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Oriental Hotels Ltd.

BSE: 500314 Sector: Services
NSE: ORIENTHOT ISIN Code: INE750A01020
BSE LIVE 15:40 | 15 Dec 40.15 2.40
(6.36%)
OPEN

38.35

HIGH

41.00

LOW

38.00

NSE 15:54 | 15 Dec 40.10 2.45
(6.51%)
OPEN

38.30

HIGH

40.95

LOW

37.95

OPEN 38.35
PREVIOUS CLOSE 37.75
VOLUME 37662
52-Week high 48.70
52-Week low 20.00
P/E 89.22
Mkt Cap.(Rs cr) 717
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 38.35
CLOSE 37.75
VOLUME 37662
52-Week high 48.70
52-Week low 20.00
P/E 89.22
Mkt Cap.(Rs cr) 717
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Oriental Hotels Ltd. (ORIENTHOT) - Auditors Report

Company auditors report

INDEpENDENT AuDITORS' REpORT

INDEPENDENT AUDITORS' REPORT To The Members of Oriental Hotels limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of OrientalHotels Limited ("the Company") which comprise the Balance Sheet as at 31stMarch 2017 and the Statement of Profit and Loss (including Other Comprehensive Income)the Cash Flow Statement and the Statement of Changes in Equity for the year then endedand a summary of the significant accounting policies and other explanatory information.

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 Ind AS financial statements that give a true and fair view of the stateof affairs(financial position) profit or loss (financial performance including othercomprehensive income) cash flows and changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) prescribed under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone Ind AS financial statements that give atrue 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 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 there under. We conductedour audit of the standalone Ind AS financial statements in accordance with the Standardson Auditing specified under Section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the standalone Ind AS financial statements are free from materialmisstatement. An audit involves performing procedures to obtain audit evidence about theamounts and the disclosures in the standalone Ind AS financial statements. 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. In making those risk assessments the auditor considers internal financialcontrol relevant to the Company's preparation of the standalone Ind AS financialstatements that give a true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofthe accounting policies used and the reasonableness of the accounting estimates made bythe Company's Directors as well as evaluating the overall presentation of the standaloneInd AS 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 Ind AS financial 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 including the Ind AS of thestate of affairs (financial position) of the Company as at 31st March 2017 and itsprofit (financial performance including other comprehensive income) its cash flows andthe changes in equity 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 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

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 the Cash Flow Statement andStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account.

d) In our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards prescribed under section 133 of the Act read with rule 7 ofCompanies (Accounts) Rule 2014.

e) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 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 opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements - Refer Note 29 to thestandalone financial statements;

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any long-term contracts includingderivative 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 has provided requisite disclosures in the standalone financialstatements as to holding as well as dealings in Specified Bank Notes during the periodfrom 8th November 2016 to December 2016 on the basis of information available with theCompany. Based on audit procedures and relying on management's representation we reportthat disclosures are in accordance with the books of accounts maintained by the Companyand as produced to us by the Management -Refer Note 45 to the standalone financialstatements;

For SNB ASSOCIATES

Chartered Accountants

Firm Registration No: 015682N

R. SRIDHAR

Partner

Membership No.28317

Place : Chennai

Date : May 12 2017

ANNEXURE "A" TO AUDITORS' REPORT

Referred to in paragraph 1 of our report of even date

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

b) Fixed assets have been physically verified by the Management during the year basedon a phased programme of verifying all the assets over three years which in our opinionis reasonable having regard to the size of the company and the nature of its Fixed Assets.The discrepancies noticed on such verification were not material and have been properlydealt with in the books of account.

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 Management has conducted physical verification of inventory at reasonableintervals and no material discrepancies were noticed on physical verification.

iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms or other parties covered byclause (76) of Section 2 of the Companies Act 2013. Accordingly sub-clauses (a) (b) and(c) of clause (iii) of paragraph 3 of the 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 with respectto the loans and investments made. The Company has not provided any guarantees / security.

v) The Company has not accepted any deposits from the public.

vi) The Central Government has not prescribed the maintenance of cost records underSection 148(1) of the Act.

vii) a. According to the information and explanations given to us and on the basis ofour examination of the books of account the company has been generally regular indepositing undisputed statutory dues including Provident Fund Employees' State InsuranceIncome Tax Luxury Tax Sales Tax Service tax Duty of Customs Duty of Excise ValueAdded Tax Cess and other statutory dues during the year with the appropriate authorities.There are no outstanding statutory dues as at 31st March 2017 for a period of more thansix months from the date they became payable.

b. According to the records of the company and information and explanations given tous in respect of duty of customs and duty of excise there are no outstanding amountsthat have not been deposited with the appropriate authorities on account of any dispute.The details of disputed income tax value added tax sales tax luxury tax and service taxthat have not been deposited with the appropriate authorities are as follows:

Nature of Dues Amount ( Rs. in lakhs) Forum where dispute is pending
Income tax
Income tax demand for the Assessment year 2008-09 0.46 Income tax Appellate tribunal Chennai
Income tax demand for the Assessment year 2009-10 32.36 Commissioner of Income tax (Appeals) Chennai
Sales Tax
Sales Tax Demand for the Financial Years 1990-91 & 1991-92 23.68 Appellate Tribunal Chennai
Sales Tax Demand for the Financial Years 1993-94 to 1996-97 16.61 Hon'ble High Court of Madras Chennai
Sales Tax Demand for the Financial Years 2004-05 & 2005-06 30.76 The Assistant Commissioner (Commercial Taxes) Chennai
Sales Tax Demand for the Financial Years 2009-10 3.41 The Assistant Commissioner (Commercial Taxes) Special Circle Thiruvananthapuram
Sales tax Demand for the Financial Years 2013-14 0.78 The Assistant Commissioner-III Special Circle Thiruvananthapuram
Sales tax Demand for the Financial Years 2013-14 87.55 Appellate Deputy Commissioner (Commercial Taxes) Chennai
luxury Tax
Luxury tax demands for the Financial Years 2004-05 and 2005-06 28.15 Hon'ble Kerala High court Ernakulum
Luxury tax demands for the Financial Years 2010-11 and 2011-12 14.17 Appellate Tribunal Ernakulum
Luxury tax demands for the Financial Years 2012-13 9.30 Deputy Commissioner (Appeals) Ernakulum
Luxury tax demands for the Financial Years 2012-13 2013-14 and 2014-15 9.20 Deputy Commissioner (Appeals) Madurai
Luxury tax demands for the Financial Years 2012-13 61.99 High Court Chennai
Service tax
Service Tax Demand for the Financial Years 39.68 CESTAT Bangalore
2008-09 to 2009-10
Service Tax Demand for the Financial Year 38.11 Customs Excise and Service Tax Appellate
2010-11 Tribunal Chennai
Service Tax Demand for the Financial Years 74.21 Customs Excise and Service Tax Appellate
2004-05 and 2005-06 2006-07 2007-08 Tribunal Bengaluru
2010-11
Service Tax Demand for the Financial Years 6.96 Customs Excise and Service Tax Appellate
2006-07 to 2010-11 Tribunal Chennai
Service Tax Demand for the Financial Years 88.74 Commissioner of Central excise(Appeals)
2005-06 to 2010-11 Mangalore
Service Tax Demand for the Financial Years 36.22 Commissioner of Central Excise (Appeals)
2010-11 Cochin
Service Tax Demand for the Financial Years 3.83 Commissioner of Customs Central Excise &
2009-10 to 2011-12 Service Tax (Appeals)Visakhapatnam
Service Tax Demand for the Financial Years 31.22 Commissioner of Central Excise (Appeals)
2011-2016 Coimbatore

viii) According to the information and explanations given to us the company has notdefaulted in repayment of loans or borrowings to a financial institution bank governmentor dues to debenture holders.

ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable.

x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

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

xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly

paragraph 3(xii) of the Order is not applicable.

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 applicableaccounting standards.

xiv) According to the information and explanations give 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 them. Accordingly paragraph 3(xv)of the Order is not applicable.

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

For SNB ASSOCIATES

Chartered Accountants

Firm Registration No: 015682N

R. SRIDHAR Partner

Membership No.28317

Place: Chennai

Date: May 12 2017

ANNEXURE "B" TO AUDITORS' REPORT

Referred to in paragraph 2(g) of our report of even date

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

1. We have audited the internal financial controls over financial reporting of OrientalHotels Limited ("the Company") as of March 31 2017 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

2. 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

3. 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.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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.

5. 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

6. 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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

7. 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

8. 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 March 31 2017 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 Institute of CharteredAccountants of India.

For SNB ASSOCIATES

Chartered Accountants

Firm Registration No: 015682N

R. SRIDHAR

Partner

Membership No.28317

Place : Chennai

Date : May 12 2017