Notes to Accounts of Howard Hotels Ltd.

Mar 31, 2025

(b) Terms/ rights attached to equity shares

The company has only one class of equity shares having par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends only in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

* Car Loans from Bank is secured against hypothecation of respective vehicles, repayable in monthly installments of Rs. 0.44 lakhs, 0.47 lakhs and 0.58 lakhs in 42 installments, 37 installments and 39 installments respectively.

** Car Loans from NBFCs is secured against hypothecation of respective vehicles, repayable in monthly installments of Rs. 0.48 lakhs and 1.18 lakhs in 36 installments and 27 installments respectively.

*** Term Loan from Bank is secured against exclusive charge on hypothecation of Plant and Machinery, Furniture & Fixture and other Fixed Assets (present and future) and collateral security of freehold hotel property situated at Mauza Basai mustidi, Chungi Andar, Tajganj Ward, Fatehabad Road, Agra and also equitable mortage of property held by Nirankar Nath Mittal director of the company. Further the credit facility is secured by personal guarantee of the directors Nirankar Nath Mittal, Nirvikar Nath Mittal and Shrikant Mittal. Interest payable on above term Loan is EBLR 0.4%.

The Company has not defaulted in the repayment of borrowings and interest as at Balance Sheet date.

^#The unsecured loan is carrying interest @8% and repayable after three years from the date of renewal. i.e. 01/04/2024.

30 Employee benefit obligations (A) Defined benefit plan

Gratuity:Provision for gratuity is determined based on Valuation done by Independent Actuary by actuaries using the projected unit credit method.

The Compay 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 following tables summarise the components of net benefit expense recognised in the statement of profit or loss and the funded status and amounts recognised in the balance sheet for the respective plans:

(vi) Sensitivity Analysis

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate and expected salary increase rate. Effect of change in mortality rate is negligible. Please note that the sensitivity analysis presented below may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumption would occur in isolation of one another as some of the assumptions may be correlated. The results of sensitivity analysis are given below:

All 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 their settlement occurs in cash. For the year ended 31 March 2025, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (31 March 2024: Nil)

33 Earnings per share (EPS)

Basic EPS amounts are calculated by dividing the profit/(loss) for the year attributable to equity shareholders of the company by the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit/(loss) for the year attributable to the equity shareholders of the company by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

The following reflects the Profit/ (Loss) and share data used in the basic and diluted EPS computation :

(All amounts in Indian Rupees Lakhs unless otherwise stated)
34 Capital commitments	31 March, 2025	31 March, 2024
Estimated amount of contracts remaining to be executed on not provided for (net of advances)	capital account and -	54.88
35 Contingent liabilities	31 March, 2025	31 March, 2024
- Claims against the Company not acknowledged as debts1 : - EPCG Licenses 2	0.10	0.86

36 Leases Operating Lease Company as a lessee:

Company is not required to apply the requirements of Ind AS 116 since Company has taken certain immovable properties on operating lease which has low value of underlying assets. Lease Payments are recognised over the lease term in the statement of Profit and loss.

Company as a lessor:

The Company has given certain immovable properties on operating lease. All operating leases entered into by the Company are cancellable. Finance Lease

The company does not have any finance lease as at March 31, 2025.

(All amounts in Indian Rupees Lakhs unless otherwise stated)

37 Financial risk management objectives and policies

The Company principal financial liabilities comprise loans and trade payables. The main purpose of these financial liabilities is to raise finance for the Company''s operations. The Company has various financial assets such as trade receivables, bank balances and short-term deposits, which arise directly from its operations. The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The Company''s senior management is responsible to ensure that Company 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. All activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision.The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

(a) 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 risk comprises three types of risk: interest rate risk, foreign currency risk and other price risk. Financial instruments affected by market risk include loans and borrowings, deposits and investments.

(i) Interest rate risk

Interest rate risk is the risk that the fair value or the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interests rate primarily relates to the Company''s long-term debt obligations with floating interest rates. The Company''s policy is to manage its interest cost using a mix of fixed & floating rate borrowings.

(ii) Foreign currency risk

Foreign currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changes in foreign exchange rates.

The predominant currency of the Company''s revenue and operating cash flows is Indian Rupees (INR).

The Company operates in india only and is exposed to foreign exchange risk arising from foreign currency received from foreign customers. The exposure of the Company to foreign currency risk is not significant.

(iii) Price risk

There are no investments held by the company in any securities and classified in the balance sheet as at fair value through profit or loss or Other comprehensive income. Company does not have a practice of investing in any securities with a view to earn fair value changes gain. Accordingly, the Company is not exposed to market price risk.

(b) Credit risk

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk for trade receivables, cash and cash equivalents, investments, other bank balances, loans and other financial assets.

Trade receivables consist of large number of customers. 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, the Company is not exposed to any credit risk.

(c) Liquidity risk

Liquidity risk is the risk that the Company may encounter difficulty in meeting its present and future obligations associated with financial liabilities that are required to be settled by delivering cash or another financial asset.

The Company monitors its risk of shortage of funds using cash flow forecasting models. These models consider the maturity of their financial investments, committed funding and projected cash flows from operations.The Company''s objective is to provide financial resources to meet its business objectives in a timely, cost effective and reliable manner. A balance between continuity of funding and flexibility is maintained through the use of bank borrowings. The Company also monitors compliance with its debt covenants.

38 Capital management

The Company''s objectives when managing capital is to safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate return to shareholders through continuing growth.

The Company sets the amount of capital required on the basis of annual business and long-term operating plans which include capital and other strategic investments.

The funding requirements are met through a mixture of equity, internal fund generation and short-term and long-term borrowings.

The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company''s policy is to keep the gearing ratio optimum. Net debt are non-current and current borrowings as reduced by cash and cash equivalents and other bank balances. Equity comprises all components including other comprehensive income.

The following table summarizes the capital of the Company:

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately recall loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current year.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2025 and 31 March 2024.

(b) Fair value of financial assets and liabilities measured at amortised cost

The carrying amounts of financial assets and liabilities carried at amortised cost are reasonable approximation of their fair values.

(c) Fair value hierarchy

All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy, described as follows based on the lowest level input that is significant to the fair value measurement as whole.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices, for example listed equity instruments, traded bonds and mutual funds that have quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques that 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.

The Company doesn''t have financial instruments for which fair value is recognised or disclosed.

40 Code on Social Security, 2020

The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the Company towards Provident Fund and Gratuity. The draft rules for the Code on Social Security, 2020 have been released by the Ministry of Labour and Employment on November 13, 2020. The Company and its Indian subsidiary are in the process of assessing the additional impact on Provident Fund contributions and on Gratuity liability contributions and will complete their evaluation and give appropriate impact in the financial statements in the period in which the rules are notified become effective and the related rules to determine the financial impact are published.

41 Recent pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2025,MCA has not notified any new standards or amendments to the existing standards applicable to the company.

42 Figures are rounded off to nearest rupees in Lakhs.

43 There is no proceedings initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

44 The company is not declared wilful defaulter by any bank or financial Institution or other lender.

45 The Company is not having any transaction 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)

46 The Financial Ratios of the conpany during the finalcial year is reported in Note 46A.

Explanation to Ratios where Variance in Ratio is more than 25% as compared to previous year

1. Debt Service Coverage Ratio : Ratio decreases due to decrease in EBT and increase in Interest Expense.

2. Return on equity Ratio : Ratio decreases due to decrease in profit.

3. Trade Receivables Turnover Ratio : Ratio increases due to increase in Sales and decrease in closing Debtors.

4. Trade Payables Turnover Ratio : Ratio increases due to increase in Purchases.

5. Net Capital Turnover Ratio : Ratio improved due to increase is Turnover.

6. Net Profit Ratio : Profit declined due to decrease in EAT and increase in Total Revenue.

7. Return on Capital Employed : Ratio declined due to Increase in Capital employed and decrease in EBIT.

47 The amount showns in trade receivables and trade payables alongwith corresponding advances are subject to confirmations.

48 One satisfaction of charge is pending on MCA portal amounting Rs. 412 lakhs open due to The Pradeshiya Indl. & Inv. Corpn. Of U.P. Ltd but

there is no dues on the company as on 31.03.2025.

49 Disclosure regarding relationship with Struck-off Companies

The Company has not entered into any transaction nor it is having any balance outstanding with struck-off companies as defined under section 248 of Companies Act, 2013.

50 Events after the reporting date

There have been no events after the reporting date that requires disclosure in these financial statements.

51 Previous Year figures have been regrouped and rearranged, wherever applicable.

1

The company has outstanding demand on TDS portal of Rs. 1.13 lakhs against which company has deposited Rs. 0.43 lakhs and booked liability of Rs. 0.60 lakhs. This demand will be rectified/deposited in due course.

2

The company has given an undertaking to DGFT vide License no. 0630003551 dated 17.08.2012 for duty saved value of Rs. 3.96 lakhs. The Company has fulfilled its obligation and filed application for redemption of bond but approval is still awaited.

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Mar 31, 2024

n) Provisions, contingent liabilities and contingent assets

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, 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. When the Company expects some or all of a provision to be reimbursed, the reimbursement
is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented
in the statement of profit and loss, net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate,
the risks specific to the liability. The unwinding of discount is recognized in the statement of profit and loss as a finance cost.

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

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non¬
occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognised
because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in
extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The Company does
not recognize a contingent liability but discloses its existence in the financial statements.

Contingent assets are not recognised but disclosed in the financial statements when an inflow of economic benefits is probable.

o) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of
another entity.

Financial assets

Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or
loss, transaction costs that are attributable to the acquisition of the financial asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified into four categories:

• Debt instruments at amortised cost

• Debt instruments at fair value through other comprehensive income (FVTOCI)

• Debt instruments, derivatives and equity instruments at fair value through profit or loss (FVTPL)

• Equity instruments measured at fair value through other comprehensive income (FVTOCI)

i. Debt instruments at amortised cost

A ''debt instrument'' is measured at the amortised cost, if both the following conditions are met:

a. The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

b. Contractual terms of the asset that give rise on specified dates to cash flows that are solely payments of principal and
interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR)
method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortization is included in finance income in the statement of profit and loss. The losses arising from
impairment are recognised in the statement of profit and loss.

ii. Debt instruments at FVTOCI

A ''debt instrument'' is classified as at the FVTOCI if both of the following criteria are met:

a. The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets,
and

b. The asset''s contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value
movements are recognized in the other comprehensive income (OCI). However, the Company recognizes interest income, impairment
losses and reversals and foreign exchange gain or loss in the statement of profit and loss. On derecognition of the asset, cumulative
gain or loss previously recognised in OCI is reclassified from the equity to statement of profit and loss. Interest earned whilst holding
FVTOCI debt instrument is reported as interest income using the EIR method.

iii. Debt instruments at FVTPL

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorization as at
amortized cost or as FVTOCI, is classified as at FVTPL.

Debt instruments included within the FVTPL category are measured at fair value with all changes recognized in the statement of
profit and loss.

iv. Equity investments

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading and
contingent consideration recognised by an acquirer in a business combination to which Ind AS 103 applies are classified as at
FVTPL. For all other equity instruments, the Company may make an irrevocable election to present in other comprehensive
income subsequent changes in the fair value. The Company makes such election on an instrument-by-instrument basis. The
classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding
dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to statement of profit and loss, even on sale
of investment. However, the Company may transfer the cumulative gain or loss within equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the statement
of profit and loss.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily
derecognised (i.e. removed from the Company''s balance sheet) when:

• The rights to receive cash flows from the asset have expired, or

• The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received
cash flows in full without material delay to a third party under a ''pass-through'' arrangement and either (a) the Company
has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained
substantially all the risks and rewards of the asset, but has transferred control of the asset.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of
impairment loss on the following financial assets:

• Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities and deposits;

• Trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are
within the scope of Ind AS 18.

The Company follows ''simplified approach'' for recognition of impairment loss allowance on trade receivables. The application of
simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance
based on lifetime ECLs at each reporting date, right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines whether there has been
a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, twelve month ECL is
used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in the subsequent
period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial
recognition, then the entity reverts to recognising impairment loss allowance based on a twelve month ECL.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial instrument.
The 12-month ECL is a portion of the lifetime ECL which results from default events that are possible within 12 months after the
reporting date.

Financial liabilities

Initial recognition and measurement

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly
attributable transaction costs. The Company''s financial liabilities include trade and other payables and borrowings, etc.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

i. Financial liabilities at FVTPL

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities
designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for
trading if they are incurred for the purpose of repurchasing in the near term.

ii. Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR
method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR
amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently
enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets
and settle the liabilities simultaneously.

p) Accounting for foreign currency transactions

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in
which the Company operates (''the functional currency''). The financial statements are presented in Indian Rupees (INR), which is the
Company''s presentation currency and functional currency.

Transactions in currencies other than the functional currency are translated into the functional currency at the exchange rates that
approximates the rate as at the date of the transaction. Monetary assets and liabilities denominated in other currencies are translated
into the functional currency at exchange rates prevailing on the reporting date. Non-monetary assets and liabilities denominated in
other currencies and measured at historical cost or fair value are translated at the exchange rates prevailing on the dates on which
such values were determined.

All exchange differences are included in statement of profit and loss.

q) Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity
of three months or less, which are subject to an insignificant risk of changes in value. For the purpose of the statement of cash flows,
cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are
considered an integral part of the Company''s cash management.

r) Dividends

The Company recognises a liability to make cash distributions to equity holders of the Company when the distribution is authorised
and the distribution is no longer at the discretion of the Company. As per the corporate laws in India, a distribution is authorised
when it is approved by the shareholders. A corresponding amount is recognised directly in equity.

s) Earnings per share
Basic earnings per share

Basic earnings per share is calculated by dividing the profit attributable to the shareholders of the Company by the weighted average
number of equity shares outstanding during the financial year.

Diluted earnings per share

Diluted earnings per share is calculated by dividing the profit attributable to the shareholders of the Company (after adjusting the
corresponding income/ charge for dilutive potential equity shares, if any) by the weighted average number of equity shares outstanding
during the financial year plus the weighted average number of additional equity shares that would have been issued on conversion of
all the dilutive potential equity shares.

4. Significant accounting judgements, estimates and assumptions

The preparation of the Company''s financial statements requires management to make judgements, estimates and assumptions that affect
the reported amounts of revenues, expenses, assets and liabilities, accompanying disclosures and the disclosure of contingent liabilities.
Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount
of assets or liabilities affected in future periods.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant
risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below.
The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing
circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that
are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Income taxes

The Company is subject to income tax laws as applicable in India. Significant judgment is required in determining provision for income
taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of
business. The Company recognises liabilities for anticipated tax issues based on estimates of whether additional taxes will be due. Where
the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income
tax and deferred tax provisions in the period in which such determination is made.

In assessing the realisability of deferred tax assets, management considers whether it is probable, that some portion, or all, of the deferred
tax assets will not be realised. The ultimate realisation of deferred tax assets is dependent upon the generation of future taxable income
during the periods in which the temporary differences become deductible. Management considers the projected future taxable income
and tax planning strategies in making this assessment. Based on the level of historical taxable income and projections for future taxable
incomes over the periods in which the deferred tax assets are deductible, management believes that it is probable that the Company will
be able to realise the benefits of those deductible differences in future.

Employee benefit obligations

The cost of the defined benefit obligations are determined using actuarial valuations. An actuarial valuation involves making various
assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary
increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is
highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the
management considers the interest rates of government bonds in currencies consistent with the currencies of the post-employment
benefit obligation.

The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to change only at
interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates.
Further details about gratuity obligations are given in Note No. 31

Contingencies

Management judgement of contingencies is based on the internal assessments and opinion from the consultants for the possible outflow
of resources, if any.

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Mar 31, 2015

1. Terms/Right attached to Equity Shares

The company has only one class of equity shares having par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends only in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2. Contingent Liabilities not provided for:

a) In respect of bank guarantees issued, net of margin: Rs. Nil (P.Y. Rs. Nil).

b) In respect of Sales Tax Rs. 1.57 Lacs (P.Y. Rs.0.83 Lacs).

c) In respect of Provident Fund of Rs. 9.19 Lacs (P.Y. Rs. 9.19 Lacs)

3. Capital Commitment

Estimated amount of contracts remaining to be executed on Capital Account (Net of Advances) Rs. Nil (Previous year- Rs. Nil )

4. Segmental Reporting

The company is operating mainly in one segment i.e. Running of Hotel Business. Hence, Segment Reporting as defined in accordance with Accounting Standard 17 issued by the Institute of Chartered Accountants of India is not applicable.

5. In the opinion of Board of Directors, all the 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 and that all the known liabilities have been provided for.

6. The company has not given any loans or advances in the nature of loans which are required to be disclosed pursuant to clause 32 of the Listing Agreement.

7. In the opinion of Board of Directors, none of the assets / cash generating units of the Company is impaired.

8. The company is in the process of compiling the requisite list of micro, small and medium enterprises under the MSMED Act which has come into force recently and in the absence of information in this regard, the particulars required by the aforesaid Act have not been given.

9. The estimated useful lives of fixed assets other than intangible assets have been revised in accordance with Schedule II to the Companies Act 2013, with effect from 1 st April 2014. Pursuant to the above mentioned changes in useful life of assets, the depreciation expense for the year ended 31 March 2015 is lower by Rs.20.43 lacs. Further the Company has charged Rs.7.91 lacs (net of tax) from reserves in respect of assets whose estimated life had already expired.

10. Previous Year figures have been regrouped and rearranged, wherever applicable.

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Mar 31, 2014

(Rs. in Lacs)

31st March 2014 31st March 2013

1 Contingent Liabilities not provided for:

a) In respect of bank guarantees issued, net of margin: Rs. Nil (P.Y. Rs. Nil).

b) In respect of Sales Tax Rs. 0.83 Lacs (net of advance)(P.Y. Rs Nil).

c) In respect of Provident Fund of Rs. 9.19 Lacs (P.Y. Rs. Nil)

2 Capital Commitment

Estimated amount of contracts remaining to be executed on Capital Account ( Net of Advances) Rs. Nil( Previous year- Rs. 2.99 Lacs )

3 Related Party Disclosures

Related party disclosures as required under Accounting Standard - 18 on "Related Party Disclosures" issued by The In- stitute of Chartered Accountants of India are as given below as on 31st March ,2013:

4. Segmental Reporting

The company is operating mainly in one segment i.e. Running of Hotel Business. Hence, Segment Reporting as defined in accordance with Accounting Standard 17 issued by the Institute of Chartered Accountants of India is not applicable.

5 In the opinion of Board of Directors, all the 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 and that all the known liabilities have been provided for.

6 The company has not given any loans or advances in the nature of loans which are required to be disclosed pursuant to clause 32 of the Listing Agreement.

7 In the opinion of Board of Directors, none of the assets / cash generating units of the Company is impaired.

8 The company is in the process of compiling the requisite list of micro, small and medium enterprises under the MSMED Act which has come into force recently and in the absence of information in this regard, the particulars required by the aforesaid Act have not been given.

9 Previous Year figures have been regrouped and rearranged, wherever applicable.

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Mar 31, 2013

1. Contingent Liabilities not provided for:

a) In respect of bank guarantees issued, net of margin: Rs. Nil (P.Y. Rs. Nil).

b) In respect of Sales Tax Rs. Nil (net of advance) (P.Y. Rs. 2.32, Lacs, net of advances)

2. Related Party Disclosures

Related party disclosures as required under Accounting Standard-18 on "Related Party Disclosures" issued by The Institute of Chartered Accountants of India" are as given below as on 31st March, 2013:

a) Key Management Personnel & their relatives:

Mr.NirankarNath Mittal : Chairman Cum Managing Director

Mr. Nirvikar Nath Mttal : Executive Director

Mr. Shrikant Mittal : Executive Director

b) Enterprises over which personnel referred in (a) aforementioned exercise significant influences:

Mittal Fragrances Pvt. Ltd. : Company in which directors'' are interested

Rishi Real Estates India Pvt. Ltd. : Company in which directors'' are interested

De-Exquisite : Firm in which directors'' relative are interested

D''Craft : Firm in which directors'' relative are interested

C a A Restaurant India Pvt. Ltd : Company in which director'' s are interested

Shri Nath Exports (India) Pvt.Ltd : Company in which director'' s are interesteed

3. Segmental Reporting

The company is operating mainly in one segment i.e. Running of Hotel Business. Hence, Segment Reporting as defined in accordance with Accounting Standard 17 issued by the Institute of Chartered Accountants of India is - not applicable.

4. In the opinion of Board of Directors, all the 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 and that all the known liabilities have been provided for.

5. The company has not given any loans or advances in the nature of loans which are required to be disclosed pursuant to clause 32 of the Listing Agreement.

6. In the opinion of Board of Directors, none of the assets/ cash generating units of the Company is impaired.

7. The company is in the process of compiling the requisite list of micro, small and medium enterprises under the MSMED Act which has come into force recently and in the absence of information in this regard the particulars required by the aforesaid Act have not been given.

8. Capital Commitment

Estim-.u amount of contracts remaining to be executed on Capital Account ( Net of Advances) Rs. 2.99 Lacs( Previous year- Nil)

9.Information as per order no.46/133/96-CL III dated 10.5.1996 issued by Ministry of Law, Justice of Company Affairs, the company has been exempted from disclosure of quantitative details.

10.Previous Year figures have been regrouped and rearranged, wherever applicable.

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Mar 31, 2012

A. Terms/Right attached to Equity Shares

The company has only one class of equity shares having par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends only in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

1. Contingent Liabilities not provided for:

a) In respect of bank guarantees issued, net of margin: Rs. Nil (P.Y. Rs. Nil).

b) In respect of Sales Tax Rs. 2.32 Lacs (net of advance) (P.Y. Rs. 8.54 Lacs net of advance), as the appeal has been filled with the concerned department.

2. Segmental Reporting

The company is operating mainly in one segment i.e. Running of Hotel Business. Hence, Segment Reporting as defined in accordance with Accounting Standard 17 issued by the Institute of Chartered Accountants of India is not applicable.

3. In the opinion of Board of Directors, all the 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 and that all the known liabilities have been provided for.

4. The company has not given any loans or advances in the nature of loans which are required to be disclosed pursuant to clause 32 of the Listing Agreement.

5. In the opinion of Board of Directors, none of the assets/ cash generating units of the Company is impaired.

6. The company is in the process of compiling the requisite list of micro, small and medium enterprises under the MSMED Act which has come into force recently and in the absence of information in this regard, the particulars required by the aforesaid Act have not been given.

7. Capital Commitment

Estimated amount of contracts remaining to be executed on Capital Account (Net of Advances) Rs. 2.99 Lacs( Previous year- Nil)

8. Information as per order no.46/133/96-CL III dated 10.5.1996 issued by Ministry of Law, Justice of Company Affairs, the company has been exempted from disclosure of quantitative details.

9. Till the year ended 31st March,2011, the company was using pre-revised Schedule VI to the Companies Act, 1956 for preparation and presentation of financial statements. During the year ended 31st March,2012, the revised schedule VI notified under Companies Act,1956 has become applicable to the Company. The adoption of revised schedule VI does not impact recognition and measurement principles followed for preparation for financial statements. However, it significantly impacts presentation and disclosures made in the financial statements, particularly presentation of balance sheet. As a result, previous years' figures have been regrouped/ reclassified to conform to this year's financial statements where necessary.

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Mar 31, 2011

1. Contingent Liabilities not provided for:

a) In respect of guarantees issued, net of margin: Rs. Nil (P.Y. Rs. Nil).

b) In respect of Sales Tax Rs. 8,53,897/- (net of advance) (P.Y. Rs. Nil), as the appeal has been filled with the concerned department.

2. Related Party Disclosures

Related party disclosures as required under Accounting Standard-18 on "Related Party Disclosures" issued by The Institute of Chartered Accountants of India" are as given below as on 31st March, 2011:

a) Key Management Personnel & their relatives:

Mr. Nirankar Nath Mittal : Chairman & Managing Director

Mr. Nirvikar Nath Mittal : Executive Director

Mr. Shrikant Mittal : Executive Director

Mrs. Brij Lata Mittal : Brother's Wife of Mr. Nirankar Nath Mittal

Mrs. Neena Mittal : Wife of Mr. Nirvikar Nath Mittal

Mrs. Sarita Mittal : Wife of Mr. Nirankar Nath Mittal

Mr. Saurabh Mittal : Brother of Mr. Nirankar Nath Mittal

Jyoti Prasad Mittal(HUF) : Mr. Nirankar Nath Mittal is the Karta of HUF

Nirankar Nath Mittal (HUF) : Mr. Nirankar Nath Mittal is the Karta of HUF

Nirvikar Nath Mittal (HUF) : Mr. Nirvikar Nath Mittal is the Karta of HUF

Omakr Nath Mittal (HUF) : Mr. Shrikant Mittal is the Karta of HUF

b) Enterprises over which personnel referred in (a) aforementioned exercise significant influences:

Mittal Fragrances Pvt. Ltd. : Company in which directors' are interested

Rishi Real Estates India Pvt. Ltd. : Company in which directors' are interested

Fragrance De Energy : Firm in which directors' relative are interested

Exquisite : Firm in which directors' relative are interested

D'Craft : Firm in which directors' relative are interested

Segmental Reporting 5.

The company is operating mainly in one segment i.e. Running of Hotel Business. Hence, Segment Reporting as defined in accordance with Accounting Standard 17 issued by the Institute of Chartered Accountants of India is

3. In the opinion of Board of Directors, all the 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 and that all the known liabilities have been provided for.

4. The company has not given any loans or advances in the nature of loans which are required to be disclosed pursuant to clause 32 of the Listing Agreement.

5. In the opinion of Board of Directors, none of the assets/ cash generating units of the Company is impaired.

6. The company is in the process of compiling the requisite list of micro, small and medium enterprises under the MSMED Act which has come into force recently and in the absence of information in this regard, the particulars required by the aforesaid Act have not been given.

7. Information as per order no.46/133/96-CL III dated 10.5.1996 issued by Ministry of Law, Justice of Company Affairs, the company has been exempted from disclosure of quantitative details.

8. Figures have been rounded off to the nearest rupee.

9. Previous Year's figures have been regrouped and/or rearranged to conform to those of current year's figures wherever necessary.

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Mar 31, 2010

1. Contingent Liabilities not provided for:

In respect of guarantees issued, net of margin: Rs. Nil (P.Y. Rs. Nil).

2. In accordance with the Accounting Standard -22 relating to accounting for taxes on income issued by the Institute of Chartered Accountants of India, made applicable w.e.f. lst April, 2001. During the year under consideration, the company has generated net profit and as prudence, company has recognized deferred tax assets/ Deferred tax liabilities.

3. Related Party Disclosures

Related party disclosures as required under Accounting Standard - 18 on "Related Party Disclosures" issued by The Institute of Chartered Accountants of India are as given below as on 31st March ,2010:

a) Key Management Personnel & their relatives:

Nirankar Nath Mittal : Chairman and Managing Director

Nirvikar Nath Mittal : Executive Director

Shri Kant Mittal : Executive Director

Brij Lata Mittal : Brothers Wife of Nirankar Nath Mittal

Neena Mittal : Wife of Nirvikar Nath Mittal

Sarita Mittal : Wife of Nirankar Nath Mittal

Saurab Mittal : Brother of Shri Kant Mittal

Jyoti Prasad Mittal (HUF) : Mr. Nirankar Nath Mittal is Karta of HUF

Nirankar Nath Mittal (HUF) : Mr. Nirankar Nath Mittal is Karta of HUF

Nirvikar Nath Mittal (HUF) : Mr. Nirvikar Nath Mittal is Karta of HUF

Omkar Nath Mittal (HUF) : Mr. Shri Kant Mittal is Karta of HUF



b) Enterprises over which personnel referred in (a) aforementioned exercise significant influence

Mittal Fragrance Pvt. Ltd. : Company in which directors are interested

Rishi Real Estate India Pvt. Ltd. : Company in which directors are interested

Fragrance De Energy : Firm in which directors relative are interested

De Exqusite : Firm in which directors are interested

DCraft : Firm in which directors relative are interested



4. Segmental Reporting

The company is operating mainly in one segment i.e. Running of Hotel Business. Hence, Segment Reporting as defined in accordance with Accounting Standard 17 issued by the Institute of Chartered Accountants of India is not applicable.

5. In the opinion of Board of Directors, all the 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 and that all the known liabilities have been provided for.

6. The company has not given any loans or advances in the nature of loans which are required to be disclosed pursuant to clause 32 of the Listing Agreement.

7. In the opinion of Board of Directors, none of the assets/ cash generating units of the Company is impaired.

8. The company is in the process of compiling the requisite list of micro, small and medium enterprises under the MSMED Act which has come into force recently and in the absence of information in this regard, the particulars required by the aforesaid Act have not been given.

9. Term of Issue of Share Warrants:

An amount of Rs. 114.50 Lacs being 25 % of the total sum has been received on account of preferential allotment of 1800000 warrants at a price of Rs. 12.25 per warrant, by the Company during the financial year 2008-09. As on 31st March, 2010, the Company has not utilized the same and the same is lying in deposit/current account with the scheduled bank of the Company.

10. Information as per order no.46/133/96-CL 111 dated 10.5.1996 issued by Ministry of Law, Justice of Company Affairs, the company has been exempted from disclosure of quantitative details.

11 Figures have been rounded off to the nearest rupee.

12 Previous Years figures have been regrouped and/or rearranged to conform to those of current years figures wherever necessary.