To the Members of Benares Hotels Limited
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of Benares Hotels Limited
("the Company"), which comprise the
balance sheet as at March 31, 2024, and the statement of Profit and Loss (including other
comprehensive income), the
statement of changes in equity and statement of cash flows for the year then ended, and
notes to the financial statements,
including a summary of material accounting policies and other explanatory information
(hereinafter referred to as "financial
statements").
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial
statements give the information required by the Companies Act, 2013 (the Act) in the
manner so required and give a
true and fair view in conformity with the Indian Accounting Standards prescribed under
section 133 of the Act read with
the Companies (Indian Accounting Standards) Rules, 2015, as amended, Ind AS and other
accounting principles generally
accepted in India, of the state of affairs of the Company as at March 31, 2024, its profit
and other comprehensive income,
changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under Section 143(10) of the Act.
Our responsibilities under those SAs are further described in the Auditors
Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the Company in accordance with the
Code of Ethics issued by
the Institute of Chartered Accountants of India ("ICAI") together with the
ethical requirements that are relevant to our
audit of the financial statements under the provisions of the Act and the Rules
thereunder, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the Code of Ethics. We
believe that the audit evidence
obtained by us is sufficient and appropriate to provide a basis for our opinion on the
financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial
statements of the current period. These matters were addressed in the context of our audit
of the financial statements as
a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
We have determined the matter described below to be the key audit matter to be brought to your attention.
Key Audit Matter | Description | Our Response |
Impairment assessment of Property, Plant and Equipment (PPE) of one hotel unit. | In view of the continuing operating losses made by a hotel unit since its inception (with a carrying value of PPE of H1,128.78 lakhs as at March 31, 2024), and due to significant management and auditor judgement involved in impairment testing, we identified this matter as a Key Audit Matter. | Our audit procedures in relation to impairment testing of the unit were: |
At the end of each year, management reviews the carrying amount of the assets to determine if there is any indication of impairment loss. If any such indication exists, management assesses the recoverable amount of those assets. | - Understanding the managements and those charged with governance (TCWG)s process for estimating the recoverable amount of the assets. | |
The Company used the discounted cash flow approach to determine the recoverable value of those assets. Management also carries out an independent market valuation of the hotel building once in three years. | - Evaluating the reasonableness of the market related assumptions (including discount rate and long-term growth rate), judgements and key inputs considered by the management by comparing those estimates with market data and company specific information available. | |
The estimation of the recoverable amount of the assets at the unit involves management judgements and is dependent on certain assumptions and significant inputs which are affected by expected future market or economic conditions of the hospitality industry. Due to the level of uncertainties and judgment involved, changes in these assumptions could have significant impact on the recoverable value of those assets. | - Tested the company specific assumptions used in the cash flow forecasts which includes occupancy rate and average room rate. | |
- To consider forecasting risk, we also performed sensitivity analysis over the cash flow projections. | ||
- Evaluating the accuracy of the managements assessment by comparing the past estimates to the current year actual performance of the company. | ||
- Reading the valuation report and validating key assumptions used in the valuation and rationale for those assumptions. |
Information Other than the Financial Statements and Auditors Report Thereon
The Companys Management and Board of Directors are responsible for the preparation of
the other information. The
other information comprises the information included in the Directors report and
Management Discussion and Analysis
of the Financial Performance but does not include the financial statements and our
auditors report thereon.
Our opinion on the financial statements does not cover the other information and we do
not express any form of assurance
conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read
the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained
during the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we
are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Management and Board of Directors for Financial Statements
The Companys Management and Board of Directors are responsible for the matters stated
in Section 134(5) of the Act with
respect to the preparation of these financial statements that give a true and fair view of
the state of affairs, profit and other
comprehensive income, changes in equity and cash flows 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.
This responsibility also includes maintenance of adequate accounting records in accordance
with the provisions of the Act
for safeguarding of 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.
In preparing the financial statements, Management and Board of Directors are
responsible for assessing the Companys
ability to continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern
basis of accounting unless the Board of Directors either intends to liquidate the Company
or to cease operations, or has
no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Companys financial reporting process.
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditors report that
includes our opinion. Reasonable
assurance is a high level of assurance but is not a guarantee that an audit conducted in
accordance with SAs will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error
and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken
on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism
throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design
and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate
to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than
for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the
override of internal control.
- Obtain an understanding of internal financial control relevant to the audit in order
to design audit procedures that are
appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also
responsible for expressing our opinion
on whether the company has adequate internal financial controls with reference to the
financial statements in place
and the operating effectiveness of such controls.
- Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related
disclosures made by the Management.
- Conclude on the appropriateness of Management and Board of Directors use of the going
concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related
to events or conditions that
may cast significant doubt on the Companys ability to continue as a going concern. If we
conclude that a material
uncertainty exists, we are required to draw attention in our auditors report to the
related disclosures in the financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions
are based on the audit evidence
obtained up to the date of our auditors report. However, future events or conditions may
cause the Company to cease
to continue as a going concern; and
- Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures,
and whether the financial statements represent the underlying transactions and events in a
manner that achieves
fair presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters
that may reasonably be thought
to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most
significance in the audit of the financial statements of the current period and are
therefore the key audit matters. We describe
these matters in our auditors report unless law or regulation precludes public disclosure
about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in our
report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020 ("the Order"),
issued by the Central Government of India
in terms of Section 143 (11) of the Act, we give in the "Annexure A" a statement
on the matters specified in paragraphs
3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the 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, except for our qualifications relating to audit trail
requirement stated
in paragraph 2(h)(vi) - (a),(b) & (c) below on reporting under Rule 11(g) of the
Companies (Audit and Auditors)
Rules, 2014.
(c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive
income), the Statement of
Changes in Equity and the statement of cash flows dealt with by this Report are in
agreement with the books
of account.
(d) In our opinion, the aforesaid financial statements comply with the (Ind AS) specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on March
31, 2024 taken on record
by the Board of Directors, none of the directors is disqualified as on March 31, 2024 from
being appointed as a
director in terms of Section 164 (2) of the Act.
(f) There are no qualifications, adverse remarks or reservations relating to the
maintenance of books of accounts
except for matter stated in para paragraph 2(h)(vi) below on audit trail requirement under
Rule 11(g) of the
Companies (Audit and Auditors) Rules, 2014.
(g) With respect to the adequacy of the internal financial controls with reference to
the financial statements of the
Company and the operating effectiveness of such controls, refer to our separate Report in
"Annexure B".
(h) With respect to the other matters to be included in the Auditors 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 of pending litigations as at March 31, 2024 on
its financial position
in its financial statements - Refer Note No. 30 of the financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for
which there were any
material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to
the Investor Education and
Protection Fund by the Company during the year ended March 31, 2024; and
iv. (a) The management has represented that, to the best of its knowledge and belief, as disclosed in the notes
to the accounts, no funds have been advanced or loaned or invested (either from
borrowed funds or
share premium or any other sources or kind of funds) by the company to or in any other
person(s) or
entity(ies), including foreign entities ("Intermediaries"), with the
understanding, whether recorded in
writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or
invest in other
persons or entities identified in any manner whatsoever by or on behalf of the company
("Ultimate
Beneficiaries") or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.
(b) The management has represented, that, to the best of its knowledge and belief, as
disclosed in the
notes to the accounts, no funds have been received by the company from any person(s) or
entity(ies),
including foreign entities ("Funding Parties"), with the understanding, whether
recorded in writing
or otherwise, that the company shall, whether, directly or indirectly, lend or invest in
other persons
or entities identified in any manner whatsoever by or on behalf of the Funding Party
("Ultimate
Beneficiaries") or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.
(c) Based on such audit procedures that we have considered reasonable and appropriate
in the
circumstances, nothing has come to our notice that has caused us to believe that the
representations
under sub-clause (a) and (b) contain any material mis-statement.
v. (a) The final dividend paid by the Company during the year, in respect of the same declared for the previous
year, is in accordance with Section 123 of the Act to the extent it applies to payment of dividend.
(b) As stated in Note No. 46 of the financial statements, the Board of Directors of the
Company has
proposed final dividend for the year which is subject to the approval of the members at
the ensuing
Annual General Meeting. The dividend declared is in accordance with Section 123 of the Act
to the
extent it applies to declaration of dividend.
vi. Relying on representations/explanations from the company and software vendors and
based on our
examination which includes test checks and as explained in Note No. 49 of the financial
statements, the
Company has used accounting softwares for maintaining its books of account, which have a
feature of
recording audit trail (edit log) facility and the same has operated throughout the year
for all relevant
transactions recorded in the respective softwares, except for:
(a) In ERP used for maintaining books of accounts of its hotel units except one and
corporate office, the
feature of recording audit trail (edit log) facility was enabled at the application layer
of the accounting
software which is mainly ERP for masters and transactions majorly during June 2023 and
July 2023.
(b) In ERP used for maintaining books of accounts of one of its hotel units, the ERP
used for maintaining the
general ledger, the audit trail (edit log) facility for data changes performed by users
having privileged
access was enabled from December 21, 2023 onwards at the application layer and
accordingly, such
audit trail feature was not enabled for the period April 1, 2023 to December 20, 2023.
(c) For all the hotel units and corporate office, the feature of the recording audit
trail (edit log) facility was
not enabled at the database level to log any direct data changes for the accounting
software used for
maintaining the books of accounts.
Further, for the periods where the audit trail (edit log) facility was enabled and
operated throughout the year
fortherespectiveaccountingsoftwares,wedidnotcomeacrossanyinstanceoftheaudittrailfeaturebeingtamperedwith.
As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable only from
April 1, 2023,
reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 on
preservation of audit trail
as per the statutory requirements for record retention is not applicable for the financial
year ended March
31, 2024.
3. With respect to the matter to be included in the Auditors Report under Section 197(16) of the Act:
In our opinion and according to the information and explanations given to us, the
remuneration paid by the Company
to its directors during the current year is in accordance with the provisions of Section
197 of the Act. The remuneration
paid to any director is not in excess of the limit laid down under Section 197 of the Act.
For PKF Sridhar & Santhanam LLP | |
Chartered Accountants | |
Firms Registration No.003990S/S200018 | |
R. Suriyanarayanan | |
Partner | |
Place of Signature: Mumbai | Membership No. 201402 |
Date: April 19, 2024 | UDIN: 24201402BKFWXL5723 |
Annexure A to the Independent Auditors Report
Referred to in paragraph 1 on Report on Other Legal and Regulatory Requirements of our report of even date
to the members of Benares Hotels Limited ("the Company") on the financial statements as of and for the year
ended March 31, 2024.
(i) (a) (A) The Company has maintained proper records showing full particulars including quantitative details and
situation of Property, Plant and Equipment.
(B) The Company has maintained proper records showing full particulars of intangible assets.
(b) The Company has a regular programme of physical verification of its Property, Plant
and Equipment by which
all Property, Plant and Equipment are verified in a phased manner over a period of three
years. In our opinion,
this periodicity of physical verification is reasonable having regard to the size of the
Company and the nature
of its assets. Pursuant to the programme, certain Property, Plant and Equipment were
physically verified by the
management during the year. In our opinion, and according to the information and
explanations given to us, no
material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us, the records examined by
us and based on the
examination of the conveyance deeds provided to us, we report that, the title deeds,
comprising all the immovable
properties (other than properties where the company is the lessee and the lease agreements
are duly executed
in favour of the lessee) disclosed in the financial statements are held in the name of the
Company as at Balance
Sheet date.
In respect of immovable properties of land and building that have been taken on lease
and disclosed as leasehold
lands / buildings under property, plant & equipment / right of use assets in the
financial statements, the lease
agreements are in the name of the Company.
(d) The Company has not revalued its Property, Plant and Equipment (including Right of
Use assets) and intangible
assets during the year and hence this clause is not applicable to the Company.
(e) According to the information and explanations given to us and on the basis of our
examination of the records of
the Company, no proceedings have been initiated or are pending against the Company for
holding any benami
property under the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and rules
made thereunder.
(ii) a) The inventory has been physically verified by the management at reasonable intervals during the year. In our
opinion, the frequency of such verification is reasonable and, the coverage and
procedure of such verification
by the management is appropriate. The discrepancies noticed on verification between the
physical stocks and
the book records are not 10% or more in the aggregate for each class of inventory.
b) Based on our audit procedures and according to the information and explanation given
to us, the Company has
not been sanctioned loan in excess of five crore rupees from banks or financial
institution on the basis of security
of current assets and hence the question of filing quarterly returns or statements by the
company with banks or
financial institutions does not arise. Accordingly, paragraph 3(ii)(b) of the Order is not
applicable to the Company.
(iii) Based on our audit procedures and according to the information and explanation
given to us, the Company has not
made investments in, provided any guarantee or security or granted any loans or advances
in the nature of loans,
secured or unsecured, to companies, firms, Limited Liability Partnerships or any other
parties. Accordingly, paragraph
3(iii) (a) to (f) of the Order is not applicable to the Company.
(iv) Based on our audit procedures and according to the information and explanation
given to us, the Company has neither
given any loan, guarantees and security nor made any investment during the year covered
under section 185 and 186
of the Act. Therefore paragraph 3(iv) of the Order is not applicable to the Company.
(v) Based on our audit procedures & according to the information and explanation
given to us, the Company has not
accepted any deposits or amounts which are deemed to be deposits within the meaning of the
Act and the directives
issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other
relevant provisions of the
Act and the rules framed thereunder. No order has been passed by Company Law Board or
National Company Law
Tribunal or Reserve Bank of India or any court or any other tribunal. Accordingly,
paragraph 3(v) of the Order is not
applicable to the Company.
(vi) The Company is not required to maintain cost records specified by the Central
Government under sub section (1) of
section 148 of the Act. Accordingly, paragraph 3(vi) of the Order is not applicable to the
Company.
(vii) (a) According to the information and explanations given to us and the records of the Company examined by us, the
Company has been regular in depositing undisputed statutory dues including Goods and
Service Tax, Provident
Fund, Employees State Insurance, Income-tax, Sales-tax, Service tax, Duty of Customs,
Duty of Excise, Value
added tax, Cess and any other material statutory dues as applicable with the appropriate
authorities, though
there has been a slight delay in an instance of Goods and Service Tax and an instance of
payment of gratuity.
According to the information and explanation given to us and the records of the Company
examined by us, no
undisputed amounts payable in respect of statutory dues were in arrears, as of March 31,
2024 for a period of
more than six months from the date they became payable.
(b) According to the information and explanations given to us and based on our
examination of the records of the
Company, there are no statutory dues referred to in sub-clause (a) as at March 31, 2024,
which have not been
deposited with the appropriate authorities on account of any dispute, except as stated
below:
Name of the Statute | Nature of the Dues | Amount demanded (net of amount paid) (D in lakhs) | Amount paid (D in lakhs) | Period to which amount relates | Forum where dispute is pending |
U.P. Trade Tax Act | Demand | 10.88 | 5.00 | FY 2006-2007 | 1st Appellate Authority, UP VAT |
U.P. Trade Tax Act | Demand | 15.39 | 5.00 | FY 2007-2008 | |
Luxury Tax | Demand | 1.21 | - | FY 2009-2010 to FY 2013-2014 | Assessing Officer |
(viii) As per the information and explanations given by the management and on the basis
of our examination of the records
of the Company, no amount has been surrendered or disclosed as income during the year in
the tax assessments under
the Income Tax Act, 1961. Accordingly, paragraph 3(viii) of the order is not applicable to
the Company.
(ix) (a) According to the information and explanations given to us, the Company does not have any loans or other
borrowings from any lender. Accordingly, reporting under clause 3(ix) of the Order is not applicable to the Company.
(b) According to the information and explanations given to us and on the basis of our
examination of the records
of the Company, the Company has not been declared willful defaulter by any bank or
financial institution or
government or government authority.
(c) According to the information and explanations given to us and the records of the
Company examined by us,
there were no term loans taken by the Company and hence the question of the amount of loan
so diverted and
the purpose for which it is used does not arise. Accordingly, paragraph 3(ix)(c) of the
Order is not applicable to
the Company.
(d) According to the information and explanations given to us and the records of the
Company examined by us,
there were no funds raised on short term basis by the Company. Accordingly, paragraph
3(ix)(d) of the Order is
not applicable to the Company.
(e) According to the information and explanations given to us and the records of the
Company examined by us, the
Company does not have any subsidiary, associate or joint venture and hence the question of
the Company taking
loan from any entity or person on account of or to meet the obligations of its
subsidiaries, joint ventures or
associate companies does not arise. Accordingly, paragraph 3(ix)(e) of the Order is not
applicable to the Company.
(f) According to the information and explanations given to us and the records of the
Company examined by us, the
Company does not have any subsidiary, associate or joint venture and hence the question of
the Company raising
any loans during the year on pledge of securities held in its subsidiaries, joint ventures
or associate companies
does not arise. Accordingly, paragraph 3(ix)(f) of the Order is not applicable to the
Company.
(x) (a) The Company has not raised any money during the year by way of initial public offer/further public offer (including
debt instruments) hence, the requirement to report on clause 3(x)(a) of the Order is not applicable to the Company.
(b) During the year, the Company has not made any preferential allotment or private
placement of shares or
convertible debentures (fully or partly or optionally) and hence reporting under clause
(x)(b) of the Order is not
applicable to the Company.
(xi) (a) To the best of our knowledge and belief and according to the information and explanations given to us, we report
that no fraud by the Company or on the Company has been noticed or reported during the year.
(b) According to the information and explanations given to us including the
representation made to us by the
management of the Company, no report under sub-section 12 of Section 143 of the Act has
been filed by
secretarial auditor or by us in Form ADT-4 as prescribed under Rule 13 of Companies (Audit
and Auditors) Rules,
2014, with the Central Government of India for the period covered by our audit.
(c) As represented to us by the management, there are no whistle blower complaints
received during the year by
the Company.
(xii) The Company is not a Nidhi company in accordance with Nidhi Rules 2014.
Accordingly, paragraph 3(xii)(a) to (c) of
the Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us,
the transactions with related parties are
in compliance with Section 177 and 188 of the Act, where applicable, and the details of
the related party transactions
have been disclosed in the financial statements as required by the Indian accounting
standard Related Party Disclosures
(Ind AS 24).
(xiv) (a) To the best of our knowledge and belief and according to the information and explanations given to us, the
Company has an internal audit system commensurate with the size and nature of its business.
(b) We have considered the reports of the Internal Auditors of the Company issued till date for the period under audit.
(xv) On the basis of the information and explanations given to us, in our opinion,
during the year the Company has not
entered into any non-cash transactions with its directors or persons connected with its
directors and hence provisions
of section 192 of the Companies Act, 2013 are not applicable to the Company.
(xvi) (a) Based on our audit procedures and according to the information and explanations given to us, the Company is
not required to be registered under Section 45-IA of Reserve Bank of India Act, 1934 (2 of 1934).
(b) Based on our audit procedures and according to the information and explanations
given to us, the Company has
not conducted any Non-Banking Financial or Housing Finance activities without a valid
Certificate of Registration
(CoR) from the Reserve Bank of India as per the Reserve Bank of India Act, 1934.
Accordingly, paragraph 3(xvi)
(b) of the Order is not applicable to the Company.
(c) Based on our audit procedures and according to the information and explanations
given to us, the Company is
not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank
of India and hence
the questions of fulfilling criteria of a CIC, and in case the Company is an exempted or
unregistered CIC, whether
it continues to fulfill such criteria, do not arise. Accordingly, paragraph 3(xvi)(c) of
the Order is not applicable to
the Company.
(d) Based on our audit procedures and according to the information and explanations
given to us, there are 7 Core
Investment Companies (CIC) in the Group (basis definition of "Companies in the
Group" as per Core Investment
Companies (Reserve Bank) Directions, 2016) as at the end of the reporting period i.e. five
CICs which are registered
with the Reserve Bank of India and two CICs which are not required to be registered with
the Reserve Bank
of India.
(xvii) Based on our audit procedures and according to the information and explanations
given to us, the Company has not
incurred cash losses in the financial year and in the immediately preceding financial
year.
(xviii) There has been no resignation of the statutory auditors during the year and accordingly this clause is not applicable.
(xix) According to the information and explanations given to us and on the basis of the
financial ratios, ageing and expected
dates of realisation of financial assets and payment of financial liabilities, other
information accompanying the financial
statements, our knowledge of the Board of Directors and management plans and based on our
examination of the
evidence supporting the assumptions, nothing has come to our attention, which causes us to
believe that any material
uncertainty exists as on the date of the audit report that the Company is not capable of
meeting its liabilities existing
at the date of balance sheet as and when they fall due within a period of one year from
the balance sheet date.
We, however, state that this is not an assurance as to the future viability of the
company. We further state that our
reporting is based on the facts up to the date of the audit report and we neither give any
guarantee nor any assurance
that all liabilities falling due within a period of one year from the balance sheet date,
will get discharged by the company
as and when they fall due. Also, refer Note No. 43 of the financial statements in this
regard.
(xx) According to the information and explanations given to us, the Company does not
have any unspent amounts towards
Corporate Social Responsibility in respect of any ongoing or other than ongoing project as
at the end of the financial
year. Accordingly, reporting under Clause 3(xx) of the Order is not applicable to the
Company.
For PKF Sridhar & Santhanam LLP | |
Chartered Accountants | |
Firms Registration No.003990S/S200018 | |
R. Suriyanarayanan | |
Partner | |
Place of Signature: Mumbai | Membership No. 201402 |
Date: April 19, 2024 | UDIN: 24201402BKFWXL5723 |
Annexure B to the Independent Auditors Report
Referred to in paragraph 2(g) on Report on Other Legal and Regulatory Requirements of
our report of even
date
Report on the Internal Financial Controls with reference to the aforesaid financial
statements under Clause
(i) of Sub-section 3 of Section 143 of the Companies Act, 2013
We have audited the internal financial controls with reference to financial statements
of Benares Hotels Limited ("the
Company") as of March 31, 2024 in conjunction with our audit of the financial
statements of the Company for the year
ended on that date.
Managements and Board of Directors Responsibility for Internal Financial Controls
The Companys Management and the Board of Directors are responsible for establishing
and maintaining internal financial
controls based on the internal control with reference to financial statements 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 (the
"Guidance Note"). 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
companys 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 Act.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls with reference to financial
statements based on our audit. We conducted our audit in accordance with the Guidance Note
and the Standards on
Auditing, prescribed under section 143(10) of the Act, to the extent applicable to an
audit of internal financial controls
with reference to financial statements. 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 with reference to financial statements were 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
with reference to financial statements and their operating effectiveness. Our audit of
internal financial controls with
reference to financial statements included obtaining an understanding of internal
financial controls, 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 auditors judgement, 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 Companys internal financial controls with reference to financial statements.
Meaning of Internal Financial Controls with Reference to Financial Statements
A Companys internal financial control with reference to financial statements 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 Companys internal financial
control with reference to financial
statements 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 authorisations of management and directors of the Company; and (3) provide
reasonable assurance
regarding prevention or timely detection of unauthorised acquisition, use, or disposition
of the Companys assets that
could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with Reference to Financial Statements
Because of the inherent limitations of internal financial controls with reference to
financial statements, 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 with reference to financial
statements to future periods are subject to the risk that the internal financial control
with reference to financial statements
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, adequate internal financial
controls with reference to financial
statements and such internal financial controls were operating effectively as at March 31,
2024, based on the internal
control with reference to financial statements criteria established by the Company
considering the essential components
of internal control stated in the Guidance Note.
For PKF Sridhar & Santhanam LLP | |
Chartered Accountants | |
Firms Registration No.003990S/S200018 | |
R. Suriyanarayanan | |
Partner | |
Place of Signature: Mumbai | Membership No. 201402 |
Date: April 19, 2024 | UDIN: 24201402BKFWXL5723 |
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