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Benares Hotels Ltd.

BSE: 509438 Sector: Services
NSE: N.A. ISIN Code: INE664D01019
BSE 00:00 | 22 Mar 1533.15 19.70
(1.30%)
OPEN

1499.00

HIGH

1548.00

LOW

1499.00

NSE 05:30 | 01 Jan Benares Hotels Ltd
OPEN 1499.00
PREVIOUS CLOSE 1513.45
VOLUME 215
52-Week high 1548.00
52-Week low 1110.05
P/E 22.76
Mkt Cap.(Rs cr) 199
Buy Price 1450.10
Buy Qty 10.00
Sell Price 1589.10
Sell Qty 14.00
OPEN 1499.00
CLOSE 1513.45
VOLUME 215
52-Week high 1548.00
52-Week low 1110.05
P/E 22.76
Mkt Cap.(Rs cr) 199
Buy Price 1450.10
Buy Qty 10.00
Sell Price 1589.10
Sell Qty 14.00

Benares Hotels Ltd. (BENARESHOTELS) - Auditors Report

Company auditors report

TO THE MEMBERS OF BENARES HOTELS LIMITED

Report on the Indian Accounting Standards (Ind AS) Financial Statements

We have audited the accompanying financial statements of BENARES HOTELS LIMITED("the Company") which comprise the Balance Sheet as at 31st March 2018 theStatement of Profit and Loss (including Other Comprehensive Income) the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and a summary ofthe significant accounting policies and other explanatory information.

Management's Responsibility for the Ind AS 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 Ind AS financial statements to give a true and fair view of the financial positionfinancial performance (including other comprehensive income) cash flows and changes inequity of the Company in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards specified in the Companies (IndianAccounting Standards) Rules 2015 (as amended) under Section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and complete-ness of the accountingrecords relevant to the preparation and presentation of the Ind AS financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit.

We have taken into account the provisions of the Act and the Rules made thereunderincluding the accounting and auditing standards and matters which are required to beincluded in the audit report under the provisions of the Act and the Rules made thereunderand the Order issued under section 143(11) of the Act.

We conducted our audit of the Ind AS financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act and other applicableauthoritative pronouncements issued by the Institute of Chartered Accountants of India.Those Standards and pronouncements require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the Ind ASfinancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend on theauditors' judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit 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 Ind 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 Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe 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 March 31 2018 and its profit (including other comprehensive income) its cashflows and the changes in equity for the year ended on that date.

Other Matter

The comparative financial information of the Company for the year ended March 31st2017prepared in accordance with Ind AS included in this Statement have been audited by thepredecessor auditor. The report of the predecessor auditor on these comparative financialinformation dated 08th May 2017 expressed an unmodified opinion.

Our report is not modified in respect of this matter

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 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 (including other comprehensiveincome) the Cash Flow Statement and the Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account.

(d) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act.

(e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 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". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

(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 as at March 31 2018 onits financial position in its Ind AS financial statements at Note No.27.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses as at March 31 2018.

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

For PKF Sridhar & Santhanam LLP

Chartered Accountants

Firm's Registration No.003990S/S200018

S. Ramakrishnan

Partner

Membership No.018967

Place: Mumbai

Dated: 10th May 2018

Annexure-A to Independent Auditor's Report

Referred to in paragraph 1 of the Independent Auditors' Report of even date to themembers of Benares Hotels Limited on the Ind AS financial statements as of and for theyear ended March 31 2018

i. In respect of its fixed assets

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

b. The Company has a program of verification of fixed assets in a three year periodwhich in our opinion is reasonable having regard to the size of the Company and thenature of its assets. Fixed assets have been physically verified by the management duringthe year as per the said program. As informed discrepancies noticed on such verificationwere not material and have been properly dealt with in the books of account.

c. According to the information and explanations given to us and the records examinedby us and based on the examination of the relevant records provided to us we report thatthe title deeds comprising all the immovable properties of land and buildings which arefreehold are held in the name/erstwhile name of the Company as at the balance sheet date.

ii. As explained to us the inventories were physically verified during the year by theManagement at reasonable intervals and no material discrepancies were noticed on physicalverification.

iii. In respect of loans given:

a. Based on our audit procedures & according to the information and explanationgiven to us the Company has granted loan (unsecured) to a party covered in the registermaintained under section 189 and the terms and conditions of the grant of such loan arenot prejudicial to the Company's interest.

b. For this loan the schedule of repayment of principal and payment of interest hasbeen stipulated and the receipt of principal amount and interest where applicable isregular.

c. There are no amounts overdue for more than 90 days

iv. Based on our audit procedures & according to the information and explanationgiven to us in respect of loans investments guarantees and security provisions ofsection 185 and 186 of the Act have been complied with.

v. Based on our audit procedures & according to the information and explanationsgiven to us the Company has not accepted any deposits from the public within the meaningof the provisions of Section 73 of the Act and Rules made thereunder and hence clause (v)is not applicable.

vi. The Central Government of India has not specified the maintenance of cost recordsunder sub-section (1) of Section 148 of the Act for any of the products of the Company.

vii. According to the information and explanations given to us in respect of statutorydues:

a. The company has generally been regular in depositing undisputed statutory duesincluding provident fund income-tax sales-tax service-tax goods & service tax dutyof customs value added tax luxury tax and cess with the appropriate authorities duringthe year and that there are no disputed amounts in respect of these dues which haveremained outstanding as at 31 March 2018 for a period of more than six months from thedate they became payable.

b. Dues relating to income tax / sales tax / service tax / duty of customs / duty ofexcise / value added tax/ goods and service tax which have not been deposited on accountof any dispute are stated in the table below:

Name of the Statute Period Amount (in INR Lakhs) Forum where the dispute is pending
Income Tax Act 1961 FY 2012-13 0.98* CIT-Appeals (Varanasi)
Income Tax Act 1961 FY 2014-15 58.24* CIT-Appeals (Varanasi)
Service Tax (Finance Act 1994) FY 2012-13 to 2014-15 9.70 Asst. Commissioner CGST & Central Excise Audit Circle Varanasi
U. P. Trade Tax Act FY 2006-07 & FY 2007-08 26.27* 1st Appellate Authority UP VAT

*net of amounts paid under protest

viii. Based on our audit procedures and according to the information and explanationsgiven to us there were no loans or borrowings from financial institutions or governmentnor has it issued any debentures during the year. Accordingly the provisions of Clause3(viii) of the Order are not applicable to the Company.

xi. In our opinion and according to the information and explanations given to us thereare no term loans raised or outstanding during the year. The Company did not raise anymoney by way of public offer. Accordingly the provisions of Clause 3(ix) of the Order arenot applicable to the Company.

x. To the best of our knowledge and belief and according to the information andexplanations given to us no fraud by the Company and no fraud on the Company by itsofficers or employees has been noticed or reported during the year.

xi. Based on our audit procedures and according to the information and explanationsgiven to us the Company has paid/provided managerial remuneration in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act 2013.

xii. As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it the provisions of Clause 3(xii) of the Order are not applicable to the Company.

xiii. Based on our audit procedures and according to the information and explanationsgiven to us the Company is in compliance with Section 177 and 188 of the Companies Act2013 where applicable for all transactions with the related parties and the details ofrelated party transactions have been disclosed in the financial statements as required bythe applicable accounting standards.

xiv. Based on our audit procedures and according to the information and explanationsgiven to us the Company has not made any private placement of equity shares during theyear under review. Accordingly the provisions of Clause 3(xiv) of the Order are notapplicable to the Company.

xv. Based on our audit procedures and according to the information and explanationsgiven to us the Company has not entered into any non-cash transactions with directors orpersons connected with him.

xvi. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the Company.

For PKF Sridhar & Santhanam LLP

Chartered Accountants

Firm's Registration No.003990S/S200018

S. Ramakrishnan

Partner

Membership No.018967

Place: Mumbai

Dated: 10th May 2018

Annexure-B to Independent Auditor's Report

Referred to in paragraph 2(f) of the Independent Auditors' Report of even date to themembers of Benares Hotels Limited on the Ind AS financial statements for the year endedMarch 31 2018

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 BENARESHOTELS LIMITED ("the Company") as of March 31 2018 in conjunction with ouraudit of the financial statements of the Company for the year 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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 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 wereestablished 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 judgement 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 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 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

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 maintained in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2018 basedon 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 PKF Sridhar & Santhanam LLP

Chartered Accountants

Firm's Registration No.003990S/S200018

S. Ramakrishnan

Partner

Membership No.018967

Place: Mumbai

Dated: 10th May 2018