Notes to Accounts of Jindal Hotels Ltd.

Mar 31, 2024

b) Terms / right attached to equity shares

The Company has issued and allotted 3,50,000 Equity Share of Rs. 10/ each at a premium of Rs.32/- each aggregating to Rs.42/-each, to the allottees i.e. Mr. Piyush D Shah and Mrs. Chanda P Agrawal, (1,75,000 Equity Shares each) Promoters of the Company, on preferential basis, pursuant to Special Resolution approved in the 1st Extra Ordinary General Meeting of F.Y. 2021-22, held on 22.03.2022 and the resolution for allotment of the said equity shares passed in the Board of Directors meeting held on 25.03.2022.

c) Terms / right attached to equity shares

The Company has converted 6,50,000 Share Warrants of Rs.20/- each, in to Equity Shares of Rs.10/- each at premium of Rs.10/-each to M/S Riser Holdings Private Limited, a Promoter Group Company, on preferential basis, pursuant to Special Resolution approved in the 35th Annual General meeting, held on 10.09.2020 and resolution of Board of Directors meeting held on 09.02.2021.

d) The Company has only one class of equity shares of par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. 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.

Nature and Purpose of Reserves

1 Capital Reserve

Capital Reserve has been created on account of forfeiture of certain Equity Shares.

2 Security Premium Reserve

Securities premium reserve has been created due to premium on issue of shares. This reserve is utilized in accordance with the provisions of the Companies Act, 2013.

3 General Reserve

General reserve is referred to as the reserve fund that is created by keeping aside a part of profit earned in business by Company.

4 Retained Earnings

Retained Earnings represents the net profits after all distributions and transfers to other reserves.

The terms of repayment of long term loans are as under:

a HDFC Bank Term Loan

Term Loan is repayable in 108 EMI, with initial moratorium period of 22 months (Only interest to be paid), 24 EMI of Rs. 48.50 Lacs each, commencing from month Jan-2023 till month Dec-2024 and 61 EMI of Rs. 74.82 lacs each, commencing

from Jan-2025 till month of January-2030 and last 01 EMI Rs.4.42 Lacs of February-2030, at the present rate of Interest @ 8.65% p.a.

b HDFC Bank Term Loan

Term Loan is repayable in 74 EMI, with initial moratorium period of 24 months (Only interest to be paid) and 49 EMI of Rs. 20.26 Lakhs each, commencing from month June-2023 till month June-2027 and last 01 EMI of Rs.20.17 of July 2027, at the rate of Interest @ 9.25% p.a. which is fully repaid on dated 26.03.2024.

c HDFC Bank Term Loan

Term Loan is repayable in 120 EMI of Rs.6.33 Lakhs each, commencing from month April-2024 till month March-2034 at the rate of Interest @ 9.00% p.a.

Security Provided:

Secured by Exclusive Charge by way of Registered Mortgage over Company''s Lease Hold Land bearing City Survey No.202 to 208, Free Hold land bearing City Survey no 193 to 195 and property situated in city Survey No, 199 & 196, paiki, of the Company and further secured by Leasehol d Land owners as co-borrowers.

There is no default in repayment of Loan Instalment and interest thereon of all types of Loans.

d Unsecured loan from Director and Inter Corporate Deposit

Unsecured loan from Directors are interest bearing @ 8.00% (P.Y.: 8.00%) and received for period of 36 months. Inter Corporate Loans are carrying interest ranging from @ 08.50% to 9.00% p.a. (P.Y. 8.50% to 9.00%) and received for period of 36 months.

Note: Over Draft against property from HDFC BANK LIMITED is secured by Exclusive Charge by way of Registered Mortgage over company''s Lease Hold Land bearing City Survey No.202 to 208, Free Hold land bearing City Survey no 193 to 195 and property situated on city Survey No, 199 & 196, paiki, of the Company and personal guarantee of Director of the Company and also Lease Hold Land of the owners.

Note 36 Disclosure under Ind AS 19 - Employee Benefits [A] Defined benefit plan:

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 following tables summaries the components of net benefit expense recognized in the Statement of profit and loss and the funded status and amounts recognized in the balance sheet for the gratuity plan.

The following table sets out the status of the gratuity plan and the amounts recognised in the Company''s financial statements at March 31, 2024.

(B) Operating Segment

The activities of the Company relate to only one segment i.e. Hoteliering. Revenue contributed by any single customer in any of the operating segments, whether reportable or otherwise, does not exceed ten percent of the Company''s Total Revenues.

Note 38 Additional information to the financial statements
	(A) Contingent Liabilities and Capital Commitments		Amount Rs. In Lakhs
	Particular		As at	As at
			31.03.2024	31.03.2023
	Contingent Liabilities
	(a)	Claims against the company, not acknowledged as debt (i) Service Tax liability being disputed (# See Note: 1 below) Against which amount paid till 31st March, 2024 Rs. Nil (P.Y.: Rs. 12,52,875)	-	167.05
		(ii) Goods & Service Tax liability being disputed for Financial Year 2017-2018 (# See Note: 2 below) Against which amount paid till 31st March, 2024 Rs. 71289 (P.Y.: Rs. Nil)	7.84	-
	(b)	Commitments Estimated amount of contracts remaining to be executed on capital account & not provided for (Net of Advances)	100.00	400.00

# Note :

1 The Service tax disputed dues has been resolved in the favour of the company as per final order from CESTAT, Ahmedabad dated 09.01.2024. The amount paid against the disputed dues received vide Refund order dated 21.02.2024 to the company.

2 Company has filed an appeal during the year against the disputed dues of Goods & Services Tax for Financial Year 2017-18 of Rs.784179.

Level 1: Level 1 hierarchy includes financial instrum ents measured using quoted prices.

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 instrume nt 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. There are no transfers between levels 1 and 2 during the year.

The Company''s policy is to recognise transfers into and transfers out of fair value hierarchy levels at the end of the reporting period.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of the remaining financial instruments is determined using discount ed analysis.

The carrying amounts of trade receivables, electricity deposit, employee advances, cash and cash equivalents receivables, trade payables, unclaimed dividend, borrowings, and other current financial liabilities are considered to be the same as their fair values, due to their short-term nature.

Note 40 Financial Risk Management

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities.

(A) Credit risk

Credit risk is the risk that counter party will not meet its obligation under a financial instrument leading to a financial loss. The company is exposed to credit risk from investments, trade receivables, cash and cash equivalents, loans and other financial assets. The Company''s credit risk is minimised as the Company''s financial assets are carefully allocated to counter parties reflecting the credit worthiness.

(B) 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 responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the Company''s short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

(i) Maturities of financial liabilities

The tables herewith analyse the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities for:

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(c) Market Risk

Market risk is the risk that changes in the market prices such as Interest Rates, Foreign Exchange Rates, Equity Prices will affect the company''s income or the value of its holdings of financial instruments. The objective of the market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

(i) Interest 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''s investments in deposits is with banks, Government Securities and therefore do not expose the Company to significant interest rates risk. The Company''s variable rate borrowing is subject to interest rate risk. However, the management considers the impact of fair value interest rate risk on variable rate borrowings to be immaterial.

(ii) Currency Risk

The company has no significant Exposure for Export''s revenue and import of raw material and Property, Plant and Equipment so the company is not subject to risk that changes in foreign currency value impact.

Note 41 Capital Management Risk management

For the purpose of the company''s capital management, equity includes equity share capital and all other equity reserves attributable to the equity holders of the Company. The Company manages its capital to optimise returns to the shareholders and makes adjustments to it in light of changes in economic conditions or its business requirements. The Company''s objectives are 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 and maximise the shareholders value. The management and Board of Directors monitor the return on capital as well as the level of dividends to shareholders.

The Company monitors its capital using gearing ratio, which is net debt divided to total equity. Net debt includes, interest bearing loans and borrowings less cash and cash equivalents, bank balances other than cash and cash equivalents and current investments.

Note 43 Disclosure pursuant Leases:

As Lessee:

Short term Leases:

The Company has obtained premises for its business operations under operating lease or leave and license agreements. These are not non-cancellable and are renewable by mutual consent on mutually agreeable terms. Lease payments are recognised in Statement of Profit and Loss under the head "Lease Rent Expense" in note no 33.

Note 44 Other Statutory Information

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

(ii) The Company does not have any transactions with companies struck off.

(iii) The Company does not have capital work-in-progress or in-tangible asset under development.

(iv) The company holds all the title deeds of immovable property in its name.

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

(vi) The Company does not hold any loans or borrowings secured against current asset.

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

(viii) The Company has not applied for any scheme of arrangement u/s 230 to 237 of Companies Act, 2013.

(ix) 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.

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

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

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

(xiii) 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

(xiv) 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 45

The financial statements were authorized for issue in accordance with a resolution passed by the Board of Directors on 30th April, 2024. The financial statements as approved by the Board of Directors are subject to final approval by its Shareholders.

The accompanying notes (1 to 45) are an integral part of the financial statements.

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Mar 31, 2023

N. Provisions and Contingencies:

i. Provisions

Provisions for legal claims, product warranties and make good obligations are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Long-term provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money. Short term provisions are carried at their redemption value and are not offset against receivables from reimbursements.

Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

ii. Contingent Liabilities

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 or a reliable estimate of the amount cannot be made.

iii. Contingent Assets

Contingent Assets are not recognised but are disclosed in the notes to the financial statements.

O. Earnings per Share:

i. Basic earnings per share

Basic earnings per share is calculated by dividing:

- the profit attributable to owners of the company, excluding any costs of servicing equity other than ordinary shares.

- by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year.

ii. Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

- the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

- the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

P. Segment reporting

Operating segments are reported in a manner consistent with the internal reporting to the Chief Operating Decision Maker "CODM" of the Company. The CODM is responsible for allocating resources and assessing performance of the operating segment. The Company has monthly review and forecasting procedure in place and CODM reviews the operations of the Company as a whole.

Q. Exceptional items:

Certain occasions, the size, type or incidence of an item of income or expense, pertaining to the ordinary activities of the Company is such that its disclosure improves the understanding of the performance of the Company, such income or

expense is classified as an exceptional item and accordingly, disclosed in the notes accompanying to the financial statements.

R. Recent Pronouncements:

On March 31, 2023, the Ministry of Corporate Affairs (MCA) has notified Companies (Indian Accounting Standards) Amendment Rules, 2023. This notification has resulted into following amendments in the existing Accounting Standards which are applicable from April 1, 2023.

i. Ind AS 101 - First time adoption of Ind AS - modification relating to recognition of deferred tax asset by a first-time adopter associated with (a) right to use assets and related liabilities and (b) decommissioning, restoration and similar liabilities and corresponding amounts recognised as cost of the related assets.

ii. Ind AS 102 - Share-based Payment - modification relating to adjustment after vesting date to the fair value of equity instruments granted.

iii. Ind AS 103 - Business Combination - modification relating to disclosures to be made in the first financial statements following a business combination.

iv Ind AS 107 - Financial Instruments Disclosures - modification relating to disclosure of material accounting policies including information about basis of measurement of financial instruments.

v Ind AS 109 - Financial Instruments - modification relating to reassessment of embedded derivatives.

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

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

viii. Ind AS 12 - Income Taxes - modification relating to recognition of deferred tax liabilities and deferred tax assets.

ix. Ind AS 34 - Interim Financial Reporting - modification in interim financial reporting relating to disclosure of ''material accounting policy information'' in place of ''significant accounting policies''.

The Company is evaluating the amendments and the expected impact, if any, on the Company''s financial statements on application of the amendments for annual reporting periods beginning on or after 1 April 2023.

1 HDFC Bank Term Loan -1

Term Loan is repayable in 110 EMI, with intial monotoriam period of 22 months (Only interest to be paid), 24 EMI of Rs. 48.50 Lacs each, commencing from month Jan-2023 till month Dec-2024 and 63 EMI of Rs. 74.82 lacs each, comencing from Jan-2025 till month of March-2030 and last 01 EMI Rs.64.24.lacs of April-2030, at the present rate of Interest @ 9.55% p.a.

2 HDFC Bank Term Loan -2

Term Loan is repayable in 49 EMI, with intial mototoriam period of 12 months till Oct-2021 (Only interest to be paid) and 36 EMI of Rs. 26.36 Lacs each, commencing from month Oct-2021 till month Sept-2024 and last 01 EMI of Rs.8.58 Lacs of Oct-2024, at the rate of Interest @ 9.25% p.a. The Same Loan has been fully repaid during this year.

3 HDFC Bank Term Loan -3

Term Loan is repayable in 74 EMI, with intial morotorium period of 24 months (Only interest to be paid) and 49 EMI of Rs. 20.26 Lakhs each, commencing from month June-2023 till month June-2027 and last 01 EMI of Rs.20.17 of July 2027, at the rate of Interest @ 9.25% p.a.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of the remaining financial instruments is determined using discounted analysis.

The carrying amounts of trade receivables, electricity deposit, employee advances, cash and cash equivalents receivables, trade payables, unclaimed dividend, borrowings, and other current financial liabilities are considered to be the same as their fair values, due to their short-term nature.

38 FINANCIAL RISK MANAGEMENT

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities.

(A) Credit risk

Credit risk is the risk that counter party will not meet its obligation under a financial instrument leading to a financial loss. The company is exposed to credit risk from investments, trade receivables, cash and cash equivalents, loans and other financial assets. The Company''s credit risk is minimised as the Company''s financial assets are carefully allocated to counter parties reflecting the credit worthiness.

(B) 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 responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the Company''s short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

(i) Maturities of financial liabilities

The tables herewith analyse the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities for:

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(c) Market Risk

(i) Price Risk

The company is mainly exposed to the price risk due to its investments in equity instruments. The price risk arises due to uncertainties about the future market values of these investments. The above instruments risk are arises due to uncertainties about the future market values of these investments.

Management Policy

The company maintains its portfolio in accordance with the framework set by the Risk management Policies. Any new investment or divestment must be approved by the board of directors, chief financials officer and Risk Management committee.

(ii) Currency Risk

The company has no significant Exposure for Export''s revenue and import of raw material and Property, Plant and Equipment so the company is not subject to risk that changes in foreign currency value impact.

39 CAPITAL MANAGEMENT Risk management

For the purpose of the company''s capital management, equity includes equity share capital and all other equity reserves attributable to the equity holders of the Company. The Company manages its capital to optimise returns to the shareholders and makes adjustments to it in light of changes in economic conditions or its business requirements. The Company''s objectives are 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 and maximise the shareholders value. The management and Board of Directors monitor the return on capital as well as the level of dividends to shareholders.

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

(viii) The Company has not applied for any scheme of arrangemnet u/s 230 to 237 of Comapnies Act, 2013.

(vix) 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.

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

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

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

(xiii) 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

(xiv) 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.

43. The financial statements were authorized for issue in accordance with a resolution passed by the Board of Directors on 2^nd May, 2023. The financial statements as approved by the Board of Directors are subject to final approval by its Shareholders.

44. The figures as on the transition date and previous year have been re-arranged and regrouped wherever necessary to make them comparable with those of the current year.

The accompanying notes (1 to 44) are an integral part of the financial statements.

On behalf of the Board of Directors of

^{As per our report of even date attached} Jindal Hotels Limited

For MODI & JOSHI Piyush D.Shah Jatil Patel

Chartered Accountants Managing Director Director

FRN : 135442W DIN : 00010884 DIN: 00021794

Chirag Joshi Mansi Vyas Kishor I. Darji

Partner Company Secretary Chief Financial Officer

Membership No. 150853

Place : Vadodara Place : Vadodara

Date: 02-05-2023 Date: 02-05-2023

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Mar 31, 2018

2. RECENT ACCOUNTING PRONOUNCEMENTS:

Ind AS 115: Revenue from contracts with Customers

On 28th March, 2018, Ministry of Corporate Affairs (MCA), has notified the Ind AS 115, Revenue from contracts with Customers. The core principal of new standard is that an Entity should recognize the revenue to depict the transfer of promised goods or services to Customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. Further, the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flow arising from the entity’s contracts with customers. The effective date for adoption of Ind AS 115 is financial period beginning on or after 1st April, 2018. The Company will adopt the standard on 1st April, 2018 using cumulative catch up transition method and accordingly comparative for the year ending or ended 31st March, 2018 will not be retrospectively adjusted. The effect on adoption of Ind AS 115 on the operation of the Company is being assessed by the Company.

1 The Company has adopted Previous GAAP as the deemed cost as per the exemption under Ind AS 101. Accordingly, the company has set the Net Block as per Previous GAAP as on April 1, 2016 as the Gross Block under Ind AS.

2 The Company has paid Lease Hold land premium of Rs. 5,24,249/- on 06.07.1984. The total lease period ended on 05.05.2030. In view of Indian Accounting Standard 38, issued by ICAI, the Company has written of proportionate amount of Rs. 11,396/- during the year under review.

3 Depreciation and Amortization :

The terms of repayment of long term loans are as under

(i) HDFC BANK LTD - Repayable in 36 EMI of Rs. 48.38 Lacs and remaining 84 EMI of Rs.65.79 Lacs each at the rate of Interest @ 8.75%, commencing from month May-2017, till month April-2027. The said Term Loan had been taken over from Bank Of Maharashtra on and from 31.03.2017

Security Provided:

Term Loan from HDFC BANK LIMITED is secured by Exclusive Charge by way of Registered Mortgage over company’s Lease Hold Land bearing City Survey No.202 to 208, Free Hold land bearing City Survey no 193 to 195 and property situated on city Survey No, 199 & 196, paiki, of the Company and personal guarantee of Director of the Company and also that of Lease Hold Land owners.

(ii) Vehicle Loan:

Kotak Mahindra Prime Ltd : Various vehicle loan repayable in differential EMI, which commenced from April 2013, till month April’18 at the interest rate ranging from 8.80% to 11.25% p.a.

State Bank of India : vehicle loan repayable in 72 EMI of Rs. 22,880/-, which commenced from January 2016, till month December 2021 at the interest rate 9.85% p.a.

BMW Finance Services : Various vehicle loans repayable in 84 EMI of Rs. 33,301/-, which commenced from April 2011, till month April 2018 at the interest rate 10% p.a.

ICICI Bank Ltd : vehicle loan repayable in 60 EMI of in different EMI, which commenced from Aug 2017, till month July 2022 at the interest rate 8.36% p.a.

Security Provided:

Vehicle Loan are secured against Hypothecation of specific vehicles and personal guarantee of two Directors.

(iii) SIDBI : Subordinated debt - Repayable after 3 years of moratorium from month October,2016, in 47 monthly installments of Rs. 6,05,000/- each and last installment of Rs. 5,65,000/- at fixed rate of interest @ 15.25 % p.a. with monthly rests. The Company had repaid the loan to SIDBI during the year 2016-17.

There is no default in repayment of Loan Installment and interest thereon of all types of Loans.

(iv) Unsecured loan from director and intercorporate

Unsecured loan from direcor are repayabale within 1-2 years and Intercorporate Loans are carring interest ranging from @ 09.50% to 12.25% p.a.

a) Name of the related party and nature of relationship: -

Sr No Particulars Relationship

I Key Managerial Personnel / Directors:

Ambalal Chhitabhai Patel Chairman (Non-Executive Independent Director)

Shri Piyush D Shah Managing Director

Ms. Shagun Mehra Whole time Director

Mr. S C Patel Chief Finanace Officer

Ms. Karuna Advani Company Secretory

Satvik P Agrawal Non Executive Non Independent Director

Chanda P Agrawal Non-Executive Director

Jatil Gordhanbhai Patel Non Executive Independent Director

Mukund Prahlad Bakshi Non Executive Independent Director

Nilesh D Shah Non Executive (Upto 18th March, 2017)

II Relatives of Key Managerial Personnel

Nilesh D Shah Yamini N Jalan Shantaben D Shah Piyush D Shah HUF Prachi S Agrawal Munira N Agrawal Munish D Shah Hardik Agrawal

III Entities controlled by Directors/Relatives of Directors

Jamunadevi Educational Trust Global Gourmet Private Limited Om Hospitality Private Limited Nand Kishore Enterprises Private Limited Synergy Stock Holdings Private Limited Nazar Art Gallery

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 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.

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

There are no transfers between levels 1 and 2 during the year.

The Company’s policy is to recognize transfers into and transfers out of fair value hierarchy levels at the end of the reporting period.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of the remaining financial instruments is determined using discounted analysis.

The carrying amounts of trade receivables, electricity deposit, employee advances, cash and cash equivalents and other short term receivables, trade payables, unclaimed dividend, borrowings, and other current financial liabilities are considered to be the same as their fair values, due to their short-term nature.

The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework.

The Company’s risk management policies are established to identify and analyses the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities.

(A) Credit risk

Credit risk is the risk that counter party will not meet its obligation under a financial instrument leading to a financial loss. The company is exposed to credit risk from investments, trade receivables, cash and cash equivalents, loans and other financial assets. The Company’s credit risk is minimized as the Company’s financial assets are carefully allocated to counter parties reflecting the credit worthiness.

(B) 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 responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the Company’s short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

(i) Maturities of financial liabilities

The tables herewith analyses the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities for:

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(c) Market Risk

(i) Price Risk

The company is mainly exposed to the price risk due to its investments in equity instruments. The price risk arises due to uncertainties about the future market values of these investments. The above instruments risk are arises due to uncertainties about the future market values of these investments.

Management Policy

The company maintains its portfolio in accordance with the framework set by the Risk management Policies. Any new investment or divestment must be approved by the board of directors, chief financial officer and Risk Management committee.

(ii) Currency Risk

The company has no significant Exposure for Export’s revenue and import of raw material and Property, Plant and Equipment so the company is not subject to risk that changes in foreign currency value impact.

CAPITAL MANAGEMENT Note: 39

Risk management

For the purpose of the company’s capital management, equity includes equity share capital and all other equity reserves attributable to the equity holders of the Company. The Company manages its capital to optimize returns to the shareholders and makes adjustments to it in light of changes in economic conditions or its business requirements. The Company’s objectives are 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 and maximize the shareholders’ value. The management and Board of Directors monitor the return on capital as well as the level of dividends to shareholders.

Disclosure as required by Ind AS 101 first time adoption of Indian Accounting Standards Note: 40 Transition to Ind AS:

These are the Company’s first Standalone Financial Statements prepared in accordance with Ind AS.

The accounting standards notified u/s 133 of the Companies Act, 2013 and the Accounting policies set out in note 1.2 have been applied in preparing the financial statements for the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS balance sheet at April 1, 2016 (The Company’s date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP).

An explanation of how the transition from previous GAAP to Ind AS has affected the Company’s financial position, financial performance and cash flows is set out in the following tables and notes.

A. Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied by the Company in the transition from previous GAAP to Ind AS.

A.1 Ind AS optional exemptions

A.1.1 Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all of its Property, Plant and Equipment (PPE) as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for decommissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets.

Accordingly, the Company has elected to measure all of its PPE ,Intangible assets at their previous GAAP carrying value.

A.1.2 Designation of previously recognized financial instruments

Ind AS 101 allows an entity to designate investments in equity instruments at Fair Value through Other Comprehensive Income (FVOCI) on the basis of the facts and circumstances at the date of transition to Ind AS. The Company has elected to apply this exemption for its investment in equity investments.

A.2 Ind AS Mandatory Exceptions

A.2.1 Estimates

An entity’s estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at April 1, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

- Investment in equity instruments carried at FVOCI.

A.2.2 De-recognition of financial assets and liabilities

Ind AS 101 requires a first time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first time adopter to apply the derecognition requirements in Ind AS 109 retrospectively from a date of the entity’s choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the time of initially accounting for those transactions.

The Company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

A.2.3 Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

B Reconciliations between previous GAAP and Ind AS

The following tables represent the reconciliations of Balance Sheet, Total Equity, Total Comprehensive Income, and Cash Flows from previous GAAP to Ind AS.

C Notes to reconciliations:-

1 Investments at Fair value through Other Comprehensive Income

Under the previous GAAP, the application of the relevant accounting standard resulted in all these investments being carried at cost less diminution in the value which is other then temporary. In accordance with Ind AS, financial assets representing investment in equity shares of entities have been fair valued. The company has designated investments as at fair value through other comprehensive income as permitted by Ind AS 109 resulting in increase in carrying amount by '' 2.77 lakhs as at 31 March 2017 and by '' 1.91 lakhs as at 1 April 2016.

2 Deferred Tax

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind-AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind-AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP.

3 Provision for Dividend

Under previous GAAP, dividends proposed by the board of directors along reporting date but before the approval of financial statements were considered to be adjusting event and accordingly recognized (along with related dividend distribution tax) as liabilities at the reporting date. Under Ind AS, dividends proposed by the board are considered to be non-adjusting event. Accordingly, provision for proposed dividend and dividend distribution tax recognized under previous GAAP has been reversed.

4 Retained Earnings

Retained earnings as at April 1, 2016 has been adjusted consequent to the above Ind AS adjustments.

5 Other Comprehensive Income

Under Ind AS, all items of income and expense recognized in a period should be included in Statement of Profit and Loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in Statement of Profit and Loss but are shown in the Statement of Profit and Loss as “Other Comprehensive Income”, includes remeasurement of Employee Benefit obligation and fair valuation of Equity Instruments through OCI and Income tax relating to these items. The concept did not exist under the previous GAAP.

6 Actuarial Gain/ Loss

Under the previous GAAP, actuarial gains and losses were recognized in Statement of Profit and Loss. Under Ind AS, the actuarial gains and losses form part of remeasurement of the net defined benefit of liability / asset which is recognized in Other Comprehensive Income. Consequently, the tax effect of the same has also been recognized in Other Comprehensive Income under Ind AS instead of Profit and Loss. The actuarial gain for the year ended 31 March 2017, were '' 3.98 Lakhs and the tax effect thereon '' 1.31 Lakhs.

Note: 7

The Company declares and pays dividend in Indian Rupees. The dividend has not been recommended by the Board of Directors for the year ended 31st March, 2018. (Dividend recommended as on 31st March, 2017: Rs. 0.80 per equity share)

Note: 8

The standalone financial statements were authorized for issue in accordance with a resolution passed by the Board of Directors on 29th May, 2018. The financial statements as approved by the Board of Directors are subject to final approval by its Shareholders.

Note: 9

The figures as on the transition date and previous year have been re-arranged and regrouped wherever necessary to make them comparable with those of the current year.

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Mar 31, 2015

1. Terms/ right attached to equity shares

The Company has only one class of equity shares of par value of Rs.10 per share.Each holder of equity shares is entitled to one vote per share.

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 members.

The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the members in the ensuing Annual General Meeting.

During the year ended 31st March 2015,the amount per share recognized as dividend distribution to equity members was Rs.0.80 (31st March 2014: Rs.0.80)

Cash Credit from B.O.M. (P.Y. S.B.I.) is secured by Exclusive Charge by way of Registered Mortgage over company's lease hold land bearing City Survey No.202 to 208, free hold land bearing City Survey no 193 & 194, building constructed thereon,hypothecation of movable assets acquired /to be acquired out of Cash Credit limit,hypothecation of entire movable assets of the Company and personal guarantee of two Directors

2. Amount of Income Tax has been provided as per provision of Section 115 JB of the Income Tax Act, 1961.

3. The Board of Directors are of the opinion that discounted net future generation from the Assets in use and shown in the schedule of fixed assets, is more than the carrying amount of fixed assets in Balance Sheet, as such, no provision for Impairment of Assets is required to be made in terms of the requirement of accounting standard (AS - 28) "Impairment of Assets" issued by the Institute of Chartered Accountants of India for the year ended 31.03.2015.

4. Segment Reporting

The Company operates in one reportable operating segment i.e. Hoteliering

5. The Investment made by the company is held in its own name

6. Contingent Liabilities & Commitments:

2014-15 2013-14

a Estimated amount of contracts 1,02,464 42,820 (Net of advances) remaining to be executed on capital account not provided for

b Counter Bank Guarantee furnished 1,122 1,660 for supply of Natural Gas from VMSS and also for availing benefit under EPCG Scheme. c Claims against the Company, Nil Nil not acknowledged as debt.

7. Related Party disclosure under Accounting Standard 18.

The Company has no subsidiary or joint venture concern. The Company has identified all the related parties' transactions during the year, as per details given below:

During the year, there were no amounts written off or written back from such parties.

Key Management Party Related Parties

1. Piyush D. Shah Nilesh D Shah Nilesh D Shah HUF Chanda P Shah Yamini N Jalan Piyush D. Shah HUF Shantaben D Shah Munish D. Shah HUF Satvik P. Agrawal Prachi S. Agrawal Shagun Kunal Mehra Sunita M Agarwal Munish D Shah Munira N Agrawal Hardik Agrawal Jamunadevi Educational Trust Global Gourmet Pvt Ltd. (rs. in '000)

8. Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II, as disclosed in Accounting Policy on Depreciation and Amortisation. Accordingly the un amortised carrying value is being depreciated / amortised over the revised / remaining useful lives. The written down value of Fixed Assets whose lives have expired as at 1st April 2014 have been adjusted, net of tax, in the opening balance of Surplus in Profit and Loss Account, amounting to Rs.1,38,37,117/-. Change in use full life of the Fixed Assets has increased the amount of depreciation charge for the year under review by Rs.85,36,611/ - on Fixed assets installed up to 31.03.2014,as compared to the provision of erstwhile Schedule XIV of the Companies act,1956

9. During the year under review, there is a change in method of charging to the revenue, the cost of various operating inventories from " Purchase Cost Basis" to "Actual Consumption Basis". Due to this change, there is a Net Decrease in expense of Operating Inventories by Rs. 347,694/- in the Statement of Profit & Loss of the year under review.

10. The Company has defended a Civil Suit filed by M/s. Phonographic Performance Ltd. (PPL) in the Court of Law. PPL claims to have Copy Rights of public performance of sound recordings of about 250 Music Companies in India. All those who use these sound recording in public place or commercial establishment, in any form or technology, they must obtain prior license from PPL at certain amount of fees. The company has not obtained such license from them, hence, PPL has filed a Civil Suit. The company claims that it is not required to avail license from PPL on certain legal grounds. Board is of opinion that Company has valid defense in this case and has a fair chance to succeed in the said Civil Suit. In any case , the said license fee if required to be paid will be not more than INR 1,00,000/-.

11. In the opinion of the Board, the assets other than Fixed Assets have value on realization in the Ordinary course of Business at least equal to the amount at which they are stated in Balance Sheet. The adequate provision of all known liabilities have been made in the accounts.

12. Previous year figure have been reclassified, regrouped, wherever necessary and recast to make comparable with those of year under review.

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Mar 31, 2014

A) Amount of Income Tax has been provided on Taxable Income of the Company as per provision of the Income Tax Act, 1961.

B) The Board of Directors are of the opinion that discounted net future generation from the Assets in use and shown in the schedule of fixed assets, is more than the carrying amount of fixed assets in Balance Sheet, as such, no provision for Impairment of Assets is required to be made in terms of the requirement of accounting standard (AS - 28) "Impairment of Assets" issued by the Institute of Chartered Accountants of India for the year ended 31.03.2014.

C) Segment Reporting The Company operates in one reportable operating segment i.e. Hoteliering

D) The Investment made by the company is held in its own name

E) Earnings Per Share As per Accounting Standard 20 of ICAI, New Delhi, Basic and Diluted Earning per Share are as under:

(Rs. in ''000)

Particulars 2013-14 2012-13

A Basic Earnings per Share

(1) Net Profit after Tax 17,275 24,437

(2) Number of Equity Shares At the beginning of the year 60,00,000 60,00,000

Issued during the year on preferential basis for proportionate - - period

Weightage Average Number of Equity Shares 60,00,000 60,00,000

Basic Earnings per Shares 2.88 4.07

B Diluted Earnings Per Share

(1) Net Profit after Tax duly adjusted 17,275 24,437

(2) Numbers of Equity Share at the beginning of the year 60,00,000 60,00,000

Issued during the year on preferential basis - -

Diluted Potential Equity Shares - -

Weightage Average Number of Equity Shares 60,00,000 60,00,000

Diluted Earning Per Share 2.88 4.07

C Face Value of Equity shares (Rs.) 10 10

(Rs. in ''000)

Particulars 2013-14 2012-13

I) Contingent Liabilities & Commitments:

a Estimated amount of contracts (Net of advances) remaining to be executed on capital account not provided for 42,820 37,495

b Bank Guarantee for supply of Natural Gas from VMSS and also for availing benefit under EPCG Scheme. 16,600 1,791

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Mar 31, 2013

A) Amount of Income Tax has been provided on Taxable Income of the Company as per provision of the Income Tax Act, 1961.

B) The Board of Directors are of the opinion that discounted net future generation from the Assets in use and shown in the schedule of fixed assets, is more than the carrying amount of fixed assets in Balance Sheet, as such, no provision for Impairment of Assets is required to be made in terms of the requirement of accounting standard (AS - 28) "Impairment of Assets" issued by the Institute of Chartered Accountants of India for the year ended 31.03.2013.

C) Segment Reporting

The Company operates in one reportable operating segments i.e. Hoteliering

D) The Investment made by the company is held in its own name

E) Previous year figure have been classified, regrouped and recast to make comparable with those of year under review.

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Mar 31, 2012

A) Terms/ right attached to equity shares

The Company has only one class of equity shares having a 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 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. During the year ended 31st March 2012, the amount of per share dividend recognized as distributions to equity shareholders was Rs.0.80 (31st March 2011: Rs.0.80)

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.

Terms of Repayment of Term Loan

State Bank of India TL-3 is for New Hotel Project, which is under progress. Full amount of Term Loan disbursement up to Rs. 2666.00 lacs is yet to avail. Moratorium period of loan repayment is up to March, 2014. Thereafter, loan is repayable in 26 quarterly installment of differential amount. The year of last installment will be 2019-20. The loan is carrying interest Para 13th as on 31 no 9

Security Provided:

Term Loan from S.B.I. is secured by first charge by way of EM over company's lease hold land bearing s.no. 202-208, free hold land bearing R.S. no. 194-C.S. no 193-194, Building constructed thereon, hypothecation of Movable Assets acquired/to be acquired out of Term Loan, hypothecation of stock & receivable of the Company and personal guarantee of two Directors of the Company.

Vehicle Loan are secured against Hypothecation of specific vehicles.

There is no default in repayment of Loan Installment and interest thereon.

Unsecured Loans are received from Promoters/ Relatives of Promoters/ Group Companies. All unsecured Loans are interest free and repayable after 18 months from end of Financial Year. There is no default in repayment of Unsecured Loan.

The Major components of Deferred Tax Liability are as under

C C Limit from S.B.I. is secured by first charge by way of EM over company's lease hold land bearing s.no. 202 to 208, free hold land bearing R.S. no. 194-C.S. no 193-194, Building constructed thereon, hypothecation of Movable Assets acquired/to be acquired out of Term Loan, hypothecation of stock & receivable of the Company and personal guarantee of two Directors of the Company.

A Company has written off Lease Hold land premium of Rs. 11,396/- for the year under review on straight line basis, considering total Lease Hold Land period up to 05.05.2030.

B Company has incurred expenses of Rs.96,55,443/-(P.Y.73,76,377/-) towards expansion project on hand, which are pending for allocation. On completion of the project, these expenditures will be apportioned to respective group of assets. However borrowing cost up to 31.03.2012 of Rs.1,03,34,960/-have been allocated to Land-Rs.65,71,659/- to Hotel Building-36,27,951/- and Plant & Machinery-Rs. 135,430/- and grouped into Capital Work in Progress, New Hotel. '

A) Amount of Income Tax has been provided on Taxable Income of the Company as per provision of the Income Tax Act, 1961.

B) The Board of Directors are of the opinion that discounted net future generation from the Assets in use and shown in the schedule of fixed assets, is more than the carrying amount of fixed assets in Balance Sheet, as such, no provision for Impairment of Assets is required to be made in terms of the requirement of accounting standard (AS - 28) "Impairment of Assets" issued by the Institute of Chartered Accountants of India for the year ended 31.03.2012.

C) Segment Reporting

The Company operates in one reportable operating segments i.e. Hotel leering

D) The Investment made by the company is held in its own name

The rate of escalation in salary (p.a.) considered in actuarial valuation is worked out after into account inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market. Mortality rate are obtained from the relevant data of Life Insurance Corporation of India.

(b) Liability in respect of Provident Fund is provided on actual contribution basis.

E) During the year ended 31st March. 2012 the revised schedule VI notified under the Companies Act,1956 has become applicable to the company for preparation and presentation of its financial statement. The adoption of revised schedule VI does not impaired cogitation and measurement principles followed for preparation of financial statements. However, it has significant impact in preparation and disclosures made in financial statements. The Company has also reclassified the previous year's figures in accordance with the requirements applicable in the current year. In view of this reclassification certain figures of the current year are not strictly comparable with those of previous year.

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Mar 31, 2010

1. In the opinion of Board and to the best of their knowledge and belief:

a. All the current assets, loans and advances will have the value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

b. Provision for all known liabilities is adequate and not in excess of the amount reasonably necessary. There is no liability contingent or otherwise except those stated in the Balance Sheet.

2. Debit and credit balances are subject to confirmation.

3. Company had paid Premium of Rs. 5,24,249 towards Leasehold Land on 06.07.1984. The total Lease Period is extended up to 05.05.2030. In view of Accounting Standard 26, issued by The Institute of Chartered Accountants of India, New Delhi and made mandatory from 01.04.03, company has written off proportionate amount of Rs. 11,396/- during the year under review.

4. 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 has availed exemption u/s 211(4) of the Companies Act, 1956 of such disclosure, as required under Para 3(i)(a) and 3(ii)(d) of Part II, Schedule VI of the Companies Act, 1956, for the F.Y. 2009-10 from The Ministry of Corporate Affairs, Government of India, New Delhi vide their letter No. 46/1/2010-CL-III dated 20-01-2010.

5. Amount of Income Tax and Fringe Benefit Tax have been provided on Taxable Income of the Company as per provision of the Income Tax Act, 1961.

6. As explained to us the Company has not received any intimation from "suppliers" regarding their status under the micro, small and medium Enterprises Development Act,2006 and hence the Disclosure, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been given.

7. Figures of previous year have been regrouped, rearranged and recast wherever necessary so as to make them comparable with those of current year.

8. The Board of Directors is of the opinion that discounted net future generation from the Assets in use and shown in the schedule of fixed assets, is more than the carrying amount of fixed assets in Balance Sheet, as such, no provision for Impairment of Assets is required to be made in terms of the requirement of accounting standard (As - 28) "Impairment of Assets" issued by the Institute of Chartered Accountants of India for the year ended 31.03.2010.

9. Segment Reporting. The Company operates in one reportable operating segments i.e. Hoteliering.

10. The Investment made by the company are held in its own name. (Rs. In Lacs )

Sr. No. Particulars 2009-10 2008-09

11. Value of Imports Nil Nil

12. Earning in foreign currency as per Certificate submitted by Management 100.86 100.28

13. Expenditure in foreign currency:

a Travelling 7.56 1.46

b Capital Expenditures 9.50 45.40

c Decorative Expenses 0.74 -

Total 17.80 46.86

14. Contingent Liabilities & Commitments:

a Estimated amount of contracts (Net of advances) remaining to be executed on capital account not Provided for Nil Nil

b Bank Guarantee for supply of Natural Gas from VMSS and also for availing benefit under EPCG Scheme. 10.89 7.90

15. Company has incurred Capital Expenditures of Rs. 30.53 lacs (P Y – Rs. 16.87 lacs) towards expansion project on hand, which are pending for allocation. As explained to us, on completion of Project on hand, these Expenditures will be apportioned to respective group of Capital Assets.

16. Deferred Tax Liability (Net) under Accounting Standard 22.

(a) The Company has accounted for Deferred Tax Liability as under:

(i) Rs. 177.57 lacs, being net deferred tax liability up to 31.03.2009 has already been created.

(ii) Rs. 17.42 lacs, being net deferred tax expense for the year, has been charged to Profit & Loss Account.

(iii) The total net deferred tax liability as at 31.03.2010 is Rs. 194.99 lacs

17. Related Party disclosure under Accounting Standard 18. Company has no subsidiary or joint venture concern.

The Company has identified all the related parties transactions during the year, as per details given below: During the year, there were no amounts written off or written back from such parties.

Key Management Parties Related Parties Related Parties

1. Piyush D. Shah Daudayal R. Shah Alka N Shah

2. Nilesh D.Shah Daudayal R. Shah HUF Sunita M Agarwal

Nilesh D Shah HUF Munish D Shah

Chanda P Shah Munira N Agrawal

Yamini D Shah Hardik Agrawal

Piyush D. Shah HUF Om Hospitality Pvt Ltd

Shantaben D Shah Synergy Stock Holdings Pvt Ltd

Munish D. Shah HUF Jamunadevi Educational Trust

Satvik P. Agrawal Kalayan Confection & Catrarers

Prachi S. Agrawal Kalyan Restaurants

Shagun Kunal Mehra Hotel Kalyan & Restaurants



18. The proposed dividend on Equity Shares is provided at 8% p.a. i.e. Rs. 0.80 per equity share on all the shares at the beginning of the year. On Additional 11,75,540 Equity Shares, allotted during the year, provision for dividend is made at 8% on pro rata basis i.e. Rs. 0.04 per equity share, for the year under review.

19. During the year under review, Company has issued 11,75,540 Equity Shares of Rs. 10/- each at premium of Rs. 10/- each on preferential basis. As at 31.03.2010, Company has pending warrant application money of Rs. 65,01,000 consisting of 13,01,000 warrants, convertible into Equity Shares, having paid up value of Rs. 5/- per warrant, The proceeds of the issue of above shares have been utilized for the purpose of repayment of term loan and unsecured loans, augmentation of working capital, up gradation and / or modernization of plant / property of the Company.