Asian Hotels (West) Limited Approves Q2 Financial Results Amid Adverse Audit Conclusions

Asian Hotels (West) Limited Approves Q2 Financial Results Amid Adverse Audit Conclusions​

Asian Hotels (West) Limited released its un-audited quarterly financial results for the quarter ended June 30, 2026, for both standalone and consolidated entities. The company's Board of Directors approved these results along with a limited review report prepared by Chartered Accountants J.C. Bhalla & Co.

The auditor’s review highlighted several adverse matters concerning both the standalone and consolidated financial statements, including issues related to borrowings and potential going concern uncertainties.

Standalone Financial Performance (Q2 FY26)​

For the quarter ended June 30, 2026, the company's standalone results showed a net loss of (72.44) lakhs. The financials were prepared in accordance with Ind AS, prescribed under Section 133 of the Companies Act, 2013.

Key financial outcomes for the quarter ended June 30, 2026:


The independent auditors noted several concerns regarding the standalone financials:

• Borrowing and Expenditure: The company failed to recognize an interest expense of Rs. 8,616.43 lakhs and expenses amounting to Rs. 1,783.24 lakhs as claimed by the entity that provided advances.
• Unreconciled Balances: There was an unreconciled balance of Rs. 242.64 lakhs in the borrowings amounts stated in the standalone financial statement for the year ended June 30, 2026.
• Going Concern: A material uncertainty exists regarding the entity’s ability to continue as a going concern, as current liabilities exceeded current assets by Rs. 42,358.44 lakhs as at June 30, 2026.

Consolidated Financial Performance (Q2 FY26)​

The consolidated financial results for the quarter ended June 30, 2026, showed a total income of 10,057.42 lakhs and resulted in a net profit/(loss) before tax of 205.62 lakhs. The consolidated statements were also subjected to limited review by J.C. Bhalla & Co.


The independent auditors also pointed out adverse matters in the consolidated review:

• Borrowing and Expenditure: Similar to the standalone entity, the Holding Company did not recognize an interest expense of Rs. 8,616.43 lakhs and certain expenses for reimbursement amounting to Rs. 1,783.24 lakhs on the amounts received.
• Unreconciled Balances: An unreconciled balance of Rs. 242.64 lakhs was noted in the borrowings amount stated in the consolidated financial statements for the year ended June 30, 2026.
• Going Concern: A material uncertainty exists concerning the entity’s ability to continue as a going concern, given that current liabilities exceeded current assets by Rs. 41,865.94 lakhs as at June 30, 2026.

Review Notes on Borrowings and Acquisition Option​

Both the standalone and consolidated audits drew attention to the Framework Agreement concerning the option granted to Saraf Group to acquire Hyatt Regency, Mumbai. The auditor noted that while the Board of Directors of the Holding Company took cognizance of this agreement—which stipulated an option for Saraf Group to buy the asset after CIRP withdrawal—the classification of the amounts received from Saraf Group remains unclear and could potentially be viewed as either a loan or an advance for the sale of assets.

The audits also highlighted that the company had sought approval from members only for creating security on the asset, and not regarding the exercise of the option granted to Saraf Group.

AHLWEST Stock Price Movement​

Today, shares of Asian Hotels (West) Limited edged higher to settle at ₹550 after gaining 0.92%, climbing by ₹5.00 in session. The stock traded within a range of ₹521 to ₹555, with only 409 shares recorded in the market for the day.