Financial Analyst Summary: Asian Hotels (West) Limited Regulatory Response

Date and Nature of Communication

  • Date of Communication: 15th July, 2026
  • Recipient: Listing Compliance Department, National Stock Exchange of India Limited (NSE)
  • Subject: Response to query regarding non-signing of Statement of Impact of Audit Qualification by the Chairperson of Audit Committee for FY2026

Company's Clarification on Audit Committee Signing

  • The company confirmed that Ms. Mekhala Sengupta, Chairperson of the Audit Committee, did sign the Statement of Impact of Audit Qualification for the year ended March 31, 2026.
  • The company submitted Annexure A with the properly signed document showing her designation included for clarification.
  • The response was digitally signed by Nidhi Khandelwal, Company Secretary and Compliance Officer, on July 20, 2026.

Regulatory Compliance Reference

  • The document references Regulation 33/52 of the SEBI (LODR) (Amendment) Regulations, 2016 regarding the requirement for submitting Statement on Impact of Audit Qualifications.
  • The company states it remains "fully committed to extending our cooperation" with regulatory requirements.

Financial Results Clarification and Audit Qualifications

The Statement of Impact of Audit Qualifications reveals significant financial adjustments due to auditor's adverse opinion:

Standalone Financial Impact (Rs. in Lakhs):

  • Total Income: No change (Rs. 579.14)
  • Total Expenditure: Adjusted from Rs. 1,583.46 to Rs. 11,026.92 (increase of Rs. 9,443.46)
  • Net Loss Before Tax: Adjusted from Rs. (1,004.32) to Rs. (10,447.78) (increase of Rs. 9,443.46)
  • Earnings Per Share: Adjusted from Rs. (7.34) to Rs. (90.95)
  • Total Liabilities: Adjusted from Rs. 45,356.67 to Rs. 54,800.13 (increase of Rs. 9,443.46)
  • Net Worth: Adjusted from Rs. 10,046.72 to Rs. 603.26 (decrease of Rs. 9,443.46)

Consolidated Financial Impact (Rs. in Lakhs):

  • Total Income: No change (Rs. 44,494.62)
  • Total Expenditure: Adjusted from Rs. 36,039.76 to Rs. 45,483.22 (increase of Rs. 9,443.46)
  • Net Profit/Loss: Adjusted from profit of Rs. 8,454.86 to loss of Rs. (988.60) (negative swing of Rs. 9,443.46)
  • Earnings Per Share: Adjusted from Rs. 55.77 to Rs. (25.28)
  • Total Liabilities: Adjusted from Rs. 99,060.68 to Rs. 1,08,504.14 (increase of Rs. 9,443.46)
  • Net Worth: Adjusted from Rs. (1,343.79) to Rs. (10,787.25) (decrease of Rs. 9,443.46)

Key Audit Qualifications:

1. Classification of Rs. 39,000 lakhs funding from Saraf Group: Uncertainty whether this represents borrowings or advance for sale of assets

2. Unrecognized interest expense: Rs. 7,845.07 lakhs interest not recognized on the funding

3. Unrecognized reimbursement expenses: Rs. 1,598.39 lakhs claimed by Saraf Group not recorded

4. Unreconciled balance: Rs. 242.64 lakhs discrepancy in borrowings

5. Going concern uncertainty: Current liabilities exceed current assets by Rs. 42,432.87 lakhs (standalone) and Rs. 38,896.24 lakhs (consolidated)

6. Property verification issues: Unable to verify existence of property, plant and equipment worth Rs. 1,491.64 lakhs

7. Statutory dues reconciliation: Outstanding government balances require reconciliation

Company's Background Context:

  • The company owns Hotel Hyatt Regency in Mumbai, which has been non-operational since June 2021
  • Faced financial distress due to COVID-19 impact and lender bank's refusal to release ECLGS funds
  • Underwent Corporate Insolvency Resolution Process (CIRP) from September 16, 2022 to January 9, 2024
  • Successfully exited CIRP through Section 12A settlement approved by NCLAT
  • Currently in process of complying with regulatory requirements and evaluating PPE through physical verification

Topic Tags: Regulatory Response, Financial Results Clarification, Audit Qualifications, Insolvency Resolution, Going Concern Uncertainty, Hospitality Sector