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Asian Hotels (North) Ltd.

BSE: 500023 Sector: Services
NSE: ASIANHOTNR ISIN Code: INE363A01022
BSE 16:01 | 25 Feb 81.90 1.25
(1.55%)
OPEN

78.50

HIGH

81.90

LOW

74.10

NSE 15:46 | 25 Feb 77.00 -1.00
(-1.28%)
OPEN

78.80

HIGH

79.45

LOW

74.70

OPEN 78.50
PREVIOUS CLOSE 80.65
VOLUME 11
52-Week high 152.00
52-Week low 72.90
P/E
Mkt Cap.(Rs cr) 159
Buy Price 74.30
Buy Qty 1.00
Sell Price 93.00
Sell Qty 100.00
OPEN 78.50
CLOSE 80.65
VOLUME 11
52-Week high 152.00
52-Week low 72.90
P/E
Mkt Cap.(Rs cr) 159
Buy Price 74.30
Buy Qty 1.00
Sell Price 93.00
Sell Qty 100.00

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

Company auditors report

To the Members of Asian Hotels (North) Limited Report on the Standalone FinancialStatements

We have audited the accompanying standalone financial statements of Asian Hotels(North) Limited (‘the Company') which comprise the balance sheet as at 31 March2018 the Statement of Profit and Loss (including other comprehensive income) and theStatement of Cash flows and the Statement of changes in equity for the year then endedand a summary of significant accounting policies and other explanatory information (hereinafter referred to as "Standalone financial statements").

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 preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance including other comprehensive income cashflows and changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedunder 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 standalonefinancial 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 financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder 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 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 of thestandalone financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of the accounting policies used and the reasonableness of theaccounting estimates made by the Company's Directors as well as evaluating the overallpresentation of the standalone financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our 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 31 March 2018 and its loss including other comprehensive income its cash flowsand 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 34(d) and 34(e) to the standalone financial statements which describes theuncertainty related to the outcome of the law-suits filed against the Company and also inwhich the Company 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 andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. b. In our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books; c. The balance sheet the statement of profit and loss and thecash flow statement dealt 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 the Companies (Accounts) Rules 2014; e. On thebasis of the written representations received from the directors as on 31stMarch2018 taken on record by the Board of disqualified Directors none of the directorsas on 31stMarch 2018 from being appointed as a director in terms of Section 164(2) of the Act; f. With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate report in "Annexure B"; and g. With respect to the other mattersto be included in the Auditor's Report in accordance with Rule 11 of the Companies (Auditand 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 wherevernecessary of pending litigations on its financial position in its financial statements(Refer Note 34 of the standalone financial statements) except as mentioned above under theparagraph on

‘e mphasis of Matters'; ii. the Company has made provision as required under theapplicable law or Indian Accounting Standards for material foreseeable losses if any onlong-term contracts including derivative contracts; iii. There has been no delay intransferring amounts required to be transferred to the Investor education and ProtectionFund by the Company.

For Dhirubhai Shah & Co
Chartered Accountants
Firm's registration number: 102511W
Harish B Patel
Partner
Membership number: 014427
Place: New Delhi
Date: 28th May 2018

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the standalone financial statements for the year ended 31st March 2018 wereport 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 andthe book records were not material in relation to the operations of the Company and thesame have 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 the Order 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 section 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 costrecords under 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 is generallyregular in depositing with appropriate authorities undisputed statutory dues includingProvident Fund employees' State Insurance Income Tax Value Added Tax Central SalesTax Wealth Tax Service Tax Custom Duty excise Duty GST Cess and other statutory duesapplicable to it. According to the information and explanations given to us in ouropinion no undisputed amounts payable in respect of statutory dues including ProvidentFund employees' State Insurance Income Tax Value Added Tax Central Sales Tax WealthTax Service Tax Custom Duty excise Duty GST Cess and other statutory dues applicableto it were in arrears as at the balance sheet date for a period of more than six monthsfrom the date they became payable.

(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) In our opinion and according to the information and explanation given to usthe Company has not defaulted in repayment of dues to a financial institution banks orGovernment during the year. The company does not have any debenture holders.

(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 give 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 basedon our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or persons connected with him. Accordingly paragraph3(xv) of the 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 & Co
Chartered Accountants
Firm's registration number: 102511W
Harish B Patel
Partner
Membership number: 014427
Place: New Delhi
Date: 28th May 2018

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 2018 inconjunction with our audit of the standalone financial statements of the Company for theyear 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 financial statements whether due to fraud orerror.

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 31 March 2018 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 Dhirubhai Shah & Co
Chartered Accountants
Firm's Registration Number: 102511W
Harish B Patel
Partner
Membership Number: 014427
Place: New Delhi
Date: 28th May 2018