Notes to Accounts of Velan Hotels Ltd.

Mar 31, 2024

x) Provisions

Provisions for legal claims, service warranties, volume discounts and returns are recognised when the
group 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.

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.

xi) Revenue

Income from Guest Accommodation is recognised on a day to day basis after the Guest Checks into the
hotel. Sale of Food and beverage is recognised at the point of serving those items to the guest.

Revenues are shown net of sales tax, value added tax, service tax and Good and Service Tax.

xii) Borrowing cost

General and specific borrowing costs that are directly attributable to the acquisition, construction or
production of a qualifying asset are capitalised during the period of time that is required to complete and
prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a
substantial period oftime to get readyfortheir intended useorsale. \

Investment income earned on the temporary investment of specific borrowings pending their expenditure
on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

Other borrowing costs are expensed in the period in which they are incurred.

xiii) Other income

Other income comprises interest income on deposits and dividend income.

a) Interest income is recognized using the effective interest method.

b) Dividend income is recognized when the right to receive payment is established.

xiv) Income tax

Income tax comprises current and deferred tax. Income tax expense is recognized in the statement of
profit and loss except to the extent it relates to a business combination, or items directly recognized in
equity or in other comprehensive income.

a) Current income tax

Current income tax for the current and prior periods are measured at the amount expected to be
recovered from or paid to the taxation authorities based on the taxable income for the period. The
tax rates and tax laws used to compute the current tax amount are those that are enacted or
substantively enacted as at the reporting date and applicable for the period. The Company offsets
current tax assets and current tax liabilities, where it has a legally enforceable right to set off the
recognized amounts and where it intends either to settle on a net basis, or to realize the asset and
liability simultaneously.

b) Deferred income tax

Deferred income tax is recognized using the balance sheet approach. Deferred income tax assets
and liabilities are recognized for deductible and taxable temporary differences arising between the
tax base of assets and liabilities and their carrying amount in financial statements, except when the
deferred income tax arises from the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and affects neither accounting nor taxable profits or
loss at the time of the transaction.

Deferred income tax assets are recognized to the extent it is probable that taxable profit will be
available against which the deductible temporary differences and the carry forward of unused tax
credits and unused tax losses can be utilized. Deferred income tax liabilities are recognized for all
taxable temporary differences except in respect of taxable temporary differences associated with
investments in subsidiaries, associates and foreign branches where the timing of the reversal of the
temporary difference can be controlled and it is probable that the temporary difference will not
reverse in the foreseeable future.

The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced
to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or
part of the deferred income tax asset to be utilized. Deferred income tax assets and liabilities are
measured at the tax rates that are expected to apply in the period when the asset is realized or the
liability is settled, based on tax rates (and tax laws) that have been enacted or substantively
enacted at the reporting date.

The Company offsets deferred income tax assets and liabilities, where it has a legally enforceable
right to offset current tax assets against current tax liabilities, and they relate to taxes levied by the
same taxation authority on either the same taxable entity, or on different taxable entities where
there is an intention to settle the current tax liabilities and assets on a net basis or their tax assets
and liabilities will be realized simultaneously.

xv) Earnings pershare

Basic earnings pershare is computed using the weighted average number of equity shares outstanding
during the period adjusted for treasury shares held. Diluted earnings per share is computed using the
weighted-average number of equity and dilutive equivalent shares outstanding during the period, using
the treasury stock method for options and warrants, except where the results would be anti-dilutive.

4. Recent Indian Accounting Standard (IndAS) pronouncements which are not yet effective

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time.

For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing
standards applicable to the Company.

Note. 32 Additional Notes

a) Estimated amount of the Contracts remaining to be executed on capital account and not provided for: Not
ascertainable (Previous Year- Not ascertainable)

b) The company has not given any gurantee.

c) Contingent liabilities not provided for in the book of accounts- Not ascetainable (Previous Year- Not
ascertainable)

d) Expenditure on employees who are in receipt of remuneration of not less than Rs. 1,02,00,000/- per annum
(previous year Rs.1,02,00,000/- per annum) when employed through out the year or Rs.8,50,000/- per month
(previous year Rs.5,00,000/- per month) when employed for part of the year is Nil (previous year Rs. Nil)

e) Previous yearfigures have been regrouped and/or reclassified wherever necessary.

f) The figures have rounded off to the nearest Rupee in Lakhs.

g) Balances in Sundry Debtors, Creditors and Loans & Advances are subject to confirmation and reconciliation and
are stated at the book balance thereof.

h) In the opinion of the Management, the Current Assets, Loans & Advances will fetch the amount as stated, if
realised in the ordinary course of its business.

i) The Company is not declared as "willful defaulter" by any bank or financial institution or other lender.

j) There are no transactions with the Companies whose name struck off under section 248 of The Companies Act,
2013 or section 560 of Companies Act, 1956 during the year ended 31 March 2024.

k) All applicable cases where registration of charges or satisfaction is required to be filed with Registrar of
Companies have been filed. No registration or satisfaction is pending at the year ended 31 March 2024.

l) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the
Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.

m) No scheme of arrangement has been approved by the competent authority in terms of Section 230 to 237 ofthe
Companies Act, 2013.

n) The Company has not received any fund from any person or entity, including foreign entities (Intermediaries)
with the understanding (whether recorded in writing or otherwise) that the Company shall a) directly or i ndirectly
lend or i nvest i n other persons or entities identified in any manner whatsoever by or on behalf of the fundi ng Party
(Ultimate Beneficiaries) b) provide any guarantee, security orthe like on behalf of the Ultimate Beneficiaries.

o) The Company has not surrendered or disclosed as income during the year in the tax assessments under Income
Tax Act, 1961.

p) The Company has not operated in any crypto currency transactions.

q) The Company has called for details of applicability from trade parties from the provisions of Micro, Small and
Medium enterprises Development Act, 2006, However no reply has been received from any ofthe parties, In
view of the above no disclosure is made under Micro, Small and Medium enterprises Development Act, 2006,

s) There has been delay in meeting the statutory obligations and dues relating to Goods & Services Tax, Value Added
Taxes and Service Tax are overdue by more than 12 months. During this year, the Company has paid dues relating to
Provident Fund, Sales Tax and Tax Deducted at sources for Earlier Years amounting to Rs.27.95 Lacs. The Company
is taking necessary steps to settle the balance Statutory Dues as and when the sale of assets are completed.

t) During the year the company has scrapped the power plant and machinery for value of Rs. 3,00,00,000 and thereby
has incurred a total loss of Rs.1404.55 Lakhs on account of such sale and the same has been classified under
Exceptional items in financial statement of Previous Year. This entire sale "proceeds has been paid to M/s.Rare Asset
Reconstruction Limited (ARC) towards settlement.

"Also sold vacant land for a total consideration of Rs.7,30,25,000/- and the managing director of the company has
infused Rs.11,30,00,000/- by way of an unsecured loan. Out of the total sum amounting to Rs. 18,60,25,000 a sum of
Rs.16,30,00,000 was paid to M/s.Rare Asset Reconstruction Limited (ARC) and the balance Rs. 2,30,25,000 was
used for repayment of part of the dues to Sundry Creditors and Statutory Dues. The company has incurred loss of
Rs.175.38 lakhs on sale of this property and same has been classified under Exceptional items of the financial
statement of Previous Year.

In view of the above, the Company has remitted Rs.59.48crorestoARC upto 31st March, 2023, from the disposal / sale
of assets of company.

During the year ended 31 March2024,thecompanyhasrepaidafurthersumofRs.75lacsfromthe refund of security
deposit held with M/s. Avenue Supermarts Limited on Sale of Mall and part of multiplex Properties. Out of Total
Security deposit of Rs. 5,00,25,000/- held by them, Rs. 3,39,60,000/- was returned and the balance deposit of Rs.
1,60,65,000 was adjusted for the difference in the Measurement as per supplementary deed and the actual
measurement as per the Government records. As per the Supplementary deed entered with M/s. Avenue Supermarts
Limited on the Sale of Mall and part of multiplex Properties, the company had fully met its obligations and the
transaction was completed smoothly.

u) NoProvisionforGratuity/Leaveencashmenthasbeenconsideredduringtheyearduetoallthe employees of the
company except KMP have resigned and there being no eligible employees during the year.

Note No: 35-Sale of Company Assets

The Company’s account was categorized as NPA by Allahabad Bank and Andhara Bank during the year 2014. In April,
2017, the said Banks assigned the entire debts of the Company alongwith all underlying security interest, all rights, title
& benefits to M/s.RARE Asset Reconstruction Limited (previously known as Raytheon Asset Reconstruction Private
Limited) under the applicable provisions of the SARFAESI Act. The Company opted for One-Time Settlement offer with
the said ARC and obtained in-principle approval from them during March, 2021 and also final approval has been
received.

The Company opted for One-Time Settlement offer with the said ARC and obtained in-principle approval from them
during March, 2021 and also final approval has been received.

In view of the above, the Company has remitted Rs.59.48 crorestoARC upto 31st March, 2023, from the disposal /sale
of assets of company.

During the year ended 31 March 2024, the company has repaid a further sum of Rs.75 lacs from the refund of security
deposit held with M/s. Avenue Supermarts Limited on Sale of Mall and part of multiplex Properties. Out of Total Security
deposit of Rs. 5,00,25,000/- held by them, Rs. 3,39,60,000/- was returned and the balance deposit of Rs. 1,60,65,000
was adjusted for the difference in the Measurement as per supplementary deed and the actual measurement as per
the Government records. As per the Supplementary deed entered with M/s. Avenue Supermarts Limited on the Sale of
Mall and part of multiplex Properties, the company had fully met its obligations and the transaction was completed
smoothly.

Note No: 36-Asset Reconstruction Company

The Company’s account was categorized as NPA by Allahabad Bank and Andhara Bank during the year 2014. In April,
2017, the said Banks assigned the entire debts of the Company alongwith all underlying security interest, all rights, title
& benefits to M/s.RARE Asset Reconstruction Limited (previously known as Raytheon Asset Reconstruction Private
Limited) under the applicable provisions of the SARFAESI Act. The Company opted for One-Time Settlement offer with
the said ARC and obtained in-principle approval from them during March, 2021 and the final approval of OTS has now
been received. As per terms of in-priniple approval, the initial payment of Rs.30 croreswas already paid to the said ARC
on 30th March, 2021 from the proceeds of sale of Shopping Mall and part of Multiplex properties.

During the year ended 31 March 2024, the company has repaid a further sum of Rs.75 lacs from the refund of security
deposit held with M/s. Avenue Supermarts Limited on Sale of Mall and part of multiplex Properties. Out of Total Security
deposit of Rs. 5,00,25,000/-held by them, Rs. 3,39,60,000/-was returned and the balance deposit of Rs. 1,60,65,000
was adjusted for the difference in the Measurement as per supplementary deed and the actual measurement as per
the Government records. As per the Supplementary deed entered with M/s. Avenue Supermarts Limited on the Sale of
Mall and part of multiplex Properties, the company had fully met its obligations and the transaction was completed
smoothly.

4. The entire OTS payment shall be paid on or before 31st March, 2023, failing which the proposed OTS shall stand
invoked by RARE ARC without any further notice.

5. All expenses toward recovery, over and above the OTS amount, incurred and to be incurred by RARE ARC shall
be reimbursed by the Company on actual basis.

6. The ARC shall agree to issue NOC / release charge / handover title deeds of the respective properties for sale to
any prospective buyer in order to settle the liability.

7. The Company/guarantors shall not raise any further loans, whether secured / unsecured, till the settlement
amount is paid.

8. On payment of entire OTS amount, RARE shall realase the charge over the remaining securities/properties and
personal guarantees of the promoters/directors of the company and shall issue no due certificate.

9. Both the company and ARC shall arrange to withdraw all the cases filed against each other after payment of
entires OTS amount.

In view of the above settlement the Company has remitted Rs.60.23 crores to RARE ARC as on 31st March, 2024 from
the disposal / sale of assets of company as detailed note no. 35 of the financial statement.

Note: 37: Pending Litigations

The company has filed an stay petition with Labour Court amounting to Rs. 5.99 lacs for payment of damages on late
paymentofEmployeesProvidentFundfortheperiodOct2015toMar2018asagainstthe order passed by the
Assistants Provident Fund Commissioner

The Company has filed an rectification for the Outstanding demands raised by Income Tax Authorities for payment of
Income Tax and Tax Deducted at Source and same is pending for processing. The above said demands are payable
subject to pending rectification.

Note: 38: Segment Reporting

The Company has only one reportable business segment as it deals only in Operation and running of Hotels in terms of
Ind AS 108 Operating Segment”. Further, the Company operates only in one geographical segment India. All the assets
of the Company are located in India, the Company monitors the operating results as one single segment for the purpose
of making decisions about resource allocation and performance assessment. Accordingly, there are no separate
reportable segments as per IND-AS 108, “Operating Segment” prescribed under Section 133 of the Companies Act,
2013 read with the Companies (Indian Accounting Standards) Rules, 2015, as amended.

The management assessed that the fair value of cash and cash equivalent, trade receivables, trade payables, and other current financial assets
and liabilities approximate their carrying amounts largely due to the short term maturities of these instruments. The fair values of non current
borrowings are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy
due to the use of unobservable inputs, including own credit risk

NOTE 40: FINANCIAL RISK MANAGEMENT OBJECTIVES

The Company’s activity exposes itself to variety of financial risk which includes market risk, credit risk, liquidity risk, interest rate risk and price risk.
The Company monitors and manages the above financial risks relating to the operations of the group through internal risk reports which analyses
exposures by degree and magnitude of risks. The primary focus is to identify risks and take steps for mitigation of risk or to minimise the potential
adverse effects on the financial performance of the Company. The Company does not enter into any derivative financial instruments to hedge risk
exposures.

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Mar 31, 2015

1.ADDITIONAL NOTES

a. Estimated amount of the contracts remaining to be executed on capital account and not provided for : Not ascertainable.(Previous Year - Not Ascertainable)

b. The Company has not given any guarantee.

c. Contingent Liabilities not provided for in the books of accounts Rs.Nil. (Previous year Rs. Nil)

d. Expenditure on employees who are in receipt of remuneration of not less than Rs. 60,00,000/- per annum (previous year Rs. 60,00,000/- per annum) when employed through out the year or Rs. 5,00,000/- per month (previous year Rs. 5,00,000/- per month) when employed for part of the year is Nil (previous year Rs. Nil.)

e. Previous year figures have been regrouped and/or reclassified wherever necessary,

f. The figures have been rounded off to the nearest Rupee.

g. Balances in Sundry Debtors, Creditors and Loans & Advances are subject to confirmation and reconciliation and are stated at the book balance thereof.

h. In the opinion of the Management, the Current Assets, Loans & Advances will fetch the amount as stated, if realized in the ordinary course of its business.

2. TERM LOANS :

1. Allahabad Bank , Andhra Bank & Canara Bank.

Secured by way of Hypothecation of entire fixed assets of the Company both existing and future, Equitable Mortgage of hotel properties at Tirupur and Coonoor and Hypothecation of entire current assets of the Company. The loan is also personally guaranteed by the Managing Director & Executive Director of the Company.

2. Axis Bank Limited

Secured by way of hypothecation of the Vehicle of the Company.

3. The Company has called for details of applicability from trade parties from the provisions of Micro,Small and Medium Enterprises Development Act,2006, However no reply has been received from any of the parties, In view of the above no disclosure is made under Micro, Small and Medium Enterprises Development Act,2006.

. Related Party Transactions.

The following are the transactions with related parties in terms of Accounting Standard 18 Issued by the ICAI.

Key Managerial Personnel Interested Concerns

Sri.E.V.Muthukumararamalingam - Managing m/s. Shree Vallee Enterprises Director Private Limited Sri.M.R.Gautham - Executive Director Sri.B.A.Madhusudan - Whole-Time Director

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Mar 31, 2014

NOTE : 1

a. Estimated amount of the contracts remaining to be executed on capital account and not provided for : Not ascertainable.(Previous Year not ascertainable)

b. The company has not given any guarantee.

c. Contingent Liabilities not provided for in the books of accounts Rs.Nil. (Previous year Rs. Nil)

d. Expenditure on employees who are in receipt of remuneration of not less than Rs. 60,00,000/- per annum (previous year Rs. 60,00,000/- per annum) when employed through out the year or Rs. 5,00,000/- per month (previous year Rs. 5,00,000/- per month) when employed for part of the year is nil (previous year Rs. Nil.)

e. Previous year figures have been regrouped and/or reclassified wherever necessary,

f. The figures have been rounded off to the nearest Rupee.

g. Balances in Sundry Debtors, Creditors and Loans & Advances are subject to confirmation and reconciliation and are stated at the book balance thereof.

h. In the opinion of the Management, the Current Assets, Loans & Advances will fetch the amount as stated, if realized in the ordinary course of its business.

j. TERM LOANS :

2. Allahabad Bank , Andhra Bank ,Canara Bank & Axis Bank Limited :

Secured by way of Hypothecation of entire fixed assets of the Company both existing and future, Equitable Mortgage of hotel properties at Tirupur and Coonoor and Hypothecation of entire current assets of the Company. The loan is also personally guaranteed by the Managing Director & Executive Director of the company.

3. Axis Bank Limited :

Secured by way of hypothecation of the Vehicle of the Company.

a. The Company has called for details of applicability from trade parties from the provisions of Micro,Small and Medium Enterprises Development Act,2006, However no reply has been received from any of the parties, In view of the above no disclosure is made under Micro,Small and Medium Enterprises Development Act,2006.

b. During the year a sum of Rs.1275000 been provided in the books of accounts towards income tax.

c. Earning per share :

d. Basic earnings per share are calculated by dividing the net profit attributable to the share holders by the weighted average number of ordinary shares outstanding during the year.

e. Disclosure as required by Accounting Standard 17 on Segment Reporting issued by the Institute of Chartered Accountants of India (ICAI) is furinished in a separate annexure.

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Mar 31, 2013

A. Estimated amount of the contracts remaining to be executed on capital account and not provided for : Not ascertainable.(Previous Year - not ascertainable)

b. The Company has not given any guarantees.

c. Contingent Liabilities not provided for in the books of accounts Rs.Nil. (Previous year Rs. Nil)

d. Expenditure on employees who are in receipt of remuneration of not less than Rs. 60,00,000/- per annum (previous year Rs. 60,00,000/- per annum) when employed throughout the year or Rs. 5,00,000/- per month (previous year Rs. 5,00,000/- per month) when employed for part of the year is Nil (previous year Rs. Nil.)

e. Previous year figures have been regrouped and/or reclassified wherever necessary.

f. The figures have been rounded off to the nearest Rupee.

g. Balances in Sundry Debtors, Creditors and Loans & Advances are subject to confirmation and reconciliation and are stated at the book balance thereof.

h. In the opinion of the Management, the Current Assets, Loans & Advances will fetch the amount as stated, if realized in the ordinary course of its business.

i TERM LOANS :

1. Allahabad Bank and Andhra Bank :

Secured by way of Hypothecation of entire fixed assets of the Company - both existing and future, Equitable Mortgage of hotel properties at Tirupur and Coonoor and Hypothecation of entire current assets of the Company. The loans are also personally guaranteed by the Managing Director & Executive Director of the Company.

2. Sundaram Finance Limited

Secured by way hypothecation of Vehicle of the Company.

j. The Company has called for details of applicability from trade parties from the provisions of Micro, Small and Medium Enterprises Development Act, 2006. However, no reply has been received from any of the parties. In view of the above, no disclosure is made under Micro, Small and Medium Enterprises Development Act, 2006.

k. During the year, a sum of Rs.21,10,000/- has been provided in the books of accounts towards Income Tax.

l. Earning per share :

a. Basic earnings per share are calculated by dividing the net profit attributable to the share holders by the weighted average number of ordinary shares outstanding during the year.

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Mar 31, 2012

A. Estimated amount of the contracts remaining to be executed on capital account and not provided for : Not ascertainable.(Previous Year - not ascertainable)

b. The Company has not given any guarantees.

c. Contingent Liabilities not provided for in the books of accounts Rs. Nil. (Previous year Rs. Nil)

d. Expenditure on employees who are in receipt of remuneration of not less than Rs. 60,00,000/- per annum (previous year Rs. 60,00,000/- per annum) when employed throughout the year or Rs. 5,00,000/- per month (previous year Rs. 5,00,000/- per month) when employed for part of the year is Nil (previous year Rs. Nil.)

e. Previous year figures have been regrouped and/or reclassified wherever necessary, to conform to the requirement of revised Schedule VI of the Companies Act, 1956.

f. The figures have been rounded off to the nearest thousands, except otherwise stated.

g. Balances in Sundry Debtors, Creditors and Loans & Advances are subject to confirmation and reconciliation and are stated at the book balance thereof.

h. In the opinion of the Management, the Current Assets, Loans & Advances will fetch the amount as stated, if realized in the ordinary course of its business.

j. TERM LOANS :

1. Allahabad Bank and Andhra Bank :

Secured by way of Hypothecation of entire fixed assets of the Company - both existing and future, Equitable Mortgage of hotel properties at Tirupur and Coonoor and Hypothecation of entire current assets of the Company. The loans are also personally guaranteed by the Managing Director & Executive Director of the Company.

2. Sundaram Finance Limited

Secured by way hypothecation of Vehicle of the Company.

k. The Company has called for details of applicability from trade parties from the provisions of Micro, Small and Medium Enterprises Development Act, 2006. However, no reply has been received from any of the parties. In view of the above, no disclosure is made under Micro, Small and Medium Enterprises Development Act, 2006.

l. During the year, a sum of Rs. 31,30,000/- has been provided in the books of accounts towards income tax.

m. Earnings per share :

a. Basic earnings per share are calculated by dividing the net profit attributable to the share holders by the weighted average number of ordinary shares outstanding during the year.

n. The Company is exclusively engaged in the business of Hotelering. This, in context of Accounting Standard 17 on Segment Reporting issued by The Institute of Chartered Accountants of India (ICAI) is considered to constitute one single primary segment and accordingly no segment information as required under Accounting Standard 17 is furnished.

o. Notes 1 to 29 form an integral part of the annual accounts.

p. Payments to Auditors included under "Capital Work in Progress" on account of Certification work is Rs. 31545/-.

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Mar 31, 2011

1. Estimated amount of the contracts remaining to be executed on capital account and not provided for: Not ascertainable.(Previous Year not ascertainable)

2. Contingent Liabilities not provided for in the books of accounts Rs.Nil. (Previous year Rs. Nil)

3.a). Depreciation is provided under straight line method on Fixed Assets on a pro-rata basis at the rates specified in Schedule XIV to the Companies Act, 1956.

b). Depreciation on assets revalued is calculated on its revalued figure on Straight Line Method at the rates specified in Schedule XIV to the Companies Act, 1956.

4. Expenditure on employees who are in receipt of remuneration of not less than Rs. 60,00,000/- per annum (previous year Rs. 24,00,000/- per annum) when employed through out the year or Rs. 5,00,000/- per month (previous year Rs. 2,00,000/- per month) when employed for part of the year is nil (previous year Rs. Nil.)

5. Previous year figures have been regrouped and/or reclassified wherever necessary.

6. The figures have been rounded off to the nearest rupee.

7. Balances in Sundry Debtors, Creditors and Loans & Advances are subject to confirmation and reconciliation and are stated at the book balance thereof.

8. In the opinion of the Management, the Current Assets, Loans & Advances will fetch the amount as stated, if realized in the ordinary course of its business.

9. i. Quantitative details of turnover, opening and closing stock, purchase and consumption have not

been furnished, in view of general exemption u/s.211 vide Press Note No:2/2011 dated 08.02.2011 issued by Ministry of Corporate Affairs, Government of India.

10. TERM LOANS:

1. Allahabad Bank, Andra Bank, & Bank of Bahrain and Kuwait(upto the date of Closure) Secured by way of Hypothecation of entire fixed assets of the Company both existing and future, Equitable Mortgage of hotel properties at Tirupurand Coonoorand Hypothecation of entire current assets of the Company. The loan is also personally guaranteed by the Chairman, Managing Director & Executive Director of the Company.

2. Sundaram Finance Limited

Secured byway hypothecation of Vehicle of the Company.

11. The Company has called for details from trade parties regarding applicability of the provisions of Micro,Small and Medium Enterprises Development Act,2006. However no reply has been received from any of the parties. In view of the above, no disclosure is made regarding liability under Micro,Small and Medium Enterprises DevelopmentAct, 2006.

12. Asum of Rs.5,94,000/- has been paid to Sri E.V.Muthukumara Ramalingam,Managing Director of the Company as remuneration and a sum of Rs.2,79,000/- has been paid to Sri. M.R. Gautham, Executive Director of the Company as remuneration.

13. During the year a sum of Rs.37,00,000/- has been provided in the books of accounts towards income tax.

14. Earning per share:

a. Basic earnings per share are calculated by dividing the net profit attributable to the share holders by the weighted average number of ordinary shares outstanding during the year.

15. The Company is exclusively engaged in the business of Hotelering. This, in the context of Accounting Standard 17 on Segment Reporting issued by The Institute of Chartered Accountants of India (ICAI) is considered to constitute one single primary segment and accordingly no segment information as required under Accounting Standard 17 is furnished.

16. Schedules 1 to 24 form an integral part of annual accounts.

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Mar 31, 2010

1. Estimated amount of the contracts remaining to be executed on capital account and not provided for : Not ascertainable.(Previous Year not ascertainable)

2. Contingent Liabilities not provided for in the books of accounts Rs.Nil. (Previous year Rs. 150000)

3. a) Depreciation is provided under straight line method on Fixed Assets on a pro-rata basis at the rates specified in Schedule XIV to the Companies Act, 1956.

b) Depreciation on assets revalued is calculated on its revalued figure on Straight Line Method at the rates specified in Schedule XIV to the Companies Act, 1956.

4. Expenditure on employees who are in receipt of remuneration of not less than Rs. 24,00,000/- per annum (previous year Rs. 24,00,000/- per annum) when employed through out the year or Rs. 2,00,000/- per month (previous year Rs. 2,00,000/- per month) when employed for part of the year is nil (previous year Rs. Nil.)

5. Previous year figures have been regrouped and/or reclassified wherever necessary.

6. The figures have been rounded off to the nearest rupee.

7. Balances in Sundry Debtors, Creditors and Loans & Advances are subject to confirmation and reconciliation and are stated at the book balance thereof.

8. In the opinion of the Management, the Current Assets, Loans & Advances will fetch the amount as stated, if realized in the ordinary course of its business.

9. Additional information pursuant to the paragraphs 3 & 4 of the Part II of Schedule VI of the Companies, Act, 1956

i) In line with the order of Department of Company Affairs order (No. 46/165/2008-CL-III date 31.03.2009) under section 211 (4) of the Companies Act, 1956, quantitative details of turnover, opening and closing stock, purchase and consumption have not been furnished.

10.TERM LOANS :

1. State Bank of India & Bank of Bahrain and Kuwait, BSC.

Secured by way of Hypothecation of entire fixed assets of the Company both existing and future, Equitable Mortgage of hotel properties at Tirupur and Coonoor and Hypothecation of entire current assets of the Company. The loan is also personally guaranteed by the Chairman, Managing Director & Executive Director of the company.

2. Sundaram Finance Limited

Secured by way hypothecation of Vehicle of the Company.

11. WORKING CAPITAL LOANS

State Bank of India (Upto the date of Settlement)

Secured by way of Hypothecation of entire fixed assets of the Company both existing and future, Equitable Mortgage of hotel properties at Tirupur and Coonoor and Hypothecation of entire current assets of the Company. The loan was also personally guaranteed by the Chairman, Managing Director & Executive Director of the Company.

12. The Company is in the process of compiling relevant information from its suppliers about their coverage under the Micro, Small and Medium Enterprises Development Act,2006. Since the relevant information is not readily available, no disclosures have been made in these Financial Statements. However, in the considered view of the management and as relied upon by the auditors, impact of interest, if any that may be payable in accordance with the provisions of this Act is not material.

13. A sum of Rs.5,70,000/- has been paid to Sri E.V.Muthukumara Ramlingam, Managing Director of the company as remuneration and a sum of Rs.2,67,000/- has been paid to Sri. M.R. Gautham, Executive Director of the company as remuneration.

14. During the year a sum of Rs.29,80,000/- has been provided in the books of accounts towards income tax after taking into consideration the provisions of Section 115JB of the Income Tax Act.

15. Earning per share :

a. Basic earnings per share are calculated by dividing the net profit attributable to the share holders by the weighted average number of ordinary shares outstanding during the year.

16. The Company is exclusively engaged in the business of Hotelering. This, in context of Accounting Standard 17 on Segment Reporting issued by The Institute of Chartered Accountants of India (ICAI) is considered to constitute one single primary segment and accordingly no segment information as required under Accounting Standard 17 is furnished.

17. Payment of preclosure, processing and documentation charges incurred for availing foreign currency term from M/s.Bank of Bahrain and Kuwait, BSC and settling rupee term loan from M/s.State bank of India is shown as exceptional item of Expenditure.

18. Schedules 1 to 24 form an integral part of annual accounts.