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Asian Hotels (North) Ltd.

BSE: 500023 Sector: Services
NSE: ASIANHOTNR ISIN Code: INE363A01022
BSE LIVE 10:39 | 23 Aug 135.00 6.75
(5.26%)
OPEN

133.95

HIGH

135.00

LOW

133.95

NSE 15:28 | 22 Aug 129.55 -2.60
(-1.97%)
OPEN

130.35

HIGH

132.90

LOW

129.15

OPEN 133.95
PREVIOUS CLOSE 128.25
VOLUME 50
52-Week high 152.90
52-Week low 96.00
P/E 13500.00
Mkt Cap.(Rs cr) 263
Buy Price 126.50
Buy Qty 10.00
Sell Price 136.00
Sell Qty 1.00
OPEN 133.95
CLOSE 128.25
VOLUME 50
52-Week high 152.90
52-Week low 96.00
P/E 13500.00
Mkt Cap.(Rs cr) 263
Buy Price 126.50
Buy Qty 10.00
Sell Price 136.00
Sell Qty 1.00

Asian Hotels (North) Ltd. (ASIANHOTNR) - Auditors Report

Company auditors report

To the Members of Asian Hotels (North) Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of Asian Hotels(North) Limited (‘the Company') which comprise the balance sheet as at 31stMarch 2017 the Statement of Profit and Loss (including other comprehensive income) andthe Statement of Cash flows and the Statement of changes in equity for the year thenended and a summary of significant accounting policies and other explanatory information(herein after referred to as "Standalone Ind AS financial statements").

Management's Responsibility for the Standalone Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparationand presentation of these standalone Ind AS financial statements that give a true and fairview of the financial position financial performance including other comprehensive incomecash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe standalone Ind

AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at 31st March 2017 and its loss including other comprehensiveincome its cash flows and the changes in equity for the year ended on that date.

Emphasis of Matters

We draw attention to the following matters in the Notes to the standalone financialstatements:

Note 35(e) to the standalone financial statements which describes the uncertaintyrelated to the outcome of the law-suits filed against the Company and also in which theCompany is one of the party.

Our opinion is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of Sub-section (11) of Section 143 ofthe Act we give in the Annexure A a statement on the matters specified in the paragraph3 and 4 of the order.

2. As required by Section 143 (3) of the Act we report that:

a. We have sought and obtained all the information and explanations which to the bestof 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 theCompany so far as it appears from our examination of those books;

c. The balance sheet the statement of profit and loss and the cash flow statementdealt with by this Report are in agreement with the books of account;

d. In our opinion the aforesaid standalone financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

e. On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of disqualified Directors none of thedirectors as on 31st March 2017 from being appointed as a director in terms ofSection 164 (2) of the Act;

f. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B"; and

g. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. the Company has disclosed the impact wherever necessary of pending litigations onits financial position in its financial statements (Refer Note 35 of the standalonefinancial statements) except as mentioned above under the paragraph on ‘ e mphasis ofMatters';

ii. the Company has made provision as required under the applicable law or IndianAccounting Standards for material foreseeable losses if any on long-term contractsincluding derivative contracts;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor education and Protection Fund by the Company.

iv. The Company had provided requisite disclosure in its standalone financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8th November 2016 to 30th December 2016 and the same are inaccordance with the books of accounts maintained by the Company.

For Dhirubhai Shah & Doshi

Chartered Accountants

Firm's registration number: 102511W

Kaushik Shah

Partner

Membership number: 016502

Place: New Delhi

Date: 27th May 2017

Annexure - A to the Auditors' Report

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the standalone Ind AS financial statements for the year ended 31st March2017 we report that:

(i) (a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.

(b) The Company has verification regular program of physical of its fixedassets. In accordance with this program fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical is reasonable having regard to the size of the Company and the nature of itsassets.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii) The inventory has been physically verified at reasonable intervals by themanagement. The discrepancies noticed verification between the physical stocks and thebook records were not material in relation to the operations of the Company and the samehave been properly dealt with in the books of account.

(iii) As informed to us the Company has not granted any loans secured orunsecured to companies firms Limited Liability Partnerships or other parties covered inthe register maintained under section 189 of the Companies Act 2013 (‘the Act')except certain advance for Expenses/trade receivables recoverable in the normal course ofbusiness and therefore the provisions of clauses (iii)(a) (iii)(b) & (iii)(c) of theOrder are not applicable to the Company.

(iv) In our opinion and according to the information and explanations given to usthe Company has complied with the provisions of Sections 185 and 186 of the Act withrespect to the loans and investments made.

(v) In our opinion and according to the information and explanations given to usthe Company has not accepted any deposits covered by the provisions of Sections 73 to 76or any other relevant provisions of the Companies Act 2013 and the rules framed thereunder.

(vi) The Central Government has not prescribed the maintenance of cost recordsunder section 148(1) of the Act for any of the services rendered by the Company.

(vii) (a) According to the records of the Company examined by us the Company isgenerally regular in depositing with appropriate authorities undisputed statutory duesincluding Provident Fund employees' State Insurance Income Tax Value Added Tax CentralSales Tax Wealth Tax Service Tax Custom Duty excise Duty Cess and other statutorydues applicable to it.

According to the information and explanations given to us in our opinion no undisputedamounts payable in respect of statutory dues including Provident Fund employees' StateInsurance Income Tax Value Added Tax Central Sales Tax Wealth Tax Service Tax CustomDuty excise Duty Cess and other statutory dues applicable to it were in arrears as atthe balance sheet date for a period of more than six months from the date they becamepayable.

(b) According to the records of the Company there are no dues outstanding of IncomeTax Sales Tax (including Value Added Tax and Central Sales Tax) Wealth Tax Service TaxCustom Duty excise Duty or Cess on account of any dispute except as follows:

Nature of Statute Year to which it relates Amount unpaid (excluding interest) (Rs. in lakhs) Forum where dispute is pending
Finance Act 1994 (Service Tax) 2002-2007 254.53 Lakhs (Including penalty of Rs. 250 Lakhs) Customs excise and Service Tax Appellate Tribunal New Delhi

(viii) Based on our audit procedures and in our opinion and according to theinformation and explanations given to us we are of the opinion that there are fewinstances as mentioned here in below wherein Company has delayed in repayment of dues tofinancial institutions/ banks. However the said amounts were subsequently paid as per thedetails given herein under in the Table. The Company does not have any debenture holders.

Particulars Amount of delay in payment Period of delay in payment Remarks if any
(INR in Lakhs)
Name of the Lenders:
i) DBS Bank Ltd.
Interest on loans (Aggregate value) 607.42 At various dates Delay of 25 to 29 days made good by 13th May 2016
Principal due on loans (Aggregate value) 1258.30 At various dates Delay of 25 to 29 days made good by 13th May 2016
ii) IDBI Bank Ltd.
Principal due on loans 186.45 Due on 1st April 2016 Delay of 4 to 40 days made good by 13th May 2016
iii) Kotak Mahindra Bank Ltd.
Interest on loans 16.86 Due on 30th April 2016 Delay of 12 days made good by 13th May 2016
Principal due on loans 15.14 Due on 30th April 2016 Delay of 12 days made good by 13th May 2016

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and according to the explanations given by themanagement term loans were applied for the purposes for which loans were raised.

(x) Based upon the audit procedures performed and according to the information andexplanations given by the management we report that no fraud on or by the Company hasbeen noticed or reported during the course of our audit.

(xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to usthe Company is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableInd AS.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

(xvi) The Company is not required to be registered under section 45-IA of theReserve Bank of India Act 1934.

For Dhirubhai Shah & Doshi

Chartered Accountants

Firm's registration number: 102511W

Kaushik Shah

Partner

Membership number: 016502

Place: New Delhi

Date: 27th May 2017

Annexure - B to the Auditors' Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of AsianHotels (North) Limited ("the Company") as of 31st March 2017 inconjunction with our audit of the standalone Ind AS financial statements of the Companyfor the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under Section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the standalone Ind AS financial statements whether due to fraudor error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2017based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For Dhirubhai Shah & Doshi

Chartered Accountants

Firm's Registration Number: 102511W

Kaushik Shah

Partner

Membership Number: 016502

Place: New Delhi

Date: 27th May 2017