HOWARD HOTELS LIMITED
ANNUAL REPORT 2011-2012
AUDITORS` REPORT
To,
The Members,
Howard Hotels Limited,
New Delhi
REPORT ON THE ACCOUNTS FOR THE YEAR ENDED ON 31ST MARCH, 2012 IN COMPLIANCE
WITH SECTION 227(2) OF THE COMPANIES ACT, 1956.
1. We have audited the attached balance sheet of Howard Hotels Limited as
at 31st March, 2012, the profit & loss account and also the cash flow
statement for the year ended on that date annexed thereto. These financial
statements are the responsibility of the company`s management. Our
responsibility is to express an opinion on these financial statements based
on our audit.
2. We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
3. As required by the Companies (Auditor`s Report) order, 2003 issued by
Central Government of India in terms of sub-section (4A) of section 227 of
the Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the annexure referred to above, we report
that:
i) We have obtained all the information and explanations, which to the best
of our knowledge and belief were necessary for the purpose of our audit;
ii) In our opinion, proper books of account as required by the law have
been kept by the company, so far as appears from our examination of those
books ;
iii) The balance sheet, profit & loss account and cash flow statement dealt
with by this report are in agreement with the books of account ;
iv) In our opinion, the balance sheet, profit & loss account and cash flow
statement dealt with this report comply with the accounting standards
referred in section 211(3C) of the Companies Act, 1956 ;
v) On the basis of the written representations received from the directors
as on 31st March, 2012 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31st March, 2012
from being appointed as a director in terms of clause (g) of sub section
(1) of section 274 of the Companies Act, 1956 ;
vi) In our opinion, and to the best of our information and according to the
explanations given to us, the said accounts give the information required
by the Companies Act, 1956 in the manner so required and give a true and
fair view in conformity with accounting principles generally accepted in
India:
a) In the case of Balance Sheet, of the state of affairs of the company as
at 31st March, 2012;
b) In the case of Profit & Loss Account, of the Profit of the company for
the year ended on that date and
c) In the case of Cash Flow Statement, of the cash flow of the company for
the year ended on that date.
For P.C. BINDAL & CO.
Chartered Accountants
FRN. No. 003824N
Sd/-
(CA K. C. Gupta )
PLACE: Agra (U.P.) Partner
DATED: August 2, 2012 M.No.088638
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF HOWARD HOTELS LIMITED FOR THE YEAR ENDED ON 31ST MARCH, 2012
i) (a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management during
the year. No material discrepancies were noticed on such verification.
( c) During the year, the company has not disposed off substantial / major
part of fixed assets.
ii) a) As explained to us, the Inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable.
b) 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) According to the information & explanation given to us, we are of the
opinion that the company is maintaining proper records of inventory. As per
records and information made available the discrepancies noticed on
verification between the physical stocks and the book records were not
material and have been properly dealt with in the books of accounts.
iii) a) According to the information and explanations given to us, the
company has not granted any loan to parties covered in the register
maintained under section 301 of the Companies Act, 1956. Accordingly, the
clauses 4 (iii) (a) to (d) of the order are not applicable.
b) According to the information and explanations given to us, the company
had taken unsecured loan from three parties covered in the register
maintained under section 301 of the Companies Act, 1956. The maximum amount
involved during the year was Rs. 150 lacs and the year-end balance of loans
taken from such parties was Nil.
c) According to the information and explanations given to us, in our
opinion, the rate of interest and other terms and conditions on which
unsecured loans have been taken from companies, firms or other parties
listed in the register maintained under section 301 of the Companies Act,
1956 are not, prima facie, prejudicial to the interest of the Company.
d) According to the information and explanation given to us, the payment of
principal and interest are regular or as stipulated.
iv) In our opinion and according to the information and explanation given
to us, there are adequate internal control procedures commensurate with the
size of the company and nature of its business with regard to purchases of
inventory and fixed assets, and with regard to the sale of goods and
services. During the course of our audit, no major weakness has been
notices in the internal controls.
v) a) According to the information and explanations given to us, we are of
the opinion that the particulars of contracts or arrangements referred to
in section 301 of the companies Act, 1956 have been entered into the
register maintained under section 301 of the Companies Act, 1956 ; and b)
In our opinion and according to the information and explanations given to
us, the company has not made any transactions exceeding rupees five lacs in
pursuance of contracts or arrangements referred to in section 301 of the
Companies Act, 1956. Accordingly, the clauses 4 (v) (b) of the order are
not applicable
vi) In our opinion and according to the information and explanations given
to us, the company has not accepted any deposits from public to which
provisions of sections 58A and 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975 apply. No order has been
passed by the Company Law Board or National Company Law Tribunal or Reserve
Bank of India or any Court or any other Tribunal.
vii) In our opinion, the company has an internal audit system commensurate
with the size and nature of its business.
viii) According to the information and explanations given to us the Rules
made by the Central Government for the maintenance of cost records under
section 209(1) (d) of the Companies, 1956 are not applicable to the
company.
ix) a) According to the information and explanations given to us and
according to the books and records produced before us, the company is
regular in depositing with appropriate authorities undisputed statutory
dues including provident fund, investor education and protection fund,
employees` state insurance, income tax, sales tax, wealth tax, service tax,
custom duty, excise duty, cess and other material statutory dues applicable
to it.
b) According to the information and explanations given to us, no undisputed
amounts payable in respect of provident fund, investor education and
protection fund, employees` state insurance income tax, wealth tax, sales
tax, service tax, customs duty, excise duty and cess and other material
statutory dues applicable to it were in arrears, as at 31st March, 2012 for
a period of more than six months from the date they become payable.
c) According to the information and explanations given to us, and the
records of the company examined by us, dues of sales tax, income tax,
customs duty, wealth tax, service tax, excise duty and cess, which have not
been deposited on account of disputes and the forum where the disputes are
pending as under:
Name of the Nature of Dues Amount Period to Forum where
Statue (Rs.in which disputes
Lacs.) amount relates pending
UP Vat Act Vat Demand 3.09 Lacs 2007-2008 Additional
Commissioner
(Appeal)
x) In our opinion, the company does not have any accumulated losses. The
Company has not incurred cash losses during the financial year covered by
our audit and in the immediately preceding financial year.
xi) In our opinion and according to the information and explanations given
to us, the company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
xii) According to the information and explanations given to us, the company
has not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
xiii) In our opinion, the company is not a chit fund or a Nidhi / mutual
benefit fund / society. Therefore, the provision of clause 4 (xiii) of the
Companies (Auditor`s Report) order, 2003 are not applicable to the company.
xiv) In our opinion and according to the information and explanations given
to us , the company is not dealing in or trading in shares, securities,
debentures and other investments, Accordingly, the provisions of clause
4(xiv) of the Companies (Auditor`s Report) order, 2003 are not applicable
to the company.
xv) According to the information and explanations given to us, the company
has not given any guarantee for loans taken by others from banks and
financial institutions.
xvi) In our opinion, and according to the information and explanations
given to us, the company has not taken any term loans during the year.
xvii) According to the Cash Flow Statement and records examined by us and
according to the information and explanation given to us, on overall basis,
funds raised on short term basis have, prima facie, not been used during
the year for long-term investment.
xviii) According to the information & explanations given to us, the company
has made preferential allotment of shares to parties and companies covered
in the register maintained under section 301 of the Companies Act. In our
opinion, the price at which shares have been issued is not prejudicial to
the interest of the company.
xix) According to the information and explanations given to us, the company
had not issued any debentures during the year.
xx) According to the information and explanations given to us, the company
had not raised any money by public issue during the year.
xxi) According to the information and explanations given to us, no fraud on
or by the company has been noticed or reported during the course of our
audit.
For P.C. BINDAL & CO.
Chartered Accountants
FRN. No. 003824N
Sd/-
(CA K. C. Gupta )
PLACE: Agra (U.P.) Partner
DATED: August 2, 2012 M.No.088638 |