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AUDITOR'S REPORT

Velan Hotels Ltd.

You can view full text of the latest Auditor's Report for the company.
Market Cap. (₹) 10.77 Cr. P/BV 0.57 Book Value (₹) 5.87
52 Week High/Low (₹) 7/3 FV/ML 10/1 P/E(X) 0.00
Bookclosure 28/09/2018 EPS (₹) 0.00 Div Yield (%) 0.00
Year End :2015-03 
We have audited the accompanying financial statements of M/s.Velan Hotels Limited which comprise the Balance Sheet as at 31st March 2015, the Statement of Profit and Loss and Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position and financial performance 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 includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding assets of the company and for preventing and detecting frauds and other irregularities, selection and application of appropriate accounting policies, making judgments and estimates that are reasonable and prudent and design, implementation and maintenance of internal financial control that were operating effectively for ensuring the accuracy and completeness of 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.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and 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 disclosures in the financial statements. The procedures selected depend on the auditor's 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 control relevant to the Company's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstance, but not for the purpose of expressing an opinion on whether the company has in place adequate internal control system over financial reporting and the operating effectiveness of such controls An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Management, 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 financial statements.

Opinion

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:-

i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2015;

ii) in the case of Profit and Loss Account , of the loss for the year ended on that date; and

iii) in the case of Cash Flow Statement, of the Cash Flow for the year ended on that date Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order, 2015, issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Companies Act 2013, we give in the Annexure 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 Act, we report that:

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

b. in our opinion proper books of accounts as required by law have been kept by the Company so far as appears from our examination of those books;

c. the Balance Sheet ,Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account;

d. in our opinion, the financial statements comply with the Accounting Standards specified under section 133 of the Companies Act,2013, read with rule 7 of the Companies (Accounts) Rules, 2014.

e. on the basis of written representations received from the directors as on 31st March, 2015 and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2015, from being appointed as a director in terms of sub-section(2) of Section 164 of the Companies Act, 2013.

ANNEXURE

i) a) In respect of Fixed Assets :

a) The Company is maintaining proper records showing full particulars including quantitative details and situation of Fixed Assets.

b) The Fixed Assets have been physically verified by the management at reasonable intervals and we are informed that no material discrepancies have been noticed on such verification.

ii) a) In respect of Inventories :

a) Stock of stores, provisions, crockeries, beverage, etc., have been physically verified by the management at reasonable intervals during the year.

b) In our opinion, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

c) The company is maintaining proper records of inventory and no material discrepancies have been noticed on physical verification.

iii) The Company has not granted any loans, secured or unsecured to Companies/ firms or other parties covered in the registered maintained under section 189 of the Companies Act 2013.

iv) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the company and the nature of its business for the purchase of Inventory and Fixed Assets and for the Sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system.

v) In respect of statutory dues:

a) The company is not generally regular in depositing the undisputed statutory dues, i.e. Provident Fund, Employees State Insurance, Income tax, Sales Tax, , Wealth Tax ,Service Tax, Duties of Customs, Duty of Excise, Value Added Tax, Cess and any other statutory dues with appropriate authorities.

b) In our opinion and according to the information and explanations given to us, there are no disputed statutory dues including Income tax, Sales Tax, , Wealth Tax ,Service Tax, Duties of Customs, Duty of Excise, Value Added Tax, Cess as at the year end.

c) In our opinion and according to the information and explanation given to us , the company is not required to transfer amounts to Investor Education and Protection Fund.

vi) The accumulated losses at year end are however less than fifty percent of its networth. However during the year the company has incurred cash losses. The company has not incurred cash losses during the immediately preceding previous year.

vii) The Company has defaulted in repayment of dues to Banks, which has been classified as NPA Since 01.04.2014:

Name of Bank                      Balance due (Rs.      Balance due
                                  in Crore) Principal   (Rs. in Crore)
                                                          Interest

Allahabad Bank - Tirupur Branch    42.43                      8.62

Andhra Bank - Coimbatore Branch    39.74                      7.04
viii) According to the information and explanations given to us, no fraud on or by the company has been reported during the year.

ix) According to information and explanation furnished to us , clauses (v) (vi) (x) and (xi) of the Order 2015 are not applicable to the entity.

                                                 P.S.KRISHNAN & CO
                                             Chartered Accountants
                                                       FRN 001532S

                                                 (G.Krishnamurthi)
Place : TIRUPUR                                           Partner
Date : 28.05.2015                          (Membership No. 23896)

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