Aruna Hotels Ltd. இன் முடிவுகள்

Mar 31, 2025

ARUNA HOTELS LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying financial statements of ARUNA HOTELS LIMITED (“the Company”), which comprise the Balance Sheet as at March 31, 2025, the Statement of Profit and Loss, the Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that date, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information [hereinafter referred to as the “financial statements”].

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act, 2013( the “Act”) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ( “Ind AS”) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2025, and its profit, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards on Auditing (“SA”s) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the financial statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (“ICAI”) together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

S.No	Key Audit Matters	Auditor’s Response
1.	Accuracy of recognition, measurement, presentation and disclosures of revenues.	• Assessed the appropriateness of the Company’s revenue recognition accounting policies, including those relating to discounts, incentives and rebates as required under the applicable accounting standards. • Tested the effectiveness of controls relating to the (a) identification of distinct performance obligations, (b) Allocating the transaction price to performance obligations (c) Recognition of revenue when/as performance obligation(s) are satisfied. • Examined on a sample basis, all the supporting documentation required for computing the company’s obligation towards discounts, incentives and rebates recorded and disbursed during the year including credit notes issued after the year end date to determine whether these were recorded appropriately covering the stated obligations. • Our examination includes procedures to identify any unusual or irregular item

2.

Waiver of interest accrued on borrowings from related parties.

• The company has entered into agreements with related parties that include provisions for interest waivers, which are deemed appropriate under the terms of these agreements. Additionally, we have obtained written representations from management confirming the validity and appropriateness of these interest waivers.

Information Other than the Financial Statements and Auditor’s Report Thereon

The Company’s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Board’s Report including Annexures to Board’s Report, Business Responsibility Report, Corporate Governance and Shareholder’s Information, but does not include the financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

If based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Management’s Responsibility for the financial statements

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 financial statements that give a true and fair view of the financial position, financial performance, changes in equity and cash flows of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. 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 effectively for ensuring the 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.

In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

a. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

b. Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.

c. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

d. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

e. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in

(i) Planning the scope of our audit work and in evaluating the results of our work; and

(ii) To evaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other

matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in “Annexure A” 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, based on our audit 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 purposes of our audit.

(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.

(c) The Balance Sheet, the Statement of Profit and Loss, Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account.

(d) In our opinion, the aforesaid Financial Statements comply with the Ind AS 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 as on 31st March 2025 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2025 from being appointed as a director in terms of Section 164(2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure B”. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company’s internal financial controls over financial reporting.

(g) With respect to the other matters to be included in the Auditors’ Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations as on 31 March 2025 in its financial statements.

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

iii. The company had issued redeemable preference shares in earlier years. During the current year, the company undertook an exercise to repay the preference shareholders for which confirmations were sent earlier. Responses were received from a few parties. The Company has transferred a sum of Rs.6 Lakhs, Rs. 5 Lakhs and Rs. 16 Lakhs to IEPF account during the FY 22-23, FY 23-24 and FY 24-25 respectively out of the preference share capital of Rs.3.10 crores.

iv. (a) The management has represented that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person or entity, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

(b) The management has represented, that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts, no funds have been received by the company from any person or entity, including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

(c) Based on audit procedures which we considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub- clause (a) and (b) above contain any material misstatement.

v. The company has not declared or paid any dividend during the year in contravention of the in provisions of section 123 of the Companies Act, 2013.

vi. Based on our examination, which included test checks, we report that the Company has used accounting software (Tally) for maintaining its books of account for the financial year ended March 31, 2025, which has the feature of recording audit trail (edit log), and the same has operated throughout the year for all relevant transactions recorded in such software. Further, during the course of our audit, we did not come across any instance of the audit trail feature being tampered with, and the audit trail has been preserved by the Company as per the statutory requirements for record retention.

We further note that the Company uses a separate software (IDS) to manage operational data relating to bookings and revenue. The revenue as per IDS is subsequently recorded in the books of account maintained in Tally. While IDS does not have an audit trail feature, the books of account as maintained in Tally (which incorporates this data) comply with the requirements of Rule 3(1) of the Companies (Accounts) Rules, 2014

(h) With respect to the matter to be included in the Auditors’ Report in accordance with the requirements of

section 197(16) of the Act, as amended:

In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of Section 197 of the Act.

For M/s Bala & Co.,Chartered Accountants FRN : 000318SVisvanathan N Partner

Membership No. 020202

Place: Chennai

Date: May 29, 2025

UDIN: 25020202BMMHNG6102

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Mar 31, 2024

We have audited the accompanying financial statements of ARUNA HOTELS LIMITED (“the Company”), which
comprise the Balance Sheet as at March 31, 2024, the Statement of Profit and Loss, the Statement of Changes
in Equity and the Statement of Cash Flows for the year ended on that date, and notes to the financial statements,
including a summary of significant accounting policies and other explanatory information [hereinafter referred to as
the “financial statements”].

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial
statements give the information required by the Companies Act, 2013( the “Act”) in the manner so required and give
a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act
read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ( “Ind AS”) and other accounting
principles generally accepted in India, of the state of affairs of the Company as at March 31, 2024, and its loss,
changes in equityand its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards on Auditing (“SA”s) specified
under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor’s
Responsibilities for the Audit of the financial statementssection of our report. We are independent of the Company
in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (“ICAI”) together
with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the
Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the ICAI’s Code of Ethics. We believe that the audit evidence obtained by us is sufficient and
appropriate to provide a basis for our audit opinion on the financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgement, were of most significance in our audit of the
financial statements of the current period. These matters were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters. We have determined the matters described below to be the key audit matters to be communicated in our
report.

S.No	Key Audit Matters	Auditor’s Response
1.	Accuracy of recognition, measurement, presentation and disclosures of revenues.	• Assessed the appropriateness of the Company’s revenue recognition accounting policies, including those relating to discounts, incentives and rebates as required under the applicable accounting standards. • Tested the effectiveness of controls relating to the (a) identification of distinct performance obligations, (b) Allocating the transaction price to performance obligations (c) Recognition of revenue when/as performance obligation(s) are satisfied. • Examined on a sample basis, all the supporting documentation required for computing the company’s obligation towards discounts, incentives and rebates recorded and disbursed during the year including credit notes issued after the year end date to determine whether these were recorded appropriately covering the stated obligations. • Our examination includes procedures to identify any unusual or irregular item
2.	Waiver of interest accrued on borrowings from related parties.	• The company has entered into agreements with related parties that include provisions for interest waivers, which are deemed appropriate under the terms of these agreements. Additionally, we have obtained written representations from management confirming the validity and appropriateness of these interest waivers.

Information Other than the Financial Statements and Auditor’s Report Thereon

The Company’s Board of Directors is responsible for the preparation of the other information. The other information
comprises the information included in the Management Discussion and Analysis, Board’s Report including Annexures
to Board’s Report, Business Responsibility Report, Corporate Governance and Shareholder’s Information, but does
not include the financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover other information and we do not express any form of
assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the financial statements or our
knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

If based on the work we have performed, we conclude that there is a material misstatement of this other information,
we are required to report that fact. We have nothing to report in this regard.

Management’s Responsibility for the financial statements

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 financial statements that give a true and fair view of the financial
position, financial performance, changes in equity and cash flows of the Company in accordance with the Ind AS and
other accounting principles generally accepted in India. 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 effectively for ensuring the 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.

In preparing the financial statements, management is responsible for assessing the Company’s ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.

The Board of Directors are responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism
throughout the audit. We also:

a. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.

b. Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also
responsible for expressing our opinion on whether the company has adequate internal financial controls
system in place and the operating effectiveness of such controls.

c. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.

d. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may
cause the Company to cease to continue as a going concern.

e. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,
and whether the financial statements represent the underlying transactions and events in a manner that achieves
fair presentation.

Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes
it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be
influenced. We consider quantitative materiality and qualitative factors in

(i) Planning the scope of our audit work and in evaluating the results of our work; and

(ii) To evaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the key audit matters. We
describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter
or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits
of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the Central Government
of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in “Annexure A” 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, based on our audit 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 purposes of our audit.

(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.

(c) The Balance Sheet, the Statement of Profit and Loss, Statement of Changes in Equity and the Statement of
Cash Flows dealt with by this Report are in agreement with the books of account.

(d) In our opinion, the aforesaid Financial Statements comply with the Ind AS 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 as on 31st March 2024 taken on record
by the Board of Directors, none of the directors is disqualified as on 31st March,2024 from being appointed
as a director in terms of Section 164(2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the
operating effectiveness of such controls, refer to our separate Report in “Annexure B”. Our report expresses an
unmodified opinion on the adequacy and operating effectiveness of the Company’s internal financial controls
over financial reporting.

(g) With respect to the other matters to be included in the Auditors’ Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information
and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations as on 31 March 2024 in its financial statements.

ii. The Company did not have any long-term contracts including derivative contracts for which there were any
material foreseeable losses.

iii. The company had issued redeemable preference shares in earlier years. During the current year, the

company undertook an exercise to repay the preference shareholders for which confirmations were sent.
Responses were received from a few parties. The Company has transferred a sum of Rs.5 Lakhs and Rs. 6
Lakhs to IEPF account during the FY 23-24 and FY 22-23 respectively.

iv. (a) The management has represented that, to the best of its knowledge and belief, other than as disclosed
in the notes to the accounts, no funds have been advanced or loaned or invested (either from borrowed
funds or share premium or any other sources or kind of funds) by the company to or in any other person
or entity, including foreign entities (“Intermediaries”), with the understanding, whether recorded in
writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other
persons or entities identified in any manner whatsoever by or on behalf of the company (“Ultimate
Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

(b) The management has represented, that, to the best of its knowledge and belief, other than as disclosed in
the notes to the accounts, no funds have been received by the company from any person or entity, including
foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that
the company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in
any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

(c) Based on audit procedures which we considered reasonable and appropriate in the circumstances, nothing
has come to our notice that has caused us to believe that the representations under sub- clause (a) and (b)
above contain any material misstatement.

v. The company has not declared or paid any dividend during the year in contravention of the in provisions of
section 123 of the Companies Act, 2013.

vi. The reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 is applicable from 1 April
2023.

Based on our examination which included test checks, except for the instance mentioned below, the Company
has used accounting software for maintaining its books of account, which have a feature of recording audit
trail (edit log) facility and the same has operated from 26th June 2023 for all relevant transactions recorded in
the respective software:

i. The feature of recording audit trail (edit log) facility was not enabled at the database level to log any direct
data changes for the accounting software used for maintaining the books of accounts. We did not come
across any instance of the audit trail feature being tampered with.

As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 1, 2023, reporting
under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 on preservation of audit trail as per the
statutory requirements for record retention is not applicable for the financial year ended March 31, 2024.

(h) With respect to the matter to be included in the Auditors’ Report in accordance with the requirements of
section 197(16) of the Act, as amended:

In our opinion and to the best of our information and according to the explanations given to us, the remuneration
paid by the Company to its directors during the current year is in accordance with the provisions of Section 197
of the Act.

For M/s Bala & Co.,

Chartered Accountants
FRN : 000318S

Sriram V
Partner

Membership No. 216203

Place: Chennai

Date: May 24, 2024

UDIN: 24216203BKAGBN9459

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Mar 31, 2014

We have audited the accompanying financial statements of Aruna Hotels Limited ("the Company"), which comprise the Balance Sheet as at March 31,2014, and the Statement of Profit and Loss and for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation of these 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 Standards referred to in sub-section (3C) of section 21 i of the Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance of internal control 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 conducted our audit in accordance with the Standards on Auditing Issued by the Institute of chartered Accountants of India. 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 statement, whether due to fraud or error. In making those risks 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 obtained is sufficient and appropriate to provide a basis for our audit opinion.

Basis for Qualified Opinion

i. No confirmation of balances has been obtained from Financial Institutions, and other parties from whom loan was taken and interest there on. Confirmation of balances has not been obtained from creditors and debtors.

ii. The Company's inventories are carried in the Balance Sheet at Weighted Average Price. Management has not stated the inventories at the lower of cost and net realizable value but has stated them solely at cost, which constitutes a departure from the accounting standards referred to in sub-section (3C) of section 211 of the Act.

iii. The company has not produced the statutory records for verification, hence we cannot form any opinion on compliances of various acts including Companies, Act 1956. The company has also not provided the details of various litigation filed by the third parties, hence we cannot ascertain the liability arising on those litigations.

iv. Various statutory Authorities have issued the proposition & demand notices, due to non compliances of statutory requirements; we are unable to ascertain the exact outstanding demand, due to non production of those documents, the company.

v. The Company has recorded a loss during the year. Further, its total current liabilities exceed total current assets as on balance sheet date. The validity of the going concern assumption on which the financial statements are prepared depends on the continuance and the ability of the company to generate sufficient cash flows their operations. We do not have sufficient evidence to assess whether the company's plans/projection would materialize.

vi. The contingent liability of the company towards the pending cases are not ascertainable as on date, but if the decision is unfavorable it would materially impact the cash flow of the company.

vii. The Company has made provisions for gratuity in its books calculated as per Gratuity Act for the employees and which is contrary to the Accounting Standard on retirement benefits which is issued by the Institute of Chartered Accountants of India as well as section 209(3b) of the companies Act, 1956. We are unable to quantify the difference amount based on the information available to the company.

*Qualified Opinion

In our opinion and to the best of our information and according to the explanations gives to us, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, 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.

a) in the case of the Balances Sheet, of the state of affairs of the Company as at March 31, 2014:

b) in the case of the Profit and Loss Account, of the profit/ 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

1. As required by the Companies (Auditor's Report) Order, 2003 ("the Order) issued by the Central Government of India in terms of sub-section (4A ) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by section 227(3) of the Act, we report that:

* 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;

* In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those;

* The Balance Sheet, Statement of Profit and loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account.

* * Except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the Balance Sheet, Statement of Profit and loss, Notes to accounts annexed to them and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956.

* On the basis of written representations received from the directors as on March 31, 2014, and taken on record by the board of Directors, none of the directors are disqualified as on March 31, 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

* Interest has been provided in the accounts for the Current liabilities and advance share application money for the current financial year & earlier year also, as per the understanding between the company & Investors. Further it has been explained by the management that certain advances has been received for future business, but the company could not deliver on time and management decided to compensate them with agreed interest on non performances, since no agreement copy for the same has been provided to us, but Board resolutions has been provided for the verification. Further we want to state that the Finance Cost includes Rs. 1282.67 lakhs as prior period interest/earlier year interest as per the understanding of the management with other parties. Further they have explanied that due to now - availability of cash flow & insufficient profits the company did not provide the interest on those Current liabilities and advance share application money in previous year,

* As per the information received by the management, the company does not have a full time company secretary employed, this is non compliance of section 301 of Companies, Act 1956

* The Interest provided to the Related Parties during the current year has not been disclosed in the Significant Accounting Policies to the Financial Statements.

* The write off made by the company during the financial year includes the advances give in previous year towards the sugarcane business of the company.

ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT

I.

a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

b) The Fixed assets of the company have not been physically verified during the year by the management and hence we are unable to comment on any discrepancy.

c) During the year the company has revalued assets i.e. Land & Building And the revaluation reserve has been created to the tune of Rs 8748.66 lakhs as per the valuation report provided by the approved valuer.

II.

a) Physical Verification of stocks of finished goods, stores, spare parts and raw marerials was conducted by the Management during the period. In our opinion, the frequency was reasonable.

b) The procedures of Physical Verification of stocks followed by the Management are reasonable and adequate, commensurate to the size of the Company and nature of its business.

c) On the Basis of our examination of the records of inventory, we are of the opinion that the Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and book records were not material and have been properly dealt with in the book of accounts.

III.

a) According to the information and explanation give to us, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

b) According to the information and explanations given to us. the Company has taken unsecured loan from parties covered in the register maintained under section 301 of the Companies Act, 1956. o/s amount of loan takes is Rs. 486.52 lakhs

IV. In Our opinion and according to the information and explanations give to us the Internal Control System is inadequate to the size of the Company and the nature of its business with regard to purchase of inventory, fixed assets and for the sale of goods and services.

V.

a) Based on the audit procedures applied by us and according to the information and explanation provided to us by the management, 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 in the register required to be maintained under that section.

b) In our opinion, the transaction made in pursuance of such contracts or arrangement have been made at prices which are reasonable have regard to the prevailing market prices at the relevant time.

VI. The company has not accepted any deposits from the public.

VII. As informed to us a firm of Chartered Accountants is appointed as Internal Auditors of the Company for the period under review, but the report of the same has not been provided to us.

VIII. No Cost records have been prescribed by the Central Government under section 209(1) (d) of Companies Act, 1956.

IX.

a) Undisputed statutory dues including provident fund: investons education and protection fund, employees state insurance, income-tax, sales-tax. wealth-tax. Service-tax, Customs duty. Excise Duty, cess have not been regularly deposited with the appropriate authority and there have been delays in large number of cases, the extant of arrears of statutory dues as at the last day of the financial year 2013-2014 outstanding for a period of more than six months from the date they became payable as per the list below.

Nature of Dues Amount (in lakhs)

ESI Payable 3.65

Gratuity Payable 5.98

Income Tax Payable 2.25

Luxury Tax Payable 226.30

P F Payable 15.13

Professional Tax Payable 0.70

Property Tax Payable 0.32

VAT Payable 61.82

Service Tax Payable 127.44

TDS Payable 96.08

Water Tax Payable 1.99

b) According to information and explanations given to us, no disputed amounts payable in respect of Income Tax, Wealth Tax, Service Tax, Customs duty were outstanding as at 31st March 2014 except Purchase Tax and Sales Tax on which appeal is pending before High Court.

X. The accumulated losses of the Company are not more than fifty percent of its net worth. It has incurred cash loss during the year and in the immediately preceding financial year.

XI. Based on the audit procedures and on the information and explanations given by the Management, we are of the opinion that the Company has defaulted in repayment of dues to Financial Institutions or Banks.

XII. The Company has not granted loan and advances on the basis security by way of pledge os shares, debentures and other securities.

XIII. According to the information and explanations provided by the management, the company has not given any guarantees for loans taken by others from bank and financial institutions.

XIV. According to the information and explanations provided to us, the term loan availed during the year has been utilized for the purpose of which it has been raised.

XV. Based on audit procedures applied by us and according to the information and explanations provided by the Management, we are of the opinion that the Company has not used the funds raised on short term basis for long term investments.

XVI. The Company has not made preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Companies Act, 1956.

XVII. No fraud on or by the company has been noticed or reposted during the course of our audit.

XVIII. Other Provisions of Companies (Auditor's Report) Order, 2003 are not applicable.

For U.C Bhandari and Co. Chartered Accountants Firm's Registration Number: 000440S

Pankaj N Mehta (Partner) Membership Number: 233165

Place : Bangalore Date : 25-02-2015

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Mar 31, 2013

We have audited the accompanying financial statements of Aruna Hotels Limited ("the company")Which comprise the Balance Sheet as at March 31.2013. and the Statement of Profit and Loss and for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation of these 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 Standards referred to in sub-section(3C)of section 211 of the companies Act,1956("the Act"). This responsibility includes the design,implementation and maintenance of internal control 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 statement based on our audit,We conducted our audit in accordance with the standards on Auditing issued by the Institute of Chartered Accountants of India. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statement are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statement. The procedures selected depend on the auditors judgment,including the assessment of the risks of material misstatement of the financial statements, Whether due to fraud or error. In making those risks 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 obtained is sufficient and appropriate to provide a basis for our audit opinion

*Basis For Qualified Opinion

i. The company has made provisions for gratuity in its books calculated as per Gratuity Act for the employees and which is contrary to the Accounting Standard on retirement benefits which is issued by the Institute of Chartered Accountants of India as well as section 209(3b) of the companies Act 1956. We are unable to quantify the difference amount based of the information available to the company.

ii. No confirmation of balance has been obtained from Financial Institutions,and other parties from whom loan was taken and interest there on. Confirmation of balances has not been obtained from creditors and debtors.

iii. Short or on Interest has been provided in the accounts for the loans and advances availed from the Banks, Financial Institutions and other parties,Since no agreement copy for the same has been provided to us, we are unable to quantify the amount of interest.

iv. The company's inventories are carried in the Balance Sheet at Weighted Average Price. Management has not stated the inventories at the lower of cost and net realizable value but has stated them solely at cost, which constitutes a departure from the accounting standards referred to in sub-section (3C) of section 211 of the Act.

* Qualified Opinion

In our opinion and to the best of our information and according to the explanations give to us, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, 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:

(a) in the case of the balance sheet, of the state of affairs of the company as at March 31,2013;

(b) in the case of the Profit and Loss Account, of the profit/loss for the year ended on that date: and

(c) in the case of the Cashflow Statement of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1 As required by the companies (Auditor's Report)Order,2003 ("the Order") issued by the central Government of india in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the order.

2. As required by section 227(3) of the Act, we report that.

a. 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;

b. In our opinion proper books of account as required by law have been kept by the company so far as appears from our examination of those books [and proper returns adequate for the purposes of our audit have been received from branches not visited by us];

c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealts with by this Report are in agreement with the books of account [and with the returns received from branches not visited by us;

d Except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting standards referred to in subsection (3C) of section 211 of the companies Act, 1956;

e. On the basis of written representations received from the directors as on March 31, 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the companies Act, 1956.

ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT

I. a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets,.

b) The fixed assets of the company have not been physically verified during the year by the management and hence we are unable to comment on any discrepancy

c) During the year the company has not disposed off any substantial part of Fixed Assets.

II. a) Physical Verification of stocks of finished goods, stores, spare parts and raw materials was conducted by the Management during the period. In our opinion, the frequency was reasonable

b) The procedures of Physical Verification of stocks followed by the Management are reasonable and adequate, commensurate to the size of the company and nature of its business

c) On the Basis of our examination of the records of inventory, we are of the opinion that the company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and books records were not material and have been properly deals with in the books of accounts.

III. a) According to the information and explanation give us, the company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the companies Act, 1956.

b) According to the information and explanations give to us, the company has taken unsecured loan from parties covered in the register maintained under section 301 of the Companies Act, 1956. o/s amount of loans taken is Rs. 1067.421akhs.

IV. In our opinion and according to the information and explanations give to us the Internal Control System is inadequate to the size of the company and the nature of its business with regard to purchase of inventory, fixed assets and for the sale of goods and services.

V. a) Based on the audit procedures applied by us and according to the information and explanation provided to us by the management, 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 in the register requires to be maintained under that section.

b) In our opinion, the transaction made in pursuance of such contracts or arrangement have been made at prices which are reasonable have regard to the prevailing market prices at the relevant time.

VI. The company has not accepted any deposits from the public.

VII. A firm of Chartered Accountants is appointed as Internal Auditors of the Company for the period under review, but the report of the same has not been provided to us.

VIII. No cost records have been prescribed by the Central Government under section 209(1) (d) of companies Act, 1956.

IX. a) Undisputed statutory dues including provident fund; investors education and protection fund, employees state insurance, income-tax, sale-tax, wealth-tax. Service-tax, Customs Duty, Excise Duty cess have not been regularly deposited with the appropriate authority and there have been delays in large number of cases, the extent of arrears of statutory dues as at the last day of financial year 2012-2013 outstanding for a period of more that six months from the date they became payable as per the list below.

Nature of Dues Amount

ESI Payable 2.57

Gratuity Payable 18.65

Income Tax Payable 2.25

Luxury Tax Payable 160.12

PF Payable 0.73

Professional Tax Payable 0.73

Property Tax Payable 5.66

VAT Payable 8.55

Service Tax Payable 119.32

TDS Payable 70.65

Water Tax Payable 0.50

b) According to information and explanations give us, no disputes amounts payable in respect of Income Tax, Wealth Tax. Service Tax. Customs Duty were outstanding as at 31st March 2013 except purchase Tax and Sales Tax on which appeal is pending before High Court.

X. a) The accumulated losses of the company are not more than fifty percent of its net worth. It has incurred cash loss during the year and in the immediately preceding financial year.

XI. Based on the audit procedures and the information and explanations given by the Management, we are of the opinion that the company has defaulted in repayment of dues to Financial Institutions or Banks.

XII. The company has not granted loans and advance on the basis security by way of pledge of shares, debentures and other securities.

XIII. According to the information and explanations provided by the management, the company has not give any guarantees for loans taken by other from banks and financial institutions.

XIV. According to the information and explanations provided to us, the term loan availed during the year has been utilized for the purpose of which it has been raised.

XV. Based on audit procedures applied by us and according to the information and explanations provided by the Management, we are of the opinion that the company has not used the funds raised on short term basis for long term investments.

XVI. The company has not made preferential allotment of share to parties and companies covered in the Register maintained under section 301 of the Companies Act, 1956.

XVII. No fraud on or by the company has been noticed or reported during the course of our audit,

XVIII. Other provisions of Companies (Auditor's Report)Order, 2003 are not applicable

For U.C Bhandari and Co. Chartered Accountants Firm's Registration Number: 000440S

Pankaj N Mehta (Partner) Membership Number: 233165

Place: Bangalore Date : 14.02.2015

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Mar 31, 2011

We have audited the attached Balance Sheet of Aruna Hotels Limited as at 31st March 2011, Profit and Loss Account of the Company and also Cash Flow statement for the year ended on that date annexed hereto. These Financial statements are responsibility of the company''s management. Our responsibility is to express an opinion on these financial statements based on our audit.

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 our audit provides a reasonable basis for our opinion.

1. As required by the Companies (Auditor''s Report) Order, 2003 as amended by the Companies (Auditor''s Report) (Amendment) Order, 2004 issued by the Central Government of Indian in terms of section 227 (4A) of the Companies Act, 1956, we enclose in the annexure a statement on the matters specified in paragraphs 4 & 5 of the said order.

2. Further to our comments referred to in paragraph (1) above, we report that:

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

(b) In our opinion, proper books of account, as required by law have been kept by the Company, so far as appears from our examination of those books.

(c) The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account.

(d) In our opinion the Balance Sheet and Profit and Loss Account dealt with by this report comply with the Accounting Standards referred to in sub-section 3(c) of section 211 of the Company Act, 1956, to the extent applicable.

(e) On the basis of written representations received from the directors, as on 31st March 2011 and taken on record by the Board of Directors. We report that none of the directors is disqualified as on 31st March 2011 from being appointed as a director of the Company under clause (g) of sub-section (1) of section 274 of the Companies Act, 1956;

(f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the notes made thereon, give the information as required by the Companies Act 1956, 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 2011 and.

(ii) In the case of the Profit and Loss Account, of the Loss for the period ended on that date.

(iii)In the case of the Cash Flow statement, of the cash flow of the year ended on that date

ANNEXURE TO THE AUDITOR''S REPORT

I. (a) The Company has maintained proper records showing full particulars including quantitative details situation of fixed assets.

(b) The fixed assets of the Company have been physically verified during the year by the Management and no material discrepancies between the book records and the physical inventory have been noticed.

(c) During the year, the Company has not disposed off any substantial part of its fixed assets.

II. (a) Physical verification of stocks of finished goods, stores, spare parts and raw materials was conducted by the Management during the period. In our opinion, the frequency of verification was reasonable.

(b) The procedures of physical verification of stocks followed by the Management are reasonable and adequate, commensurate to the size of the Company and nature of its business.

(c) On the basis of our examination of the records of inventory, we are of the opinion that the Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and book records were not material and have been properly dealt with in the books of accounts.

III.(a) The Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

(b) The Company has taken unsecured loan from parties covered in the register maintained under section 301 of the Companies Act, 1956, the maximum amount outstanding during the year is Rs.433.50 lakhs /-

IV.In our opinion and according to the information and explanations given to us, there is adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of inventory and fixed assets and for the sale of goods and services.

V (a) Based on the audit procedures applied by us and according to the information and explanation provided to us by the management, 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 in the register required to be maintained under that section.

(b) In our opinion, the transactions made in pursuance of such contracts or arrangements have been made at prices which are reasonable have regard to the prevailing market prices at the relevant time.

VI.The Company has not accepted any deposits from the public.

VII.A firm of Chartered Accountants is appointed as Internal Auditors of the Company for the period under review. In our opinion, the company has internal audit system commensurate with its size and nature of its business.

VIII. No cost records have been prescribed by the Central government under section 209(1)(d) of Companies Act, 1956.

IX.(a) Undisputed statutory dues including provident fund; investors education and protection fund, employees state insurance, income-tax, sales-tax, wealth- tax, service-tax, customs duty, excise duty, cess have not been regularly deposited with the appropriate authority and there have been delays in large number of cases, the extent of arrears of statutory dues as at the last day of the financial year 2010-2011 outstanding from the date they became payable as per the list attached.

Name of Statute Nature of Amount In (Rs.) Due Date Date of Dues Payment

Income Tax TDS on Interest Other Than 7th of the next Not remitted Act,1961 Interest On Securities 1516370.00 month

Income Tax TDS on Salaries 7th of the next Not remitted Act,1961 1719795.00 month

Income Tax TDS on Professional 7th of the next Not remitted Act,1961 Services 359920.95 month

Income Tax TDS on Contractors 7th of the next Not remitted Act 1961 395113.75 month

Income Tax TDS on Rent 7th of the next Not remitted Act 1961 1061702.00 month

Income Tax TDS on Advertisement 7th of the Not remitted Act,1961 403.00 following month

Income Tax TDS on Commission 7th of the next Not remitted Act,1961 255224.00 month

Payment of Gratuity 1778769.00 Not remitted Gratuity Act

Luxury Tax Luxury Tax 5552229.95 20th of the next Not remitted month

20th of the next Sales Tax Act Sales Tax 2873471.35 month Not remitted

ESI Act ESI 556180.23 21st of the next Not remitted month

Provident Fund PF 650799.00 15th of the next Not remitted Act month

Excise Duty & Service Tax 881520.00 5th of the next Not remitted Service Tax month

Not remitted Professional Tax Professional Tax 72256.00 7th of the next month

Corporation Tax Property Tax 788136.00 Before the end Not remitted of the FY

Corporation Tax Water Tax 304214.00 Before the end Not remitted of the FY

(b) According to the information and explanations given to us, no disputed amounts payable in respect of Income- Tax, Wealth-Tax, Service-Tax, Custom duty, Excise duty were outstanding, as at 31st March 2011, except the following:

Purchase Tax - Rs.104.07 Lakhs and Sales Tax - Rs.52.53 Lakhs on which Appeal is pending before the High Court.

X (a) The accumulated losses of the Company are not more than fifty percent of its net worth. It has incurred cash loss during the year and in the immediately preceding financial year.

XI. Based on the audit procedures and on the information and explanations given by the Management, we are of the opinion that the Company has not defaulted in repayment of dues to Financial Institutions or Banks.

XII. The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

XIII.The company has not given any guarantees for loans taken by others from banks and financial institutions.

XIV.The term loan availed during the year has been utilized for the purpose for which it has been raised.

XV. Based on audit procedures applied by us and according to the information and explanations provided by the Management, we are of the opinion that the Company has not used the funds raised on short-term basis for long-term investments.

XVI.The Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Companies Act, 1956.

XVII.No fraud on or by the company had been noticed or reported during the course of our audit.

XVII.Other provisions of Companies (Auditor''s Report) Order, 2003 are not applicable

For M/s. S. Viswanathan

Chartered Accountants

CHELLA K.SRINIVASAN

(Partner)

M.No.23305

Place:Chennai -34

Dated: 12.7.2011

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Mar 31, 2009

We have audited the attached Balance Sheet of Aruna Hotels Limited as at 31st March 2009, Profit and Loss Account of the Company and also Cash Flow statement for the year ended on that date annexed hereto. These Financial statements are responsibility of the companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

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 our audit provides a reasonable basis for our opinion.

1.As required by the Companies (Auditors Report) Order, 2003 as amended by the Companies (Auditors Report) (Amendment) Order, 2004 issued by the Central Government of Indian in terms of section 227 (4A) of the Companies Act, 1956, we enclose in the annexure a statement on the matters specified in paragraphs 4 & 5 of the said order.

2.Further to our comments referred to in paragraph (1) above, we report that:

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

(b) In our opinion, proper books of account, as required by law have been kept by the Company, so far as appears from our examination of those books.

(c) The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account.

(d) In our opinion the Balance Sheet and Profit and Loss Account dealt with by this report comply with the Accounting Standards referred to in sub-section 3(c) of section 211 of the Companies Act, 1956, to the extent applicable.

(e) On the basis of written representations received from the directors, as on 31st March 2009and taken on record by the Board of Directors. We report that none of the directors is disqualified as on 31st. March 2009from being appointed as a director of the Company under clause (g) of sub- section (1) of section 274 pf the Companies Act, 1956;

(f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the notes made thereon, give the information as required by the Companies Act 1956, 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 2009 and.

(ii) In the case of the Profit and Loss Account, of the Loss for the period ended on that date.

(iii) In the case of the Cash Flow statement, of the cash flow of the year ended on that date

ANNEXURE TO THE AUDITORS REPORT I. (a) The Company has maintained proper records showing full particulars including quantitive details situation of fixed assets.

(b) The fixed assets of the Company have been physically verified during the year by the Management and no material discrepancies between the book records and the physical inventory have been noticed.

(c) During the year, the Company has not disposed off any substantial part of its fixed assets.

II. (a) Physical verification of stocks of finished goods, stores, spare parts and raw materials was conducted by the Management during the period. In our opinion, the frequency of verification was reasonable.

(b) The procedures of physical verification of stocks followed by the Management are reasonable and adequate, commensurate to the size of the Company and nature of its business.

(c) On the basis of our examination of the records of inventory, we are of the opinion that the Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and book records were not material and have been properly dealt with in the books of accounts.

III.(a) The Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

(b) The Company has taken unsecured loan from parties covered in the register maintained under section 301 of the Companies Act, 1956, the maximum amount outstanding during the year is Rs.4,90,29,251 I-

PV. In our opinion and according to the information and explanations given to us, there is adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of inventory and fixed a*ssets and for the sale of goods and services.

V (a) Based on the audit procedures applied by us and according to the information and explanation provided to us by the management, 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 in the register required to be maintained under that section.

(b) In our opinion, the transactions made in pursuance of such contracts or arrangements have been made at prices which are reasonable have regard to the prevailing market prices at the relevant time.

VI. The Company has not accepted any deposits from the public.

VII. A firm of Chartered Accountants is appointed as Internal Auditors of the Company for the period under review. In our opinion, the company has internal audit system commensurate with its size and nature of its business.

(As per list attached)

Name of Statute Nature of Amount Rs. Period to Dues which the amount relates

Income Tax Act, TDS on Interest April 2008 - 1961 other than Interest 10198.00 March 2009 on Securities

IncomeTaxAct, TDSon 210000.00 April 2008- 1961 Salaries March 2009

Income TaxAct, TDSon 143771.00 April 2008 - 1961 Professional March 2009 Services

Income TaxAct, TDSon 339346.00 April 2008 - 1961 Contractors March 2009

Income Tax Act, TDSon 4485.00 April 2008 - 1961 Commission March 2009

Income TaxAct, TDSon 218332.00 April 2008- 1961 Rent March 2009

Income TaxAct, Fringe April 2008- 1961 BenefitTax 146060.00 March 2009

Luxury Tax, Luxury Tax 564072.00 April 2008 - Payable March 2009

Sales TaxAct Sales Tax 351788.00 April 2008 - Payable March 2009

Name of Statute Due Date Date of payment Income Tax Act, 1961 7th of the Not next month remitted

Income Tax Act, 1961 7th of the Not next month remitted

Income Tax Act, 1961 7th of the Not next month remitted

Income Tax Act, 1961 7th of the Not next month remitted

Income Tax Act, 1961 7th of the Not next month remitted

Income Tax Act, 1961 7th of the Not next month remitted

Income Tax Act, 1961 15th of the Not next month ... , remitted Income Tax Act, 1961 sueeeding the quarter Paid on Luxury Tax, 26th of the 16.09.2009 nextmonth Rs.5.00.000/- ,

Sales Tax Act 7th of the Not nextmonth remitted



VIII. No cost records have been prescribed by the Central Government under section 209(1 )(d) of Companies Act, 1956.

IX. (a) Undisputed statutory dues including provident fund; investors education and protection fund, employees state insurance, income-tax, sales-tax, wealth- tax, service-tax, customs duty, excise duty, cess have not been regularly deposited with the appropriate authority and there have been delays in large number of cases, the extent of arrears of statutory dues as at the last day of the financial year 2008-2009 outstanding for a period of more than six months from the date they became payable as per the list attached.

(b) According to the information and explanations given to us, no disputed amounts payable in respect of Income- Tax, Wealth-Tax, Service-Tax, Custom duty, Excise duty were outstanding, as at 31st March 2009, except the following:

Purchase Tax - Rs. 104.07 Lakhs and Sales Tax - Rs.52.53 Lakhs on which Appeal is pending before the High Court.

X. (a) The accumulated losses of the Company are not more than fifty percent of its net worth. It has incurred cash loss during the year and has not incurred cash Loss in the immediately preceding financial year.

XI. Based on the audit procedures and on the, information and explanations given by the Management, we are of the opinion that the Company has not defaulted in repayment of dues to Financial Institutions or Banks.

XII. 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 terms and conditions in respect of the guarantees given by the Company for loans taken by others from banks and financial institutions are not prima facie prejudicial to the interest of the Company..

XIV. The term loan availed during the year has been utilized for the purpose of which it has been raised.

XV Based on audit procedures applied by us and according to the information and explanations provided by. the Management, we are of the opinion that the Company has not used the funds raised on short-term basis for long-term investments.

XVI. The Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Companies Act, 1956.

XVII. No fraud on or by the company had been noticed or reported during the course of our audit.

XVIII. Other provisions of Companies (Auditors Report) Order, 2003 are not applicable

For M/s. S. Viswanathan Chartered Accountants

Place:Chennai -34 CHELLA K.SRINIVASAN Dated:21.09.2009 (Partner)

M.No.23305