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Asian Hotels (West) Ltd.

BSE: 533221 Sector: Services
NSE: AHLWEST ISIN Code: INE915K01010
BSE LIVE 15:40 | 08 Dec 209.05 3.05
(1.48%)
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213.00

HIGH

217.90

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209.00

NSE LIVE 15:26 | 08 Dec 214.00 4.00
(1.90%)
OPEN

214.10

HIGH

214.10

LOW

214.00

OPEN 213.00
PREVIOUS CLOSE 206.00
VOLUME 52
52-Week high 220.00
52-Week low 110.50
P/E
Mkt Cap.(Rs cr) 239.57
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 213.00
CLOSE 206.00
VOLUME 52
52-Week high 220.00
52-Week low 110.50
P/E
Mkt Cap.(Rs cr) 239.57
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Asian Hotels (West) Ltd. (AHLWEST) - Auditors Report

Company auditors report

To the Members of Asian Hotels (West) Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Asian Hotels (West)Limited ("the Company") which comprise the balance sheet as at 31st March2016 the statement of profit and loss and the cash flow statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

Management’s Responsibility for the Standalone 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 preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified 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 of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions 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 financial statements are free from material misstatement. An audit involvesperforming procedures to obtain audit evidence about the amounts and the disclosures inthe standalone financial statements. The procedures selected depend on the auditor’sjudgment including the assessment of the risks of material misstatement of the standalonefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company’s preparation ofthe standalone financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company’s Directors as well as evaluating theoverall presentation of the standalone financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2016 and its loss and its 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 2016 ("theOrder") issued by the Central Government of India in terms of Section 143(11) of theAct we give in the "Annexure A" a statement on the matters specified inparagraphs 3 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 theAccounting 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 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms of Section164 (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".

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 opinion and to the best of our information and accordingto the explanations given to us:

i. The Company has disclosed the impact of pending litigation on its financial positionin its standalone financial statements as referred to in Note 26 to the financialstatements.

ii. Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses;

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

For S.S. KOTHARI MEHTA & Co.

Chartered Accountants

Firm’s Registration No. 000756N

Sunil Wahal

Partner

Membership No. 087294

Date: New Delhi

Place: 24th May 2016

Annexure A to the Independent Auditor’s Report to the Members of Asian Hotels(West) Limited dated May 24 2016.

Report on the matters specified in paragraph 3 of the Companies (Auditor’s Report)Order 2016 ("the Order’) issued by the Central Government of India in terms ofsection 143(11) of the Companies Act 2013 ("the Act") as referred to inparagraph 1 of ‘Report on Other Legal and Regulatory Requirements’ section.

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

(b) Fixed assets have not been physically verified by the management during the yearhence we are unable to comment on the discrepancies if any.

(c) According to the information and explanations given to us pursuant to the Schemeof Arrangement & Demerger of Asian Hotels Ltd in the year 2009 the immovable propertyat Hyatt Regency Mumbai was transferred to and vested in the Company. This immovableproperty continues to be in the name of Asian Hotels Ltd due to pendency of stamp dutyadjudication. The Company has applied to the concerned authority for adjudication of stampduty applicable on conveyance of the property title in its favor. (Refer note 27 of thefinancial statements).

ii. In respect of the Company’s inventories:

(a) As explained to us the Management has conducted physical verification of inventoryat reasonable intervals during the year.

(b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

(c) In our opinion and according to the information and explanations given to us theCompany has maintained proper records of its inventories. The discrepancies noticed onphysical verification of inventories as compared to book records were not material andhave been properly dealt with in the books of accounts.

iii. The Company has granted unsecured loans to their subsidiary company Aria Hotels& Consultancy services private limited covered in the register maintained underSection 189 of the Act. The subsidiary company during the year has fully repaid the loanamount:

a. The terms and conditions of the grant of such loans are not prejudicial to theCompany’s interest;

b. The Company has granted tenure based interest free loans as agreed to party coveredin the register maintained under section 189 of the Act. The repayment of loans is as pertenure only.

c. Since there is no overdue amount as on the date the relevant reporting is notapplicable.

iv. In our opinion and according to the information and explanations given to usProvisions of section 185 and 186 of the Act in respect of loans to directors includingentities in which they are interested and in respect of loans and advances giveninvestments made and guarantees and securities given have been complied with by theCompany.

v. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public within the meaning of directivesissued by the Reserve Bank of India and provisions of sections 73 to 76 or any otherrelevant provisions of the Act and the Rules framed thereunder are not applicable.

vi. According to the information and explanations given to us the Central Governmenthas not prescribed maintenance of cost records under clause (d) of sub-section (1) ofsection 148 of the Act for the Company’s activities. Hence the provisions of clause3(vi) of the Order are not applicable to the Company.

vii. a. According to the records of the Company examined by us and the information andexplanations given to us the Company has generally deposited its statutory dues includingEmployees’ Provident Fund Employees’ State Insurance Investor Education andProtection Fund Income Tax Wealth Tax Service Tax Custom Duty Excise duty Cess andany other material statutory dues as applicable within the prescribed time with theappropriate authorities during the year and there are no such undisputed amounts payablewhich have remained outstanding as at March 312016 for a period of more than six monthsfrom the date they became payable.

b. According to the records of the Company the details of dues of Income-taxSales-tax Wealth-tax Service-tax Customs Duty Excise Duty and Value added tax asapplicable which have not been deposited on account of any dispute and the forum wherethe dispute is pending are as follows :

Name of the Statue Period for which the amount relates ( Financial year) Nature of Dues Forum where the dispute is pending Amount (Rupees in lacs)
Maharashtra Value Added Tax Act 2002 2010-11 VAT Assessment demand Joint commissioner of Sales Tax (Appeal) 244

viii. In our opinion and according to the information and explanations given to us weare of the opinion that the Company has not defaulted in repayment of dues to financialinstitution bank. The company does not have any outstanding debentures.

ix. In our opinion and according to the information and explanations given to us theCompany has not raised any money way of initial public offer / further public offer.Further term loans taken during the year were applied for the purpose for which the loanwere obtained.

x. In our opinion and according to the information and explanations given to us wereport that no fraud by the company or on the company by the officers and employees of theCompany has been noticed or reported during the year.

xi. In our opinion and according to the information and explanations given to us thatthe managerial remuneration has been paid / provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act.

xii. The Company is not a Nidhi company. Therefore the provisions of clause 3(xii) ofthe Order are not applicable to the Company.

xiii. In our opinion and according to the information and explanations given to usduring the course of audit transactions with the related parties are in compliance withsection 177 and section 188 of the Act and the details have been disclosed in the notes tothe financial statements as required by the applicable accounting standards.

xiv. According to the information and explanations given to us and on an overallexamination of the books of account the company has not made any preferential allotmentor private placement of shares or fully or partly convertible debentures during the yearunder review and hence not commented upon.

xv. In our opinion and according to the information and explanations given to us theCompany has not entered into any non-cash transactions with directors or persons connectedwith him.

xvi. According to the information and explanations given to us the provisions ofsection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.

For S.S. KOTHARI MEHTA & Co.

Chartered Accountants

Firm’s Registration No. 000756N

Sunil Wahal

Partner

Membership No. 087294

Date: New Delhi

Place: 24th May 2016

Annexure B to the Independent Auditor’s Report to the Members of Asian Hotels(West) Limited

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act") as referred to in paragraph 2(f) of‘Report on Other Legal and Regulatory Requirements’ section

We have audited the internal financial controls over financial reporting of AsianHotels (West) Limited ("the Company") as of March 312016 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

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". These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company’s policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

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 accordance with the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting (the "Guidance Note") and theStandards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) ofthe Act to the extent applicable to an audit of internal financial controls bothapplicable to an audit of Internal Financial Controls and both issued by the Institute ofChartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

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 included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor’s judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or 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 controlssystem over 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 standalone financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that:

a) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

b) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of standalone financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and

c) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the standalone 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 2016 based 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 S.S. KOTHARI MEHTA & Co.

Chartered Accountants

Firm’s Registration No. 000756N

Sunil Wahal

Partner

Membership No. 087294

Date: New Delhi

Place: 24th May 2016

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