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;makingjudgmentsandestima testhatarereasonableandprudent;anddesign ,implementationandmaintenanceofadequatei nternalfinancialcontrol, ,relevanttothepreparationandpresentation ofthefinancialstatementsthatgiveatrueand fairviewandarefreefrommaterialmisstateme nt, ' , !

2 CewiththeStandardsonAuditingspecifiedund ersection143(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, )Wehavesoughtandobtainedalltheinformatio nandexplanationswhichtothebestofourknowl edgeandbeliefwerenecessaryforthepurposeo fouraudit;b)Inouropinionproperbooksofacc ountsasrequiredbylawhavebeenkeptbytheCom panysofarasitappearsfromourexaminationof thosebooks;c)Thebalancesheet,Statementof ProfitandLoss,andCashFlowStatementdealtw ithbythisReportareinagreementwiththebook sofaccounts;d)Inouropinion,theaforesaids tandalonefinancialstatementscomplywithth eAccountingStandardsspecifiedundersectio n133oftheAct,readwithRule7oftheCompanies (Account)Rules,2014.

3 E)Onthebasisofwrittenrepresentationsrece ivedfromthedirectorsasonMarch31,2015,and takenonrecordbytheBoardofDirectors,werep ortthatnoneofthedirectorsisdisqualifieda sonMarch31,2015,frombeingappointedasadir ectorintermsofSection164(2) )Withrespecttotheothermatterstobeinclude dintheAuditor'sreportinaccordancewithRul e11ftheCompanies(AuditandAuditors)Rules, 2014,inouropinionandtothebestofourinform ationandaccordingtotheexplanationsgivent ous:i)TheCompanyhasdisclosedtheimpactofp endinglitigationsonitsfinancialpositioni nitsfinancialstatements-ReferNoteXIVii) ) : ,DACCOUNTANTS,,~~-( ) , , , , , , , ,LLB, #70, :230686231686 Res: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, )Accordingtotheinformationandexplanation sgiventousandaspertherecordsoftheCompany ,thecompanyhasbeenregularindepositingthe undisputedstatutoryduesincludingproviden tfund,IncomeTax,WealthTax,Servicetax,Cus tomduty,exciseduty, )

4 Accordingtotheinformation&explanationsgi ventousandasperourverificationofrecordso fthecompany,thedisputedduesoftaxwhichare notdepositedwiththearoriateauthoritiesas on31stMarch,2015areasfollows-NameofNatur eofTotalTotalPeriodtotheStatutetheduesDe mandAmountwhichthe(inRs.)paidamountrelat es(FinancialYear2011-12 FormwherethedisputeispendingIncomeTaxAct ,1961 CommissionerofIncomeTax(Appeals), ' , ,thetermsandconditionsoftheguaranteesgiv enbythecompany, , , ~-Fof~-cHAzNDSHEKARKaTE&co.,CHARTREDACCO UNTANTS,,\w\;\/~-----(RAJRAMKaTE)<~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)))

5 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)persharearecalculatedbydividingthe netprofitorlossfortheperiodattributablet oequityshareholders(afterdeductingprefer encedividendsandattributabletaxes) (loss)pershare.

6 Itisprobablethatanoutflowofresourceswill berequiredtosettletheobligation, ,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: ,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, ,68,66,34060,40,8797,29,07,2195,22,22,98 237,87,6485,60,10,630 ExpensesCostofmaterialsconsumedEmployeeb enefitsexpenseFinancecostsDepreciationan damortizationOtherexpenses76,54,38114,41 ,8518,27,90,3221,51,13,9513.

7 42,79,95714,12,80,4635,75,15,18840,53,22 74,92,59,10211,92,04,022 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?}RajaramKte~".~r~~"I'"~~~"\,\.Partne r~-"ll'io~\.V:\)~.~Membership0.:217172\~ .~~~~~~ ,\:-'"~~\6.'~ ~\..,.<f','"!:---/\-:Yo.,."y~,0':' ';'>,..,---.~,''~/:flTf~'..':\\~:""/.._,:_.~ . (4,62,96,803)(8,52,69,833)40,53,2271,51, 13,9515,66,02,2085,65,70,1631,43,58,632( 1,35,85,719)(29,77,752)(1,04,66,748)(4,3 9,90,313)20,25,2968,16,708(4,80,264)22,0 29(2,57,532)(32,64,618)(3,50,35,314)(2,2 7,64,967)(12,62,067)(17,59,910)15,19,98, 86522,41,70,55015,07,36,79822,24,10,640( 2,18,837)(47,97,81,163)(1,23,04,84,033)1 ,75,45,36,680(5,66,02, )(5,65,70, )(1,28,73,05, )1,21,81,85, (1,17,16,03, )1,41,78,31,0271,41,97,75,54319,44,51624 ,81,71,9501,41,97,75.

8 ~Jj ().iI' tor.,,'.''-:.,."'..~.;~~{Dire~ ,30,00,0001,30,00,0001,30,00,0001,30,00, 0001,30,00,0001,30,00,0001,30,00,0001,30 ,00,000 Authorised1300000(previousyear:1300000)E quitysharesofRs10eachIssued,subscribedan dfullypaidup1300000(previousyear:1300000 )EquitysharesofRs10each(b)Reconciliation ofthenumberofequityandpreferencesharesou tstandingatthebeginningandattheendofther eportingyearisasgivenbelow: (Rs) (Rs)Numberofequitysharesatthebeginningof theyearAdd:Equitysharesissuedduringtheye arNumberofequitysharesoutstandingattheen doftheyear(c)Particularsofshareholdersho ldingmorethan5%sharesofaclassofshares:As at31 December2014 Noofshares% (d)TheCompanyhasnotissuedanybonusshares, boughtbacksharesorissuedsharesforconside rationotherthancashforaperiodof5yearsimm ediatelyprecedingthebalancesheetdate.(e) Therights,preferencesandrestrictionsatta chingtoeachclassofsharesincludingrestric tionsonthedistributionofdividendsandther epaymentofcapital:(i) , !}

9 (deficit)instatementofprofitandlossOpeni ngbalanceAdd:profit/(Ioss)fortheyear(17, 49,10,772)(4,62,96,803)(8,96,40,939)(8,5 2,69,833) :-frombanksfromothersUnsecured: fromrelatedpartiesCoffeeDayHotels&Resort sPrivateLimitedWildernessResortsPrivateL imited24,99,78,04032,49,78,0401,30,54,81 ,53324,99,80,5401,55,54,62,073a)Termloan sfromfinancialinstitutions:StandardChart eredInvestments&Loan(I) ,8372,18, ,04,86654,82,61825,04,86654,82, ,00,00,00045,00,00,000 Interestaccruedbutnotdueonborrowings61,4 0,87249,68,493 Advancefromcustomers30,51,49843,50,353 Otherpayables-statutoryduespayable73,58, 68012,49,756-creditorsforcapitalgoods9,5 5,2199,37,980-creditorsforexpenses1,12,3 601,02,36041,76,18,62946,16,08, ,42,60,6028,42,60,60214,94,25,0008,61,76 034,35,6248,51,22,36223,71,21,226 KarnatakaWildlifeResortsPrivateLimitedNo testotheaccountsUnsecured,consideredgood CapitaladvancesLoansandadvancestorelated parties(TanglinDevelopmentLtd).

10 ProvisionfordoubtfulreceivableOtherdebts -consideredgoodAsat31 March2015 CashandcashequivalentsCashonhandBalances withbanks-incurrentaccounts79,18,41981,3 9, ,72,50414,61,183 Asat31 March2015 Unsecured,consideredgoodDepositsOtherloa nsandadvances1,34,73069, ,34,73091,696 PrepaidexpensesIncomeTaxrefunddueAsat31 March20152,80,22933,24,731 RsAsat31 March20143,40,343 KarnatakaWildlifeResortsPrivateLimitedNo testotheaccountsSaleofproductsSaleofserv icesOtheroperatingrevenueFortheperiodend ed31 March20152,49,11,8754,75,58,90169,59,741 Less: Luxurytax Servicetax VAT/CST anyothertaxes47,09,44650,35,74928,18,982 RsFortheyearended31 March20143,17,39,9341,69,24,57435,58,474 InterestincomeMiscellaneousincomeSalarie s,wagesandbonusContributiontoprovidentan dotherfundsStaffwelfareInterestexpenseOt herborro~ngcomsAdvertisementandbusinessp romotionCommunicationExpensesLinen,rooma ndotheroperatingexpensesPower,fuelandwat erRatesandtaxesRepairandmaintenancePlant &MachineryBuildingVehiclesOthersTravelan dconveyanceFreightchargesInsurancePrinti ngandstationeryAuditFeesProfessionalchar gesSafariexpensesMiscellaneousexpenses4, 42,0971,33,2652,90,8881,20,3451,64,6741, 51,2541,12,3602,55,05,25336,31,0411,14,9 102,49,0921,08,7892,46,9332,89,3191,12,3 601,67,57,20727,15,2121,66.