| 1. We have audited the accompanying financial statements of ACE TOURS
WORLDWIDE LTD. which comprise the Balance Sheet as at 31st MARCH, 2015,
and 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:
2. The Company's Board of Directors is responsible for the matters
stated in section 134(5) of the Companies Act 2013 ("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 and 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 Act 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 estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls that were operating for ensuring 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.
Auditor's Responsibility:
3. Our responsibility is to express an opinion on these financial
statements based on conducting our audit in accordance with the
Standards on Auditing under Section 143(10) of the Act. 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.
Those standards required that we comply with ethical requirnments and
plan and perform the audit to obtain reasonable assurance about the
wether 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 circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtain is sufficient and
appropriate to prove a basis for our audit opinion on the financial
statements.
Opinion
4. 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 Companies Act, 2013 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 March 31, 2015;
b) in the case of the Profit and Loss Account, of the loss for the year
ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements:
5. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order"), issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Act (hereinafter referred to as
order), and on the basis of such checks of the books and records of the
company as we considered appropriate and according to the information &
explanations 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.
6. As required by Section 143(3) of the Act, we report, to the extent
applicable, 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 of the aforesaid financial statements.
(b) In our opinion, proper books of account as required by law have
been kept by the company, so far as it appears from our examination of
those books and the reports of the other auditors.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account maintained for the purpose of preparation of the
financial statements.
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors and taken on record by the Board of Directors, non of the
directors is disqualified as on 31st March, 2015 from being appointed
as a director in terms of Section 164 (2) of the Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and
Auditor's) Rules, 2014, in our opinion and to the best of our
information and according to the explanations given to us:
1. There were no pending litigations which would impact the financial
position of the Company.
2. The Company, did not have any material foreseeable losses on
long-term contracts including derivative contracts.
3. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company during the year
ended 31st March, 2015.
Annexure to the Independent Auditors' Report of even date to the
members of ACE TOURS WORLDWIDE LIMITED on the Financial Statements for
the year ended 31st March, 2015.
(1) (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 period at reasonable interval. As explained, no material
discrepancy was noticed on physical verification as compared with the
record of fixed assets. During the year the company has revalued
Office premises & fabrication, We have verified the same as per
Valuation Report provided to us.
(c) In our opinion, substantial part of fixed assets have not been
disposed off during the year by the company, hence it does not affect
the going concern status of the company.
(2) (a) The management of the company is not required to conduct
physical verification of inventories at reasonable intervals during the
year.
This company is in the business of Tours and Travels, hence there is no
closing stock. In the absence of any transactions related to above
clause, the question of our comments on point no. 2(b), 2(c) of CARO,
2015 does not arise.
(3) (a) The company has granted unsecured loan to companies, firms or
other parties covered in the register maintained under section 189 of
the Companies Act,2013 which is repayable on demand. The maximum amount
outstanding during the year and the year end balance of such loan is Rs.
7,65,16,074/-.
(b) The rate of interest and other terms and conditions of loans given
by the company are prima facie not prejudicial to the interest of the
company.
(c) In absence of any documentary evidence relating to stipulation for
payment of principal amount or interest amount, it is not possible to
comment whether payment of principal amount & interest are regular.
(d) The company has taken unsecured loans from companies, firms or
other parties covered in the register maintained under section 189 of
the Comapny Act 2013. The company has taken loan during the year
amounting to Rs 71,24,688/-.
(e) The rate of interest and other terms and conditions of loans taken
by the company are prima facie not prejudicial to the interest of the
company.
(4) In our opinion and according to the information and explanation
given to us, there is adequate internal control procedure commensurate
with the size of the company and the nature of its business, for the
purchase fixed assets and sale of goods. During the course of our
audit, we have not observed any continuing failure to correct major
weakness in the internal control systems in respect of aforesaid areas.
(5) The Company has not accepted any deposits from Public within the
meaning of sections 73 to 76 of the Copmanies Act and rule framed
thereunder to the extent notified.
(6) The central government has not prescribed maintenance of cost
records under sub-section (1) of section 148 of the Act.
(7) According to the information and explanation given to us, the
company has adequate internal audit system commensurate with the size
and nature of its business.
(8) (a) In our opinion and according to the information and explanation
given, the company is not regular in depositing undisputed statutory
dues including Provident Fund, Employee's State Insurance, Wealth Tax,
Service Tax, Cess and other as applicable with the appropriate
authorities.
However, the company has following taxes outstanding as on the 31st
March 2015, outstanding for more than six months from the date it
became due.
Further Service Tax Return for Year 2008-09 onwards not filled.
Nature of dues Period Amount
Service tax EARLIER YEARS Rs.19,71,687/-
Service tax 2014-15 Rs.9,86,195/-
Professional Tax EARLIER YEARS Rs.99,908/-
Professional Tax 2014-15 Rs.10,025/-
Income Tax 2009-10 Rs.1,20,210/-
Provident Fund 2014-15 Rs.37,504/-
ESIC EARLIER YEARS Rs.1,19,763/-
ESIC 2014-15 Rs. 10,025/-
(b) In our opinion and according to the information and explanation
given, there are no dues which have not been deposited on account of
any dispute.
(9) The Company does not have any accumulated losses at the end of
Financial year and has not incurred any cash losses during the current
financial year or in the immediately preceding financial year.
(10) According to the records of the company examined by us and
information and explanation given to us, the company has not defaulted
in repayment of dues to banks and financial institutions during the
year.
(11) No loans and advances have been granted on the basis of security
by way of pledge of shares, debentures and other securities by the
company.
(12) No transaction has been carried out by the company for dealing or
trading in shares, securities, debentures, and other investments.
(13) According to the information and explanations given, the company
has not given guarantees for the loans taken by others from banks or
financial institutions.
(14) During the year under consideration, the company has not raised
any term loan, hence the question of our comments on this point does
not arise.
(15) According to the information and explanations given to us and on
an overall examination of Balance Sheet, fund raised on short term
basis have not been used for long term investments.
(16) The company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
189 of the Act.
(17) The company has not issued debenture during the year. Hence, the
question of creation of securities in respect of debentures does not
arise.
(18) According to information and explanations given to us, the company
has not raised any money by public issue during the period under
review.
(18) Based on the audit procedures performed and according to the
information and explanations given to us, we report that no fraud on or
by the company has breen noticed or reported during the year.
Place : Surat For Bipinchandra J. Modi & Co.
Chartered Accountants
Date : 10/07/2015
Sd/-
Bipin Modi Partner
Membership No. 31687
FRN No. 101521W
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