Notes to Accounts of Best Eastern Hotels Ltd.

Mar 31, 2025

(k) Provisions, Contingent Liabilities and Contingent Assets:

The Company recognizes a provision when there is a present obligation (legal or constructive) as a result of a
past event and it is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation and a reliable estimate can be made of the amount of the obligation.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no
longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence
of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events
not wholly within the control of the Company or a present obligation that arises from past events where it is
either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of
the amount cannot be made.

Contingent assets are not disclosed in the Financial Statements unless an inflow of economic benefits is
probable.

(l) Earnings per share:

Basic earnings per share is calculated by dividing the net profit / (loss) for the year attributable to the equity
shareholders by weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit / (loss) for the period attributable to
equity shareholders and the weighted average number of shares outstanding during the period are adjusted
for the effects of all dilutive potential equity shares.

NOTE 3: APPLICATION OF NEW AND AMENDED STANDARDS

(A) Amendments to existing Standards (w.e.f. 1st April, 2023)

The Company has adopted, with effect from 01 April 2023, the following new and revised standards and interpretations.
Their adoption has not had any significant impact on the amounts reported in the financial statements.

1. Ind AS 1- Presentation of Financials Statements - modification relating to disclosure of ''material accounting
policy information'' in place of ''significant accounting policies.

2. Ind AS 8 - Accounting Policies, Change in Accounting Estimates and Errors - modification of definition of
''accounting estimate'' and application of changes in accounting estimates.

3. Ind AS 12 - Income Taxes - The amendment clarifies application of initial recognition exemption to transactions
such as leases and decommissioning obligations.

(B) Standards notified but not yet effective

No new standards have been notified during the year ended March 31,2025.

vi. Aggregate number of equity shares issued as bonus, shares issued for consideration other than cash and
shares bought back during the period of five years immediately preceding the reporting date: NIL

vii. Shares reserved for issue under options

None of the above shares are reserved for the issue under option/contract/commitments for sale of shares or
disinvestment.

viii. Shares held by Holding Company

The company does not have any Holding company.

ix. During the year the company has not proposed/declared/paid any dividend to the equity shareholders.

1. NON CURRENT BORROWING

A) Note on Secured Term Loan:

" In previous year the Term Loan was sanctioned and disbursed by Union bank under ECLGS scheme announced by
the government to meet with liquidity crunch on account of outbreak of COVID-19 pandemic. "

The Term Loan was secured by equitable mortgage of immovable property owned by the Company situated at
Matheran. The Term Loan was repaid in 48 monthly instalments which ended in current year after a moratorium
period of 24 months. The Term Loan carried rate of interest of EBLR 1% subject to maximum of 9.25% p.a.

The Company had used the borrowings from the bank for the specific purpose for which it was taken.

B) Note on Preference Share Capital :

The Company had issued total of 12,00,000 10% Cumulative, Non-Convertible, Redeemable Preference Shares of
Rs.10/- each which are to be redeemed at par on or before June 26, 2039.

In previous FY 2023-24 , The dividends in the arrears on preference shares (it pertains to on or before financial year
2022-23) together with dividend due for the financial year 2023-24 which have been proposed and paid out of the
profits for the financial year 2023-24.

2. CURRENT BORROWINGS

Note on Secured Loan Repayable on Demand :

"The Secured Overdraft facility from the bank is secured by equitable mortgage of immovable property owned by the
Company situated at

Matheran and secured by personal guarantee furnished by two directors of the Company."

The Rate of Interest is linked with EBLR of respective bank with spread of 2.00%, hence ROI varies from 8.50% to
10.50% p.a. depending upon movement in EBLR.

3. Net Borrowings Reconciliation

This section sets out an analysis of net borrowings and the movements in net borrowings for each of the periods
presented:

*The amounts of Long term employee benefits and post-employment benefits cannot be seperately identified from the
composite amount advised by the actuary/valuer.

(e) Terms and conditions of transactions with related parties

The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions.
Outstanding balances at the year end are unsecured and interest free and settlement occurs in cash. There have
been no guarantees provided or received for any related party receivables and payables. For the year ended March
31,2025, the company has not recorded any impairment of receivables relating to amount owed by related parties
(March 31, 2024: Rs. NIL). This assessment is undertaken each financial year through examining the financial
position of the related party and market in which the related party operates.

29. EMPLOYEE BENEFITS PLAN

As per Ind AS 19 “Employee Benefits”, the disclosures of Employee benefits as defined in the Accounting Standard are
given below :

a) Other long-term benefits - Compensated absences

The Company permits encashment of compensated absence accumulated by their employees on retirement,
separation and during the course of service. The liability in respect of the Company, for outstanding balance of leave
at the balance sheet date is determined and provided on the basis of actuarial valuation as at the balance sheet date
performed by an independent actuary.

The Company doesn’t maintain any plan assets to fund its obligation towards compensated absences.

b) Defined benefits plans - Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service
gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The plan is
funded with an insurance company in the form of a qualifying insurance policy.

The following tables summarise the components of net employee benefit expense recognised in the Statement of
Profit and Loss and the funded status and amounts recognised in the balance sheet for the respective plans.

c) Defined contribution plan

Company’s employees are covered by Provident Fund to which the Company makes a defined contribution
measured as a fixed percentage of salary. The contributions are made to registered provident fund administered by
Government. During the year, amount of Rs. 15.83 lakhs (Previous Year: Rs. 13.55 lakhs) has been charged to the
Statement of Profit and Loss towards employer’s contribution to the funds.

30. Financial risk management objectives and policies

The Company''s principal financial liabilities include borrowings, trade payables and other financial liabilities. The
Company''s principal financial assets include loans, trade receivable, cash and cash equivalents and others. The
Company is exposed to credit risk, liquidity risk and market risk. The Company’s senior management oversees the
management of these risks. The Company''s senior management provides assurance that the Company''s financial
risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured
and managed in accordance with the Company''s policies and risk objectives. The Company has exposure to the
following risks arising from the financial instruments:

The Company’s principal financial liabilities, comprise of borrowings, security deposits, trade and other payables.
The main purpose of these financial liabilities is to finance the Company’s operations. The Company''s principal
financial assets include loans, trade receivables, cash and cah equivalents and other bank balances that are
derived directly from its operations.

The Company’s financial risk management is an integral part of how to plan and execute its business strategies.
The Company is exposed to market risk, credit risk and liquidity risk.

The Company’s senior management oversees the management of these risks. The senior professionals working to
manage the financial risks and the appropriate financial risk governance framework for the Company are
accountable to the Board of Directors and Audit Committee.

This process provides assurance to Company''s senior management that the Company''s financial risk-taking
activities are governed by appropriate policies and procedures and that financial risk are identified, measured and
managed in accordance with Company policies and Company risk objective.

(i) Market Risk

(ii) Credit Risk

(iii) Liquidity Risk

The management reviews and agrees policies for managing each of these risks which are summarized as below:

(i) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market prices comprises three types of risk: currency rate risk, interest rate risk and
other price risks, such as equity price risk and commodity price risk. Financial instruments affected by market
risks include borrowings, security deposits, investments and foreign currency receivables and payables.

(a) Foreign Currency risk

Currency risk is not material, as the Company''s primary business activities are within India and does not
have any exposure in foreign currency.

(b) Interest rate risk:

Interest rate is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. Company’s financial liabilities comprises of interest bearing
loans, vehicle loans and advances and security deposits; however these are not exposed to risk of
fluctuation in market interest rate as the rates are fixed at the time of contract/agreement and do not
change for any market fluctuation.

(ii) Credit Risk

Credit risk has always been managed by the company through credit approvals, establishing credit limits and
continuously monitoring the creditworthiness of customers to which the company grants any credit terms in the
normal course of business.

The company considers the probability of default upon initial recognition of asset and whether there has been
a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether
there is a significant increase in credit risk the Company compares the risk of a default occurring on the asset
as at the reporting date with the risk of default as at the date of initial recognition. It considers available
reasonable and supportive forwarding-looking information.

In general, it is presumed that credit risk has significantly increased since initial recognition if the payments are
more than 60 days past due.

A default on a financial asset is when the counterparty fails to make contractual payments of when they fall
due. This definition of default is determined by considering the business environment in which entity operates
and other macro-economic factors.

"Trade receivables : They consist of few number of customers, spread across diverse industries and
geographical areas. In order to mitigate the risk of financial loss from defaulters, the Company has an ongoing
credit evaluation process in respect of customers who are allowed credit period. In respect of walk-in
customers the Company does not allow any credit period and therefore, is not exposed to any credit risk.

The Company does not have any derivative transactions and therefore is not exposed to any credit risk on
account of derivatives. The Company does not have any long-term contracts for which there are any material
foreseeable losses.

Financial Instruments and cash deposits: The Company considers factors such as track record, size of the
instutition, market reputation, financial strength/rating and service standards to select the banks with which
balances and deposits are maintained. Generally the balances are maintained with the institutions with which
the Company has also availed borrowings.

The Company''s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from
operations. The Company believes that the working capital is sufficient to meet its current requirements. Further, the
Company''s approach is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when
due and Company monitors rolling forecasts of its liquidity requirements.

The table below provides details regarding the Contractual Maturities of financial liabilities as at March 31,2025:

31. Capital Management

The Company manages its capital to ensure that it will be able to continue as going concern while maximising the
return to stakeholders through the optimisation of the debt and equity balance. The capital structure of the Company
consists of net debt and the total equity of the Company. For this purpose, net debt is defined as total borrowings
less cash and cash equivalents.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and
the requirements of the financial covenants. The funding requirements are met through short-term/long-term
borrowings. The Company monitors the capital structure on the basis of total debt to equity ratio and maturity profile
of the overall debt portfolio of the Company.

*The carrying amounts of trade receivables, cash and cash equivalents, current loans, other current financial assets,
borrowings, trade payables and other financial liabilities are considered to be approximately equal to the fair value.

The fair values of non current borrowings are based on discounted cash flows using a current borrowing rate. They are
classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs.

ii. Fair value hierarchy

The fair values of the financial assets and liabilities are included at the amount 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.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed
equity instruments that have quoted price. The fair value of all equity instruments which are traded in the stock
exchanges is valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using
valuation techniques which maximise the use of observable market data and rely as little as possible on entity-
specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is
included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3.

During the years mentioned above, there have been no transfers amongst the levels of hierarchy. The fair values
of unquoted equity instruments are not significantly different from their carrying value and hence the
management has considered their carrying amount as fair value.

iii. Valuation processes

The finance department of the company includes a team that performs the valuations of financial assets and
liabilities required for financial reporting purposes, including level 3 fair values. This team reports directly to the
chief financial officer (CFO) and the audit committee (AC). Discussions of valuation processes and results are
held between the CFO, AC and the valuation team at least once every three months, in line with the company''s
quarterly reporting periods.

The contract liabilities primarily relate to the advance consideration received from customers for which revenue is
recognised when the performance obligation is over/ services delivered.

a) Advance Collections is recognised when payment is received before the related performance obligation is satisfied.
This includes advances received from the customer towards rooms/restaurants/banquets. Revenue is recognised
once the performance obligation is met i.e. on room stay/ sale of food and beverage/ provision of banquet services.

This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has
been determined to the extent such parties have been identified on the basis of information available with the Company.
This has been relied upon by the auditors.

37. Segment Reporting

"The Company is primarily engaged in the business of hospitality and managing the resort. Since the inherent nature of
activities as a whole is governed by the same set of risks and returns, these have been regrouped as a single segment.
No Assets of the Company is located outside India. The said treatment is in accordance with the Indian Accounting
Standard on ""Operating Segments"" (Ind AS-108) as issued by the Institute of Chartered Accountants of India.The
Company is not reliant on revenues from transactions with any single external customer and does not receive 10% or
more of its revenues from transactions with any single external customer."

38. Registration of charges or satisfaction with Registrar of Companies (ROC)

During the year, there are no instances of any registration, modification or satisfaction of charges which are pending for
registration with Registrar of Companies (ROC) beyond the statutory period.

39. Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017.

40. Compliance with approved Scheme(s) of Arrangements

The Company has no scheme of arrangements which have been approved by the competent Authority in terms of Sec
230 to 237 of the Companies Act, 2013 during the reporting period.

41. Utilisation of borrowed funds and share premium

A. The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:

(a) 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

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries."

B. The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries."

42. Undisclosed income

The Company does not have any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as,
search or survey or any other relevant provisions of the Income Tax Act, 1961)

43. Title deeds of Immovable properties are held in name of the Company

The Company possess immovable property (other than properties where the Company is the lessee and the lease
agreements are duly executed in favour of the lessee) whose title deeds are held in the name of the Company.

44. Details of crypto currency or virtual currency

The Company has not traded or invested in Crypto currency or Virtual currency.

45. Details of Benami Held

No proceedings have been initiated or pending against the Company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

Note 46 : Wilful Defaulter

The Company has not been declared as a wilful defaulter by any bank or financial institution or other lender.

Note 47 : Relationship with Struck off Companies

Details of transactions with struck off companies during the year is as below

As per our report of even date attached For and on behalf of the Board

For GMJ & Co Vinaychand Kothari Dilip V Kothari

Chartered Accountants Chairman & Managing Director Joint Managing Director & Chief Financial

Officer

Firm''s Registration No: 103429W DIN : 00010974 DIN : 00011043

CA Amit Maheshwari Rahul Baxi Keshav Binani

Partner Independent Director Company Secretary

Membership No: 428706 DIN : 10694427 M. No: A59999

UDIN: 254287 06BMIO YM6668

Place: Mumbai
Date: May 21, 2025

---

Mar 31, 2024

(k) Provisions, Contingent Liabilities and Contingent Assets:

The Company recognizes a provision when there is a present obligation (legal or constructive) as a result of a
past event and it is probable that an outflow of resources embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of the amount of the obligation.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no
longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of
which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the Company or a present obligation that arises from past events where it is either
not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the
amount cannot be made.

Contingent assets are not disclosed in the Financial Statements unless an inflow of economic benefits is probable.

(l) Earnings per share:

Basic earnings per share is calculated by dividing the net profit / (loss) for the year attributable to the equity
shareholders by weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit / (loss) for the period attributable to
equity shareholders and the weighted average number of shares outstanding during the period are adjusted for
the effects of all dilutive potential equity shares.

NOTE 3: APPLICATION OF NEW AND AMENDED STANDARDS

(A) Amendments to existing Standards (w.e.f. 1st April, 2023)

The Company has adopted, with effect from 01 April 2023, the following new and revised standards and interpretations.
Their adoption has not had any significant impact on the amounts reported in the financial statements.

1. Ind AS 1- Presentation of Financials Statements - modification relating to disclosure of ‘material accounting
policy information’ in place of ‘significant accounting policies.

2. Ind AS 8 - Accounting Policies, Change in Accounting Estimates and Errors - modification of definition of
‘accounting estimate’ and application of changes in accounting estimates.

3. Ind AS 12 - Income Taxes - The amendment clarifies application of initial recognition exemption to transactions
such as leases and decommissioning obligations.

(B) Standards notified but not yet effective

No new standards have been notified during the year ended March 31,2024.

A) Note on Secured Term Loan:

The Term Loans 1 & 2 are sanctioned and disbursed by Union bank under ECLGS scheme announced by the
government to meet with liquidity crunch on account of outbreak of COVID-19 pandemic.

Both the Term Loan are secured by equitable mortgage of immovable property owned by the Company situated at
Matheran.

The Term Loan-1 is repayable in 36 monthly instalments after a moratorium period of 12 months.

The Term Loan-2 is repayable in 48 monthly instalments after a moratorium period of 24 months.

The Term Loan-1 carries rate of interest of 7.50% p.a. & Term Loan-2 carries rate of interest of EBLR 1% subject to
maximum of 9.25% p.a.

The Company has used the borrowings from the bank for the specific purpose for which it was taken.

B) Note on Preference Share Capital

The Company had issued total of 12,00,000 10% Cumulative, Non-Convertible, Redeemable Preference Shares of
Rs.10/- each which are to be redeemed at par on or before June 26, 2039.

In previous FY 2022-23 , The dividends in the arrears on preference shares (it pertains to on or before financial
year 2021-22) together with dividend due for the financial year 2022-23 which have been proposed and paid out of
the profits for the financial year 2022-23.

A) Note on Secured Loan Repayable on Demand :

The Secured Overdraft from the bank is secured by equitable mortgage of immovable property owned by the Company
situated at Matheran and secured by personal guarantee furnished by two directors of the Company.

The Rate of Interest is linked with EBLR of respective bank with spread of 2.00%, hence ROI varies from 8.50% to
10.50% p.a. depending upon movement in EBLR.

(e) Terms and conditions of transactions with related parties

The transactions with related parties are made on terms equivalent to those that prevail in arm’s length
transactions. Outstanding balances at the year end are unsecured and interest free and settlement occurs in cash.
There have been no guarantees provided or received for any related party receivables and payables. For the year
ended March 31, 2024, the company has not recorded any impairment of receivables relating to amount owed by
related parties (March 31, 2023: INR NIL). This assessment is undertaken each financial year through examining
the financial position of the related party and market in which the related party operates.

29. Employee benefits plan

As per Ind AS 19 “Employee Benefits”, the disclosures of Employee benefits as defined in the Accounting Standard are
given below :

a) Other long-term benefits - Compensated absences

The Company permits encashment of compensated absence accumulated by their employees on
retirement,separation and during the course of service. The liability in respect of the Company, for outstanding
balance of leave at the balance sheet date is determined and provided on the basis of actuarial valuation as at the
balance sheet date performed by an independent actuary.

The Company doesn’t maintain any plan assets to fund its obligation towards compensated absences.

b) Defined benefits plans - Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service
gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The plan is
funded with an insurance company in the form of a qualifying insurance policy.

The following tables summarise the components of net employee benefit expense recognised in the Statement of
Profit and Loss and the funded status and amounts recognised in the balance sheet for the respective plans.

The Company’s principal financial liabilities include borrowing, trade and other payables. The Company’s principal
financial assets include loans, trade receivable, cash and cash equivalents and others. The Company is exposed to
credit risk, liquidity risk and market risk. The Company’s senior management oversees the management of these
risks. The Company’s senior management provides assurance that the Company’s financial risk activities are
governed by appropriate policies and procedures and that financial risks are identified, measured and managed in
accordance with the Company’s policies and risk objectives. The Company has exposure to the following risks
arising from the financial instruments:

(i) Market Risk

(ii) Credit Risk

(iii) Liquidity Risk

The management reviews and agrees policies for managing each of these risks which are summarized as below:

(i) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market prices comprises three types of risk: currency rate risk, interest rate risk and
other price risks, such as equity price risk and commodity price risk. Financial instruments affected by market
risks include borrowings, security deposits, investments and foreign currency receivables and payables.

(a) Foreign Currency risk

Currency risk is not material, as the Company’s primary business activities are within India and does not
have any exposure in foreign currency.

(b) Interest rate risk:

Interest rate is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. Company’s financial liabilities comprises of interest bearing
loans, vehicle loans and advances and security deposits; however these are not exposed to risk of
fluctuation in market interest rate as the rates are fixed at the time of contract/agreement and do not
change for any market fluctuation.

(ii) Credit Risk

Credit risk has always been managed by the company through credit approvals, establishing credit limits and
continuously monitoring the creditworthiness of customers to which the company grants credit terms in the
normal course of business.

The company considers the probability of default upon initial recognition of asset and whether there has been
a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether
there is a significant increase in credit risk the Company compares the risk of a default occurring on the asset
as at the reporting date with the risk of default as at the date of initial recognition. It considers available
reasonable and supportive forwarding-looking information.

In general, it is presumed that credit risk has significantly increased since initial recognition if the payments are
more than 60 days past due.

A default on a financial asset is when the counterparty fails to make contractual payments of when they fall
due. This definition of default is determined by considering the business environment in which entity operates
and other macro-economic factors.

Trade receivables consist of large number of customers, spread across diverse industries and geographical
areas. In order to mitigate the risk of financial loss from defaulters, the Company has an ongoing credit
evaluation process in respect of customers who are allowed credit period. In respect of walk-in customers the
Company does not allow any credit period and therefore, is not exposed to any credit risk.

The Company does not have any derivative transactions and therefore is not exposed to any credit risk on
account of derivatives. The Company does not have any long-term contracts for which there are any material
foreseeable losses.

b) Expected credit loss:

The company follows ‘simplified approach’ for recognition of loss allowance.

As a practical expedient, the Company uses a provision matrix to determine impairment loss allowance on
portfolio of its trade receivables. The provision matrix is based on its historically observed default rates
over the expected life of the trade receivables and is adjusted for forward-looking estimates. At every
reporting date, the historical observed default rates are updated and changes in the forward-looking
estimates are analyzed.

c) Financial Instruments and cash deposits

The Company considers factors such as track record, size of the instutition, market reputation, financial
strength/rating and service standards to select the banks with which balances and deposits are
maintained. Generally the balances are maintained with the institutions with which the Company has also
availed borrowings.

(iii) Liquidity Risk

The Company’s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated
from operations. The Company believes that the working capital is sufficient to meet its current requirements.
Further, the Company’s approach is to ensure, as far as possible, that it will have sufficient liquidity to meet its
liabilities when due and Company monitors rolling forecasts of its liquidity requirements.

The Company manages its capital to ensure that it will be able to continue as going concern while maximising the return
to stakeholders through the optimisation of the debt and equity balance. The capital structure of the Company consists
of net debt and the total equity of the Company. For this purpose, net debt is defined as total borrowings less cash and
cash equivalents.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. The funding requirements are met through short-term/long-term borrowings.
The Company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall
debt portfolio of the Company.

Loan Covenants

Bank loans contain certain debt covenants relating to limitation on Current Ratio i.e. 1.15:1.In any case margin on
primary security should not be diluted below 13%.

33. FAIR VALUE MEASUREMENTS

i. Financial Instruments by Category

This section explains the judgements and estimates made in determining the fair values of the financial
instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for
which fair values are disclosed in the financial statements. To provide an indication about the reliability of the
inputs used in determining fair value, the company has classified its financial instruments into the three levels
prescribed under the accounting standard. An explanation of each level follows underneath the table.

*The carrying amounts of trade receivables, cash and cash equivalents, current loans, other current financial assets,
current borrowings, trade payables and other financial liabilities are considered to be approximately equal to the fair
value.

The fair values of non current borrowings are based on discounted cash flows using a current borrowing rate. They are
classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs.

ii. Fair value hierarchy

The fair values of the financial assets and liabilities are included at the amount 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.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed
equity instruments that have quoted price. The fair value of all equity instruments which are traded in the stock
exchanges is valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using
valuation techniques which maximise the use of observable market data and rely as little as possible on entity-
specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is
included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3.

During the years mentioned above, there have been no transfers amongst the levels of hierarchy. The fair
values of unquoted equity instruments are not significantly different from their carrying value and hence the
management has considered their carrying amount as fair value.

iii. Valuation processes

The finance department of the company includes a team that performs the valuations of financial assets and
liabilities required for financial reporting purposes, including level 3 fair values. This team reports directly to the
chief financial officer (CFO) and the audit committee (AC). Discussions of valuation processes and results are
held between the CFO, AC and the valuation team at least once every three months, in line with the company’s
quarterly reporting periods.

* Interest due on the outstanding amount will be considered on actual basis i.e. payment basis

This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has
been determined to the extent such parties have been identified on the basis of information available with the Company.
This has been relied upon by the auditors.

Note 37 :Segment Reporting

The Company is primarily engaged in the business of hospitality and managing the resort. Since the inherent nature of
activities as a whole is governed by the same set of risks and returns, these have been regrouped as a single segment.
No Assets of the Company is located outside India. The said treatment is in accordance with the Indian Accounting
Standard on “Operating Segments” (Ind AS-108) as issued by the Institute of Chartered Accountants of India.The
Company is not reliant on revenues from transactions with any single external customer and does not receive 10% or
more of its revenues from transactions with any single external customer.

Note 38 : Registration of charges or satisfaction with Registrar of Companies (ROC)

During the year, there are no instances of any registration, modification or satisfaction of charges which are pending for
registration with Registrar of Companies (ROC) beyond the statutory period.

Note 39 : Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017.

Note 40 : Compliance with approved Scheme(s) of Arrangements

The Company has no scheme of arrangements which have been approved by the competent Authority in terms of Sec
230 to 237 of the Companies Act, 2013 during the reporting period.

Note 41 : Utilisation of borrowed funds and share premium

A. The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:(a) 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(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

B. The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:(a) 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(b) provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.

Note 42 : Undisclosed income

The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered
or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or
survey or any other relevant provisions of the Income Tax Act, 1961)

Note 43 : Title deeds of Immovable properties not held in name of the Company

The Company does not possess any immovable property (other than properties where the Company is the lessee and
the lease agreements are duly executed in favour of the lessee) whose title deeds are not held in the name of the
Company.

Note 44 : Details of crypto currency or virtual currency

The Company has not traded or invested in Crypto currency or Virtual currency.

Note 45 : Details of Benami Held

No proceedings have been initiated or pending against the Company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

Note 46 : Wilful Defaulter

The Company has not been declared as a wilful defaulter by any bank or financial institution or other lender.

For GMJ & Co Vinaychand Kothari Dilip V Kothari

Chartered Accountants Chairman & Managing Director Joint Managing Director &

Firm’s Registration No: 103429W Chief Financial Officer

DIN :00010974 DIN :00011043

CA Amit Maheshwari Ramnik K Baxi Rajesh Kedia

Partner Independent Director Company Secretary

Membership No: 428706 DIN : 00011048 M. No: A11282

UDIN: 244287 06BKFN KQ4523

Place: Mumbai
Date: May 29, 2024

---

Mar 31, 2018

1. CORPORATE INFORMATION

The Best Eastern Hotels Limited (“the Company”) is a public limited company, incorporated and domiciled in India having its registered office at 401, Chartered House, Dr C H Street, Marine Lines Mumbai 400 002 Maharashtra, India. The equity shares of the Company are listed on BSE Limited. The Company is primarily engaged in the business of owning, operating hotel and resort.

Details of the rights, and restrictions attaching to each class of shares:

Equity Shares: The Company has one class of equity shares having a par value of Rs 1/- per share. Each share holder is eligible for one vote per share held. In the event of liquidation, the equity share holders are eligible to receive the remaining assets of the Company in proportion to share holding.

b) Fair value hierarchy and Method of valuation

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consists of the following three levels:

A. Level 1 : Level 1 hierarchy includes financial instruments measured using quoted prices in an active market. This included listed equity instruments, traded debentures and mutual funds that have quoted price. The fair value of all equity instruments (including debentures) which are traded in the stock exchanges is valued using the closing price as at the reporting period. The company do not have any investment in financial instruments that are quoted on stock exchanges.

B. Level 2 : Level 2 hierarchy includes financial instruments that are not traded in an active market The fair value in this hierarchy is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. The company have no such financial instruments that are value using Level 2 hierarchy

C. Level 3 : If one or more of the significant Inputs is not based on observable market data, the instrument is included in level

2. Fair values are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data. Financial instruments such as unlisted equity shares, loans are included in this hierarchy

c) Risk management framework

The Company’s principal financial liabilities include borrowing, trade and other payables. The Company’s principal financial assets include loans, trade receivable, cash and cash equivalents and others. The Company is exposed to credit risk, liquidity risk and market risk. The Company’s senior management oversees the management of these risks. The Company’s senior management provides assurance that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives.

d) Financial Risk Management

The Company has exposure to the following risks arising from financial instruments:

i) Credit Risk

ii) Liquidity Risk

iii) Market Risk

i) Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, and ageing of accounts receivable.

Credit risks arises from cash and cash equivalents, deposits with banks. The Company’s policy is to place cash and cash equivalents and short term deposits with reputable banks and financial institutions.

ii) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure as far as possible that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed condition, without incurring unacceptable losses or risking damage to the Company’s reputation.

The Management monitors rolling forecasts of the Company’s liquidity position on the basis of expected cash flows. The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of surplus funds, bank loans and inter-corporate loans.

** Borrowings include overdraft facility which is renewed year to year and also it includes loan from directors with no repayment schedules

iii) Market Risk

Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and commodity prices which will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market exposures within acceptable parameters, while optimising the return.

Currency risk

Currency risk is not material, as the Company’s primary business activities are within India and does not have any exposure in foreign currency.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The company continuously co-ordinates with its banker with an indication of decline in market base rate of interest

3. CAPITAL MANAGEMENT

The Company manages its capital to ensure that it will be able to continue as going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance. The capital structure of the Company consists of net debt and the total equity of the Company. For this purpose, net debt is defined as total borrowings less cash and cash equivalents.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The funding requirements are met through short-term/long-term borrowings. The Company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

4 CONTINGENT LIABILITY

There is no contingent liability in the current financial year. (P.Y. Rs. NIL)

5. Capital Commitment (net of advances) Rs. NIL (P.Y Rs. NIL)

6. SEGMENT REPORTING

The Company is operating in only one segment.

7. Consequent to the adoption of the Indian Accounting Standard 19 “Employees Benefits” following disclosures have been made as required by the standard:- (Refer Note No.21 c and Note No.21 d)

(a) Defined Contribution Plan

Employees Provident Fund

(b) Defined Contribution Plan :

Gratuity: funded through recognized fund.

8. Amount payable to the undertakings registered under The Micro, Small and Medium Enterprises Development Act, 2006 as on 31^st March, 2018 is NIL (to the extent information available with the Management)..

9. Earning in Foreign Exchange: Rs. 0.87 Lakh through realization under credit cards (Previous year Rs.1.39 Lakh). Expenditure in foreign currency: Rs. Nil. (Previous year Rs. Nil.)

10. Trade payable & Trade receivable and advance balances are subject to confirmation and subsequent reconciliation, if any.

11. Current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

12. Previous year’s figures have been regrouped & rearranged wherever necessary.

---

Mar 31, 2016

NOTES TO THE ACCOUNTS :

a) Contingent Liability : In respect of Water Charges Rs. 1,06,904/- payable to Matheran Jeevan Pradhikaran. Appeal is pending with Appellate Authority, Matheran Municipal Council in respect of Property Tax Rs.3,14,750/-

b) Capital Commitment : Estimated amount of contracts remaining to be executed on account of capital account is Rs. Nil. (Net of advances).

c) In the opinion of the management, the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amounts at which they are stated in the Balance Sheet and provisions for all known liabilities have been made as at the year end.

d) Balance of Creditors, Debtors, Unsecured Loans and Advances are subject to confirmation and reconciliation thereof, if any.

e) The Company is not required to give any quantitative and value-wise information in respect of purchase, consumption, turn over, stocks etc. as the same is exempted vide Notification No. S.O. 301 (E) dated 8^th February, 2011 issued under Section 211 (3) of The Companies Act 1956 by the Ministry of Corporate affairs, Govt. of India.

g) Amount payable to the undertakings registered under The Micro, Small and Medium Enterprises Development Act, 2006 as on 31^st March, 2016 is NIL (to the extent information available with the Management)..

h) Earning in Foreign Exchange : Rs. 2.76 Lacs through realization under credit cards (Previous year Rs. 3.18 Lacs) Expenditure in foreign currency: Rs. Nil. (Previous year Rs. 63,573/-)

j) Related Party Disclosure :

(I) Relationship :

(a) Parties where control exists : Nil

(b) Other parties with whom the Company has entered into transaction or not during the year - Associates : Vandeep Impex LLP. (Previously known as Vandeep Holdings Pvt. Ltd.)

Vandeep Developers LLP. (Previously known as Vandeep Developers Pvt. Ltd.)

Vandeep Hotels Pvt. Ltd.

Matheran Ropeway Pvt. Ltd.

(c) Key Management Personnel :

Mr. Vinaychand Kothari (Chairman & Managing Director)

Mr. Dilip V. Kothari (Joint Managing Director)

(d) Relatives of Key Management Personnel :

Mrs. Meena V. Kothari

Mr. Parasmal Kothari Mrs. Monica Daga

Note : (1) Details of remuneration to Managing Director & Joint Managing Director are given in the note ‘i’ in the notes to Accounts

(2) Figures in brackets are in respect of Previous Year

k) The Company is exclusively engaged in the business of hoteliering. This, in the context of Accounting Standard 17 on Segment Reporting is considered to continue one single primary segment and accordingly no segment information as required under Accounting Standard 17 is furnished.

m) Previous year’s figures have been re-grouped / re-arranged wherever necessary.

Notes

1. Cash flow statement has been prepared following the indirect method

2. Proceeds from Short/Long terms and other borrowing are shown net of repayment

3. Figures in brackets represents outflow.

4. Previous year’s figures have been regrouped / reclassified wherever applicable.

---

Mar 31, 2015

A) Contingent Liability : In respect of Water Charges Rs. 4,00,408/- payable to Matheran Jivan Pradhikaran.

b) Capital Commitment : Estimated amount of contracts remaining to be executed on account of capital account is Rs. 15 Lakh approx. (Net of advances).

c) In the opinion of the management, the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amounts at which they are stated in the Balance Sheet and provisions for all known liabilities have been made as at the year end.

d) Balance of Creditors, Debtors, Unsecured Loans and Advances are subject to confirmation and reconciliation thereof, if any.

e) The Company is not required to give any quantitative and value-wise information in respect of purchase, consumption, turn over, stocks etc. as the same is exempted vide Notification No. S.O. 301 (E) dated 8th February, 2011 issued under Saction 211 (3) of The Companies Act 1956 by the Ministry of Corporate affairs, Govt. of India.

g) Amount payable to the undertakings registered under The Micro, Small and Medium Enterprises Development Act, 2006 as on 31st March, 2015 is NIL (to the extent information available with the Management)..

h) Earning in Foreign Exchange : Rs. 3.18 Lacs through realization under credit cards (Previous year Rs. 1.94 Lacs) Expenditure in foreign currency: Rs. 63,573/-. (Previous year Rs. Nil)

Note : (1) Details of remuneration to Managing Director & Joint Managing Director are given in the note 'i' in the notes to Accounts.

(2) Figures in brackets are in respect of Previous Year.

k) The Company is exclusively engaged in the business of hoteliering. This, in the context of Accounting Standard 17 on Segment Reporting is considered to continue one single primary segment and accordingly no segment information as required under Accounting Standard 17 is furnished.

m) Previous year's figures have been re-grouped / re-arranged wherever necessary. Signature to Notes 1 to 20

---

Mar 31, 2014

1. a) Contingent Liability : In respect of Water Charges Rs. 2,19,644/- payable to Matheran Jivan Pradhikaran.

b) Capital Commitment : Estimated amount of contracts remaining to be executed on account of capital account is Rs. 20 Lakh approx. (Net of advances).

c) In the opinion of the management, the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amounts at which they are stated in the Balance Sheet and provisions for all known liabilities have been made as at the year end.

d) Balance of Creditors, Debtors, Unsecured Loans and Advances are subject to confirmation and reconciliation thereof, if any.

e) The Company is not required to give any quantitative and value-wise information in respect of purchase, con- sumption, turn over, stocks etc. as the same is exempted vide Notification No. S.O. 301 (E) dated 8th February, 2011 issued under Saction 211 (3) of The Companies Act 1956 by the Ministry of Corporate affairs, Govt. of India.

g) Amout payable to the undertakings registered under The Micro, Small and Medium Enterprises Development Act, 2006 as on 31st March, 2014 is NIL (to the extent information available with the Management)..

h) Earning in Foreign Exchange : Rs. 1.94 Lacs through realization under credit cards (Previous year Rs. 3.13 Lacs) Expenditure in foreign currency: Rs. Nil. (Previous year Rs. Nil)

Note : (2) Details of remuneration to Managing Director & Joint Managing Director are given in the note ''i'' in the notes to Accounts

(3) Figures in brackets are in respect of Previous Year

a) The Company is exclusively engaged in the business of hoteliering. This, in the context of Accounting Standard 17 on Segment Reporting is considered to continue one single primary segment and accordingly no segment information as required under Accounting Standard 17 is furnished.

b) Previous year''s figures have been re-grouped / re-arranged wherever necessary.

---

Mar 31, 2013

A) Contingent Liability : Rs. 71.220/- in respect of water charges payable to Maharashtra Jeevan Pradhikaran. (MJP).

b) Capital Commitment : Estimated amount of contracts remaining to be executed on account of capital account is Rs. Nil.

c) Miscellaneous income (net) includes Rs. 6,14,637/- (previous year Rs. 13,32,639/-) advances received from parties towards the booking of hotel rooms remains unutilised hence forfeited.

d) In the opinion of the management, the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amounts at which they are stated in the Balance Sheet and provisions for all known liabilities have been made as at the year end.

e) Balance of Creditors, Debtors, Unsecured Loans and Advances are subject to confirmation and reconciliation thereof, if any.

f) The Company is not required to give any quantitative and value–wise information in respect of purchase, consumption, turn over, stocks etc. as the same is exempted vide Notification No. S.O. 301 (E) dated 8th February, 2011 issued under Saction 211 (3) of The Companies Act 1956 by the Ministry of Corporate affairs, Govt. of India.

g) Amout payable to the undertakings registered under The Micro, Small and Medium Enterprises Development Act, 2006 as on 31st March, 2013 is NIL (to the extent information available with the Management).

h) Earning in Foreign Exchange : Rs. 1.63 Lacs through realization under credit cards (Previous year Rs. 3.13 Lacs) Expenditure in foreign currency: Rs. Nil. (Previous year Rs. Nil)

j) Remuneration paid to Managing Director and Joint Managing Director :

j) Related Party Disclosure :

(k) Relationship :

(a) Parties where control exists : Nil

(b) Other parties with whom the Company has entered into transaction or not during the year – Associates:

Vandeep Holdings Pvt. Ltd. Vandeep Developers LLP. Vandeep Hotels Pvt. Ltd. Matheran Ropeway Pvt. Ltd.

(c) Key Management Personnel :

Mr. Vinaychand Kothari (Chairman & Managing Director) Mr. Dilip V. Kothari (Joint Managing Director)

(d) Relatives of Key Management Personnel : Mrs. Meena V. Kothari

Mrs. Neelam D. Kothari Mr. Parasmal Kothari

l) The Company is exclusively engaged in the business of hoteliering. This, in the context of Accounting Standard 17 on Segment Reporting is considered to continue one single primary segment and accordingly no segment information as required under Accounting Standard 17 is furnished.

m) Previous year''s figures have been re-grouped / re-arranged wherever necessary.

---

Mar 31, 2012

A) During the year, each Equity shares of Rs 10/- each has been sub divided into Five Equity share of Rs 2/- each

b) 12% Non-Cumulative Preference Shares of Rs.10/- each to be redeemed on or before 27th June, 2019 but not later than 27th June, 2019.

a) Contingent Liability : Nil

b) Capital Commitment : Estimated amount of contracts remaining to be executed on account of capital account is Rs. 7 Lakh approx.

c) (i) Miscellaneous income (net) includes Rs.13,32,639/- (previous year Rs. 9,94,639/-) advances received from parties towards the booking of hotel rooms remains unutilized hence forfeited.

(ii) During the year fraud of cash for Rs. 6.43 lakhs by an ex-employee of the company had been done, against which company has initiated appropriate legal action.

d) In the opinion of the management, the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amounts at which they are stated in the Balance Sheet and provisions for all known liabilities have been made as at the year end.

e) Balance of Creditors, Debtors, Unsecured Loans and Advances are subject to confirmation and reconciliation thereof, if any.

f) The Company is not required to give any quantitative and value-wise information in respect of purchase, consumption, turn over, stocks etc. as the same is exempted vide Notification No. S.O. 301 (E) dated 8th February, 2011 issued under Section 211 (3) of The Companies Act 1956 by the Ministry of Corporate affairs, Govt. of India.

g) Amount payable to the undertakings registered under The Micro, Small and Medium Enterprises Development Act, 2006 as on 31st March, 2012 is NIL (to the extent information available with the Management)..

h) Earning in Foreign Exchange : Rs. 3.13 Lacs through realization under credit cards (Previous year Rs. 3.26 Lacs) Expenditure in foreign currency: Rs. Nil. (Previous year Rs. Nil)

i) Related Party Disclosure :

(As identified & certified by The Management of the Company)

(j) Relationship :

(a) Parties where control exists : Nil

(b) Other parties with whom the Company has entered into transaction or not during the year - Associates: Vandeep Holdings Pvt. Ltd.

Vandeep Developers Pvt. Ltd.

Vandeep Hotels Pvt. Ltd.

Matheran Ropeway Pvt. Ltd.

(c) Key Management Personnel :

Mr. Vinaychand Kothari (Chairman & Managing Director)

Mr. Dilip V. Kothari (Joint Managing Director)

(d) Relatives of Key Management Personnel :

Mrs. Meena V. Kothari

Mrs. Neelam D. Kothari Mr. Parasmal Kothari

Note : (1) Details of remuneration to Managing Director & Joint Managing Director are given in the note 'J' in the notes to Accounts

(2) Figures in brackets are in respect of Previous Year

The Company is exclusively engaged in the business of hoteliering. This, in the context of Accounting Standard 17 on Segment Reporting is considered to continue one single primary segment and accordingly no segment information as required under Accounting Standard 17 is furnished.

k) Previous year's figures have been re-grouped / re-arranged wherever necessary.

Notes

1.Cash flow statement has been prepared following the indirect method

2. Proceeds from Short/Long terms and other borrowing are shown net of repayment

3. Figures in brackets represents outflow.

4. Previous year's figures have been regrouped / reclassified wherever applicable.

---

Mar 31, 2010

A) Miscellaneous income includes Rs. 12,63,099/- (previous year Rs. 8,55,453/-) advances received from parties towards the booking of hotel rooms,remains unutilised hence forfeited.

b) In the opinion of the management, the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amounts at which they are stated in the Balance Sheet and provisions for all known liabilities have been made as at the year end.

c) Balance of Creditors, Debtors, Unsecured Loans and Advances are subject to confirmation and reconciliation thereof, if any.

d) In line with the industry practice, the Quantitative details of turnover and consumption have not been disclosed as the same is not practicable. The Company is in the process of making application seeking exemption under para 3 (i) (a) and 3 (ii) (d) of Part II, Schedule VI of The Companies Act 1956.

e) Payment to Auditors :

f) Amout payable to the undertakings registered under The Micro, Small and Medium Enterprises Development Act, 2006 as on 31s* March, 2010 is NIL (to the extent information available with the Management)..

g) Earning in Foreign Exchange : Rs. 2.02 Lacs through realization under credit cards

(Previous year Rs. 5.10 Lacs) Expenditure in foreign currency: Rs. Nil. (Previous year Rs. 0.29 Lacs)

h) Remuneration paid to Managing Director and Joint Managing Director:

j) Related Party Disclosure :

As identified & certified by The Management of the Company) (I) Relationship :

(a) Parties where control exists : Nil

(b) Other parties with whom the Company has entered into transaction or not during the year - Associates:

Vandeep Holdings Pvt. Ltd. Vandeep Developers Pvt. Ltd. Vandeep Hotels Pvt. Ltd. Matheran Ropeway Pvt. Ltd.

(c) Key Management Personnel :

Mr. Vinaychand Kothari (Chairman & Managing Director) Mr. Dilip V. Kothari (Joint Managing Director)

(d) Relatives of Key Management Personnel: Mrs. Meena V. Kothari Mrs. Neelam D. Kothari Mr. Parasmal Kothari

Note : (1) Details of remuneration to Managing Director & Joint Managing Director are given in the note H in the notes to Accounts (2) Figures in brackets are in respect of Previous Year

k) The Company is exclusively engaged in the business of hoteliering. This, in the context of Accounting Standard 17 on Segment Reporting is considered to continue one single primary segment and accordingly no segment information as required under Accounting Standard 17 is furnished.

l) Provision for Income Tax in shown net of Income Tax paid Rs. 22,99,199/- During the year. n) Previous years figures have been re-grouped / re-arranged wherever necessary.

The abstract & general profile of the company is enclosed herewith. Signature to Schedules 1 to 17

For and on behalf of the Board

Vinaychand Kothari - Chairman & Managing Director

Oilip V. Kothari - Joint Managing Director

Dr. R. K. Baxl - Director

Mangal S. Chheda - Director

Manohar R. Tambat - Director

Mehernoz C. Dangore - Director

Notes :-

1 .Cash flow statement has been prepared following the indirect method

2. Proceeds from Short/Long terms and other borrowing are shown net of repayment

3. Figures in brackets represents outflow.

4. Previous years figures have been regrouped / reclassified wherever applicable.

Dilip V. Kothari - Joint Managing Director Dr. R. K. Baxi - Director

Mangal S. Chheda - Director

Manohar R. Tambat - Director

Mehemoz C. Dangore - Director