Notes to Accounts of Royale Manor Hotels And Industries Ltd.

Mar 31, 2024

2.14 Contingencies and Provisions:

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. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

Contingent liabilities are recognized only when there is a possible obligation arising from past events, due to occurrence or non-occurrence of one or more uncertain future events, not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of obligation cannot be made. Contingent assets are not recognized in the financial statements.

2.15 Statement of Cash Flow:

Cash flows are reported using the indirect method, whereby profit/ (loss) before exceptional items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on available information.

2.16 Financial Instruments:

Financial Assets and Financial Liabilities are recognized when the Company becomes party to the contractual provisions of the financial instrument. Financial Assets are derecognized when the rights to receive benefits have expired or been transferred, and the Company has transferred substantially all risks and rewards of ownership of such financial asset. Financial liabilities are derecognized when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expired. Purchase or sale of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place are recognized on trade date i.e. the date when the Company commits to purchase or sale the asset.

3. NOTES TO ACCOUNTS:

3.1 Some of the Balances of sundry creditors, sundry debtors, loans &advances and other liabilities are subject to confirmation and reconciliation.

3.2 In the opinion of the Board of Directors, Current Assets, Loans & Advances are approximately of the value at which they are stated in the Balance Sheet, if realized in the ordinary course of business.

3.3 The Company operates in one segment i.e. Hotel business and within one geographical segment i.e. India.

3.4 The Company manages its capital to ensure that it will be able to continue as a going concern. The structure is managed to provide ongoing returns to shareholders and service debt obligations, whilst maintaining maximum operational flexibility.

3.5 The carrying amounts of trade payables, other financial liabilities, cash and cash equivalents, other bank balances, trade receivables and other financial assets are considered to be the same as their fair values due to their short-term nature.

3.6 The Company opines that no provision for expected credit loss is required.

3.7 There is no significant market risk or liquidity risk to which the Company is exposed.

3.8 The Company has no amount/ interest unpaid as at this financial year end/ previous financial year end, to Micro/Small vendors registered under the Micro, Small and medium enterprises Development Act, 2006, except Rs. 42.61 Lakhs (P.Y. Rs. 14.83 Lakhs), as per information received from vendors regarding their status. Also, Company does not have any liability of interest under this Act to any Micro/Small vendor during this financial year/previous financial year.

3.15 The Company has re grouped and re-classified the previous year''s figures in accordance with the requirements applicable in the current year. In view of this, certain figures of the current year are not strictly comparable with those of the previous year.

3.16 Notes 1 to 31 form integral part of accounts.

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

For, NAIMISH N. SHAH & CO Royale Manor Hotels & Industries Limited

Chartered Accountants

(F R No.106829W) Sd/-

Vishwajeet Singh U. Champawat

Chairman and Managing Director DIN-00519755

Sd/- Sd/- Sd/-

CA Pranav N. Shah Seema Kalwani Dr. Ram Prakash Kothari

Proprietor Company Secretary Director

Membership No. 033747 DIN-00294060

(UDIN :24033747BJZYAW3651)

Sd/- Sd/-

Devraj Singh Chauhan Jayesh Dave

Chief Financial Officer Director

DIN-01808753

Ahmedabad Ahmedabad

29^th May, 2024 29^th May, 2024

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Mar 31, 2023

2.14 Contingencies and Provisions:

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. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

Contingent liabilities are recognized only when there is a possible obligation arising from past events, due to occurrence or non-occurrence of one or more uncertain future events, not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of obligation cannot be made. Contingent assets are not recognized in the financial statements.

2.15 Statement of Cash Flow:

Cash flows are reported using the indirect method, whereby profit/(loss) before exceptional items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on available information.

2.16 Financial Instruments:

Financial Assets and Financial Liabilities are recognized when the Company becomes party to the contractual provisions of the financial instrument. Financial Assets are derecognized when the rights to receive benefits have expired or been transferred, and the Company has transferred substantially all risks and rewards of ownership of such financial asset. Financial liabilities are derecognized when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expired. Purchase or sale of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place are recognized on trade date i.e. the date when the Company commits to purchase or sale the asset.

3. NOTES TO ACCOUNTS:

3.1 Some of the Balances of sundry creditors, sundry debtors, loans &advances and other liabilities are subject to confirmation and reconciliation.

3.2 In the opinion of the Board of Directors, Current Assets, Loans & Advances are approximately of the value at which they are stated in the Balance Sheet, if realized in the ordinary course of business.

3.3 The Company operates in one segment i.e. Hotel business and within one geographical segment i.e India.

3.4 The Company manages its capital to ensure that it will be able to continue as a going concern. The structure is managed to provide ongoing returns to shareholders and service debt obligations, whilst maintaining maximum operational flexibility.

3.5 The carrying amounts of trade payables, other financial liabilities, cash and cash equivalents, other bank balances, trade receivables and other financial assets are considered to be the same as their fair values due to their short-term nature.

3.6 The Company opines that no provision for expected credit loss is required.

3.7 There is no significant market risk or liquidity risk to which the Company is exposed.

3.8 The disclosure of transactions with the related parties is given below:

3.14 The Company has re grouped and re-classified the previous year''s figures in accordance with the requirements applicable in the current year. In view of this, certain figures of the current year are not strictly comparable with those of the previous year.

3.15 Notes 1 to 31 form integral part of accounts.

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

For, NAIMISH N. SHAH & CO Royale Manor Hotels & Industries Limited

Chartered Accountants

(F R No.106829W) Vishwajeet Singh U. Champawat

Chairman and Managing Director DIN-00519755

CA Pranav N. Shah Somya Singhal Dr. Ram Prakash Kothari

Proprietor Company Secretary Director

Membership No. 033747 DIN-00294060

(UDIN : 23033747BGWG HI7250)

Devraj Singh Chauhan Jayesh Dave

Ahmedabad Chief Financial Officer Director

30^th May, 2023 DIN-01808753

Ahmedabad 30^th May, 2023

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Mar 31, 2015

1. Secured by way of pari passu mortgage & charge on all the immovable properties both present and future of the company and charge by way of hypothecation of all movable assets both present and future, ranking pari passu, excluding block assets financed by Tata Capital Financial Services Ltd. Repayable in 72 monthly installments from October, 2012 to September, 2018 .

2. Secured by way of pledge of shares, personal guarantee of director and corporate guarantee. Repayble in 36 monthly installments from July 2013 to June 2016.

3. Repayable in 72 monthly installments including 3 month moratorium period, from April, 2013.

4. Repayable in 24 monthly installments from August, 2014.

5. corporate information

Royale Manor Hotels and Industries Limited is a listed public limited company incorporated in 1991.

Its shares are listed on Bombay. Madras and Calcutta Stock Exchanges. Company established first five star hotel of Ahmedabad and is primarily engaged in the business of Hotel & Restaurant.

6. Some of the balances of sundry creditors, sundry debtors, loans & advances and other liabilities are subject to confirmation and reconciliation.

7. In the opinion of the Board of Directors, Current Assets, Loans & Advances are approximately of the value at which they are stated in the Balance Sheet, if realized in the ordinary course of business.

8. As the Company is engaged in only one segment of Hotel business, there are no separate reportable segments as per Accounting Standard (AS)-17 of Segment Reporting.

9. Contingent Liabilities :

In respect. of guarantee given to HUDCO on 37,980,402 55,406,784 behalf of National Hotels Ltd towards security for term loan

10. The Company has pledged 3,850,000 Equity Shares of Rs. 10 each aggregating to Rs.38,500,000/- with Housing & Urban Development Corporation Ltd. (HUDCO) as a security against the term loans obtained by the National Hotels Ltd.

11. The Company has entered into The Hotel Operating Agreement (HOA) with Indian Hotel Company Limited (IHCL) on 18th April, 2000. Subsequently, the terms of compensation under HOA dated 18th April, 2000 were modified w.e.f. 1st April, 2001, by supplemental agreement dated 4th April, 2002. But, it is observed that compensation reimbursed to IHCL is over and above to the compensation payable as per modified terms and conditions under supplemental agreement. The Company has taken up the matter with IHCL for refund of such excess reimbursement.

12. The Company has not received information from vendors regarding their status under the Micro Small and Medium Enterprise Development Act, 2006 and hence disclosure relating to amounts unpaid as at year end together with interest paid/payable under this Act has not been given.

13. The company has re grouped and re-classified the previous year's figures in accordance with the requirements applicable in the current year. In view of this, certain figures of the current years are not strictly comparable with those of the previous year.

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Mar 31, 2014

1.1 Some of the balances of sundry creditors, sundry debtors, loans & advances and other liabilities are subject to confirmation and reconciliation.

1.2 In the opinion of the Board of Directors, Current Assets, Loans & Advances are approximately of the value at which they are stated in the Balance Sheet, if realized in the ordinary course of business.

1.3 As the Company is engaged in only one segment of Hotel business, there are no separate reportable segments as per Accounting Standard (AS)-17 of Segment Reporting.

Particulars Current Year Previous Year

2013-14 2012-13

Amount in Rs. Amount in Rs.

1.4 Contingent Liabilities :

In respect. of guarantee given to 55,406,784 72,572,509 HUDCO on behalf of

National Hotels Ltd towards security for term loan

1.5 Capital Work- in- progress is Rs.NIL (P.Y. Rs.135,404/-) as at 31st March 2014.

1.6 The Company has pledged 3,850,000 Equity Shares of Rs.10 each aggregating to Rs.38,500,000/ - with Housing & Urban Development Corporation Ltd. (HUDCO) as a security against the term loans obtained by the National Hotels Ltd.

1.7 The Company has entered into The Hotel Operating Agreement (HOA) with Indian Hotel Company Limited (IHCL) on 18th April, 2000. Subsequently, the terms of compensation under HOA dated 18th April, 2000 were modified w.e.f. 1st April, 2001, by supplemental agreement dated 4th April, 2002. But, it is observed that compensation reimbursed to IHCL is over and above to the compensation payable as per modified terms and conditions under supplemental agreement. The Company has taken up the matter with IHCL for refund of such excess reimbursement.

1.8 The Company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprise Development Act, 2006 and hence disclosure relating to amounts unpaid as at year end together with interest paid/payable under this Act has not been given.

1.9 The company has re-grouped and re-classified the previous year''s figures in accordance with the requirements applicable in the current year. In view of this, certain figures of the current years are not strictly comparable with those of the previous year.

1.10 Notes 1 to 27 form integral part of accounts.

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Mar 31, 2013

1.1 Some of the balances of sundry creditors, sundry debtors, loans & advances and other liabilities are subject to confirmations and reconciliation.

1.2 In the opinion of the Board of Directors, Current Assets, Loans & Advances are approximately of the value at which they are stated in the Balance Sheet, if realized in the ordinary course of business.

1.3 As the Company is engaged in only one segment of Hotel business, there are no separate reportable segments as per Accounting Standard (AS)-17 of Segment Reporting.

1.4 As per Accounting Standard (AS)-18 issued by the Institute of Chartered Accountants of India the disclosure of transactions with the related parties as defined in the Accounting Standard are given below:-

1.5 Capital Work- in- progress is Rs. 135,404/- (P.Y. NIL) as at 31st March 2013.

1.6 The Company has pledged 3,850,000 Equity Shares of Rs. 10 each aggregating to Rs. 38,500,000/ - with Housing & Urban Development Corporation Ltd. (HUDCO) as a security against the term loans obtained by the National Hotels Ltd.

1.7 The Company has entered into The Hotel Operating Agreement (HOA) with Indian Hotel Company Limited (IHCL) on 18th April, 2000. Subsequently, the terms of compensation under HOA dated 18th April, 2000 were modified w.e.f. 1st April, 2001, by supplemental agreement dated 4th April, 2002. But, it is observed that compensation reimbursed to IHCL is over and above to the compensation payable as per modified terms and conditions under supplemental agreement. The Company has taken up the matter with IHCL for refund of such excess reimbursement.

1.8 The Company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprise Development Act, 2006and hence disclosure relating to amounts unpaid as at year end together with interest paid/payable under this Act has not been given.

1.9 The company has re grouped and re-classified the previous year''s figures in accordance with the requirements applicable in the current year. In view of this, certain figures of the current years are not strictly comparable with those of the previous year.

1.10 Notes 1 to 27 form integral part of accounts.

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Mar 31, 2012

Footnote 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. In the event of liquidation of the company, the holders of the equity shares will be entitled to receive remaining assets of the company after distribution/repayment of all creditors and Preference share holders. The distribution will be in proportion to the number of equity shares held by the share holders. The company has also one class of Optionally Convertible Preference Share (OCPS) of Rs. 100,000/- each. In the event of Liquidation of the Company, the holders of the OCPS will have preference over equity share holders. For the year ended on 31st March, 2012 @ 6% (PY. 6 %) dividend on Optionally Convertible Preference Share (OCPS) was recommended.

Footnote 1 : Secured by way of pari passu mortgage & charge on all the immovable properties, both present and future of the company and charge by way of hypothecation of all movable assets (save & except book debts) both present and future, ranking pari-passu, subject to prior charges created in favour of the Punjab National Bank on the Stock of Raw Materials, Consumable Stocks and such other movables for securing the borrowing for working capital requirement. Repayable in 28 quarterly installments from October, 2005 to July, 2012

Footnote 2 : Secured by way of pari passu mortgage & charge on all the immovable properties both present and future of the company and charge by way of hypothecation of all movable assets both present and future, ranking pari passu, excluding block assets financed by Tata Capital Financial Services Ltd. Repayable in 72 monthly installments from October, 2012 to September, 2018 Footnote 3 : Secured by way of Hypothecation of Equipment and further secured by corporate guarantee and personal guarantee of the director. Repayable in 21 monthly installments from August, 2011 to April, 2013.

1.1 Some of the balances of sundry creditors, sundry debtors, loans & advances and other liabilities are subject to confirmations and reconciliation.

1.2 In the opinion of the Board of Directors, Current Assets, Loans & Advances are approximately of the value at which they are stated in the Balance Sheet, if realized in the ordinary course of business.

1.3 As the Company is engaged in only one segment of Hotel business, there are no separate reportable segments as per Accounting Standard (AS)-17 of Segment Reporting.

1.4 The Company has provided for Deferred Tax pursuant to Accounting Standard-22 being "Accounting for taxes on Income" issued by the ICAI. According to the said Standard the Deferred Tax for current year is debited to Statement of Profit & Loss.

Current Year Previous Year 2011-12 2010-11 Amount in Rs. Amount in Rs.

1.5 Contingent Liability :

1) In respect of guarantees given by Scheduled Bank NIL NIL on behalf of the Company.

2) In respect of guarantee given to HUDCO on behalf of 89,093,728 104,717,691 National Hotels Ltd towards security for term loan

3) In respect of disputed sales tax liability 126,385 126,385

1.6 Capital Work-in- progress is of Rs. NIL (PY. Rs. 3,735,200/-) as at 31st March 2012.

1.7 The Company has pledged 3,850,000 Equity Shares of Rs. 10 each aggregating to Rs. 38,500,000/- with Housing & Urban Development Corporation Ltd. (HUDCO) as a security against the term loans obtained by the National Hotels Ltd.

1.8 Government of India, Ministry of Corporate Affairs vide its notification dated 08/02/2011 has exempted hotel companies from disclosing in their Statementof Profit & Loss, the information under paragraph 3(i) (a) and 3 (ii) (d) of Part-II of Schedule VI to the Companies Act, 1956, in respect of purchase, consumption, turnover, stock etc.

1.9 The Company has entered into Hotel Operating Agreement (HOA) with The Indian Hotel Company Limited (IHCL) on 18th April, 2000. Subsequently, the terms of compensation under HOA dated 18th April, 2000 were modified w.e.f. 1st April, 2001, by supplemental agreement dated 4th April, 2002. But, it is observed that compensation reimbursed to IHCL is over and above to the compensation payable as per modified terms and conditions under supplemental agreement. The Company has taken up the matter with IHCL for refund of such excess reimbursement.

1.10 The Company has made total payment of Rs. 16,211,202/- as and by way of compensation to EIH Limited (formerly known as East India Hotels Ltd.) and Oberoi Hotels Pvt. Ltd. towards the full and final settlement of their claims without any interest thereon. The said expenses are shown as Exceptional Items in Statement of Profit & Loss.

1.11 The Company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprise Development Act, 2006 and hence disclosure relating to amounts unpaid as at year end together with interest paid/payable under this Act has not been given.

1.12 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 statements. The adoption of revised schedule VI does not impact recombination and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The company has re grouped and re-classified the previousyear's figures in accordance with the requirements applicable in the current year. In view of this, certain figures of the current years are not strictly comparable with those of the previous year.

1.13 Notes 1 to 27 form integral part of accounts.

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Mar 31, 2011

1. Balances of a few sundry creditors, sundry debtors, loans & advances and other liabilities are subject to confirmations and reconciliation.

2. In the opinion of the Board of Directors, Current Assets, Loans & Advances are approximately of the value at which they are stated in the Balance Sheet, if realized in the ordinary course of business.

3. The Company operates in a single segment i.e. running of hotels. Therefore, the disclosure requirements as per "Accounting Standard (AS)-17 Segment Reporting" are not applicable.

4. The Company has provided for Deferred Tax pursuant to Accounting Standard-22 being "Accounting for taxes on Income" issued by the ICAI. According to the said Standard the Deferred Tax for current year is debited to Profit & Loss Account.

Current Year Previous Year 2010-11 2009-10 Amount in Amount in Rs. Rs.

5. Contingent Liability not provided for :

1) In respect of guarantees given NIL NIL by Scheduled Bank on behalf of the Company.

2) In respect of guarantee given to HUDCO on behalf of National Hotels Ltd towards security for term loan 104,717,691 117,755,842

3) In respect of disputed sales tax liability 126,385 126,385

6. Capital Work- in- progress of Rs. 61,677,826/- as at 31st March 2011 represents the advances given.

7. The Company has entered into Hotel Operating Agreement (HOA) with Indian Hotels Company Limited (IHCL) on 18th April, 2000. Subsequently, the terms of compensation under HOA dated 18th April, 2000 were modified w.e.f. 1st April, 2001, by supplemental agreement dated 4th April, 2002. But, it is observed that compensation reimbursed to IHCL is over and above to the compensation payable as per modified terms and conditions under supplemental agreement. The Company has taken up the matter with IHCL for refund of such excess reimbursement.

8. The Company has no information as to whether any of its suppliers constitutes Small Scale Undertakings and therefore the amount due to such suppliers has not been identified.

9. The Previous year's figures have been regrouped and rearranged wherever necessary.

10. Schedules 1 to 20 form integral part of accounts.

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Mar 31, 2010

1. Balances of a few sundry creditors, sundry debtors, loans & advances and other liabilities are subject to confirmations and reconciliation.

2. In the opinion of the Board of Directors, Current Assets, Loans & Advances are approximately of the value at which they are stated in the Balance Sheet, if realized in the ordinary course of business.

3. The Company operates in a single segment i.e. running of hotels. Therefore, the disclosure requirements as per "Accounting Standard (AS)-17 Segment Reporting" are not applicable.

Current Year Previous Year

2009-10 2008-09

Amount in Rs. Amount in Rs.

4. Contingent Liability not provided for:

1) In respect of guarantees given by Scheduled Bank

on behalf of the Company. NIL NIL

2) In respect of guarantee given to HUDCO on behalf of National Hotels Ltd towards security for term loan 117,755,842 188,000,000

3) In respect of disputed sales tax liability 126,385 126,385

5. Capital Work- in- progress of Rs. 44,255,880/- as at 31st March 2010 represents the advances given to suppliers.

6. The Company has obtained exemption from the Central Government, vide its letter No. 46/125/2009-CL-llI dated 22/05/ 2009 issued under section 211 (4) of the Companies Act, 1956 from exhibiting the quantitative details in compliance of para 3(i) (a) and 3(ii)(d) of part II of Schedule VI to the Companies Act, 1956, in respect of purchase, consumption, turnover, stock etc. However, the information other than above, pursuant to Paragraph 3,4C and 4D of the Part 11 of the Schedule VI to the Companies Act, 1956, are as under:

7. The Company has entered into Hotel Operating Agreement (HOA) with Indian Hotels Company Limited (IHCL) on 18th April, 2000. Subsequently, the terms of compensation under HOA dated 18,h April, 2000 were modified w.e.f. 1sl April, 2001, by supplemental agreement dated 4,h April, 2002. But, it is observed that compensation reimbursed to IHCL is over and above to the compensation payable as per modified terms and conditions under supplemental agreement. The Company has taken up the matter with IHCL for refund of such excess reimbursement.

8. IDBI and TFCI had on 20!h March, 2004 and 2nd August, 2004 respectively sanctioned the restructuring of debt in respect of outstanding interest on the Term Loan availed by the company. The amount of Rs. 5,42,00,000 being interest outstanding was treated as OCPS by the said financial institutions.

The company has during the year repaid by way of redemption of OCPS an amount of RS. 81,30,000 to IDBI and TFCI as per the terms of restructuring of debts.

9. The Company has no information as to whether any of its suppliers constitutes Small Scale Undertakings and therefore the amount due to such suppliers has not been identified.

10. The Previous years figures have been regrouped and rearranged wherever necessary.

11. Schedules 1 to 21 form integral part of accounts.