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Best Eastern Hotels Ltd.

BSE: 508664 Sector: Services
NSE: N.A. ISIN Code: INE553F01035
BSE LIVE 15:13 | 27 Feb 59.30 0.05
(0.08%)
OPEN

57.00

HIGH

59.30

LOW

56.80

NSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 57.00
PREVIOUS CLOSE 59.25
VOLUME 1720
52-Week high 73.00
52-Week low 27.00
P/E 658.89
Mkt Cap.(Rs cr) 100.22
Buy Price 57.50
Buy Qty 250.00
Sell Price 59.30
Sell Qty 125.00
OPEN 57.00
CLOSE 59.25
VOLUME 1720
52-Week high 73.00
52-Week low 27.00
P/E 658.89
Mkt Cap.(Rs cr) 100.22
Buy Price 57.50
Buy Qty 250.00
Sell Price 59.30
Sell Qty 125.00

Best Eastern Hotels Ltd. (BESTEASTERNHOT) - Auditors Report

Company auditors report

To

The Members of

BEST EASTERN HOTELS LIMITED.

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Best EasternHotels Limited ("the Company") which comprise the Balance Sheet as at 31stMarch 2016 the Statement of Profit and Loss 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 management and Board of Directors of the Company are responsible for the mattersstated in Section134(5) of the Companies Act 2013 (‘the act’) with respect tothe preparation of these standalone financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with rule 7 of Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding 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; design implementation and maintenance of adequate internalfinancial controls that are 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.

Auditors’ 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 involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the 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 accounting policies used and the reasonableness of theaccounting estimates made by the Company’s management and Board of Directors as wellas evaluating the overall presentation of the 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 its Profit and its cash flows for the year ended onthat 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 sub-section (11) ofsection143 of the Act we give in the Annexure-‘A’ a statement on the mattersSpecified in paragraphs 3 and 4 of the Order to the extent applicable.

2. As required by section 143(3) of the Act we further 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 purpose of our audit;

b. In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books;

c. The Balance Sheet the Statement of Profit and Loss and cash flow statement dealtwith by this Report are in agreement with the books of account;

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

e. On the basis of written representations received from the directors as on March312016 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 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. In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014:

i. The Company does not have any pending litigations which would impact its financialposition except as stated otherwise.

ii. The Company did not have any long-term contracts including derivative contracts; assuch the question of commenting on any material foreseeable losses thereon does not arise.

iii. There has not been an occasion in case of the Company during the year under reportto transfer any sums to the Investor Education and Protection Fund. The question of delayin transferring such sums does not arise.

FOR: AMAR BAFNA& ASSOCIATES

CHARTERED AACCOUNTANTS

ICAI Firm Registration No: 114854W

Amar Bafna

Partner

Membership No: 048639

Place : Mumbai

Date : May 30 2016

ANNEXURE- A TO THE AUDITOR’S REPORT

(Annexure Referred To In Paragraph 1 under the heading "Report on other legal andregulatory requirements "of Our Report of Even Date.)

On the basis of such checks as we considered appropriate area according to theinformation and explanation given to us during the course of our audit we state that:

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

B. As explained to us the fixed assets have been physically verified by the managementat reasonable intervals during the year and no material discrepancies were noticed onverification.

C. Based on the audit procedures performed and according to the records of the companytitle deed of immovable property are held in the name of the company.

ii) As explained to us the inventory has been physically verified during the year bythe directors. In our opinion the frequency of verification is reasonable. No materialdiscrepancies were observed during physical verification of inventory.

iii) According to information and explanations given to us the Company has not grantedany loan secured or unsecured to companies firms or other parties covered under section189 of the Act. Accordingly paragraph 3(iii) of the said Order are not applicable.

iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act in respect ofloans investments guarantees and security to the extent applicable to it.

v) According to the information and explanations given to us the Company has notaccepted any deposits from the public covered under section 73 to 76 of the Companies Act2013 and the rules framed thereunder. Therefore the provision of clause 3(v) of the Orderis not applicable to the Company.

vi) To the best of our knowledge and as explained Central Government has notprescribed the maintenance of cost records under sub-section (1) of Section 148 of the Act for the products of the Company. Therefore the provision of clause 3(vi) of the Orderis not applicable to the Company.

vii) (a) According to the records of the Company and the information and explanationsgiven to us the Company has been generally regular in depositing with appropriateauthorities undisputed statutory dues including provident fund Employees’ StateInsurance Income Tax Sales Tax Service Tax Customs Duty Excise Duty Value Added TaxCess and any other statutory dues to the extent applicable to it.

According to the information and explanations given to us and based on the records ofthe company examined by us no undisputed amounts payable in respect of Provident FundEmployees’ State Insurance Income Tax Service Tax Sales Tax Customs Duty ExciseDuty Value Added Tax Cess and other material statutory dues were outstanding at theyear end for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us there are no dues ofIncome Tax Sales Tax Service Tax Customs Duty Excise Duty and Value Added Tax whichhave not been deposited on account of any dispute.

(viii) Based on our audit procedures and as per the information and explanations givenby the management the Company has not made any default in repayment of dues to afinancial institution or any loans from banks government or has not issued debenturesduring the year.

(ix) According to the records of the company examined by us and as per the informationand explanations given to us the Company has not raised any money from any Public Issue /follow-on offer. Therefore the provision of clause 3(ix) of the Order is not applicableto the Company.

(x) Bases upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and as per the information and explanations given tous by the management we report that no fraud on or by the Company has been noticed orreported during the year.

(xi) According to the records of the company examined by us and as per the informationand explanations given to us the Company has provided managerial remuneration during theyear. Refer to notes to accounts (Point no. i)

(xii) In our opinion the Company is not a chit fund or a nidhi/mutual benefitfund/society. Therefore the provision of clause 3(xii) of the Order is not applicable tothe Company.

(xiii) In our opinion all the transactions with the related parties are in compliancewith section 177 and 188 of the Act where applicable and the details have been disclosedin the financial statements as required by applicable accounting standard. Refer Notes toAccounts. (Point No. j)

(xiv) The Company has not made any preferential allotment or private placement ofshares or partly or fully convertible debentures during the year therefore reportingunder clause 3(xiv) shall not be applicable.

(xv) According to the information and explanations given to us we report that theCompany has not entered into any non-cash transaction with directors or persons connectedwith him.

(xvi) In our opinion the Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.

FOR: AMAR BAFNA& ASSOCIATES

CHARTERED AACCOUNTANTS

ICAI Firm Registration No: 114854W

Amar Bafna

Partner

Membership No: 048639

Place : Mumbai

Date : May 30 2016.

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")

In conjunction with our audit of the standalone financial statements of the Company asof and for the year ended 31 March 2016 we have audited the internal financial controlsover financial reporting of Best Eastern Hotels Ltd. ("the Company").

Management’s Responsibility for Internal Financial Controls

The Respective Board of Directors of the Company are responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India("ICAI’). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany’s policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information 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") issued by ICAI and the Standards on Auditing issued byICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both issued by the Instituteof Chartered 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 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 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 processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of 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 (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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.

MATHERAN

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 31 March 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the ICAI.

FOR: AMAR BAFNA& ASSOCIATES

CHARTERED AACCOUNTANTS

ICAI Firm Registration No: 114854W

Amar Bafna

Partner

Membership No: 048639

Place : Mumbai

Date : May 30 2016.