1. Company Overview and Material Accounting Policies
1.1 Company overview
Asian Hotels (East) Limited is a Public Limited Company listed with Bombay Stock Exchange and National Stock Exchange and
is primarily engaged in the Hotel business through “Hyatt Regency Kolkata” a five-star Hotel situated in the city of Kolkata.
1.2. Basis of preparation of financial statement
These standalone financial statements have been prepared on historical cost basis, except for certain financial instruments
which are measured at fair value or amortised cost at the end of each reporting period, as explained in the accounting policies
below. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. All assets and liabilities have been classified as current and non-current as per
the Company's normal operating cycle. Based on the nature of services rendered to customers and time elapsed between
deployment of resources and the realisation in cash and cash equivalents of the consideration for such services rendered, the
Company has considered an operating cycle of 12 months.
Statement of Compliance :
These standalone financial statements have been prepared in accordance with the Indian Accounting Standards (referred to
as “Ind AS”) as prescribed under Section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards)
Rules, 2015 as amended from time to time and presentation requirements of Division II of Schedule III to the Companies Act,
2013 (Ind AS compliant Schedule III), as applicable to the Standalone Financial Statement.
Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a
revision to an existing accounting standard requires a change in the accounting policy hitherto in use.
The financial statements are approved for issue by the Company's Board of Directors on May 30, 2025.
Recent accounting pronouncements
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian
Accounting Standards) Rules as issued from time to time. During the year ended March 31,2025, MCA has notified Ind AS 117
- Insurance Contracts and amendments to Ind AS 116 - Leases, relating to sale and lease back transactions, applicable from
April 01,2024. The Company has assessed that there is no significant impact on its financial statements.
On May 09, 2025, MCA notified the amendments to Ind AS 21 - Effects of changes in Foreign Exchange Rates. These amendments
aim to provide clearer guidance on assessing currency exchangeability and estimating exchange rates when currencies are not
readily exchangeable. The amendments are effective from April 01, 2025. The Company is currently assessing the probable
impact of these amendments on its financial statements.
1.3 Functional & Presentation Currency
These Financial statements are presented in Indian Rupees (INR in lakhs) which is also the company's functional currency.
1.4 Use of estimates
The preparation of the financial statements in conformity with Ind AS requires management to make estimates, judgments
and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported
amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and
reported amounts of revenues and expenses during the period. Although these estimates are based on the management's best
knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or liabilities in future periods. Changes in estimates are
reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the
notes to the financial statements.
1.5 Material Accounting Policy information
a. Property Plant & Equipment:
Leasehold Land in the company was acquired by paying a lumpsum premium fee and annual rentals for a period of 999
years, which covers the economic life of the asset. It is carried at cost paid initially as lumpsum premium fee for the lease
period, considering the lease term and impact of the fair value of annual rentals over the lease period.
All other items of Property, Plant and equipment are stated at cost, net of accumulated depreciation and accumulated
impairment losses, if any. Such cost includes the expenditure that is directly attributable to the acquisition of the items. The
cost of replacing part of the plant and equipment and borrowing costs for long-term construction projects if the recognition
criteria are met.
Depreciation including amortization where applicable is provided on pro-rata basis under Straight Line Method (SLM) over
the estimated useful lives of the assets as specified in Schedule II to the Companies Act, 2013 (‘the Act'). The residual
values are not more than 5% of the original cost of the asset.
b. Intangible Asset:
Intangible assets (Computer Software) are stated at cost less accumulated amortisation and accumulated impairment
losses, if any. Computer Software for internal use, which is primarily acquired, is capitalized. Subsequent costs associated
with maintaining such software are recognized as expense as and when incurred. Cost of Software includes licenses fees
and cost of implementation, system integration services etc. where applicable.
Intangible assets with finite useful life are amortised on straight line basis over their estimated useful lives.
c. Capital work-in-progress:
The items of property, plant and equipment which are not yet ready for use are disclosed as capital work-in-progress and
are carried at historical cost or recoverable value, whichever is lower.
d. Investments in Subsidiaries
Subsidiaries are entities controlled by the Company. The Company controls an entity when it is exposed to, or has rights
to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the
entity. The Company's investment in the equity shares of its subsidiaries are recognised at cost. The company has elected
to apply previous GAAP carrying amount of its equity investment in subsidiaries as deemed cost as on the date of transition
to Ind AS. However, the debt instruments in subsidiaries are recognized at fair value.
e. Inventories
Inventories are measured at lower of cost and net realizable value. Net realizable value is the estimated selling price in the
ordinary course of business, less the estimated cost of completion & selling expenses.
f. Trade Receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective
interest method, less provision for impairment.
g. Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity.
Financial Asset
Initial recognition and measurement
All financial assets are recognized initially at fair value plus transaction costs that are directly attributable to the acquisition
of the financial asset, in the case of financial assets not recorded at fair value through profit or loss.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in three categories:
(i) Financial Asset at amortized cost
(ii) Financial Asset At Fair Value through other comprehensive income (OCI)
(iii) Financial Asset at Fair value through profit and loss (PL)
Financial Asset at amortized cost
A ‘Financial Asset' is measured at the amortized cost if both the following conditions are met:
a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and
b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and
interest (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortized cost using the effective
interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium on acquisition
and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the
statement of profit or loss.
Financial Asset at fair value through profit or loss
FVTPL is a residual category for Financial Assets. Any financial asset, which does not meet the criteria for categorization as
at amortized cost or as FVTOCI, is classified as at FVTPL.
Financial Liabilities
Initial recognition and measurement
All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of
directly attribuable transaction costs. For financial liabilities maturing within one year from the balance sheet date, the
carrying amount approximate fair value due to the short maturity of these instruments.
Financial Liabilities at amortized cost
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR
method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR
amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees
or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit and
loss.
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