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

Date and Nature of Communication

  • Date of Communication: July 20, 2026
  • Regulatory Query Source: National Stock Exchange of India Limited (NSE)
  • Nature of Query: Discrepancies in XBRL format financial results submitted for quarter and year ended March 31, 2025

Company's Clarification and Response

Asian Hotels (West) Limited responded to NSE's queries regarding their financial results submission with the following actions:

1. Revised XBRL Filing: The company filed revised XBRL filing of consolidated results for the period ended March 31, 2025, with acknowledgement email attached as "Annexure A"

2. Statement of Impact of Audit Qualification: Submitted the required statement for the period ending March 31, 2025, duly signed by the Chairperson of Audit Committee as "Annexure B"

Financial Results Clarification and Audit Impact

The Statement of Impact of Audit Qualifications reveals significant material adjustments:

Standalone Financial Impact (Rs. in Lakhs):

  • Total Expenditure increased from 4,154.23 to 7,229.67 (adjustment of 3,075.44)
  • Net Loss before tax worsened from (3,589.80) to (6,665.04) (additional loss of 3,075.24)
  • Earnings Per Share declined from (31.14) to (57.53)
  • Total Liabilities increased from 45,833.24 to 50,137.69 (increase of 4,304.45)
  • Net Worth reduced from 10,901.59 to 6,597.14 (reduction of 4,304.45)

Consolidated Financial Impact (Rs. in Lakhs):

  • Total Expenditure increased from 37,592.67 to 40,667.90 (adjustment of 3,075.23)
  • Net Profit before tax reduced from 4,458.78 to 1,383.55 (reduction of 3,075.23)
  • Earnings Per Share declined from 34.16 to 7.76
  • Total Liabilities increased from 1,04,631.25 to 1,08,936.00 (increase of 4,304.75)
  • Net Worth worsened from (7,801.15) to (12,105.90) (deterioration of 4,304.75)

Key Audit Qualifications and Issues

1. Classification of Rs. 39,000 Lakh Funding:

  • Uncertainty whether amounts received from Saraf Group represent borrowings or advances for asset sale
  • Framework Agreement provides option for Saraf Group to buy Hyatt Regency, Mumbai
  • Non-compliance with Section 180(1)(a) of Companies Act regarding disposal of undertaking
  • Failure to file necessary forms with Ministry of Corporate Affairs

2. Unrecognized Expenses:

  • Interest expense of Rs. 3,850.91 lakhs not recognized
  • Reimbursement expenses of Rs. 453.84 lakhs claimed by Saraf Group not recognized
  • Unreconciled balance of Rs. 242.64 lakhs in borrowings

3. Exceptional Items Treatment:

  • Net write-off of Rs. 1,229.51 lakhs (later corrected to Rs. 2,679.78 lakhs in management explanation)
  • Should have been treated as prior period error under IND AS 8

4. Going Concern Uncertainty:

  • Current liabilities exceed current assets by Rs. 42,051.61 lakhs (standalone)
  • Material uncertainty about company's ability to continue as going concern
  • Mumbai hotel operations suspended since June 2021

5. Property, Plant & Equipment:

  • Unable to verify existence of PPE balance of Rs. 1,617.11 lakhs
  • Lack of proper records and physical verification details

Regulatory Compliance References

  • Prepared under Regulation 33/52 of SEBI (LODR) (Amendment) Regulations, 2016
  • Reference to Section 12A of IBC 2016 settlement approval
  • Compliance with Companies Act, 2013 requirements
  • IND AS 8 and IND AS 105 accounting standards references

Operational Status and Background

  • Corporate Insolvency Resolution Process (CIRP) initiated on September 16, 2022
  • CIRP closed on January 09, 2024 after NCLAT approved settlement proposal
  • Mumbai hotel (Hyatt Regency) remains shut as of document date
  • Company focused on pending regulatory compliances with BSE, NSE, and other authorities
  • Physical verification of PPE assets underway before recommencing operations

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