To The Members of M/s POLO HOTELS LIMITED
Report on the Financial Statements
We have audited the accompanying standalone financial statements of M/s POLO HOTELS
LIMITED, which comprise the Balance Sheet as at 31st March, 2017, the Statement of Profit
and Loss, the Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Managements Responsibility for the Standalone Financial Statements
The Companys Management is responsible for the matters stated in Section 134(5)of the
Companies Act,2013 ("the Act") with respect to the preparation and presentation
of these financial statements that give a true and fair view of the financial
position,financial performanceand 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 Companies Act,2013 read with Rule 7 of the Companies
(Accounts) Rules, 2014. 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
estimatesthat 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
thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under
Section 143(10) of the Act. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
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. 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
Basis of Qualified Opinion
1. The company has provided depreciation on the basis of revised useful lives taken on
new technical estimate. Therefore had the company provided depreciation on the basis of
useful life specified in Schedule II of the Companies Act, 2013 the depreciation would
have been higher and the fixed assets have been lower by the amount of Rs. 9.80 Lacs.
2. The company is in non-compliance of AS 15 Employee Benefits to the extent of
provision for leave encashment and provision for gratuity without ascertaining actuarial
valuation.
Subject to the qualification above, in our opinion and to the best of our information
and according to the explanations given to us, the financial statements give the
information required by the Act in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India.
(a) In the case of the Balance Sheet, of the State of Affairs of the Company as
at 31st March, 2017;
(b) In the case of the Statement of Profit and Loss, of the Profit of the
Company for the year ended on that date, and
(C) in the case of the Cash Flow Statement, of the Cash Flows of the Company for
the year ended on that date.
Emphasis Of Matter
The Company has received notice issued under sec. 13(2) of the Securitisation and
reconstruction of financial Assets & Enforcementof security Interest Act, 2002 from
Allahabad bank/Religare finvest ltd./Deewan housing finance Ltd., in respect of term loans
availed from the Banks/Financial Institutions.The Company is taking legal advice on the
same.
Other Matter
We draw attention to the fact that the trade receivable includes an amount of
Rs.50,92,237 due from Hot Millions Food Pvt. Ltd. is pending realization and the same
being disclosed in the Note 27 of the financial statements.
Our opinion is not modified in respect to the above matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2017 ("the Order")
issued by the Central Government of India in terms of Sub Section (11) of Section 143 of
the Act, we give in the Annexure -2 a statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Actand Companies (Audit and Auditors) Rule
2014, 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 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, Statement of Profit and Loss, and the Cash Flow Statement dealt
with by this Report are in agreement with the books of accounts.
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement comply with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules 2014 except as stated above in
qualified opinion para.
(e) On the basis of the written representations received from the directors as on 31st
March, 2017 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2017 from being appointed as a director in terms of Section
164(2) of the Act and,
(f) Our separate report on adequacy of internal financial control system and operating
effectiveness of such controls is enclosed in Annexure 1.
(g) with respect to the other matters included in the Auditors Report in accordance
with Rule 11 of the Companies (Audit and
Auditors) Rules, 2014 in our opinion and to best of our information and according to
the explanation given to us.
i. The company has pending litigation impacting its financial position in its financial
statement and the disclosure as required has been disclosed in the financial statements.
ii. The Company did not have any long term contracts including derivative contracts as
such the question of commenting on
any material foreseeable losses does not arise.
iii. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the
Company.
iv The Company has provided requisite disclosures in its Financial statements as to
holdings as well as dealings in Specified bank Notes during the period from 8th November,
2016 to 30th December 2016 and these are in accordance with the books of accounts
maintained by the Company.
|
For Ashwani K. Gupta & Associates |
|
Chartered Accountants |
|
Firm Regn. No. 003803N |
|
Arvinder Singh |
| Date : 21 August, 2017 |
Partner |
| Place: Panchkula |
Membership Number: 091721 |
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 M/s Polo
Hotels Limited ("the Company") as of 31st
March, 2017 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 31st March, 2017, 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 Ashwani K. Gupta & Associates |
|
Chartered Accountants |
|
Firm Regn. No. 003803N |
|
Arvinder Singh |
|
Partner |
|
Membership Number: 091721 |
| Panchkula |
|
| 21st August, 2017 |
|
Auditors Report as per the Companies (Auditors Report) Order 2017
The Annexure referred to in our Independent Auditors Report to the members of the
Company on the statements for the year ended 31 March, 2017, we report that:-
1. In respect of fixed assets:
a) The Company has maintained proper records showing full particulars including
quantitative details and situation of fixed assets on the basis of available information.
b) As explained to us, the management during the year has physically verified the fixed
assets in a phased periodical manner, which in our opinion is reasonable having regard to
the size of the Company and nature of its assets. According to the information and
explanation given to us no material discrepancieswere noticed on such physical
verification.
c) In our opinion and according to the information and explanation given to us, the
company has not disposed of substantial part
of fixed assets during the year and the going concern status of the Company is not
affected.
2. In respect of its Inventories: a) As explained to us, inventories have been
physically verified by the management at reasonable interval during the year.
b) In our opinion and according to the information and explanation 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) In our opinion and according to the information and explanation given to us, the
company has maintained proper records of inventories. As explained to us, there was no
material discrepancies noticed on physical verification of inventory as compared to the
book records.
3. According to the Information and explanation given to us, the company has during the
year not granted any unsecured loan to anyparty covered in the register maintained under
Section 189 of the Companies Act 2013 and in our opinion, hence Para (a) and (b) are not
applicable.
4. The company has not given any loans, guarantees or made any investments under
section 185 of the Companies Act, 2013. However it had given guarantee against fund based
limits provided to M/s ASD Tobacco Pvt. Ltd. The same being classified as NPA by the bank
during the year and the company has been called upon to discharge in full the liability by
paying to the bank. The guarantee amount does not exceed the limit as per provisions of
Section 186.
5. In our opinion and according to the information and explanation given to us, the
company during the year has not accepted any deposits in contravention of the directives
issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other
relevant provisions of the Companies Act 2013 and the rules framed there under, where
applicable, have been complied with. No order has been passed by the Company Law Board or
National Company Law Tribunal or RBI or any court or any other tribunal.
6. According to the information and explanation given to us, government has not
prescribed maintenance of cost records under sub section (1) of section 148 of the
Companies Act, 2013 for the products of the company.
7A. According to the information and explanation given to us and on the basis of our
examination of the records of the Company is not regular in depositing the undisputed
statutory dues including Income Tax, Sales Tax, Service Tax, Cess and other statutory dues
as applicable to it.
7B. According to the information and explanation given to us and the records of the
company examined by us, there are material
dues of Tax Deducted Source pending as on March 31, 2017 which have not been deposited
on account of a dispute.
| Name of the Statute |
Nature of Dues |
Amount (Rs.) |
Period to which the amount relates |
Forum where dispute is pending |
| Finance Act, 1994 |
Service Tax |
1776413/- |
March 2009 to July 2012 |
ACCEST, Panchkula |
7C. According to information and explanation given to us, there was no amount which is
required to be transferred to Investor Education and Protection Fund in accordance with
the relevant provisions of the Companies Act, 2013 and rules made thereunder.
8. According to information and explanations given to us, the company has defaulted in
repayment of dues to banks or financial institutions during the year of audit. Further,
the Company has not issued any debentures.
9. In our opinion and according to the information given to us, the term loans have
been applied for the purpose for which they were taken. Further, the company has not
raised funds by way of Initial Public Offer or further public offer during the year under
consideration.
10. During the course of our 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 material fraud on or by the company, noticed or reported during the year, nor
have we been informed of such case by the management.
11. The company has paid themanagerial remuneration during the period under
consideration, as per the provisions of Section
197 and 198 relating to payment of managerial remuneration.
12. As the company is not a Nidhi company, hence this clause is not applicable.
13. All transactions with the related parties are in compliance with sections 177 and
188 of Companies Act, 2013 and the details have been disclosed in the Financial Statements
as required by the applicable accounting standards.
14. The Company has made private placement of 88,88,889 compulsory convertible
preference shares to the promoters bearing face value of Rs.10/- issued at premium of Rs.
1.25/- and converted them into equity shares during the year under review as per the
provision of section 42 of the companies act2013.
15. In our opinion and according to the information and explanation given to us, during
theyear company has not entered into any non-cash transactions with directors or persons
connected with him. Hence, the provisions of section 192 of Companies Act, 2013 are not
applicable to the company.
16. company is not required to be registered under section 45-IA of the Reserve Bank of
India Act, 1934 as it is not a NBFC.
|
For Ashwani K. Gupta & Associates |
|
Chartered Accountants |
|
Firm Regn. No. 003803N |
| st |
Arvinder Singh |
| Date : 21 August, 2017 |
|
|
Partner |
| Place: Panchkula |
|
|
Membership Number : 091721 |
+91-9892691696
