To the Board of Directors of
Asian Hotels (East) Limited
Report on the Audit of Standalone Financial Results
1. We have audited the accompanying standalone annual financial resultsof Asian Hotels (East) Limited ('the Company") for the year ended 31st March 2021 andthe standalone statement of assets and liabilities along with the cash flows as at and forthe year ended 31st March 2021 attached herewith being submitted by the Company pursuantto the requirement of regulation 33 of the SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015 as amended ("Listing Regulation").
2. In our opinion and to the best of our information and according tothe explanations given to us the aforesaid standalone financial statements
a. are presented in accordance with the requirements of Regulation 33of the Listing Regulations in this regard; and
b. except for the possible effect of the matter described in Rs. Basisfor Qualified Opinion" paragraph below gives a true and fair view in conformity withthe recognition and measurement principles laid down in the applicable Indian AccountingStandards (Ind AS) and other accounting principles generally accepted in India of the netprofit and other comprehensive income and other financial information for the year ended31st March 2021.
Basis for Qualified Opinion
3. Attention is drawn to the following of the accompanying thestandalone financial results:
The Company has investment in Robust Hotels Private Limited (RHPL)(subsidiary) amounting Rs 56736 lakhs and loan receivable of Rs 4230 lakhs as on March31 2021. The financial performance of the subsidiary company and adverse impact of thepandemic Covid-19 on the operation of the subsidiary indicate a need for impairmenttesting of investment and loan receivable in the subsidiary. However management has notcarried out any impairment testing as required under IND AS 36 (Impairment of Assets) ofthe above investment and loans for reasons explained in Note No 4 . The management isconfident that the recoverable amount of the investment and loan receivable in RHPL willnot be less than the amount at which they have been stated in the balance sheet.
Impact of the above matter on the financial statement is notascertainable and as such cannot be commented upon.
4. We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Companies Act 2013 as amended ("theAct"). Our responsibilities under those Standards are further described in the"Auditor's Responsibilities for the Audit of the Annual Standalone FinancialResults" section of our report. We are independent of the Company in accordance withthe Code of Ethics issued by the Institute of Chartered Accountants of India together withthe ethical requirements that are relevant to our audit of financial statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our ethicalresponsibilities in accordance with the requirements and the Code of Ethics. We believethat the audit evidence obtained by us is sufficient and appropriate to provide a basisfor our opinion on the standalone annual financial results.
Emphasis of Matter
5. We draw attention to Note No. 5 to the standalone financial resultswhich describes the impact of COVID-19 a global pandemic on the operations and financialmatters of the company.
Our opinion is not modified in respect of this matter
Management's and Board of Directors' Responsibilities of the AnnualStandalone Financial Results
6. These standalone annual results have been prepared on the basis ofthe annual standalone financial statements. The Company's Management and the Board ofDirectors are responsible for the preparation and presentation of the financial resultsand information that gives a true and fair view of the net profit and other comprehensiveincome of the Company and other financial information in accordance with the applicableaccounting standards prescribed under Section 133 of the Act read with relevant rulesissued there under and other accounting principles generally accepted in India and incompliance with Regulation 33 of the Listing Regulations. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and the designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Statement that give a trueand fair view and are free from material misstatement whether due to fraud or error.
7. In preparing the annual financial results the Management and theBoard of Directors are responsible for assessing the Company's ability to continue as agoing concern disclosing as applicable matters related to going concern and using thegoing concern basis of accounting unless the Board of Directors either intends toliquidate the Company or to cease operations or has no realistic alternative but to doso.
8. The Board of Directors are also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibilities for the Audit of the Annual StandaloneFinancial Results
9. Our objectives are to obtain reasonable assurance about whether theannual financial results as a whole are free from material misstatement whether due tofraud or error and to issue an auditor's report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of the statement.
10. As part of an audit in accordance with SAs we exerciseprofessional judgment and maintain professional skepticism throughout the audit. We also:
a. Identify and assess the risks of material misstatement of thefinancial results whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.
b. Obtain an understanding of internal control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under Section143(3)(i) of the Act we are also responsible for expressing our opinion through aseparate report on the complete set of standalone financial statements whether the companyhas adequate internal financial controls with reference to financial statements in placeand the operating effectiveness of such controls.
c. Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by the Management andBoard of Directors.
d. Conclude on the appropriateness of the Management and Board ofDirectors' use of the going concern basis of accounting and based on the audit evidenceobtained whether a material uncertainty exists related to events or conditions that maycast significant doubt on the Company's ability to continue as a going concern. If weconclude that a material uncertainty exists we are required to draw attention in ourauditor's report to the related disclosures in the financial results or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However future events orconditions may cause the Company to cease to continue as a going concern.
e. Evaluate the overall presentation structure and content of thefinancial results including the disclosures and whether the financial results representsthe underlying transactions and events in a manner that achieves fair presentation.
11. Materiality is the magnitude of misstatements in the financialresults that individually or in aggregate make it probable that the economic decisions ofa reasonably knowledgeable user of the financial results may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial results.
12. We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
13. We also provide those charged with governance with a statement thatwe have complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
14. The standalone annual financial results include the results for thequarter ended 31 March 2021 being the balancing figure between the audited figures inrespect of the full financial year and the published unaudited year to date figures up tothe third quarter of the current financial year which were only reviewed and not subjectedto audit by us.
15. The standalone annual financial results dealt with in this reporthas been prepared for the express purpose of filing with stock exchanges. These resultsare based on and should be read with the standalone financial statements of the Companyfor the year ended March 31 2021 on which we issue a modified audit opinion vide ourreport dated June 23 2021.