Mar 31, 2018
Independent Auditorâs Report
To the Members of Asian Hotels (North) Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Asian Hotels (North) Limited (âthe Companyâ), which comprise the balance sheet as at 31 March 2018, the Statement of Profit and Loss (including other comprehensive income), and the Statement of Cash flows and the Statement of changes in equity for the year then ended, and a summary of significant accounting policies and other explanatory information (herein after referred to as âStandalone financial statementsâ).
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (In AS) specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide 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 explanations given to us, the aforesaid standalone financial statements give the information required by the Act, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March, 2018, and its loss including other comprehensive income, its cash flows and 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 financial statements:
Note 34(d) and 34(e) to the standalone financial statements, which describes the uncertainty related to the outcome of the law-suits filed against the Company and also in which 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 (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of subsection (11) of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in the paragraph 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 best of 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 the Company 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 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 Indian Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
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 is disqualified as 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 over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; and
g. With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. the Company has disclosed the impact, wherever necessary, of pending litigations on its financial position in its financial statements (Refer Note 34 of the standalone financial statements) except as mentioned above under the paragraph on âEmphasis of Mattersâ;
ii. the Company has made provision, as required under the applicable law or Indian Accounting Standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
Annexure - A to the Auditorsâ Report
The Annexure referred to in Independent Auditorsâ Report to the members of the Company on the standalone financial statements for the year ended 31st March 2018, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular program of physical verification of its fixed assets. In accordance with this program, fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
(ii) The inventory has been physically verified at reasonable intervals by the management. The discrepancies noticed on verification between the physical stocks and the book records were not material in relation to the operations of the Company and the same have been properly dealt with in the books of account.
(iii) As informed to us, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013 (âthe Actâ) except certain advance for expenses/trade receivables recoverable in the normal course of business 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 us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.
(v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits covered by the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under.
(vi) The Central Government has not prescribed the maintenance of cost records 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 generally regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund, Employeesâ State Insurance, Income Tax, Value Added Tax, Central Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, GST, Cass and other statutory dues applicable to it.
According to the information and explanations given to us, in our opinion no undisputed amounts payable in respect of statutory dues including Provident Fund, Employeesâ State Insurance, Income Tax, Value Added Tax, Central Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, GST, Cass and other statutory dues applicable to it were in arrears as at the balance sheet date for a period of more than six months from the date they became payable.
(b) According to the records of the Company, there are no dues outstanding of Income Tax, Sales Tax (including Value Added Tax and Central Sales Tax), Wealth Tax, Service Tax, Custom 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 us, the Company has not defaulted in repayment of dues to a financial institution, banks or Government 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 further public offer (including debt instruments) and according to the explanations given by the management, term loans were applied for the purposes for which loans were raised.
(x) Based upon the audit procedures performed and according to the information and explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit.
(xi) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable Ind AS.
(xiv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
Annexure - B to the Auditorsâ Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Asian Hotels (North) Limited (âthe Companyâ) as of 31st March 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''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 financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Dhirubhai Shah & Co
Chartered Accountants
Firmâs Registration Number: 102511W
Harish B Patel
Partner
Membership Number: 014427
Place: New Delhi
Date: 28th May 2018
Mar 31, 2017
To the Members of Asian Hotels (North) Limited
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Asian Hotels (North) Limited (âthe Companyâ), which comprise the balance sheet as at 31st March 2017, the Statement of Profit and Loss (including other comprehensive income), and the Statement of Cash flows and the Statement of changes in equity for the year then ended, and a summary of significant accounting policies and other explanatory information (herein after referred to as âStandalone Ind AS financial statementsâ).
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2017, and its loss including other comprehensive income, its cash flows and 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 financial statements:
Note 35(e) to the standalone financial statements, which describes the uncertainty related to the outcome of the law-suits filed against the Company and also in which 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 (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of Sub-section (11) of Section 143 of the Act, we give in the Annexure A, a statement on the matters specified in the paragraph 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 best of 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 the Company 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 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 Indian Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
e. On the basis of the written representations received from the directors as on 31st March 2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2017 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 over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; and
g. With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. the Company has disclosed the impact, wherever necessary, of pending litigations on its financial position in its financial statements (Refer Note 35 of the standalone financial statements) except as mentioned above under the paragraph on âEmphasis of Mattersâ;
ii. the Company has made provision, as required under the applicable law or Indian Accounting Standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. The Company had provided requisite disclosure in its standalone financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016 and the same are in accordance with the books of accounts maintained by the Company.
Annexure - A to the Auditorsâ Report
The Annexure referred to in Independent Auditorsâ Report to the members of the Company on the standalone Ind AS financial statements for the year ended 31st March 2017, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular program of physical verification of its fixed assets. In accordance with this program, fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
(ii) The inventory has been physically verified at reasonable intervals by the management. The discrepancies noticed on verification between the physical stocks and the book records were not material in relation to the operations of the Company and the same have been properly dealt with in the books of account.
(iii) As informed to us, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013 (âthe Actâ) except certain advance for expenses/trade receivables recoverable in the normal course of business 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 us, the Company has complied with the provisions of Sections 185 and 186 of the Act, with respect to the loans and investments made.
(v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits covered by the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under.
(vi) The Central Government has not prescribed the maintenance of cost records 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 generally regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Employeesâ State Insurance, Income Tax, Value Added Tax, Central Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other statutory dues applicable to it.
According to the information and explanations given to us, in our opinion no undisputed amounts payable in respect of statutory dues including Provident Fund, Employeesâ State Insurance, Income Tax, Value Added Tax, Central Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other statutory dues applicable to it were in arrears as at the balance sheet date for a period of more than six months from the date they became payable.
(b) According to the records of the Company, there are no dues outstanding of Income Tax, Sales Tax (including Value Added Tax and Central Sales Tax), Wealth Tax, Service Tax, Custom 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) Based on our audit procedures and in our opinion and according to the information and explanations given to us, we are of the opinion that there are few instances as mentioned here in below wherein Company has delayed in repayment of dues to financial institutions/ banks. However, the said amounts were subsequently paid as per the details given herein under in the Table. The Company does not have any debenture holders.
Particulars |
Amount of delay in payment (INR in Lakhs) |
Period of delay in payment |
Remarks, if any |
Name of the Lenders: |
|||
i) DBS Bank Ltd. |
|||
Interest on loans (Aggregate value) |
607.42 |
At various dates |
Delay of 25 to 29 days, made good by 13th May, 2016 |
Principal due on loans (Aggregate value) |
1,258.30 |
At various dates |
Delay of 25 to 29 days, made good by 13th May, 2016 |
ii) IDBI Bank Ltd. |
|||
Principal due on loans |
186.45 |
Due on 1st April, 2016 |
Delay of 4 to 40 days, made good by 13th May, 2016 |
iii) Kotak Mahindra Bank Ltd. |
|||
Interest on loans |
16.86 |
Due on 30th April, 2016 |
Delay of 12 days, made good by 13th May, 2016 |
Principal due on loans |
15.14 |
Due on 30th April, 2016 |
Delay of 12 days, made good by 13th May, 2016 |
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and according to the explanations given by the management, term loans were applied for the purposes for which loans were raised.
(x) Based upon the audit procedures performed and according to the information and explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit.
(xi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with Sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable Ind AS.
(xiv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Annexure - B to the Auditorsâ Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Asian Hotels (North) Limited (âthe Companyâ) as of 31st March,
2017 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''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 financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Dhirubhai Shah & Doshi
Chartered Accountants
Firmâs Registration Number: 102511W
Kaushik Shah
Partner
Membership Number: 016502
Place: New Delhi
Date: 27th May 2017
Mar 31, 2016
TO THE MEMBERS OF ASIAN HOTELS (NORTH) LIMITED Report on the Standalone Financial Statements
We have audited the accompanying Standalone Financial Statements of Asian Hotels (North) Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March 2016, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide 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 explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March 2016 and its loss and its cash flows for the year ended on that date.
Emphasis of Matters
We draw attention to the following matters in the Notes to the standalone financial statements:
Note 27(A)(e) and 27(A)(f) to the standalone financial statements, which describes the uncertainty related to the outcome of the law-suits filed against the Company and also in which 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 (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the Annexure A, a statement on the matters specified in the paragraph 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 best of 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 the Company 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 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 Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) On the basis of the written representations received from the directors as on 31st March 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2016 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 over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; and
(g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. the Company has disclosed the impact, wherever necessary, of pending litigations on its financial position in its financial statements (Refer Note 27(A) of the standalone financial statements) except as mentioned above under the paragraph on âEmphasis of Mattersâ;
ii. the Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
The Annexure referred to in Independent Auditorsâ Report to the members of the Company on the Standalone Financial Statements for the year ended 31st March 2016, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) All the fixed assets have not been physically verified by the management during the year but there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
(ii) The inventory has been physically verified at reasonable intervals by the management. The discrepancies noticed on verification between the physical stocks and the book records were not material in relation to the operations of the Company and the same have been properly dealt with in the books of account.
(iii) As informed to us, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013 (âthe Actâ) except certain advance for expenses/trade receivables recoverable in the normal course of business 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 us, the Company has complied with the provisions of Section 185 and 186 of the Act, with respect to the loans and investments made.
(v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits covered by the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under.
(vi) The Central Government has not prescribed the maintenance of cost records 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 generally regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Employeesâ State Insurance, Income Tax, Value Added Tax, Central Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other statutory dues applicable to it.
According to the information and explanations given to us, in our opinion no undisputed amounts payable in respect of statutory dues including Provident Fund, Employeesâ State Insurance, Income Tax, Value Added Tax, Central Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other statutory dues applicable to it were in arrears as at the balance sheet date for a period of more than six months from the date they became payable.
(b) According to the records of the Company, there are no dues outstanding of Income Tax, Sales Tax (including Value Added Tax and Central Sales Tax), Wealth Tax, Service Tax, Custom 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) |
AY- 2002-2007 |
254.53 Lakhs (Including penalty of Rs. 250 Lakhs |
Customs, Excise and Service Tax Appellate Tribunal, New Delhi |
Income Tax Act, 1961 |
AY- 2012-13 |
4.23 Lakhs |
Commissioner of Income Tax (Appeals) |
Income Tax Act, 1961 |
AY- 2013-14 |
0.87 Lakhs |
Assessing Officer (Rectification u/s 154) |
(viii) Based on our audit procedures and in our opinion and according to the information and explanations given to us, we are of the opinion that there are instances wherein company has delayed in repayment of dues to financial institutions / banks. However, the said amounts were subsequently paid as per the details given herein under in the Table. The company does not have any debenture holders.
Particulars |
Amount of delay in payment (Rs. in Lakhs) |
Period of delay in payment |
Remarks, if any |
Name of the Lenders: |
|||
i) DBS Bank Ltd. |
|||
Interest on loans |
137.58 |
From 29th March, 2016 to 31st March, 2016 |
Unpaid as at 31st March, 2016. Subsequently paid on 7th April, 2016 |
Interest on loans (Aggregate value) |
1,589.25 |
At various dates |
Delay of 10 to 85 days, made good during the financial year |
Principal due on loans (Aggregate value) |
8,045.98 |
At various dates |
Delay of 10 to 89 days, made good during the financial year |
ii) IDBI Bank Ltd. |
|||
Principal due on loans |
127.71 |
Due on 1st January, 2016 |
Delay of 17 days, made good during the financial year |
iii) Bank of Maharashtra |
|||
Interest on loans (Aggregate value) |
225.30 |
Due on 1st November, 2016 |
Delay of 6 days made good during the financial year |
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and according to the explanations given by the management, term loans were applied for the purposes for which loans were raised.
(x) Based upon the audit procedures performed and according to the information and explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit.
(xi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with Sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
Annexure - B to the Auditorsâ Report
Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Asian Hotels (North) Limited (âthe Companyâ) as of 31st March, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''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 financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Dhirubhai Shah & Doshi
Chartered Accountants
Firmâs Registration Number: 102511W
Kaushik D Shah
Partner
Membership Number: 016502
Place: New Delhi
Date: 27th May 2016
Mar 31, 2015
We have audited the accompanying standalone financial statements of
ASiAN HOTELS (NORTH) LiMiTED ("the Company"), which comprise the
Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss,
the Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information
(hereinafter referred to as "the standalone financial statements).
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgements
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgement, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide 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
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its loss and its cash flows for the year ended
on that date.
Emphasis of Matters
We draw attention to the following matters in the Notes to the
standalone financial statements:
Note 27(A)(e) to the standalone financial statements, which describes
the uncertainty related to the outcome of the law-suits filed against
the Company and also in which 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, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 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 best of our knowledge and belief were necessary for the
purpose of our audit;
b. In our opinion, proper books of account as required by law have
been kept by the Company 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 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 Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
e. On the basis of written representations received from all the
directors except one as on 31st March, 2015, and taken on record by the
Board of Directors, none of the directors from whom representations has
been received are disqualified as on 31st March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act;
f. With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
a) the Company has disclosed the impact, wherever necessary, of pending
litigations on its financial position in its financial statements
(Refer Note 27(A) of the standalone financial statements) except as
mentioned above under the paragraph on 'Emphasis of Matters';
b) the Company has made provision, as required under the applicable law
or accounting standards, for material foreseeable losses, if any, on
long-term contracts including derivative contracts;
c) there has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
For MOHINDER PURI AND COMPANY
Firm Registration Number: 000204N
Chartered Accountants
VIKAS VIG
PARTNER
Membership Number: 016920
Place: New Delhi
Date: 28th May, 2015
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT OF ASIAN HOTELS (NORTH)
LIMITED, FOR THE YEAR ENDED 31st MARCH, 2015
(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory
Requirements' section of our report of even date)
1.a). The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
1. b). All the fixed assets have not been physically verified by the
management during the year but there is a regular programme of
verification
which, in our opinion, is reasonable having regard to the size of the
Company and the nature of its assets. No material discrepancies were
noticed on such verification.
2. a). The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
2.b). The procedures of physical verification of inventories followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
2. c). The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material in relation to the operations of the
Company and the same have been properly dealt with in the books of
account.
3. As informed to us, the Company has not granted any loan, secured or
unsecured, to companies, firms or other parties covered in the register
maintained under Section 189 of the Companies Act, 2013 excepting
certain advance for expenses/trade receivables recoverable in the
normal course of business.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and for the
sale of goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in the
internal control systems.
5. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits covered by the
provisions of Sections 73 to 76 or any other relevant provisions of the
Companies Act, 2013 and the rules framed there under.
6. The Central Government has not prescribed for the Company the
maintenance of cost records under sub-section (1) of Section 148 of the
Act.
7. a). According to the records of the Company examined by us, the
Company is generally regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Employees' State
Insurance, Income Tax, Value Added Tax, Central Sales Tax, Wealth Tax,
Service Tax, Custom Duty, Excise Duty, Cess and other statutory dues
applicable to it.
7.b). According to the information and explanations given to us, in our
opinion no undisputed amounts payable in respect of statutory dues
including Provident Fund, Employees' State Insurance, Income Tax, Value
Added Tax, Central Sales Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Cess and other statutory dues applicable to it were in
arrears as at the balance sheet date for a period of more than six
months from the date they became payable.
7.c). According to the records of the Company, there are no dues
outstanding of Income Tax, Sales Tax (including Value Added Tax and
Central Sales Tax), Wealth Tax, Service Tax, Custom Duty, Excise Duty
or Cess on account of any dispute except as follows:
Nature of Statute Year to which Amount unpaid
it relates (excluding interest)
Finance Act,1994 2002-2007 401.10 Lakhs (including
(Service Tax) penalty of Rs. 250.00
Lakhs)
Income Tax Act, 1961 Assessment Year 5.53 Lakhs
2011-12
Nature of Statute Forum where dispute is pending
Finance Act,1994 Customs, Excise and Service Tax
(Service Tax) Appellate Tribunal, New Delhi
Income Tax Act, 1961 Assessing Officer, rectification
under section 154
7. d). According to the records of the Company examined by us and as
per the information and explanation given to us, the amount which were
required to be transferred to Investor Education and Protection Fund in
accordance with the relevant provisions of the Companies Act, 1956 (1
of 1956) and the rules there under has been deposited within time by
the Company.
8. The Company has incurred cash losses during the financial year
covered by our audit, however, there were no cash losses in the
immediately preceding financial year.
9. Based on our audit procedures and in our opinion and according to
the information and explanations given by the management, we are of the
opinion that the Company has not defaulted in repayment of any dues to
a financial institution or bank, except one instance of delay in
repayment of foreign currency term loan, which was repaid before the
end of financial year. The Company does not have any debenture holders.
10. According to the information and explanations given by the
management, the terms and conditions on which the Company has given
guarantees/securities for loans taken by one of its subsidiary from
banks or financial institutions are not prima facie prejudicial to the
interest of the Company due to proximity of business relationship.
11. According to the explanations given by the management, term loans
were applied for the purposes for which loans were raised.
12. Based upon the audit procedures performed and according to the
information and explanations given by the management, we report that no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For MOHINDER PURI AND COMPANY
Firm Registration Number: 000204N
Chartered Accountants
VIKAS VIG
PARTNER
Membership Number: 016920
Place: New Delhi
Date: 28th May, 2015
Mar 31, 2014
1. We have audited the accompanying financial statements of ASIAN
HOTELS (NORTH) LIMITED ("the Company"), which comprise the Balance
Sheet as at 31st March, 2014, and the Statement of Profit and Loss and
Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
2. Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards notified under the Companies Act, 1956 ("the
Act") read with the General Circular 15/2013 dated 13th September, 2013
of the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion. opinion
6. In our opinion and to the best of our information and according to
the explanations given to us, the financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
(b) in the case of the Statement of Profit and Loss, of the Loss for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
8. As required by Section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
(c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards notified
under the Act read with the General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013;
(e) On the basis of written representations received from the directors
as on 31st March, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2014, from
being appointed as a director in terms of clause (g) of sub-section (1)
of Section 274 of the Act;
(f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under Section 441A of the Act
nor has it issued any Rules under the said section, prescribing the
manner in which such cess is to be paid, no cess is due and payable by
the Company.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT OF ASIAN HOTELS (NORTH)
LIMITED, FOR THE YEAR ENDED 31ST MARCH, 2014
(Referred to in paragraph 7 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date)
1a). The Company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets.
1b). Though all the assets have not been physically verified by the
management during the year, as per the information furnished to us,
there exists a programme of physical verification of entire fixed
assets over a reasonable period. In our opinion the frequency of
verification of the fixed assets by the management is at reasonable
intervals having regard to the size of the Company and nature of the
assets and no material discrepancies were noticed between the book
records and the physical inventory in respect of the assets physically
verified.
1c). During the year, the Company has not disposed off a substantial
part of the fixed assets. Based on the information and explanations
given by the management and on the basis of audit procedures performed
by us, we are of the opinion that the sale of the fixed assets, has not
affected the going concern status of the Company.
2a). The stocks of stores, provisions, beverages, crockery etc., have
been physically verified during the year by the management. In our
opinion, the frequency of verification is reasonable.
2b). In our opinion and according to the information and explanations
given to us, the procedures of physical verification of stocks followed
by the management were found reasonable and adequate in relation to the
size of the Company and the nature of its business.
2c). The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
book records were not material in relation to the operations of the
Company and the same have been properly dealt with in the books of
account.
3a). The following are the particulars of loans granted by the Company,
secured or unsecured, to companies, firms and other parties covered in
the Register maintained under Section 301 of the Companies Act, 1956:
Sl. Name of Relationship Maximum Amount Year end Balance
No. Party with Company (excluding (excluding
interest) interest)
Involved (Rs. in Lakhs)
during the
year
(Rs. In Lakhs)
1 Fineline Subsidiary 41,761.31 Nil
Hospitality Company
& Consultancy
Services Pte. Ltd., Mauritius (unsecured foreign currency loan)
3b). In our opinion the rate of interest and other terms and conditions
of such loan are not prima facie prejudicial to the interest of the
Company.
3c). The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and nature of its business
with regard to the purchase of stores, provisions, beverages, crockery
etc., plant and machinery, equipment and other assets and for the sale
of goods and services. During the course of our audit, we have not
observed any continuing failure to correct any major weakness in
internal control systems.
5a). Based on the audit procedures applied by us and according to the
information and explanations provided by the Management, we are of the
opinion that the particulars of contracts or arrangements that need to
be entered into the register maintained under Section 301 of the
Companies Act, 1956 have been so entered.
5b). In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakh in
respect of any party during the year have been made at prices which are
prima facie reasonable having regard to prevailing market prices to the
extent available with the Company of similar items supplied under
similar circumstances sale of such services to others except where due
to certain special reasons as explained to us prices have been charged
with no comparison available with the Company.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits covered by the
provisions of Section 58A and 58AA or any other relevant provisions of
the Companies Act, 1956 and the Companies (Acceptance of Deposits)
Rules, 1975, hence the provisions of clause 4 (vi) of the Companies
(Auditor''s Report) Order, 2003 are not applicable to the Company.
7. Internal Audit has been conducted by an independent firm of
Chartered Accountants during the year and it is commensurate with the
size of the Company and the nature of its business.
8. The Central Government has not prescribed for the Company the
maintenance of cost records under Section 209 (1)(d) of the Companies
Act, 1956 and hence the provisions of clause 4 (viii) of the Companies
(Auditor''s Report) Order, 2003 are not applicable to the Company.
9a). According to the records of the Company examined by us, the
Company is generally regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Investor Education
Protection Fund, Employees'' State Insurance, Income Tax, Value Added
Tax, Central Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Cess and other material statutory dues applicable to it.
9b). According to the information and explanations given to us, there
are no undisputed amounts payable in respect of the aforesaid dues that
were outstanding as at 31st March, 2014 for a period of more than six
months from the date they became payable.
9c). According to the records of the Company examined by us and
according to the information and explanations given to us, there are no
dues of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Service Tax,
Excise Duty or Cess which have not been paid on account of any dispute
10. The Company had no accumulated losses as at the end of the current
financial year and has not incurred any cash losses in such financial
year and in the immediately preceding financial period, hence
provisions of clause 4 (x) of the Companies (Auditor''s Report) Order,
2003 are not applicable.
11. As per books and records maintained by the Company and according to
the information and explanations given to us, the Company has not
defaulted in the repayment of any dues to financial institutions, banks
or debenture holders as at the Balance Sheet date.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. In our opinion the Company is not a chit fund or a nidhi / mutual
benefit fund / society, hence the provisions of clause 4 (xiii) of the
Companies (Auditor''s Report) Order, 2003 are not applicable to the
Company.
14. Based on our examination of the records and evaluation of the
related internal controls, we are of the opinion that proper records
have been maintained of the transactions and contracts of dealing or
trading in shares, securities, debentures and other investments and
timely entries have been made in those records. We also report that the
Company has held the shares, securities, debentures and other
investments in its own name.
15. In our opinion, the terms and conditions on which the Company has
given its fixed deposits with Bank amounting to Rs. 3,000/- Lakhs as
guarantee for loans taken by one of its subsidiaries from banks or
financial institutions are not prejudicial to the interest of the
Company.
16. In our opinion, the term loans were applied for the purposes for
which they were raised except that one term loan taken to fund cash
flow mismatch have been utilised to create fixed deposits with a bank
amounting to Rs. 3,000/- Lakhs and has been given as security for loans
taken by one of subsidiaries of the Company.
17. According to the information and explanations given to us and on an
overall examination of Balance Sheet of the Company, we report that no
funds raised on short-term basis have been used for long-term purposes,
except the following:
Particulars Amount (Rs. in Lakhs)
Inter Corporate Loans (net) taken 5,150.00
during the year for repayment of
Long-term loans and interest thereon.
Besides the above, certain advances and security deposits have also
funded the long term uses.
18. As the Company made no preferential allotment of shares to any
parties and companies covered in the register maintained under Section
301 of the Companies Act, 1956, the provisions of clause 4 (xviii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
Company.
19. As the Company has not issued any debentures the provisions of
clause 4 (xix) of the Companies (Auditor''s Report) Order, 2003 are not
applicable to the Company.
20. As the Company has not raised any money during the year by public
issue, the provisions relating to end use thereof as per clause 4 (xx)
of the Companies (Auditor''s Report) Order, 2003 are not applicable to
the Company.
21. Based upon the audit procedures performed by us for expressing our
opinion on these financial statements and information and explanations
given by the management, we report that no fraud on or by the Company
has been noticed or reported during the course of our audit.
For MOHINDER PURI AND COMPANY
Firm Registration Number: 000204N
Chartered Accountants
VIKAS VIG
PARTNER
Membership Number: 16920
Place: New Delhi
Date: 28th May, 2014
Mar 31, 2013
Report on the Financial statements
1. We have audited the accompanying fnancial statements of Asian
Hotels (North) Limited ("the Company")'' which comprise the Balance
Sheet as at 31st March'' 2013'' and the Statement of Proft and Loss and
Cash Flow Statement for the year then ended'' and a summary of
signifcant accounting policies and other explanatory information.
management''s responsibility for the Financial statements
2. Management is responsible for the preparation of these fnancial
statements that give a true and fair view of the fnancial position''
fnancial performance and cash fows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of Section 211
of the Companies Act'' 1956 ("the Act"). This responsibility includes
the design'' implementation and maintenance of internal control relevant
to the preparation and presentation of the fnancial statements that
give a true and fair view and are free from material misstatement''
whether due to fraud or error.
Auditor''s responsibility
3. Our responsibility is to express an opinion on these fnancial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the fnancial statements are free
from material misstatement.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the fnancial statements. The
procedures selected depend on the auditor''s judgment'' including the
assessment of the risks of material misstatement of the fnancial
statements'' whether due to fraud or error. In making those risk
assessments'' the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the fnancial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management'' as well as evaluating the overall
presentation of the fnancial statements.
5. We believe that the audit evidence we have obtained is suffcient
and appropriate to provide a basis for our audit opinion.
opinion
6. In our opinion and to the best of our information and according to
the explanations given to us'' the fnancial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet'' of the state of affairs of the
Company as at 31st March'' 2013;
(b) in the case of the Statement of Proft and Loss'' of the proft for
the year ended on that date; and
(c) in the case of the Cash Flow Statement'' of the cash fows for the
year ended on that date.
report on other legal and regulatory requirements
7. As required by the Companies (Auditor''s Report) Order'' 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Act'' we give in the Annexure a
statement on the matters specifed in paragraphs 4 and 5 of the Order.
8. As required by Section 227(3) of the Act'' we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
(c) The Balance Sheet'' Statement of Proft and Loss'' and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) In our opinion'' the Balance Sheet'' Statement of Proft and Loss'' and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Act;
(e) On the basis of written representations received from the directors
as on 31st March'' 2013'' and taken on record by the Board of Directors''
none of the directors is disqualifed as on 31st March'' 2013'' from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Act;
(f) Since the Central Government has not issued any notifcation as to
the rate at which the cess is to be paid under section 441A of the Act
nor has it issued any Rules under the said section'' prescribing the
manner in which such cess is to be paid'' no cess is due and payable by
the Company.
AnneXUre to tHe indePendent AUditors'' rePort oF AsiAn Hotels (nortH)
limited'' For tHe YeAr ended 31st mArCH'' 2013
(Referred to in paragraph 7 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date)
1a). The Company has maintained proper records showing full particulars
including quantitative details and situation of its fxed assets.
1b). Though all the assets have not been physically verifed by the
management during the year'' as per the information furnished to us''
there exists a programme of physical verifcation of entire fxed assets
over a reasonable period. In our opinion the frequency of verifcation
of the fxed assets by the management is at reasonable intervals having
regard to the size of the Company and nature of the assets and no
material discrepancies were noticed between the book records and the
physical inventory in respect of the assets physically verifed.
1c). During the year'' the Company has not disposed off a substantial
part of the fxed assets. Based on the information and explanations
given by the management and on the basis of audit procedures performed
by us'' we are of the opinion that the sale of the fxed assets'' if any''
has not affected the going concern status of the Company.
2a). The stocks of stores'' provisions'' beverages'' crockery etc.'' have
been physically verifed during the year by the management. In our
opinion'' the frequency of verifcation is reasonable.
2b). In our opinion and according to the information and explanations
given to us'' the procedures of physical verifcation of stocks followed
by the management were found reasonable and adequate in relation to the
size of the Company and the nature of its business.
2c). The Company is maintaining proper records of inventory. The
discrepancies noticed on verifcation between the physical stocks and
book records were not material in relation to the operations of the
Company and the same have been properly dealt with in the books of
account.
3a). The following are the particulars of loans granted by the Company''
secured or unsecured'' to companies'' frms and other parties covered in
the Register maintained under Section 301 of the Companies Act'' 1956:
sl. name of Party relationship with maximum Amount Year end Balance
no. Company (excluding interest) (excluding interest)
involved during the year (rs. in lakhs) (rs. in lakhs)
1 Fineline Hospitality & Consultancy Subsidiary Company 41''761.31
41''761.31
Services Pte. Ltd.'' Mauritius (unsecured foreign currency loan)
3b). In our opinion the rate of interest and other terms and conditions
of such loan are not prima facie prejudicial to the interest of the
Company.
3c). In respect of above loan'' repayment of principal and interest is
not yet due.
3d). In respect of above loan'' there is no overdue amount.
3e). The Company has not taken any loans'' secured or unsecured'' from
companies'' frms or other parties covered in the register maintained
under Section 301 of the Companies Act'' 1956.
4. In our opinion and according to the information and explanations
given to us'' there are adequate internal control procedures
commensurate with the size of the Company and nature of its business
with regard to the purchase of stores'' provisions'' beverages'' crockery
etc.'' plant and machinery'' equipment and other assets and for the sale
of goods and services. During the course of our audit'' we have not
observed any continuing failure to correct any major weakness in
internal control systems.
5a). Based on the audit procedures applied by us and according to the
information and explanations provided by the Management'' we are of the
opinion that the particulars of contracts or arrangements that need to
be entered into the register maintained under Section 301 of the
Companies Act'' 1956 have been so entered.
5b). In our opinion and according to the information and explanations
given to us'' the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act'' 1956 and exceeding the value of rupees fve lakh in
respect of any party during the year have been made at prices which are
prima facie reasonable having regard to prevailing market prices to the
extent available with the Company of similar items supplied under
similar circumstances sale of such services to others except where due
to certain special reasons as explained to us prices have been charged
with no comparison available with the Company.
6. In our opinion and according to the information and explanations
given to us'' the Company has not accepted any deposits covered by the
provisions of Section 58A and 58AA or any other relevant provisions of
the Companies Act'' 1956 and the Companies (Acceptance of Deposits)
Rules'' 1975'' hence the provisions of clause 4 (vi) of the Companies
(Auditor''s Report) Order'' 2003 are not applicable to the Company.
7. Internal Audit has been conducted by an independent frm of
Chartered Accountants during the year and it is commensurate with the
size of the Company and the nature of its business.
8. The Central Government has not prescribed for the Company the
maintenance of cost records under Section 209 (1)(d) of the Companies
Act'' 1956 and hence the provisions of clause 4 (viii) of the Companies
(Auditor''s Report) Order'' 2003 are not applicable to the Company.
9a). According to the records of the Company examined by us'' the
Company is generally regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund'' Investor Educations
Protection Fund'' Employees'' State Insurance'' Income Tax'' Value Added
Tax'' Central Sales Tax'' Wealth Tax'' Service Tax'' Custom Duty'' Excise
Duty'' Cess and other material statutory dues applicable to it.
9b). According to the information and explanations given to us'' there
are no undisputed amounts payable in respect of the aforesaid dues that
were outstanding as at 31st March'' 2013 for a period of more than six
months from the date they became payable.
9c). According to the records of the Company examined by us and
according to the information and explanations given to us'' there are no
dues of Sales Tax'' Income Tax'' Custom Duty'' Wealth Tax'' Service Tax''
Excise Duty or Cess which have not been paid on account of any dispute
except the following:
name of the statute Year to which it relates Amount unpaid Forum where
dispute is pending
(rs. in lakhs)
Finance Act''1994 2002-2007 467.96 Commissioner Of Central Excise
(Appeals)
Income Tax Act'' 1961 Assessment year 2008-09 16.28 Income tax Appellate
Tribunal'' New Delhi
10. The Company had no accumulated losses as at the end of the current
fnancial year and has not incurred any cash losses in such fnancial
year and in the immediately preceding fnancial period'' hence provisions
of clause 4 (x) of the Companies (Auditor''s Report) Order'' 2003 are not
applicable.
11. As per books and records maintained by the Company and according
to the information and explanations given to us'' the Company has not
defaulted in the repayment of any dues to fnancial institutions'' banks
or debenture holders as at the Balance Sheet date.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares'' debentures and other securities.
13. In our opinion the Company is not a chit fund or a nidhi / mutual
beneft fund / society'' hence the provisions of clause 4 (xiii) of the
Companies (Auditor''s Report) Order'' 2003 are not applicable to the
Company.
14. Based on our examination of the records and evaluation of the
related internal controls'' we are of the opinion that proper records
have been maintained of the transactions and contracts of dealing or
trading in shares'' securities'' debentures and other investments and
timely entries have been made in those records. We also report that the
Company has held the shares'' securities'' debentures and other
investments in its own name.
15. As at the balance sheet date'' there are no guarantees given for
loans taken by others from banks or fnancial institutions.
16. In our opinion'' the term loans were applied for the purposes for
which they were raised except to the limited extent as mentioned in 17
below.
17. According to the information and explanations given to us and on
an overall examination of Balance Sheet of the Company'' we report that
no funds raised on short-term basis have been used for long-term
investment'' except the following:
Particulars Amount (rs. in lakhs)
A short-term loan availed during the year from Bank 1''000.00
Inter Corporate Loans taken during the year 3''440.00*
Short-term loans availed during the previous year from Banks 1''000.00*
*Inter Corporate Loans Rs. 1''985 lakhs and short-term loan from bank
availed in previous year Rs. 1''000 lakhs has been repaid during the
year.
18. As the Company made no preferential allotment of shares to any
parties and companies covered in the register maintained under Section
301 of the Companies Act'' 1956'' the provisions of clause 4 (xviii) of
the Companies (Auditor''s Report) Order'' 2003 are not applicable to the
Company.
19. As the Company has not issued any debentures the provisions of
clause 4 (xix) of the Companies (Auditor''s Report) Order'' 2003 are not
applicable to the Company.
20. As the Company has not raised any money during the year by public
issue'' the provisions relating to end use thereof as per clause 4 (xx)
of the Companies (Auditor''s Report) Order'' 2003 are not applicable to
the Company.
21. Based upon the audit procedures performed by us for expressing our
opinion on these fnancial statements and information and explanations
given by the management'' we report that no fraud on or by the Company
has been noticed or reported during the course of our audit.
For moHinder PUri And ComPAnY
Firm Registration Number: 000204N
Chartered Accountants
ViKAs ViG
PARTNER
Membership Number: 16920
Place: NEW DELHI
Date: 30th May'' 2013
Mar 31, 2012
We have audited the attached Balance Sheet of ASIAN HOTELS (NORTH)
LIMITED as at 31st March, 2012, the Statement of Profit and Loss and
also the Cash Flow Statement for the year ended on that date and
annexed thereto. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion
on these financial statements based on our audit.
We have conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statements
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditor's Report) Order, 2003, issued by
the Central Government of India in terms of Sub-Section (4A) of Section
227 of the Companies Act, 1956, we enclose in the Annexure a statement
on the matters specified in Paragraphs 4 and 5 of the said Order to the
extent applicable to the Company.
Further to our comments in the Annexure referred to above, we report
that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) In our opinion, proper books of account as required by the law
have been kept by the Company so far as it appears from our examination
of those books;
(iii) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet, Statement of Profit and Loss
and the Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in Section 211 (3C) of the Companies
Act, 1956;
(v) On the basis of written representation received from the directors
and taken on record by the Board of Directors, we report that none of
the directors is disqualified as on 31st March, 2012 from being
appointed as a director in terms of Section 274(1)(g) of the Companies
Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with notes thereon and attached thereto give, in the prescribed manner,
the information required by the Companies Act, 1956, and give a true
and fair view in conformity with the accounting principles generally
accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
b) in the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT OF ASIAN HOTELS (NORTH) LIMITED, FOR
THE YEAR ENDED 31ST MARCH, 2012
1a) The Company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets.
1b) Though all the assets have not been physically verified by the
management during the year, as per the information furnished to us,
there exists a programme of physical verification of entire fixed
assets over a reasonable period. In our opinion the frequency of
verification of the fixed assets by the management is at reasonable
intervals having regard to the size of the Company and nature of the
assets and no material dis-crepancies were noticed between the book
records and the physical inventory in respect of the assets physically
verified.
1c) During the year, the Company has not disposed off a substantial
part of the fixed assets. Based on the information and explanations
given by the management and on the basis of audit procedures performed
by us, we are of the opinion that the sale of the fixed assets, if any,
has not affected the going concern status of the Company.
2a) The stocks of stores, provisions, beverages, crockery etc., have
been physically verified during the year by the management. In our
opinion, the frequency of verification is reasonable.
2b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of stocks followed
by the management were found reasonable and adequate in relation to the
size of the Company and the nature of its business.
2c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
book records were not material in relation to the operations of the
Company and the same have been properly dealt with in the books of
account.
3a) The following are the particulars of loans granted by the Company,
secured or unsecured, to companies, firms and other parties covered in
the Register maintained under Section 301 of the Companies Act, 1956:
Sl. Name of
Party Relationship
with Maximum
Amount
(excluding Year end
Balance
No. Company interest)
Involved
during
the year (excluding
interest)
(Rs. In Lakhs) (Rs. in Lakhs)
1 Fineline
Hospitality & Subsidiary
Company 39,279.09
(unsecured
foreign 39,279.09
Consultancy
Services
Pte. Ltd. currency
loan)
3b) In our opinion the rate of interest and other terms and conditions
of such loan are not prima facie prejudicial to the interest of the
Company.
3c) In respect of above loan, repayment of principal and interest is
not yet due.
3d) In respect of above loan, there is no overdue amount.
3e) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and nature of its business
with regard to the purchase of stores, provisions, beverages, crockery
etc., plant and machinery, equipment and other assets and for the sale
of goods and services. During the course of our audit, we have not
observed any continuing failure to correct any major weakness in
internal control systems.
5a) Based on the audit procedures applied by us and according to the
information and explanations provided by the Management, we are of the
opinion that the particulars of contracts or arrangements that need to
be entered into the register maintained under Section 301 of the
Companies Act, 1956 have been so entered.
5b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakh in
respect of any party during the year have been made at prices which are
prima facie reasonable having regard to prevailing market prices to the
extent available with the Company of similar items supplied under
similar circumstances sale of such services to others except where due
to certain special reasons as explained to us prices have been charged
with no comparison available with the Company.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits covered by the
provisions of Section 58A and 58AA or any other relevant provisions
of the Companies Act, 1956 and the Companies (Acceptance of Deposits)
Rules, 1975, hence the provisions of clause 4 (vi) of the Companies
(Auditor's Report) Order, 2003 are not applicable to the Company.
7. Internal Audit has been conducted by an independent firm of
Chartered Accountants during the year and it is commensurate with the
size of the Company and the nature of its business.
8. The Central Government has not prescribed for the Company the
maintenance of cost records under Section 209 (1)(d) of the Companies
Act, 1956 and hence the provisions of clause 4 (viii) of the Companies
(Auditor's Report) Order, 2003 are not applicable to the Company.
9a) According to the records of the Company examined by us, the Company
has generally been regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
applicable statutory dues.
According to the information and explanations given to us, there are no
undisputed amounts payable in respect of the aforesaid dues that were
outstanding as at 31st March 2012 for a period of more than six months
from the date they became payable.
9b) According to the records of the Company examined by us and
according to the information and explanations given to us, there are no
dues of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Service Tax,
Excise Duty or Cess which have not been paid on account of any dispute
except the following demand of service tax:
Name of the
Statute Year to
which it
relates Amount
unpaid (Rs in
lakhs) Forum where
dispute is
pending
Finance
Act,1994 2002-2007 467.96 Commissioner
Of Central
Excise(Appeals)
10. The Company had no accumulated losses as at the end of the current
financial year and has not incurred any cash losses in such financial
year and in the immediately preceding financial period, hence
provisions of clause 4 (x) of the Companies (Auditor's Report) Order,
2003 are not applicable.
11. As per books and records maintained by the Company and according
to the information and explanations given to us, the Company has not
defaulted in the repayment of any dues to financial institutions, banks
or debenture holders as at the Balance Sheet date.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. In our opinion the Company is not a chit fund or a nidhi / mutual
benefit fund / society, hence the provisions of clause 4 (xiii) of the
Companies (Auditor's Report) Order, 2003 are not applicable to the
Company.
14. Based on our examination of the records and evaluation of the
related internal controls, we are of the opinion that proper records
have been maintained of the transactions and contracts of dealing or
trading in shares, securities, debentures and other investments and
timely entries have been made in those records. We also report that the
Company has held the shares, securities, debentures and other
investments in its own name.
15. As at the balance sheet date, there are no guarantees given for
loans taken by others from banks or financial institutions.
16. In our opinion, the term loans were applied for the purposes for
which they were raised except to the limited extent as mentioned in 17
below.
17. According to the information and explanations given to us and on
an overall examination of Balance Sheet of the Company, we report that
no funds raised on short term basis have been used for long term
investment, except the following:
Particulars Amount in lakhs
A short term loan availed during
the year from Bank 1,000.00
Short term loans availed during the
previous year from Banks 2,875.00*
* Repaid during the year
18. As the Company made no preferential allotment of shares to any
parties and companies covered in the register maintained under Section
301 of the Companies Act, 1956, the provisions of clause 4 (xviii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
Company.
19. As the Company has not issued any debentures the provisions of
clause 4 (xix) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the Company.
20. As the Company has not raised any money during the year by public
issue, the provisions relating to end use thereof as per clause 4 (xx)
of the Companies (Auditor's Report) Order, 2003 are not applicable to
the Company.
21. Based upon the audit procedures performed by us for expressing our
opinion on these financial statements and information and explanations
given by the management, we report that no fraud on or by the Company
has been noticed or reported during the course of our audit.
FOR MOHINDER PURI & COMPANY
Chartered Accountants
Firm Registration No.: 000204N
VIKAS VIG
Place: New Delhi PARTNER
Dated : 28th May 2012 Membership Number: 16920
Mar 31, 2011
We have audited the attached Balance Sheet of Asian Hotels (North)
limited as at 31st March, 2011, the Profit and Loss Account and also
the Cash Flow Statement for the year ended on that date and annexed
thereto. These financial statements are the responsibility of the
CompanyÃs management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We have conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (AuditorÃs Report) Order, 2003 issued by
the Central Government of India in terms of sub à section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in Paragraphs 4 and 5 of the said
Order to the extent applicable to the Company.
Further to our comments in the Annexure referred to above, we report
that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) In our opinion, proper books of account as required by the law
have been kept by the Company so far as it appears from our examination
of those books;
(iii) The Balance Sheet, the Profit and Loss Account and the Cash flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash flow Statement dealt with by this report comply with the
Accounting Standards referred to in Section 211 (3C) of the Companies
Act, 1956;
(v) On the basis of written representation received from the directors
and taken on record by the Board of Directors, we report that none of
the directors is disqualified as on 31st March 2011 from being
appointed as a director in terms of Section 274(1) (g) of the Companies
Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011;
b) in the case of the Profit and Loss Account of the Profit for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORSÃ REPORT OF ASIAN HOTELS (NORTH) LIMITED FOR THE
YEAR ENDED 31st MARCH, 2011
1. a The Company has maintained proper records showing full
particulars including quantitative details and situation of its fxed
assets.
b. Though all the assets have not been physically verified by the
management during the year, as per the information furnished to us,
there exists a programme of physical verification of entire fixed
assets over a reasonable period. In our opinion the frequency of
verification of the fixed assets by the management is at reasonable
intervals having regard to the size of the Company and nature of the
assets and no material discrepancies were noticed between the book
records and the physical inventory in respect of the assets physically
verified.
c. During the year, the Company has not disposed off a substantial
part of the fixed assets. Based on the information and explanations
given by the management and on the basis of audit procedures performed
by us, we are of the opinion that the sale of the fixed assets, if any,
has not affected the going concern status of the Company.
2. a. The stocks of stores, provisions, beverages, crockery etc.,
have been physically verified during the year by the management. In our
opinion, the frequency of verification is reasonable.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of stocks followed
by the management were found reasonable and adequate in relation to the
size of the Company and the nature of its business.
c. The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
book records were not material in relation to the operations of the
Company and the same have been properly dealt with in the books of
account.
3. As informed to us, the Company has not taken / granted any loan,
secured or unsecured, from / to companies, firms or other parties
covered in the register maintained under Section 301 of the Companies
Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and nature of its business
with regard to the purchase of stores, provisions, beverages, crockery
etc., plant and machinery, equipment and other assets and for the sale
of goods and services. During the course of our audit, we have not
observed any continuing failure to correct any major weakness in
internal control systems.
5. a. Based on the audit procedures applied by us and according to
the information and explanations provided by the Management, we are of
the opinion that the particulars of contracts or arrangements that need
to be entered into the register maintained under Section 301 of the
Companies Act, 1956 have been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakh in
respect of any party during the year have been made at prices which are
prima facie reasonable having regard to prevailing market prices to the
extent available with the Company of similar items supplied under
similar circumstances by/to other parties and sale of such services to
others except where due to certain special reasons as explained to us
prices have been charged with no comparison available with the Company.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits covered by the
provisions of Section 58A and 58AA or any other relevant provisions of
the Companies Act, 1956 and the Companies (Acceptance of Deposits)
Rules, 1975, hence the provisions of clause 4 (vi) of the Companies
(AuditorÃs Report) Order, 2003 are not applicable to the Company.
7. Internal Audit has been conducted by an independent firm of
Chartered Accountants as well as by the CompanyÃs internal audit
department during the year and it is commensurate with the size of the
Company and the nature of its business.
8. The Central Government has not prescribed for the Company the
maintenance of cost records under Section 209 (1)(d) of the Companies
Act, 1956 and hence the provisions of clause 4 (viii) of the Companies
(AuditorÃs Report) Order, 2003 are not applicable to the Company.
9. a. According to the records of the Company examined by us, the
Company has generally been regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees State Insurance,
Income tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Cess and other applicable statutory dues.
According to the information and explanations given to us, there are no
undisputed amounts payable in respect of the aforesaid dues that were
outstanding as at 31st March 2011 for a period of more than six months
from the date they became payable.
b. According to the records of the Company examined by us and according
to the information and explanations given to us, there are no dues of
Sales Tax, Income Tax, Custom Duty, Wealth Tax, Service Tax, Excise
Duty or Cess which have not been paid on account of any dispute except
the following demand of service tax demand:
Name of Year to which it Amount unpaid Forum where
Statute relates (Rs in lakhs) dispute is
pending
The Central 2002-2007 467.96 Commissioner
Excise Of Central
Act,1994 Excise
(Appeals)
10. The Company had no accumulated losses as at the end of the current
financial year and has not incurred any cash losses in such financial
year and in the immediately preceding financial period, hence
provisions of clause 4 (x) of the Companies (AuditorÃs Report) Order,
2003 are not applicable.
11. As per books and records maintained by the Company and according
to the information and explanations given to us, the Company has not
defaulted in the repayment of any dues to financial institutions, banks
or debenture holders as at the Balance Sheet date.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. In our opinion the Company is not a chit fund or a nidhi / mutual
benefit fund / society, hence the provisions of clause 4 (xiii) of the
Companies (AuditorÃs Report) Order, 2003 are not applicable to the
Company.
14. Based on our examination of the records and evaluation of the
related internal controls, we are of the opinion that proper records
have been maintained of the transactions and contracts of dealing or
trading in shares, securities, debentures and other investments and
timely entries have been made in those records. We also report that the
Company has held the shares, securities, debentures and other
investments in its own name.
15. In our opinion, the terms and conditions on which the Company had
given guarantees for loans taken by others from banks or financial
institutions were not prejudicial to the interest of the Company.
However, as at the balance sheet date, there are no guarantees given
for loans taken by others from banks or financial institutions.
16. In our opinion, the term loans were applied for the purposes for
which they were raised.
17. According to the information and explanations given to us and on
an overall examination of Balance Sheet of the Company, we report that
no funds raised on short term basis have been used for long term
investment, except short term loans of Rs.875 lakhs and Rs. 2000 lakhs
availed from ING Vysya Bank and Allahabad Bank respectively used for
long term purposes.
18. As the Company made no preferential allotment of shares to any
parties and companies covered in the register maintained under Section
301 of the Companies Act, 1956, the provisions of clause 4 (xviii) of
the Companies (AuditorÃs Report) Order, 2003 are not applicable to the
Company.
19. As the Company has not issued any debentures the provisions of
clause 4 (xix) of the Companies (AuditorÃs Report) Order, 2003 are not
applicable to the Company.
20. As the Company has not raised any money during the year by public
issue, the provisions relating to end use thereof as per clause 4 (xx)
of the Companies (AuditorÃs Report) Order, 2003 are not applicable to
the Company.
21. Based upon the audit procedures performed by us for expressing our
opinion on these fnancial statements and information and explanations
given by the management, we report that no fraud on or by the Company
has been noticed or reported during the course of our audit.
For MOHINDER PURI & COMPANY
Chartered Accountants
Firm Registration No.: 000204N
ViKAS ViG
PARTNER
M NO: 16920
New Delhi
Dated : 30th May 2011
Mar 31, 2010
We have audited the attached Balance Sheet of ASIAN HOTELS (NORTH)
limited as at 31st March, 2010, the Profit and Loss Account and also
the Cash Flow Statement for the six months period ended on that date
and annexed thereto. These financial statements are the responsibility
of the Companys management. Our responsibility is to express an
opinion on these financial statements based on our audit.
We have conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and signifcant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditors Report) Order, 2003 issued by
the Central Government of India in terms of sub à section (4A) of
Section227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in Paragraphs 4 and 5 of the said
Order to the extent applicable to the Company.
Further to our comments in the Annexure referred to above, we report
that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) In our opinion, proper books of account as required by the
law have been kept by the Company so far as it appears from our
examination of those books;
(iii) The Balance Sheet, the Profit and Loss Account and
the Cash flow Statement dealt with by this report are in agreement with
the books of account;
(iv) In our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash flow Statement dealt with by this report comply with the
Accounting Standards referred to in Section 211 (3C) of the Companies
Act, 1956;
(v) Further, we invite attention to Note 15 of Schedule 21 of the Notes
annexed to the Accounts, mentioning thereby that the necessary
approvalof the Scheme of Arrangement and Demerger (the Scheme) has been
received, hence both the Kolkata Undertaking and Mumbai Undertaking
have got demerged as of the Appointed Date i.e. 31st October, 2009, and
resultantly, the Company thereafter comprise only of residuary
operations i.e. primarily the Hyatt Regency, Delhi.
(vi) On the basis of written representation received from the directors
and taken on record by the Board of Directors, we report that none of
thedirectors is disqualifed as on 31st March 2010 from being appointed
as a director in terms of Section 274(1) (g) of the Companies Act,
1956;
(vii) In our opinion and to the best of our information and according
to the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
b) in the case of the Proft and Loss Account of the Proft for the six
months period ended on that date; and
c) in the case of the Cash Flow Statement, of the cash fows for the six
months period ended on that date.
ANNEXURE TO THE AUDETORS REPORT OF ASIAN HOTELS (NORTH) LIMITED For
THE SIX MONTHS PERIOD ENDED 31ST MARCH, 2010
1. a. The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
b. Though all the assets have not been physically verifed by the
management during the period, as per the information furnished to us,
there exists a programme of physical verifcation of entire fxed assets
over a reasonable period. In our opinion the frequency of verifcation
of the fxed assets by the management is at reasonable intervals having
regard to the size of the Company and nature of the assets and no
material discrepancies were noticed between the book records and the
physical inventory in respect of the assets physically verifed.
c. During the period, upon receipt of necessary approval of the Scheme
of Arrangement and Demerger (the Scheme), both the Kolkata Undertaking
and Mumbai Undertaking had got demerged as of the Appointed Date i.e.
31st October, 2009, and resultantly, the Company now comprise only of
residuary operation i.e. primarily the Hyatt Regency, Delhi. The
Company had been reorganised and a substantial part of the fxed assets
had got transferred to the new entities as per the terms of the Scheme.
Based on the information and explanation given by the management and on
the basis of audit procedures performed by us, we are of the opinion
that the sale/ reorganisation of fxed assets, has not affected the
going concern status of the Company.
2. a. The stocks of stores, provisions, beverages, crockery etc.,
have been physically verifed during the period by the management. In
our opinion, the frequency of verifcation is reasonable.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verifcation of stocks followed
by the management were found reasonable and adequate in relation to the
size of the Company and the nature of its business.
c. The Company is maintaining proper records of inventory. The
discrepancies noticed on verifcation between the physical stocks and
book records were not material in relation to the operations of the
Company and the same have been properly dealt with in the books of
account.
3. As informed to us, the Company has not taken / granted any loan,
secured or unsecured, from / to companies, frms or other parties
covered in the register maintained under Section 301 of the Companies
Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and nature of its business
with regard to the purchase of stores, provisions, beverages, crockery
etc., plant and machinery, equipment and other assets and for the sale
of goods and services. During the course of our audit, we have not
observed any continuing failure to correct any major weakness in internal
control systems.
5. a. Based on the audit procedures applied by us and according to
the information and explanations provided by the Management, we are of
the opinion that the particulars of contracts or arrangements that need
to be entered into the register maintained under Section 301 of the
Companies Act, 1956 have been so entered.
b. In our opinion andaccording to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakh in
respect of any party during the year have been made at prices which are
prima facie reasonable having regard to prevailing market prices to the
extent available with the Company of similar items supplied under
similar circumstances by/to other parties and sale of such services to
others except where due to certain special reasons as explained to us
prices have been charged with no comparison available with the Company.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits covered by the
provisions of Section 58A and 58AA or any other relevant provisions of
the Companies Act, 1956 and the Companies (Acceptance of Deposits)
Rules, 1975, hence the provisions of clause 4 (vi) of the Companies
(Auditors Report) Order, 2003 are not applicable to the Company.
7. Internal Audit has been conducted by an independent firm of
Chartered Accountants as well as by the Companys internal audit
department during the period and it is commensurate with the size of
the Company and the nature of its business.
8. The Central Government has not prescribed for the Company the
maintenance of cost records under Section 209 (1)(d) of the Companies
Act, 1956 and hence the provisions of clause 4 (viii) of the Companies
(Auditors Report) Order, 2003 are not applicable to the Company.
9. a. According to the records of the Company examined by us, the
Company has generally been regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees State Insurance,
Income tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Cess and other applicable statutory dues. According to the
information and explanations given to us, there are no undisputed
amounts payable in respect of the aforesaid dues that were outstanding
as at 30th September 2009 for a period of more than six months from the
date they became payable.
b. According to the records of the Company examined by us and according
to the information and explanations given to us, there are no dues of
Sales Tax, Income Tax, Custom Duty, Wealth Tax, Service Tax, Excise
Duty or Cess which have not been paid on account of any dispute except
the following demand of service tax demand:
Name of Statute Year to which it
relates Amount unpaid Forum where
dispute is
pending
(Rs in lakhs)
The Central Excise
Act,1994 2002-2007 467.96 Commissioner of
Central Excise
(Appeals)
10. The Company had no accumulated losses as at the end of the current
fniancial period and has not incurred any cash losses in such financial
period and in the immediately preceding financial year, hence
provisions of clause 4 (x) of the Companies (Auditors Report) Order,
2003 are not applicable.
11. As per books and records maintained by the Company and according
to the information and explanations given to us, the Company has not
defaulted in the repayment of any dues to financial institutions, banks
or debenture holders as at the Balance Sheet date.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. In our opinion the Company is not a chit fund or a nidhi / mutual
benefit fund / society, hence the provisions of clause 4 (xiii) of the
Companies (Auditors Report) Order, 2003 are not applicable to the
Company.
14. Based on our examination of the records and evaluation of the
related internal controls, we are of the opinion that proper records
have been maintained of the transactions and contracts of dealing or
trading in shares, securities, debentures and other investments and
timely entries have been made in those records. We also report that the
Company has held the shares, securities, debentures and other
investments in its own name.
15. In our opinion, the terms and conditions on which the Company had
given guarantees for loans taken by others from banks or fnancial
institutions were not prejudicial to the interest of the Company.
However, as at the balance sheet date, there are no guarantees given
for loans taken by others from banks or fnancial institutions.
16. In our opinion, the term loans were applied for the purposes for
which they were raised.
17. According to the information and explanations given to us and on
an overall examination of Balance Sheet of the Company, we report that
no funds raised on short term basis have been used for long term
investment.
18. As the Company made no preferential allotment of shares to any
parties and companies covered in the register maintained under Section
301 of the Companies Act, 1956, the provisions of clause 4 (xviii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
Company.
19. As the Company has not issued any debentures the provisions of
clause 4 (xix) of the Companies (Auditors Report) Order, 2003 are not
applicable to the Company.
20. As the Company has not raised any money during the period by
public issue, the provisions relating to end use thereof as per clause
4 (xx) of the Companies (Auditors Report) Order, 2003 are not
applicable to the Company.
21. Based upon the audit procedures performed by us for expressing our
opinion on these fnancial statements and information and explanations
given by the management, we report that no fraud on or by the Company
has been noticed or reported during the course of our audit.
For MOHINDER PURI & COMPANY
Chartered Accountants
Firm Registration No.: 000204N
VIKAS VIG
Place : New Delhi PARTNER
Dated: 26th May, 2010 M NO: 16920
Sep 30, 2009
We have audited the attached Balance Sheet of ASIAN HOTELS LIMITED as
at 30th September, 2009, the Profit and Loss Account and also the Cash
Flow Statement for the eighteen months period ended on that date and
annexed thereto. These financial statements are the responsibility of
the Companys management. Our responsibility is to express an opinion
on these financial statements based on our audit.
We have conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation.
We believe that our audit provides a reasonable basis for our opinion.
As required by the Companies (Auditors Report) Order, 2003 issued by
the Central Government of India in terms of sub - section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in Paragraphs 4 and 5 of the said
Order to the extent applicable to the Company.
Further to our comments in the Annexure referred to above, we report
that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) In our opinion, proper books of account as required by the law
have been kept by the Company so far as it appears from our examination
of those books;
(iii) The Balance Sheet, the Profit and Loss Account and the Cash flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash flow Statement dealt with by this report comply with the
Accounting Standards referred to in Section 211 (3C) of the Companies
Act, 1956;
(v) We draw attention to Note 16 in Schedule 21 of the Notes annexed to
the Accounts regarding the investment in Regency Convention Centre and
Hotels Limited (a subsidiary company) amounting to Rs.2579.01 Lakhs and
other receivables amounting to Rs. 389.82 Lakhs relating thereto. As
elucidated in the said note, considering that the value of the
investments cannot be reasonably ascertained at present, resultantly,
no provision for impairment has been made in the said financial
statements.
(vi) Further, we invite attention to Note 18 of Schedule 21 of the
Notes annexed to the Accounts, suggesting that upon receipt of
necessary approval of the Scheme of Arrangement and Demerger (the
Scheme), both the Kolkata Undertaking and Mumbai Undertaking would get
demerged as of the Appointed Date i.e. 31st October, 2009, and
resultantly, the Company would comprise only residuary operation i.e.
primarily the Hyatt Regency, Delhi.
(vii) On the basis of written representation received from the
directors and taken on record by the Board of Directors, we report that
none of the directors is disqualified as on 30th September 2009 from
being appointed as a director in terms of Section 274(1) (g) of the
Companies Act, 1956;
(viii) In our opinion and to the best of our information and according
to the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 30th September, 2009;
b) in the case of the Profit and Loss Account of the Profit for the
eighteen months period ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
eighteen months period ended on that date.
ANNEXURE TO THE AUDITORS REPORT OF ASIAN HOTELS LIMITED FOR THE
EIGHTEEN MONTHS PERIOD ENDED 30th SEPTEMBER, 2009
1. a. The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
1. b. Though all the assets have not been physically verified by the
management during the period, as per the information furnished to us,
there exists a programme of physical verification of entire fixed
assets over a reasonable period. In our opinion the frequency of
verification of the fixed assets by the management is at reasonable
intervals having regard to the size of the Company and nature of the
assets and no material discrepancies were noticed between the book
records and the physical inventory in respect of the assets physically
verified.
1. c. During the period, the Company has not disposed off substantial
part of the fixed assets. Based on the information and explanation
given by the management and on the basis of audit procedures performed
by us, we are of the opinion that the sale of fixed assets, if any, has
not affected the going concern status of the Company.
2. a. The stocks of stores, provisions, beverages, crockery etc.,
have been physically verified during the period by the management. In
our opinion, the frequency of verification is reasonable.
2. b. In our opinion and according to the information and
explanations given to us, the procedures of physical verification of
stocks followed by the management were found reasonable and adequate in
relation to the size of the Company and the nature of its business.
2. c. The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
book records were not material in relation to the operations of the
Company and the same have been properly dealt with in the books of
account.
3. As informed to us, the Company has not taken / granted any loan,
secured or unsecured, from / to companies, firms or other parties
covered in the register maintained under Section 301 of the Companies
Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and nature of its business
with regard to the purchase of stores, provisions, beverages, crockery
etc., plant and machinery, equipment and other assets and for the sale
of goods and services. During the course of our audit, we have not
observed any continuing failure to correct any major weakness in
internal control systems.
5. a. Based on the audit procedures applied by us and according to
the information and explanations provided by the Management, we are of
the opinion that the particulars of contracts or arrangements that need
to be entered into the register maintained under Section 301 of the
Companies Act, 1956 have been so entered.
5. b. In our opinion and according to the information and
explanations given to us, the transactions made in pursuance of
contracts or arrangements entered in the register maintained under
Section 301 of the Companies Act, 1956 and exceeding the value of
rupees five lakh in respect of any party during the year have been made
at prices which are prima facie reasonable having regard to prevailing
market prices to the extent available with the Company of similar items
supplied under similar circumstances by/to other parties and sale of
such services to others except where due to certain special reasons as
explained to us prices have been charged with no comparison available
with the Company.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits covered by the
provisions of Section 58A and 58AA or any other relevant provisions of
the Companies Act, 1956 and the Companies (Acceptance of Deposits)
Rules, 1975, hence the provisions of clause 4 (vi) of the Companies
(Auditors Report) Order, 2003 are not applicable to the Company.
7. Internal Audit has been conducted by an independent firm of
Chartered Accountants as well as by the Companys internal audit
department during the period and it is commensurate with the size of
the Company and the nature of its business.
8. The Central Government has not prescribed for the Company the
maintenance of cost records under Section 209 (1)(d) of the Companies
Act, 1956 and hence the provisions of clause 4 (viii) of the Companies
(Auditors Report) Order, 2003 are not applicable to the Company.
9. a. According to the records of the Company examined by us, the
Company has generally been regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees State Insurance,
Income tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Cess and other applicable statutory dues.
According to the information and explanations given to us, there are no
undisputed amounts payable in respect of the aforesaid dues that were
outstanding as at 30th September 2009 for a period of more than six
months from the date they became payable.
9. b. According to the records of the Company examined by us and
according to the information and explanations given to us, there are no
dues of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Service Tax,
Excise Duty or Cess which have not been paid on account of any dispute
except service tax demand amounting to Rs. 482.54 Lakhs disputed with
concern authorities (Refer Note 21 of Schedule 21).
10. The Company had no accumulated losses as at the end of the current
financial period and has not incurred any cash losses in such financial
period and in the immediately preceding financial year, hence
provisions of clause 4 (x) of the Companies (Auditors Report) Order,
2003 are not applicable.
11. As per books and records maintained by the Company and according
to the information and explanations given to us, the Company has not
defaulted in the repayment of any dues to financial institutions, banks
or debenture holders as at the Balance Sheet date.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. In our opinion the Company is not a chit fund or a nidhi / mutual
benefit fund / society, hence the provisions of clause 4 (xiii) of the
Companies (Auditors Report) Order, 2003 are not applicable to the
Company.
14. Based on our examination of the records and evaluation of the
related internal controls, we are of the opinion that proper records
have been maintained of the transactions and contracts of dealing or
trading in shares, securities, debentures and other investments and
timely entries have been made in those records. We also report that the
Company has held the shares, securities, debentures and other
investments in its own name.
15. In our opinion, the terms and conditions on which the Company has
given guarantees for loans taken by others from banks or financial
institutions are not prejudicial to the interest of the Company.
16. In our opinion, the term loans were applied for the purposes for
which they were raised.
17. According to the information and explanations given to us and on
an overall examination of Balance Sheet of the Company, we report that
no funds raised on short term basis have been used for long term
investment.
18. As the Company made no preferential allotment of shares to any
parties and companies covered in the register maintained under Section
301 of the Companies Act, 1956, the provisions of clause 4 (xviii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
Company.
19. As the Company has not issued any debentures the provisions of
clause 4 (xix) of the Companies (Auditors Report) Order, 2003 are not
applicable to the Company.
20. As the Company has not raised any money during the period by
public issue, the provisions relating to end use thereof as per clause
4 (xx) of the Companies (Auditors Report) Order, 2003 are not
applicable to the Company.
21. Based upon the audit procedures performed by us for expressing our
opinion on these financial statements and information and explanations
given by the management, we report that no fraud on or by the Company
has been noticed or reported during the course of our audit.
For MOHINDER PURI & COMPANY
Chartered Accountants
VIKAS VIG
Place : New Delhi Partner
Date : 25th November, 2009 Membership No.: 16920