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Oriental Hotels Ltd.

BSE: 500314 Sector: Services
NSE: ORIENTHOT ISIN Code: INE750A01020
BSE 00:00 | 23 Jul 44.55 0.45
(1.02%)
OPEN

43.95

HIGH

45.00

LOW

43.05

NSE 00:00 | 23 Jul 44.80 0.85
(1.93%)
OPEN

44.00

HIGH

45.20

LOW

43.20

OPEN 43.95
PREVIOUS CLOSE 44.10
VOLUME 7928
52-Week high 68.50
52-Week low 31.70
P/E 131.03
Mkt Cap.(Rs cr) 796
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 43.95
CLOSE 44.10
VOLUME 7928
52-Week high 68.50
52-Week low 31.70
P/E 131.03
Mkt Cap.(Rs cr) 796
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

To The Members of Oriental Hotels Limited

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

We have audited the accompanying standalone financial statements of ORIENTAL HOTELSLIMITED ("the Company") which comprise the Balance Sheet as at 31st March2018 the Statement of Profit and Loss (including Other Comprehensive Income) the CashFlow Statement and the Statement of Changes in Equity for the year then ended and asummary 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 financial statements to give a true and fair view of the financialposition financial performance (including other comprehensive income) cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards specified in the Companies(Indian Accounting 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 completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue 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 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 standalone financial statements in accordance withthe Standards 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 ASstandalone financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS standalone financial statements. The procedures selecteddepend on the auditors' judgment including the assessment of the risks of materialmisstatement of the Ind AS standalone financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the Ind AS standalone financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone financialstatements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS 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 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 31st2017 prepared in accordance with Ind AS included in this Statement has been audited by thepredecessor auditor. The report of the predecessor auditor on this comparative financialinformation dated May 12th 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 ourknowledge 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 standalone financial statements comply with theIndian Accounting 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 aredisqualified 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 standalone financial statements at Note No. 28.

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. Unclaimed dividend for the year 2009-10 was transferred to the Investor Educationand Protection Fund by the Company after a delay of 12 days in the current year.

For PKF SRIDhAR & SANThANAM LLP

Chartered Accountants

Firm's Registration No.003990S/S200018

S. RAJESHWARI

Partner

Membership No. 024105

Place : Chennai

Date : May 9 2018

ANNEXURE A TO INDEPENDENT AUDITOR'S REPORT

Referred to in paragraph 1 of the Independent Auditor's Report of even date to themembers of Oriental Hotels Limited on the Ind AS standalone financial statements as of andfor the year 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 based on theexamination of the relevant records provided to us we report that the title deedscomprising all the immovable properties of land and buildings are held in thename/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. Based on our audit procedures and according to the information and explanationgiven to us the Company has not granted any loans secured or unsecured to anycompanies firms or other parties covered in the register maintained under Section 189and accordingly subclauses a b and c of clause iii of paragraph 3 of the Order are notapplicable.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 186 of the Act with respect to theloans and investments made. The Company has not provided any guarantees or security. TheCompany has not granted any loans under Section 185.

v. Based on our audit procedures and 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 reportingunder 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 Employees State Insurance income-tax sales-tax service-taxduty of customs value added tax Goods and Services Tax luxury tax and cess with theappropriate authorities during the year and that there are no arrears of statutory duesoutstanding as at 31 March 2018 for a period of more than six months from the date theybecame payable.

b. Dues relating to income tax/sales tax/luxury tax/service tax which have not beendeposited with the appropriate authorities on account of any dispute are stated in thetable below:

Nature of dues Forum where dispute is pending Sum of Amount ( Rs In lakhs)*
Income Tax Commissioner of Income Tax (Appeals) Chennai 32.36
Income Tax Income Tax Appellate Tribunal 0.46
Subtotal 32.82
Luxury Tax hon'ble Madras high Court 62.00
Luxury Tax hon'ble Kerala high Court Ernakulam 28.16
Luxury Tax Appellate Tribunal Ernakulam 23.47
Luxury Tax Deputy Commissioner (Appeals) Madurai 9.20
Luxury Tax Deputy Commissioner (Appeals) Thiruvananthapuram 0.55
Subtotal 123.38
Sales Tax Appellate Deputy Commissioner Commercial Taxes Chennai 87.55
Sales Tax The Assistant Commissioner Commercial Taxes Chennai 30.76
Sales Tax Appellate Tribunal Chennai 23.68

 

Nature of dues Forum where dispute is pending Sum of Amount ( Rs In lakhs)*
Sales Tax hon'ble Madras high Court 16.61
Sales Tax The Assistant Commissioner (Commercial Taxes) Special Circle Thiruvananthapuram 3.41
Sales Tax The Assistant Commissioner-III Special Circle Thiruvananthapuram 0.78
Subtotal 162.79
Service Tax Central Excise & Service Tax Appellate Tribunal Chennai 94.73
Service Tax Commissioner of Central Excise (Appeals) Mangalore 88.74
Service Tax Customs Excise and Service Tax Appellate Tribunal Bangalore 41.03
Service Tax Central Excise & Service Tax Appellate Tribunal Kochi 17.35
Service Tax Commissioner of Central Excise (Appeals) Vishakhapatnam 8.15
Service Tax Commissioner of Customs Central Excise and Service Tax (Appeals) Vishakhapatnam 3.45
Service Tax The Commissioner of CGST & Central Excise Review Section Madurai 2.00
Subtotal 255.45

* net of amounts paid under protest.

viii. Based on our audit procedures and according to the information and explanationsgiven to us the company has not defaulted in repayment of loans or borrowings to afinancial institution bank government or dues to debenture holders.

ix. Based on our audit procedures and according to the information and explanationsgiven to us no term loans were raised during the year. The Company did not raise anymoney by way of initial/further public offer. Accordingly the provisions of Clause 3(ix)of the Order are not 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 standalone financial statements asrequired by the applicable accounting standards.

xiv. Based on our audit procedures and according to the information and explanationsgiven to us the Company has not made any preferential allotment/private placement ofshares/fully/partly convertible debentures during the year under review. Accordingly theprovisions of Clause 3(xiv) of the Order are not applicable 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 them.

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. RAJESHWARI

Partner

Membership No. 024105

Place : Chennai

Date : May 9 2018

ANNEXURE B TO INDEPENDENT AUDITOR'S REPORT

Referred to in paragraph 2(f) of the Independent Auditor's Report of even date to themembers of Oriental Hotels Limited on the Ind AS Standalone financial statements for theyear ended March 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 ORIENTALHOTELS LIMITED ("the Company") as of March 31 2018 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

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 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 standalone 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 standalonefinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on the standalonefinancial 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. RAJESHWARI

Partner

Membership No. 024105

Place : Chennai

Date : May 9 2018