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Blue Coast Hotels Ltd.

BSE: 531495 Sector: Services
NSE: BLUECOAST ISIN Code: INE472B01011
BSE 00:00 | 01 Aug 98.20 0
(0.00%)
OPEN

98.20

HIGH

98.20

LOW

98.20

NSE 05:30 | 01 Jan Blue Coast Hotels Ltd
OPEN 98.20
PREVIOUS CLOSE 98.20
VOLUME 1
52-Week high 144.00
52-Week low 84.90
P/E
Mkt Cap.(Rs cr) 125
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 98.20
CLOSE 98.20
VOLUME 1
52-Week high 144.00
52-Week low 84.90
P/E
Mkt Cap.(Rs cr) 125
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Blue Coast Hotels Ltd. (BLUECOAST) - Auditors Report

Company auditors report

To the Members of Blue Coast Hotels Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Blue CoastHotels Limited ("the Company") which comprise the Balance Sheet as at 31stMarch 2017 the statement of Profit and Loss and the Cash Flow Statement for the year thenended and a summary of 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 preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified 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 financial statements that give a true and fair viewand are free from material 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 financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditors' judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 2017 and its loss and its cash flows for the year ended on that date.

Emphasis of Matter

Without qualifying our opinion we draw attention to the following notes on thefinancial statements:

i. Note no. 9 (A) (b) and 25(b) to the financial statements regarding no provision forinterest or any other charges has been made on debentures pending litigation and recoveryproceedings since 1st April 2015. Further the interest on term loan from financialinstitution is provided at simple contracted rate of interest since 1st April 2015.

ii. Note no. 9(B) to the financial statements regarding the secured lender IFCI Limitedhad initiated the recovery proceedings and allegedly auctioned the hotel property underthe provisions of the SARFAESI Act which was contested by the company at Hon'ble HighCourt of Bombay. By the Judgement dated 23.3.2016 the Hon'ble Bombay High Court quashedand set aside the alleged auction sale of property and directed secured lender IFCI

Limited to refund the sale consideration to auction purchaser ITC Limited subsequentlyITC Ltd & IFCI Ltd have approached the Hon'ble Supreme Court against the Bombay HighCourt judgment whereupon the grant of stay against the order was not accepted. The Hon'bleSupreme Court ordered 'Status Quo' as on 22nd April 2016 be maintained and furtherordered that the amounts paid by ITC Limited in the auction purchase shall remain with theIFCI Ltd until further orders. The Hotel property continues to be operated under the brand"Park Hyatt Goa Resort & Spa" & maintained under management agreementwith Hyatt International.

iii. In view of above the assumption of going concern is dependent upon realization ofthe various initiatives undertaken by the company outcome of court cases and/ or thecompany's ability to raise requisite finance/ generate cash flow in future to meet itsobligations including financial support to its subsidiary companies.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors' 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 to the extent applicable.

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 and the Cash Flow Statementdealt with by this Report are in agreement with the books of account;

(d) in our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 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"; and

(g) with respect to the other matters to be included in the Auditors' 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 financial statements - Refer Note no. 20 to the financial statements; ReferNote No. 20 to the financial statement

(ii) the Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses;

(iii) no amount was required to be transferred to the Investor Education and ProtectionFund by the Company;

(iv) the company has provided requisite disclosure in its financial statements as toholdings as well as dealing in Specified Bank Notes during the period from 8th November2016 to 30th December 2016 and these are in accordance with the books of accountsmaintained by the company. Refer Note No. 20 to the financial statement

For M Kamal Mahajan & Co LLP
Chartered Accountants
(Firm Regn. No. 006855N/N500061)
CA. M. K. Mahajan
Place: New Delhi Partner
Date: 26th May 2017 (M.No. 017418)