Notes to Accounts of Polo Hotels Ltd.

Mar 31, 2015

Not available

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Mar 31, 2014

PARTICULARS As on 31.03.2014 As on 31.3.2013

Note 1

Contingent Liabilities & Commitments

Guarantee in favour of Pollution Control Board 600000 600000

Commitments 125000000 275000000

Total 125600000 275600000

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Mar 31, 2012

Note 1

The Company is governed by the provisions of section 115 JB of the Income Tax Act, 1961.Since, there is no taxable Income under the normal computation, accordingly provision for Income Tax has been made under the provisions for Minimum Alternate tax (MAT) considering the profit for the year ending 31 -03-2012

Note 2

Retirement Benefits in the form of provident Fund are charged to the Profit & Loss a/c/ capital work in progress of the year in which the contributions to the respective Funds are due.

Note3

As per AS-22 on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of india and as a matter of prudence the deferred tax adjustments have not been recognised in the a/cs

Note 4

Scheme of Amalgamation

During the year, pursuant to Scheme of Amalgamation (the Scheme),Hon'ble High Court of Punjab & Haryana vide its order dated 18th November,2011 approved the Scheme of Amalgamation of M/s ARD Realty Pvt.Ltd. (ARPL) with M/s Polo Hotels Ltd which became effective on 2ndJanuary, 2012 (the date of filing of last of the forms having approved scheme with the Ministry of Company Affairs). M/s ARD Realty Pvt. Ltd.though was not engaged in any major business activity but possessed 19 Bigha and 18 Biswa, Land adjacent to the land held by the Company.

The Appointed date as per scheme was 24th February, 2011, therefore,the results of the Company for the year ended on 31st March, 2012 includes results of erstwhile M/s ARD Realty Pvt. Ltd. upto the effective date and thereafter, the accounts have been prepared as amalgamated entity.

The Amalgamation has been accounted for under the "Purchase method" as prescribed by the Accounting Standard (AS-14) issued by the Institute of Chartered Accountants of India (ICAI). Further, as per Clause 2.1 of Part III of the Scheme, all the assets (other than land) and liabilities of ARPL have been taken over at their Book value and land has been recorded at its fair value based on the independent valuation report of Government Registered Valuer.

In accordance with the Scheme, the company has allotted to each of the Shareholder of ARPL (other than the shares already held therein immediately before the Amalgamation by transferee Company, its Nominee or Subsidiary Company) equity shares in proportion of 514 (Five Hundred Fourteen) Equity Shares of face value of Rs 10/- (Rupees Ten) each at a premium of Rs 49.07 (Rupees Forty Nine & Paisa Seven) per share and 514 (Five Hundred Fourteen) Compulsory convertible Preference Shares (CCPS) of face value of Rs. 10/-(Rupees Ten) each at a premium of Rs 49.07(Rupees Forty Nine & Paisa Seven) per share for every 100 (One Hundred) Equity Shares of face value of Rs 10/-(Rupees ten) each he;d by them in ARPL.

The difference between the values of net assets of the ARPL as acquired by the Company and the corresponding consideration issued by the Company has been adjusted in the Consolidated reserves of the Company as per Clause 2.4 of part III of the Scheme approved by the Hon'ble High Court of Punjab & Haryana

PARTICULARS As on 31.3.2012 As on 31.3.2011

Note5

Contingent Liabilities & Commitments

Guarantee in favour of Pollution Control Board 600000 600000

Commitments 315000000 362000000

Total 315600000 362600000

Note 6

The Revised Schedule VI has become effective from current year for the presentation of the Financial statements. This has significantly impacted the disclosure and presentation made in the financial statements.However, it does not impact recognition and measurement principles followed for preparation of financial statements. Figures of the previous years have been regrouped/restated wherever necessary to confirm to current year's presentation.

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Mar 31, 2010

1. Balances of Debtors, Loans & Advances, Sundry Creditors are subject to confirmation & reconciliation and consequential adjustments, if any will be made on the receipt of confirmations

2. In the Opinion of the Board of Directors of the Company, the Current Assets, Loans and Advances have a value on realization at least equal to the amount stated in the Balance Sheet.

3. The company is governed by the provisions of section 115JB of the income tax act, 1961, since there is no taxable income under the normal computation. Accordingly, provision for income tax has been made under the provisions of Minimum Alternate Tax (MAT) considering the profit for the year ended 31.03.10

4. As per AS-22 on "Accounting for taxes on income "issued by the Institute of Chartered Accountants of India, and as a matter of prudence, the Deferred Tax adjustments have not been recognized in the accounts,

5. Retirement benefits in the form of Provident Fund are charged to the Profit & Loss/capital work in progress of the year in which the contributions to the respective Funds are due.

6. Term Loan of Rs. 212.69 lacs from State Bank of India is secured as unden-

(i) Assignment of Lease Income receivables

(ii) First Charge on the hotel property along with equitable mortgage of land in the name of the company and the building constructed thereupon.

(iii) Personal guarantee of managing director and two whole time directors of the company.

7. Segment Reporting

The Gross Turnover of the Company is from Lease Income as the only venture of the Company, Hotel North Park has been given on lease. Therefore, there are no reporting requirements as per AS-17 issued by the ICAI.

8. Related Party Disclosure

Related Party disclosure as required by AS 18 is given below;

a. Associates

i. A.R.D.Polypacks Pvt. Ltd.

ii. Auto Brakes Pvt. Ltd.

iii, Sumeru&Sehri

iv. Sarva Educational Institution Pvt Ltd..

v. ARD Realty Pvt. Ltd.

i vi. Sarva Promotors & Developers Pvt. Ltd. .

b. Key Management Personnel.

i. A.R. Dahiya ii. Pankaj Dahiya iii. Amardeep Dahiya

9. Project Development Expenditure*.

i) Capital Work-in-progress is carried at cost. The advances given for acquiring fixed assets are shown under capital work inprogress.

ii) Expenditure (including financing costs relating to borrowed funds for construction or acquisition of fixed assets) incurred on the project under implementation are being treated as pre-operative expenses pending allocation to the fixed assets and are shown as "Capital Work- in-progress"

10. The company has not received any information from the suppliers regarding status under the Micro, Small and Medium Enterprises Development Act, 2006 and therefore no such disclosure under the said Act have been made in the accounts..

11. Previous year figures have been regrouped/recast, wherever deemed necessary.

12. Schedule A to L form an integral part of Balance Sheet /Profit & Loss Account.