financial Statements of the Company and these material weakness does not affect our opinion on the Standalone Financial Statement of the Company.

Other Matters

There are certain areas where company is in the process of Reconciliation with the books of accounts, such areas are GST input/out reconciliation, TDS receivable reconciliation and reconciliation of unlinked receipts against the debtors outstanding as on 31^st March 2024. Company is making the efforts to reconcile the above accounts.

Our opinion is not modified in respect of this matter.

For HDSG & ASSOCIATES
Chartered Accountants
Firm Registration No: 002871N
Sd/-
Harbir Singh Gulati
(Partner)
Membership No: 084072	Place: New Delhi
UDIN: 24084072BKAJUU3873	Date: May 11, 2024