Notes to Accounts of H S India Ltd.

Mar 31, 2025

P. Provisions and Contingencies:

A provision is recognised if, as a result of a past event, the Company has a present legal or
constructive obligation that can be estimated reliably, and it is probable that an outflow of
economic benefits will be required to settle the obligation.

Provisions for onerous contracts are recognized when the expected benefits to be derived by
the Company from a contract are lower than the unavoidable costs of meeting the future
obligations under the contract.

A disclosure for contingent liabilities is made where there is a possible obligation or a present
obligation that may probably not require an outflow of resources or an obligation for which the
future outcome cannot be ascertained with reasonable certainty. When there is a possible or a
present obligation where the likelihood of outflow of resources is remote, no provision or
disclosure is made.

The Company has pending litigations with the Goods & Services Tax Department against the
Tax demands as detailed below, probability of the impact of which to the financial position is
considered to be low.

Q. Cash and Cash Equivalents:

Cash and Cash equivalents include cash and cheque in hand, bank balances, demand deposits
with banks and other short-term highly liquid investments that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value where
original maturity is three months or less.

R. Cash Flow Statement:

Cash flows are reported using the indirect method where by the profit before tax is adjusted for
the effect of the transactions of a non-cash nature, any deferrals or accruals of past and future
operating cash receipts or payments and items of income or expenses associated with investing
or financing cash flows. The cash flows from operating, investing and financing activities of
the Company are segregated.

S. Borrowing Cost:

General and specific borrowing costs that are directly attributable to the acquisition,
construction or production of qualifying assets are capitalized as a part of cost of that assets,
during the period till all the activities necessary to prepare the qualifying assets for its intended
use or sale are complete during the period of time that is required to complete and prepare the
assets for its intended use or sale. Qualifying assets are assets that necessarily take a substantial
period of time to get ready for their intended use or sale. Other borrowing costs are recognized
as an expense in the period in which they are incurred.

T. Earnings Per Share:

Basic EPS is arrived at based on net profit or loss for the year after tax from continuing
operations available to equity shareholders to the weighted average number of equity shares
outstanding during the year. The Company did not have any potentially dilutive securities in
any of the years’ represented.

Diluted earnings per share: Diluted earnings per share is calculated by dividing the net profit or
loss for the year after tax from continuing operations attributable to equity shareholders by the
weighted average number of equity shares outstanding including equity shares which would
have been issued on the conversion of all dilutive potential equity shares unless they are
considered anti-dilutive in nature.

U. Dividend:

Final dividend on shares is recorded as a liability on the date of approval by the shareholders
and interim dividends are recorded as a liability on the date of declaration by the Company''s
Board of Directors.

V. Exceptional Items:

When an item of income or expense within profit or loss from ordinary activity is of such size,
nature or incidence that their disclosure is relevant to explain the performance of the Company
for the year, the nature and amount of such items is disclosed as exceptional items.

Note 32’- Financial Risk Management Objectives and Policies

The Company’s principal financial liabilities comprise loans and borrowings, security deposits
taken, employee related payables, 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 Property, Plant and Equipments, investments, security deposits given, employee
advances, trade and other receivables, cash and short-term deposits that derive directly from its
operations .

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s Board
of Directors reviews and sets out policies for managing these risk and monitors suitable actions
taken by management to potential adverse effects of such risks on company’s operational and
financial performance.

A. Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result
from a change in the price of a financial instrument. The value of a financial instrument may
change as a result of changes in interest rates and other market changes that affect market risk
sensitive instruments. Market risk is attributable to all market risk sensitive financial
instruments including investments and deposits, payables and loans and borrowings.

a. Interest Rate Risk:

Interest rate risk is the risk that the fair value of future cash flows of the financial
instruments will fluctuate because of changes in market interest rates. The Company’s
exposure to the risk changes in the market interest rates relates primarily to the Company’s
long-term debt obligation.

B. Credit risk

Credit risk arises from the possibility that the counter party may not be able to settle their
obligation as agreed. Customer credit risk is managed by each business unit subject to
Company’s established policy, procedure and control relating to customer risk management.
Further, the Company periodically assesses financial reliability of customers and other counter
parties, taking into account the financial condition, current economic trends, and analysis of
historical bad debts and ageing of financial assets. Individual risk limits are set and
periodically reviewed on the basis of such information.

Financial assets are written off when there is no reasonable expectation of recovery, such
debtor failing to engage in a repayment plan with the Company. Where loans or receivables
have been written off, the Company continues to engage in enforcement activity to attempt to
recover the receivables due. Where recoveries are made, these are recognised as income in the
statement of profit and loss.

Note‘37’- Other Statutory Disclosures

(a) The Company does not have Lease liability and hence no reporting related to the same has
been made.

(b) There has been no revaluation to Property, Plant and Equipments.

(c) The Company does not have any Benami property, where any proceeding has been initiated
or pending against the Company for holding any Benami property.

(d) The Company does not have any intangible asset under development.

(e) The Company holds all the title deeds of immovable property in its name.

(f) The Company does not have any relationship / transaction with any Struck-off Company
during the year under reporting.

(g) The Company has not granted any loans or advances to promoter, director, KMP in nature
of loan.

(h) The Company is not declared wilful defaulter by bank or financial institution or other
lender.

(i) The Company has not applied for any scheme of arrangement under Sections 230 to 237 of
Companies Act, 2013.

(j) The Company is not covered under Section 135 of Companies Act, 2013. Hence it is not
required to make CSR expense.

(k) The Company does not have any charges or satisfaction which is yet to be registered with
ROC beyond the statutory period.

(l) The Company have not traded or invested in Crypto Currency or Virtual Currency during
the period/year.

(m) The Company does not have any transaction not recorded in the books of accounts that has
been surrendered or disclosed as income during the year in the tax assessment under the
Income Tax Act, 1961.

(n) The Company does not have number of layer of Companies as prescribed under clause (87)
of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules,
2017.

(o) Unutilized borrowed funds are kept with the bank for the interim until final utilization for
the purpose borrowed for. The Company has created Securities Premium consequent to
issue of shares at premium. These reserves can be utilized in accordance with Section 52 of
the Companies Act, 2013.

⁽p⁾ a) No funds have been advanced or loaned or invested (either from borrowed funds or

share premium or any other sources or kind of funds) by the Company to or in any
other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall
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
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
b) No funds have been received by the Company from any person(s) or entity(ies),
including foreign entities (“Funding Parties”), with the understanding, whether
recorded in writing or otherwise, that the Company shall directly or indirectly, lend
or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Parties (“Ultimate Beneficiaries”) or provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries

q) The Company has used accounting softwares for maintaining its books of account for the
financial year ended 31^st March, 2025, which has a feature of recording audit trail (edit
log) facility and the same has operated throughout the year for all relevant transactions
recorded in the softwares.

Note‘38’- Previo us years’ figures have been regrouped and/or rearranged wherever necessary.

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

For K. K. HARYANI & CO.

Chartered Accountants

Firm Reg No: 121950W

Kishor K. Haryani Ramesh Bansal Pushpendra Bansal

Proprietor Managing Director/CFO Managing Director

Membership No: 110780 DIN: 00086256 DIN: 00086343

Sangita Bansal Hitesh Limbani

Place: Mumbai Director Company Secretary

Date: 30^th May, 2025 DIN: 01571275 FCS: 12568

---

Mar 31, 2024

P. Provisions and Contingencies:

A provision is recognised if, as a result of a past event, the Company has a present legal or
constructive obligation that can be estimated reliably, and it is probable that an outflow of
economic benefits will be required to settle the obligation.

Provisions for onerous contracts are recognized when the expected benefits to be derived by
the Company from a contract are lower than the unavoidable costs of meeting the future
obligations under the contract.

A disclosure for contingent liabilities is made where there is a possible obligation or a present
obligation that may probably not require an outflow of resources or an obligation for which the
future outcome cannot be ascertained with reasonable certainty. When there is a possible or a
present obligation where the likelihood of outflow of resources is remote, no provision or
disclosure is made.

Q. Cash and Cash Equivalents:

Cash and Cash equivalents include cash and cheque in hand, bank balances, demand deposits
with banks and other short-term highly liquid investments that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value where
original maturity is three months or less.

R. Cash Flow Statement:

Cash flows are reported using the indirect method where by the profit before tax is adjusted for
the effect of the transactions of a non-cash nature, any deferrals or accruals of past and future
operating cash receipts or payments and items of income or expenses associated with investing
or financing cash flows. The cash flows from operating, investing and financing activities of
the Company are segregated.

S. Borrowing Cost:

General and specific borrowing costs that are directly attributable to the acquisition,
construction or production of qualifying assets are capitalized as a part of cost of that assets,
during the period till all the activities necessary to prepare the qualifying assets for its intended
use or sale are complete during the period of time that is required to complete and prepare the
assets for its intended use or sale. Qualifying assets are assets that necessarily take a substantial
period of time to get ready for their intended use or sale. Other borrowing costs are recognized
as an expense in the period in which they are incurred.

T. Earnings Per Share:

Basic EPS is arrived at based on net profit or loss for the year after tax from continuing
operations available to equity shareholders to the weighted average number of equity shares
outstanding during the year. The Company did not have any potentially dilutive securities in
any of the years’ represented.

Diluted earnings per share: Diluted earnings per share is calculated by dividing the net profit or
loss for the year after tax from continuing operations attributable to equity shareholders by the
weighted average number of equity shares outstanding including equity shares which would
have been issued on the conversion of all dilutive potential equity shares unless they are
considered anti-dilutive in nature.

U. Dividend:

Final dividend on shares is recorded as a liability on the date of approval by the shareholders
and interim dividends are recorded as a liability on the date of declaration by the Company''s
Board of Directors.

V. Exceptional Items:

When an item of income or expense within profit or loss from ordinary activity is of such size,
nature or incidence that their disclosure is relevant to explain the performance of the Company
for the year, the nature and amount of such items is disclosed as exceptional items.

Footnote —

The financial instruments valued in the above table, have been valued at a fair market value using
techniques which use inputs that have a significant effect on the recorded fair value that are not
based on observable market data, as at respective reporting dates.

Note ''32’- Financial Risk Management Objectives and Policies

The Company’s principal financial liabilities comprise loans and borrowings, security deposits
taken, employee related payables, 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 Property, Plant and Equipments, investments, security deposits given, employee
advances, trade and other receivables, cash and short-term deposits that derive directly from its
operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s Board
of Directors reviews and sets out policies for managing these risk and monitors suitable actions
taken by management to potential adverse effects of such risks on company’s operational and
financial performance

A. Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result
from a change in the price of a financial instrument. The value of a financial instrument may
change as a result of changes in interest rates and other market changes that affect market risk
sensitive instruments. Market risk is attributable to all market risk sensitive financial
instruments including investments and deposits, payables and loans and borrowings

a. Interest Rate Risk:

Interest rate risk is the risk that the fair value of future cash flows of the financial
instruments will fluctuate because of changes in market interest rates . The Company’s
exposure to the risk changes in the market interest rat es relates primarily to the Company’s
long-term debt obligation.

B. Credit risk

Credit risk arises from the possibility that the counter party may not be able to settle their
obligation as agreed. Customer credit risk is managed by each business unit subject to
Company’s established policy, procedure and control relating to customer risk management.
Further, the Company periodically assesses financial reliability of customers and other counter
parties, taking into account the financial condition, current economic trends, and analysis of
historical bad debts and ageing of financial assets. Individual risk limits are set and
periodically reviewed on the basis of such information.

Financial assets are written off when there is no reasonable expectation of recovery, such
debtor failing to engage in a repayment plan with the Company. Where loans or receivables
have been written off, the Company continues to engage in enforcement activity to attempt to
recover the receivables due. Where recoveries are made, these are recognised as income in the
statement of profit and loss.

C. 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.

Note ''33’- Segment Information

Information regarding primary segment reporting as per Ind-AS 108.

The company is engaged in only one segment of Hotel Business. Accordingly, the segment
revenue, segment results, segment assets and segment liabilities are reflected by the financial
statement themselves as at and for the financial year ended 31^st March, 2024.

Note ''34’- Gratuity and other post employment benefit plans:

A. Defined benefit Plans- General Description

The Company operates gratuity plan wherein every employee is entitled to a benefit equivalent
to 15 days salary (includes dearness allowance) last drawn for each completed year of service.
The same is payable on termination of service, or retirement, or death, whichever is earlier.
The benefit vests after five years of continuous service. Gratuity benefits are valued in
accordance with the Payment of Gratuity Act, 1972.

Note‘37’- Other Statutory Dis closures

(a) The Company does not have Lease liability and hence no reporting related to the same has
been made.

(b) There has been no revaluation to Property, Plant and Equipments.

(c) The Company does not have any Benami property, where any proceeding has been initiated
or pending against the Company for holding any Benami property.

(d) The Company does not have any intangible asset under development.

(e) The Company holds all the title deeds of immovable property in its name.

(f) The Company does not have any relationship / transaction with any Struck-off Company
during the year under reporting.

(g) The Company has not granted any loans or advances to promoter, director, KMP in nature
of loan.

(h) The Company is not declared wilful defaulter by bank or financial institution or other
lender.

(i) The Company has not applied for any scheme of arrangement under Sections 230 to 237 of
Companies Act, 2013.

(j) The Company is not covered under Section 135 of Companies Act, 2013. Hence it is not
required to make CSR expense.

(k) The Company does not have any charges or satisfaction which is yet to be registered with
ROC beyond the statutory period.

(l) The Company have not traded or invested in Crypto Currency or Virtual Currency during
the period/year.

(m) The Company does not have any transaction not recorded in the books of accounts that has
been surrendered or disclosed as income during the year in the tax assessment under the
Income Tax Act, 1961.

(n) The Company does not have number of layer of Companies as prescribed under clause (87)
of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules,
2017.

(o) Unutilized borrowed funds are kept with the bank for the interim until final utilization for
the purpose borrowed for. The Company has created Securities Premium consequent to
issue of shares at premium. These reserves can be utilized in accordance with Section 52 of
the Companies Act, 2013.

(p) (i) No funds have been advanced or loaned or invested (either from borrowed funds or
share premium or any other sources or kind of funds) by the Company to or in any other
person(s) or entity(ies), including foreign entities (“Intermediaries”), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall
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 provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(ii) No funds have been received by the Company from any person(s) or entity(ies),
including foreign entities (“Funding Parties”), with the understanding, whether recorded in
writing or otherwise, that the Company shall directly or indirectly, lend or invest in other
persons or entities identified in any manner whatsoever by or on behalf of the Funding
Parties (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf
of the Ultimate Beneficiaries.

(q) The Company has used accounting softwares for maintaining its books of account for the
financial year ended March 31, 2024, which has a feature of recording audit trail (edit log)
facility and the same has operated throughout the year for all relevant transactions recorded
in the softwares.

Note‘38’- Previous years’ figures have been regrouped and/or rearranged wherever necessary.

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

For K. K. HARYANI & Co.

Chartered Accountants

Firm Reg No: 121950W

CA Kishor K. Haryani Ramesh Bansal Pushpendra Bansal

Proprietor Managing Director/CFO Managing Director

Membership No: 110780 DIN: 00086256 DIN: 00086343

Sangita Bansal Hitesh Limbani

Place: Mumbai Director Company Secretary

Date: 23^rd May, 2024 DIN: 01571275 FCS: 12568

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Mar 31, 2015

1. Term Loan from Bank is secured by Ist & excutive charge by way of registered mortgage over Hotel land and Budding and exclusive charge on all movabr fixed assets (both present and future) of company. Further, it is also secured by way of personal guarantee from Director. Tire aforesaid term loan is obtained at the interest rate of 12,5%p.a.

2. There are no Contingent Liabilities and Commitments occurred after the balance sheet date which require disclosure in the books of accounts.

3. There is no amount due and outstanding to “Investors Education and Protection Fund. ’

4. Income from operations represents invoiced value of goods sold and services rendered exclusive of applicable taxes.

5. In the opinion of Board of Directors of the Company, all the current assets, loans and advances have value on realisation of an amount at least equal to the amount at which they are stated in the Balance Sheet.

Note:

6. Employer’s contribution, Benefits Paid and Past Service Cost includes payments made by the Company directly to its past employees.

7. The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

8. The Company’s Gratuity fund is managed by Life Insurance Corporation of India. The plan assets under the fund are deposited under approved securities.

9. The Company’s only business being hoteliering and since all the operations are undertaken in India only, segment-wise information is not applicable under Accounting Standard 17- ‘Segmental Information’ (AS-17) specified under section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014.

10. Related Party Disclosure as required by Accounting Standard - 18 issued by the Institute of Chartered Accountants of India;

(A)Nature of Relationship

(I) Enterprises in which Key Management Personnel have significant influence, with whom the company had transactions:

Kcsar Motels Pvt. Ltd.

Lords Inn Hotels and Developers Ltd.

Sai Ram Krupa Hotels Pvt. Ltd.

Lords Oriental Resorts Developers (Silvassa) Pvt. Ltd.

Lords Sai Ma Hotels Pvt. Ltd.

Lords Institute of Management Pvt. Ltd,

Sahyaadri Health Tourism Pvt. Ltd.

(II) Key Management Personnel:

Pushpendra Bansal Ramesh Bansal

11. The previous year’s figures have been regrouped and/or rearranged wherever necessary.

---

Mar 31, 2014

1. There is no amount due and outstanding to "Investors Education and Protection Fund."

2. Income from operations represents invoiced value of goods sold and services rendered exclusive of applicable taxes.

3. In the opinion of Board of Directors of the Company, all the current assets, loans and advances have value on realisation of an amount at least equal to the amount at which they are stated in the Balance Sheet.

4. As per Accounting Standard -15 - Accounting for Employees benefits as defined in the accounting standard, the summarised components of net benefit expense recognised in the Statement of profit and loss and the funded status and the amount recognised in the balance sheet are given herein below:

Note:

I. Employer''s contribution, Benefits Paid and Past Service Cost includes payments made by the Company directly to its past employees.

II. The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

III. The Company''s Gratuity fund is managed by Life Insurance Corporation of India. The plan assets under the fund are deposited under approved securities.

5. Earning Per Share:

Earning per Share is calculated in accordance with Accounting Standard 20 - ''Earning per Share'' - (AS- 20), notified by the Company''s (Accounting Standards) Rules, 2006

6. The Company''s only business being hoteliering, and since all the operations are undertaken in India only, segment-wise information is not applicable under Accounting Standard 17- ''Segmental Information'' (AS-17) notified by the Companies Accounting Standards Rules, 2006.

7. Related Party Disclosure as required by Accounting Standard - 18 issued by the Institute of Chartered Accountants of India:

(A) Nature of Relationship

(I) Enterprises in which Key Management Personnel have significant influence, with whom the company had transactions:

Kesar Motels Pvt. Ltd.

Lords Inn Hotels and Developers Ltd.

Sai Ram Krupa Hotels Pvt. Ltd.

Lords Oriental Resorts Developers (Silvassa) Pvt. Ltd.

Lords Sai Ma Hotels Pvt. Ltd.

Lords Ishwar Hotels Ltd.

Lords Institute of Management Pvt. Ltd.

Sahyaadri Health Tourism Pvt. Ltd.

(II) Key Management Personnel: Pushpendra Bansal Ramesh Bansal

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Mar 31, 2013

1. Contingent Liabilities not provided for in respect of:

a)Corporate Guarantee given to Bank of India on behalf of 9,55,00,000 9,55,00,000 M/sKesar Motels Pvt.Ltd.

2. There is no amount due and outstanding to "Investors Education and Protection Fund."

3. Income from operations represents invoiced value of goods sold and services rendered exclusive of applicable taxes.

4. In the opinion of Board of Directors of the Company, all the current assets, loans and advances have value on reahsation of an amount at least equal to the amount at which they are stated in the Balance Sheet.

5. As per Accounting Standard -15 - Accounting for Employees benefits as defined in the accounting standard, the summarised components of net benefit expense recognised in the Statement of profit and loss and the funded status and the amount recognised in the balance sheet are given here in below:

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Mar 31, 2012

1. The Company has initiated the process of obtaining details from Sundry Creditors who are registered under the Micro, Small and Medium Enterprises Development Act, 2006. To the extent that the Company has received information, it has evaluated that there are no amounts due to the Creditors who are registered under the said Act beyond the period of 45 days.

2011-12 2010-11 Rs Rs 2. Estimated amount of Contracts remaining to be executed on capital 30,00,000 50,00,000 account (Net of Advances)

3. Contingent Liabilities not provided for in respect of:

a) Corporate Guarantee given to Bank of India on behalf of

M/s. Kesar Motels Pvt. Ltd. 9,55,00,000 9,55,00,000

4. There is no amount due and outstanding to "Investors Education and Protection Fund."

5. Income from operations represents invoiced value of goods sold and services rendered exclusive of applicable taxes.

6. In the opinion of Board of Directors of the Company, all the current assets, loans and advances have value on realisation of an amount at least equal to the amount at which they are stated in the Balance Sheet.

7. As per Accounting Standard -15 -Accounting for Employees benefits as defined in the accounting standard, the summarized components of net benefit expense recognised in the Statement of profit and loss and the funded status and the amount recognised in the balance sheet are given herein below:

VII. Actuarial Assumptions

Discount Rate Current 8% 8%

Salary Escalation 7% 7%

Note: i) Employer's contribution, Benefits Paid and Past Service Cost includes payments made by the Company directly to its past employees.

ii) The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

iii) The Company's Gratuity fund is managed by Life Insurance Corporation of India. The plan assets under the fund are deposited under approved securities.

8. Related Party Disclosure as required by Accounting Standard - 18 issued by the Institute of Chartered

Accountants of India: (A) Nature of Relationship

(I) Enterprises in which Key Management Personnel have significant influence:

Kesar Motels Pvt. Ltd.

Lords Inn Hotels and Developers Ltd.

Sai Ram Krupa Hotels Pvt. Ltd.

Lords Oriental Resorts Developers (Silvassa) Pvt. Ltd.

Lords Sai Ma Hotels Pvt. Ltd.

Lords Ishwar Hotels Ltd.

(II) Key Management Personnel:

Pushpendra Bansal

Ramesh Bansal

9. The Company's only business being hoteliering and since all the operations are undertaken in India only, segment- wise information is not applicable under Accounting Standard 17 - 'Segmental Information' (AS-17) notified by the Companies Accounting Standards Rules, 2006.

10. During the year ended 31st March, 2012 the Revised Schedule VI notified under the Companies Act 1956, has become applicable for preparation and presentation of financial statements. The preparation of financial statements based on the Revised Schedule VI does not impact the recognition and measurement principles followed for preparation of the financial statements. However, it has significant impact on the presentation and disclosure made in the financial statements. The company has regrouped/reclassified the previous year figures in accordance with the requirements applicable in the current year.

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Mar 31, 2010

1. Conversion of Preferential Warrant and 12.5% Optionally Fully Convertible Debentures ( OFCDs ) During the year, the Company has converted 27,19,000 preferential warrants into equal number of Equity Shares of Rs. 10/- each at a Premium of Rs. 4/- each aggregating to Rs 380.66 Lacs and also converted 3000 12.5% Optionally Fully convertible debentures (OFCD) of Rs. 1000/- each into 300000 Equity Shares of Rs. 10/- each at par. Consequently, the paid up Share Capital of the Company has increased from Rs. 1321.94 Lacs to Rs. 1623.84 Lacs and Share Premium account is credited with Rs. 108.76 Lacs. The fund raised by way of Preferential Allotment of Equity Shares amounting to Rs. 761.32 lacs (out of which Rs. 380.66 lacs pertains to 2008-09) were utilised as under :-

2 As the Turnover of the Company includes sale of food and beverages, it is not possible to give quantitative details of the turnover and food and beverages consumption. The Company has been exempted from disclosure of the quantitative details vide Order No.46/189/2007-CL.III dated 24.01.2008 issued by Ministry of Company Affairs, Government of India. Accordingly the quantitative data covered under paragraph 3(i) (a) of Part II of Schedule VI of the Companies Act 1956, are not disclosed herein. However the said order required the company to disclose certain additional particulars which are given below:

(a) The income from wine and liquor is Rs. 2,94,67,395/- (P.Y. Rs. 2,20,67,346/- ).

(b) The income from telex & telephone is Rs. 75,147/- (P.Y. Rs. 1,91,255/-) included in other services.

(c) The break up of Consumption of Provisions, Stores, Beverages, Wine & Liquor and other consumables are as follows:

(Figures in brackets represent figures for the year 2008-09)

3. The Company has initiated the process of obtaining details from Sundry Creditors who are registered under the Micro, Small and Medium Enterprises Development Act, 2006. To the extent that the Company has received information, it has evaluated that there are no amounts due to the Creditors who are registered under the said Act beyond the period of 45 days.

4. As per Accounting Standard -15 Accounting for Employees benefits as defined in the accounting standard the summarised components of net benefit expense recognised in the profit and loss account and the funded status and the amount recognised in the balance sheet are given herein below:

Note: i) Employers contribution includes payments made by the Company directly to its past employees.

ii) The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market

iii) The Companys Gratuity fund is managed by Life Insurance Corporation of India. The plan assets under the fund are deposited under approved securities.

5. There is no amount due and outstanding to “Investors Education and Protection Fund.”

6. During the year, the Company has disposed/discarded part of fixed assets, which were replaced by new assets. The gross blockvalue of the same is Rs. 1.84CroresandW.D.Vis Rs. 0.09Crores.

7. Contingent Liabilities not provided for in respect of :

2009-10 2008-09 a) Corporate Guarantee given to Bank of India on behalf of 9,55,00,000 9,55,00,000

M/s. Kesar Motels Private Limited.

8. During the year, the amount of Rs. 41,60,512 has been charged to profit and loss account which pertains to disputed Interest to Financial Institutions for the period April, 2004 to March, 2009.

9. The Term Loans from Bank are secured by first charge by way of equitable mortgage of Companys all immovable properties, both present and future and first charge by way of hypothecation of Companys all movable, present and future subject to prior charges created and/or to be created in favour of the Companys bankers for securing the borrowing of working capital requirements in the ordinary course of business. The mortgage and hypothecation are ranking pari passu inter se.

10. Cash Credit from Punjab National Bank is secured by way of hypothecation of stocks and related book debts and further hypothecation of building under WIP.

11. Vehicle Loans from Bank and NBFCs are secured by way of hypothecation of the Vehicle.

12. Income from Operations, represents invoiced value of goods sold and services rendered exclusive of applicable taxes.

13. In the opinion of Board of Directors of the Company, all the current assets, loans and advances have value on realization of an amount at least equal to the amount at which they are stated in the Balance Sheet.

14. Related Party Disclosure as required by Accounting Standard-18 issued by the Institute of Chartered

Accountants of India: (A) Nature of Relationship :

(I) Enterprises in which Key Management Personnel have significant influence: Kesar Motels Private Limited

Lords Inn Hotels and Developers Limited

(II) Key Management Personnel Pushpendra Bansal