KARNATAKA WILDLIFE RESORTS PRIVATE …

1 KARNATAKAWILDLIFERESORTSPRIVATELIMITEDCH ANDRASHEKARKOTE&CO., , , , , , , ,LLB, #70, :230653To, ,whichcomprisetheBalancesheetasatMarch31 ,2015,andtheStatementofProfitandLossandC ashFlowStatementfortheyearthenended, 'sresponsibilityfortheFinancialStatement sTheCompany'sBoardofDirectorsareresponsi bleforthemattersstatedinsection134(5)oft heCompaniesAct,2013("theAct")withrespect tothepreparationofthesefinancialstatemen tsthatgiveatrueandfairviewofthefinancial position,financialperformanceandcashflow softheCompanyinaccordancewiththeAccounti ngStandardsspecifiedundersection133ofthe Act,readwithRule7oftheCompanies(Accounts )Rules, ;selectionandapplicationofappropriateacc ountingpolicies.

2 Makingjudgmentsandestimatesthatarereason ableandprudent;anddesign,implementationa ndmaintenanceofadequateinternalfinancial control, ,relevanttothepreparationandpresentation ofthefinancialstatementsthatgiveatrueand fairviewandarefreefrommaterialmisstateme nt, ' , !cewiththeStandardsonAuditingspecifiedun dersection143(10) 'judgment,includingtheassessmentoftheris ksofmaterialmisstatementofthefinancialst atements, ,theauditorconsidersinternalfinancialcon trolrelevanttotheCompany' 'sDirectors, ,theaforesaidfinancialstatementsgivethei nformationrequiredbytheActinthemannersor equiredandgiveatrueandfairviewinconformi tywiththeaccountingprinciplesgenerallyac ceptedinIndia,ofthestateofaffairsoftheCo mpanyasat31stMarch, )AsrequiredbytheCompanies(Auditors'Repor t)order,2015issuedbytheCentralGovernment ofIndiaintermsofsub-section(11)ofsection 143oftheAct,wegiveintheAnnexure, )

3 Wehavesoughtandobtainedalltheinformation andexplanationswhichtothebestofourknowle dgeandbeliefwerenecessaryforthepurposeof ouraudit;b)Inouropinionproperbooksofacco untsasrequiredbylawhavebeenkeptbytheComp anysofarasitappearsfromourexaminationoft hosebooks;c)Thebalancesheet,StatementofP rofitandLoss,andCashFlowStatementdealtwi thbythisReportareinagreementwiththebooks ofaccounts;d)Inouropinion,theaforesaidst andalonefinancialstatementscomplywiththe AccountingStandardsspecifiedundersection 133oftheAct,readwithRule7oftheCompanies( Account)Rules,2014;e)Onthebasisofwritten representationsreceivedfromthedirectorsa sonMarch31,2015,andtakenonrecordbytheBoa rdofDirectors,wereportthatnoneofthedirec torsisdisqualifiedasonMarch31,2015,fromb eingappointedasadirectorintermsofSection 164(2) )Withrespecttotheothermatterstobeinclude dintheAuditor'sreportinaccordancewithRul e11ftheCompanies(AuditandAuditors)Rules, 2014,inouropinionandtothebestofourinform ationandaccordingtotheexplanationsgivent ous:i)TheCompanyhasdisclosedtheimpactofp endinglitigationsonitsfinancialpositioni nitsfinancialstatements-ReferNoteXIVii) ) : ,DACCOUNTANTS,,~~-( ) , , , , , , , ,LLB, #70, :230686231686 Res.

4 230653 Annexurereferredtounderparagraph1ofthe"R eportonotherLegalRegulatoryRequirements" ofAuditors' ) )Thecompanyhasaphasedprogrammeofphysical verificationofitsfixedassetswhichinourop inion, ;1verificationascomparedtobookrecords,wh ichwerenotmaterial, ) ,thefrequencyofsuchverificationisreasona ble, )Theprocedureforthephysicalverificationo finventoryfollowedbythemanagementis,inou ropinion,reasonable& )Inouropinion, ,thecompanyhasnotgrantedanyloans,secured orunsecuredtocompanies,firmsorotherparti escoveredintheregistermaintainedundersec tion189oftheCompaniesAct, ,theprovisionsofclause3(iii)(a)and(b) , ,onthebasisofourexaminationofthebooksand recordsofthecompany,qarriedoutinaccordan cewiththegenerallyacceptedauditingpracti cesinIndia, (1)oftheCompaniesAct, )

5 Accordingtotheinformationandexplanations giventousandaspertherecordsoftheCompany, thecompanyhasbeenregularindepositingtheu ndisputedstatutoryduesincludingprovident fund,IncomeTax,WealthTax,Servicetax,Cust omduty,exciseduty, )Accordingtotheinformation&explanationsg iventousandasperourverificationofrecords ofthecompany,thedisputedduesoftaxwhichar enotdepositedwiththearoriateauthoritiesa son31stMarch,2015areasfollows-NameofNatu reofTotalTotalPeriodtotheStatutetheduesD emandAmountwhichthe(inRs.)paidamountrela tes(FinancialYear2011-12 FormwherethedisputeispendingIncomeTaxAct ,1961 CommissionerofIncomeTax(Appeals), ' , ,thetermsandconditionsoftheguaranteesgiv enbythecompany, , , ~-Fof~-cHAzNDSHEKARKaTE&co.

6 ,CHARTREDACCOUNTANTS,,\w\;\/~-----(RAJRA MKaTE)<~artner/''SV--"":'\0.:A. (..~111,0\ ?\\~o~1\~ <~IJ\\\ ~1~:>'O~~\\' .!'Sl~'\.\\~~~o<""\11\~-"\,"--i~~~Karnat akaWildlifeResortsPrivateLimited,wasinco rporatedonMay3,2001,asaPrivateLimitedCom panyundertheCompaniesAct,1956,inthestate ofKarnataka,withtheobjectofcarryingonthe businessofHotels,WildlifeResorts, , ,thefinancialstatementshavebeenpreparedb asedonthegoingconcernassumptionTheFinanc ialstatementsarepreparedonagoingconcernc onceptunderthehistoricalcostconventionon theaccrualbasisofaccountingandcomplywith thegenerallyacceptedaccountingprinciples ,theprovisionsoftheCompaniesAct,2013incl udingtheAccountingStandardsspecifiedunde rsection133oftheAct,readwithRule7oftheCo mpanies(Accounts))

7 Rules,2014 Thepreparationoffinancialstatementsarein conformitywiththeGAAP,whichrequiresmanag ementtomakeestimates&assumptionsthataffe ctthereportedamountsofassets&liabilities , ,beveragesetcandincomefromroom,spaandoth erincomearerecognizedonthebasisofrenderi ngofserviceonaccrualb~ ,duties,leviesetc., ,includinggeneraloverheads, (SLM)aspertheusefullivesoftheassetspresc ribedintheScheduleIItotheCompaniesAct, , ,exceptthatexchangedifferencesarisingonr epayment/revaluationofborrowingsexpresse dinforeigncurrenciesandoncurrencyswapsin respectofunderlyingrupeeborrowings,which borrowingsareutilizedtowardscapitalexpen diture, (CDRPL),effectivefrom1stofJanuary2010, ,provisionfordiminutioninvalueismadetore cognizeadeclineotherthantemporary, ' , ,asperthefinancialstatements,areidentifi edandthetaxeffectofthedeferredtaxassetor deferredtaxliabilityisrecordedfortimingd ifferences, , , (loss)

8 Persharearecalculatedbydividingthenetpro fitorlossfortheperiodattributabletoequit yshareholders(afterdeductingpreferencedi videndsandattributabletaxes) (loss)pershare, ;itisprobablethatanoutflowofresourceswil lberequiredtosettletheobligation, ,whenthereisapossibleobligationorapresen tobligationthatmay,butprobablywillnot, , ,270-0028,090-0084,270-0028,090-00 NameofNatureofTotalTotalPeriodtoFormwher etheStatutetheduesDemandAmountwhichtheth edisputeis(inRs.)paidamountpendingrelate s(FinancialYear)IncomeTaxPenalty3,01,332 -00 Nil2011-12 CommissionerAct,1961ofIncomeTax(Appeals) ,BangaloreXV)Previousyearfigureshavebeen regroupedwherenecessarytoconfirmtothecur rentyear'sclassificationPlace.

9 ,30,00,0001,30,00,000(22,12,07,575)(17,4 9,10,772)(20,82,07,575)(16,19,10,772)32, 49,78,0401,55,54,62,07332,49,78,0401,55, 54,62,0732,18,83725,04,86654,82,61841,76 ,18,62946,16,08,94242,01,23,49546,73,10, 39753,68,93,9601,86,08,61,698 Shareholders'fundsSharecapitalReservesan dsurplusNon-currentliabilitiesLong-termb orrowingsCurrentliabilitiesShorttermborr owingsTradepayab1esOthercurrentliabiliti esASSETSNon-currentassetsFixedassets-Tan gibleassets919,93,34,74220,21,25,90319,9 3,34,74220,21,25,903108,51,22,36223,71,2 1,22628,44,57,10443,92,47,129114,55,5491 2,72,2571224,81,71,9501,41,97,75,544132, 04,3972,26,4261436,04,9603,40,34325,24,3 6,8561,42,16,14,56953,68,93,9601,86,08,6 1, ,68,66,34060,40,8797,29,07,2195,22,22,98 237,87,6485,60,10.

10 630 ExpensesCostofmaterialsconsumedEmployeeb enefitsexpenseFinancecostsDepreciationan damortizationOtherexpenses76,54,38114,41 ,8518,27,90,3221,51,13,9513,42,79,95714, 12,80,4635,75,15,18840,53,2274,92,59,102 11,92,04,022 Taxexpense:-Currenttax/minimumalternatet ax-Earlieryears-Deferredtaxcharge/(credi t)Profit/(Loss)pershare(equitysharesofpa rvalueofRs10each)-Basic-Diluted( )( )( )( )ForChandrashekarKote&CoCharteredAccount antsFirmregistrationnumber:0005928forand onbehalfoftheBoardofDirectorsofKarnataka WildlifeResortsPrivateLimitedRajaramoteP artnerMembershiNo. , (Loss) (outflow)duringtheyearCashandCashEquival entsatthebeginningoftheyearForChandrashe karKote&CoCharteredAccountantsFirmregist rationnumber:000592S~~-~ KOt?