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Notes to Accounts of Advani Hotels & Resorts (India) Ltd.

Mar 31, 2015

1.1. In the previous year, Income-tax of Rs.6,476,603/- paid which was net of provision made, was shown under Short Term Loans and Advances. Since this amount was in respect of certain assessment years, appeals of which are pending at various stages, the same has now been regrouped as Long Term Loans and Advances as shown in Note 13.

1.2. The Company had made an investment of Rs. 7,000,000/- (Previous Year Nil) in 6,977.324 units of SBI Premier Liquid Fund - Direct Plan - Daily Dividend as current investment during the year, which was fully redeemed during the year itself.

2. Change in the basis of providing depreciation

Pursuant to notification of Schedule II to the Companies Act, 2013 with effect from April 1, 2014, depreciation for the year ended March 31, 2015 has been provided on the basis of useful lives as prescribed therein except in respect of items of plant and machinery and furniture and fixture costing Rs. 5,000/- or less which are depreciated fully in the year of acquisition. Accordingly, depreciation for the year ended March 31,2015 is higher by Rs. 11,029,795/- due to change in the estimate of useful life of certain assets and an amount of Rs. 4,914,998/- (net of deferred tax) has been recognized in the opening balance of retained earnings relating to tangible assets in respect of which useful life is nil as on April 1,2014.

3. Commitments:

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.1,440,452- (Previous Year Rs.5,458,205/-) net of advances.

(b) Other Commitments:

In terms of Non-Compete Agreement dated May 30, 2008, the Company as seller of its Flight Catering Undertaking to a party, has agreed and given an undertaking not to compete with the catering business of the said party in Goa for a period of ten years from the aforesaid date of Agreement.

4. Contingent liabilities not provided for in respect of:

(a) Claims against the Company not acknowledged as debts Rs.6,216,374/- (Previous Year Rs.4,765,557/-).

(b) Demand of Rs.3,652,000/- (Previous Year Rs.3,652,000/-) for the period from 2008 to 2012 and interest thereon of Rs.851,040/- (Previous Year Rs.851,040/-) raised by the Goa Government vide letter dated April 4, 2012 for renewal of Amusement and Slot Machine Licence in respect of casino in the Company's hotel at Goa has been disputed by the Company as unreasonable , irrational, discriminatory and unfair. The Company has taken a legal opinion and an appeal has been filed for cancellation of the demand. Pending appeal in the court, no provision has been made for the said demand. The Company has provided a Bank Guarantee of Rs. 2,922,000/- (Previous Year Rs.2,922,000/-) to the Goa Government against the above liability.

(c) The Department of Home, Goa issued a demad letter dated July 10, 2014, requiring the Company to pay Rs.6,078,877/- (Previous year Nil) towards annual recurring fee for 2012-13 in respect of Goa Nugget based on High Court order in the case of another hotel.The Company has not accepted the same and filed suitable reply to the said notice denying the liability. No further communication has been received in response thereto.

(d) The Department of Home, Goa issued a furhter demand letter dated September 8, 2014, requiring the Company to pay Rs.16,301,369/- (Previous year Nil) towards difference of annual recurring fee for the period from February 17, 2014 to October 12, 2014 for Goa Nugget. The Company has not accepted the same and filed suitable reply to the said notice denying the liability. No further communication has been received in response thereto.

(e) The Company has been importing certain items of F&B and equipment under SFIS (Served from India Scheme). The DGFT Department has issued 3 Show Cause Notices dated October 14, 2014 and October 29, 2014 and informed the Company that in view of its using a foreign brand, it is not entitled to any benefit of concessional duty under SFIS and accordingly required the Company to pay back the duty concession of Rs. 16,189,700/- (Previous year Nil), Rs. 18,923,016/- (Previous year Nil) and Rs. 10,960,269/- (Previous year Nil) respectively availed by the Company. The Company has disputed the same and a preliminary reply has been filed. No further communication has been received in response thereto.

(f) Demand raised by Income Tax authorities on completion of regular assesments and TDS assessment disputed by the Company in appeals and rectification proceedings for assesment years 2005-06, 2007-08 to 2012-13, which are pending at various stages - Rs.24,916,456/- (Previous Year Rs.16,003,521/-).

(g) Demand raised by Sales Tax authorities for the year 2005-06 and 2006-07 disputed by the Company in appeal, which are pending amounting to Rs.1,215,646/- (Previous Year Rs.1,215,646/-).

(h) Demand raised by Entertainment Tax Authorities, disputed by the Company in appeal, which is pending amounting to Rs.43,180/- (Previous Year Rs.43,180/-).

(i) Demand raised by the Provident Fund Commissioner, Goa by imposing damages of Rs.472,598/- (Previous year X Nil) under Section 14B of the Employees Provident Fund & Miscellaneous Provisions Act,1952 and interest of Rs.230,840/- (Previous Year X Nil) under Section 7-Q of the aforesaid Act as the same is disputed by the Company and an appeal has been filed, which is pending before the Employees Provident Fund Appelate Tribunal. The Company has paid X 230,840/- (Previous Year Rs. Nil) under protest against the above demands.

(j) The Commissioner of Customs, Mumbai vide consolidated order dated November 29, 2014, passed against the Company, its erstwhile 51% subsidiary, viz. Advani Pleasure Cruise Company Private Limited (APCCPL) and its Executive Director, Mr. Haresh G. Advani alleging violation of "actual user" condition prescribed in the EPCG License in respect of certain casino equipments imported in the year 2000, which were installed on the ship for the casino business being operated and managed by APCCPL at the relevant time. They directed the Company to pay the differential duty of Rs.4,259,549/- (Previous year Rs.Nil) being the duty forgone on the aforesaid imports alongwith interest under the provisions of Section 28 & 28AB of the Customs Act,1962, (the Act) confiscated the casino equipment so imported and installed and also imposed a penalty of Rs.4,959,549/- (Previous Year Nil) plus applicable interest under Section 114A of the Act. The Commissioner also imposed penalty of Rs. 5 lakhs each on APCCPL and the Executive Director under Section 112 (ii) of the Act by the same consolidated order. The Company and others have not accepted the above consolidated order and appeals have been filed against the same by all the three parties, which are pending before the Customs, Excise and Service Tax Appellate Tribunal. Pending disposal of the appeal, no provision has been made for the aforesaid demand for differential duty, penalty imposed and applicable interest thereon.

(k) Certain employees of the Company's erstwhile flight catering unit i.e. Airport Plaza, which was sold in the year 2008, have demanded higher wages with effect from August 1,2006. The matter is pending in the Labour Court. Likewise, certain employees of Company's hotel have also claimed certain benefits and filed complaints which are pending at verious stages before labour commissioner/court at Goa. The agreegate claims have been estimated by the Company at X 8,635,000/-. Pending disposal of these matters, no provision has been made for these additional benefits/claims.

(l) The Company is hopeful that on disposal of litigations as referred to in item (a) to (k) above, the disputed demands will not survive. In the event any of the said litigation is held against the Company, it will be liable to pay the demand raised and / or to be futher raised alongwith applicable interest thereon, which is presently unascertainable.

5. There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at March 31,2015. This is information as required to be disclosed under "The Micro, Small and Medium Enterprises Development Act, 2006" (the Act) has been determined to the extent such parties have been identified on the basis of information available with the Company.

The Company has paid Rs. 150,000/- (Previous Year Rs.Nil) and Rs.30,000/- (Previous year is Rs.Nil) and service tax of Rs.22,248/- (Previous Year Rs. Nil) thereon to a partner of the auditors for tax audit fee and for attending to taxation matter respectively.

6. The Unclaimed dividend for the year 2007-08, 2009-10, 2010-11,2011-12, 2012-13 and 2013 -14, aggregating to Rs.1,555,692/- (Previous Year Rs.1,549,811/-) will be deposited at the appropriate time as and when applicable.

7. Segment Reporting under Accounting Standard 17:

Hotel business is the Company's only business segment and hence, disclosure of segment-wise information is not applicable under Accounting Standard 17 - "Segment Information".

8. The disclosures required under Accounting Standard 15 "Employee Benefits":

(a) Defined Contribution Plan

Contribution to Defined Contribution Plan, recognized are charged off for the year are as under:

(b) Defined Benefit Plan

In respect of Employees' Retiring Gratuity, the present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized on actuarial valuation basis.

(e) Other details:

(i) Gratuity is payable @ 15 days salary for each year of service subject to a maximum of Rs.1,000,000/- (Previous Year Rs.1,000,000/-).

(ii) Leave is encashable on retirement / while in service / maximum leave accumulation is as per Company's scheme from time to time.

(iii) The above information is as certified by an Actuary.

(iv) Salary Escalation is considered as advised by the Company which is in line with the industry practice considering promotion and demand and supply of the employee.

(v) Number of employees (average) 172 (Previous Year 177).

(vi) Salary per month - Rs.3,620,030/- (Previous Year Rs.3,463,137/-).

(vii) Contribution for next year - Rs.Nil (Previous Year Rs.Nil).

(viii) In addition to the provision made for gratuity as per acturial valuation, the Company has made further provision of Rs.50,000/- (Previous Year Rs.50,000/-) under the relevant provisions of the Goa Shop and Establishment Act, 1973.

9. Related Party Disclosures

(a) Subsidiary Company : None

(b) Parties where control exists : None

(c) Key Management Personnel :

Mr. Sunder G. Advani : Chairman & Managing Director

Mr. Haresh G. Advani : Executive Director

Mr. Prahlad S. Advani : Vice President & Asset Manager -

Relative upto July 31,2014 and Whole Time Director - Operations w.e.f August 1,2014

(d) Other parties being relatives of Key Management Personnel with whom transactions have taken place during the year:

Mrs. Menaka S. Advani : Director and relative

Mrs. Nina H. Advani : Director and relative

(e) Other related parties with whom transactions have taken place during the year:

M/s. D. M. Harish & Co., Advocates

A Partnership firm wherein

Mr. Anil Harish, erstwhile Non-Executive

Director of the Company, is a partner

M/s. Malvi Ranchoddas & Co., Solicitors & Advocates

A Partnership firm wherein Mr. Prakash Mehta, Non-Executive Director of the Company, is a partner

10. Lease:

10.1. The Company has taken certain premises on operating lease. Rentals are with reference to lease terms and other consideration. The aggregate lease rentals payable are charged as rent in the Statement of Profit and Loss.

10.2. Future commitments in respect of minimum lease payments payable for non-cancellable operating leases entered into by the Company:

11. Comparative Figures of Previous Year:

The previous year's figures have been recast / regrouped / re-arranged, wherever necessary for comparision purpose.


Mar 31, 2014

Corporate Information:

Advani Hotels & Resorts (India) Limited is a Public Limited Company, which was incorporated on March 13, 1987 in the name of Ramada Hotels (India) Limited. The name of the Company was changed from Ramada Hotels (India) Limited to Advani Hotels & Resorts (India) Limited in 1999. The shares of the Company are listed on Bombay Stock Exchange, National Stock Exchange and Delhi Stock Exchange. The Company is primarily engaged in the Hotel Business through its "Ramada Caravela Beach Resort" a five star Deluxe Resort situated in South Goa.

1. The Company has issued one class of shares referred to as equity shares having a par value of Rs. 2/-. Each holder is entitled to one vote per share.

2. The Company declares and pays dividends in Indian Rupees. The payment of interim dividend is approved by the Board of Directors and ratified by the Shareholders. The dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the Annual General Meeting.

3. In the event of liquidation of the Company, the holders of the Equity Shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of Equity Shares held by the Shareholders.

4. No shares of the Company have been reserved for issue under options and contracts/commitments for the sale of shares/disinvestment.

5. The Company has not issued any security, which is convertible into Equity/Preference Shares.

6. Nature of Securities:

Term Loans are secured by a mortgage by deposit of title deeds of all the immovable properties of the Company situated at Village Varca, Salcette, Goa, a first charge by way of hypothecation of all the movables (except book debts and inventories) including machinery, spares, tools and accessories, present and future and certain collateral securities.

7. During the year, Bank of India (Previous year Bank of Baroda) has converted a part of the Rupee Loan amounting to Rs. 37,600,000/- (Previous year Rs. 40,000,000/-) into Foreign Currency Loan.

8. Deferred Tax effect on long term capital loss of Rs. 13,950,261/- incurred in 2010-11 has not been recognised on consideration of prudence.

9. Cash Credits are secured by hypothecation of Company''s inventories of stocks, stores and provisions, goods in transit and other moveable items and book debts.

10. The Board of Directors of the Company has approved the payment of interim dividend @12% for the year ended March 31, 2014, in the Board Meeting held on May 19, 2014, which is subject to ratification by the shareholders.

NOTES:

11. Capital Work in Progress include expenses of Rs. 8,227,239/- (Previous year Rs. 29,177,537/-) incurred on renovation/refurbishing of the hotel, pending completion of the work (pending allocation).

12. Additions to Fixed Assets include Rs. 5,558,009/- (Previous Year Rs. 1,234,996/-) being loss due to fluctuation in foreign currency rates (in relation to foreign currency loans) capitalised in accordance with Accounting Standard-11 Notification.

13. Commitments:

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 5,458,205/- (Previous Year Rs. 15,383,661/-) net of advances.

(b) Other Commitments:

In terms of Non-Compete Agreement dated May 30, 2008, the Company as seller of its Flight Catering Undertaking to a party, has agreed and given an undertaking not to compete with the catering business of the said party in Goa for a period of ten years from the aforesaid date of Agreement.

14. Contingent liabilities not provided for in respect of:

(a) Claims against the Company not acknowledged as debts Rs. 4,765,557/- (Previous Year Rs. 2,545,833/-)

(b) Pending Bank Guarantees:

Particulars: 2013-14 2012-13

Bank Guarantees 8,807,484 9,407,484

(c) Demand of Rs. 3,652,000/- (Previous Year Rs. 3,652,000/-) for the period from 2008 to 2012 and interest thereon of Rs. 851,040/- (Previous Year Rs. 851,040/-) raised by the Goa Government vide letter dated April 4, 2012 for renewal of Amusement and Slot Machine Licence in respect of casino in the Company''s hotel at Goa has been disputed by the Company as unreasonable, irrational, discriminatory and unfair. The Company has taken a legal opinion and a writ petition has been filed for cancellation of the demand. Pending disposal of the writ petition in the court, no provision has been made for the said demand.

(d) Demand raised by Income Tax Authorities, disputed by the Company in appeal and rectification proceedings, which are pending - Rs. 16,003,521/- (Previous Year Rs. 2,607,583/-).

(e) Demand raised by Sales Tax Authorities, disputed by the Company in appeal, which are pending amounting to Rs. 1,215,646/- (Previous Year Rs. 1,215,646/-).

(f) Demand raised by Entertainment Tax Authorities, disputed by the Company in appeal, which is pending amounting to Rs. 43,180/- (Previous Year Rs. 43,180/-).

(g) Demand of Rs. NIL (Previous Year Rs. 310,234/-) raised by Luxury Tax Authorities for financial year 2007-08 is disputed by the Company and rectification application is pending.

(h) Certain employees of the Company''s flight catering unit i.e. Airport Plaza, which is sold in earlier year have demanded higher wages with effect from August 01, 2006. The matter is pending in the Labour Court. Pending disposal of the matter, no provision has been made for the additional wages, as the amount is indeterminate.

15. There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at March 31, 2014. This is information as required to be disclosed under "The Micro, Small and Medium Enterprises Development Act, 2006" (the Act) has been determined to the extent such parties have been identified on the basis of information available with the Company.

16. The Unclaimed Dividend for the year 2007-08, 2009-10, 2010-11, 2011-12 and 2012-13 aggregating to Rs. 1,549,811/- (Previous Year Rs. 1,761,720/-) will be deposited with Investor Education and Protection Fund (IEPF) at the appropriate time as and when applicable.

17. Segment Reporting under Accounting Standard 17:

Hotel business is the Company''s only business segment and hence disclosure of segment-wise information is not applicable under Accounting Standard 17 - "Segment Information".

(b) Defined Benefit Plan

In respect of Employees'' Retiring Gratuity, the present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized on actuarial valuation basis.

(e) Other details:

(i) Gratuity is payable @15 days salary for each year of service subject to a maximum of Rs. 1,000,000/- (Previous Year Rs. 1,000,000/-).

(ii) Leave is encashable on retirement/while in service/maximum leave accumulation is as per Company''s scheme from time to time.

(iii) The above information is as certified by the Actuary.

(iv) Salary Escalation is considered as advised by the Company, which is in line with the industry practice considering promotion and demand and supply of the employee.

(v) Number of employees (average) 177 (Previous year 173).

(vi) Salary per month - Rs. 3,463,137/- (Previous year Rs. 3,100,503/-).

(vii) Contribution for next year - Rs. Nil (Previous year Rs. Nil).

(viii) In addition to the provision made for gratuity as per acturial valuation, the Company has made further provision of Rs. 50,000/- under the relevant provisions of the Goa Shop and Establishment Act, 1973.

18. (a) The Managerial Remuneration to the Chairman and Managing Director (CMD) and to the Executive Director (ED) has been paid/provided in accordance with the resolutions approved by the Shareholders of the Company at the Annual General Meeting held on September 17, 2012 read with the resolutions passed by the Board of Directors in their meeting held on July 10, 2012, February 08, 2013 and May 13, 2013 and as approved by the Central Government vide their approval letters dated October 7, 2013 and dated January 31, 2013 for CMD and ED respectively. The approval of the Central Government is received under Section 269,198/309, 1956 of the Companies Act for a period of March 1, 2013 to February 29, 2016.

(b) The Managerial Remuneration to the CMD and the ED for previous year was paid/provided in accordance with the resolutions approved by the Shareholders of the Company at the Annual General Meeting held on September 26, 2007 read with the resolutions passed by the Board of Directors in their meetings held on May 7, 2010 and May 13, 2011 and approved by the Central Government vide their approval letters dated September 20, 2013 for CMD and ED.

(c) Remuneration to Mr. Prahlad S. Advani, Vice President & Asset Manager includes payment/provision of Rs. 1,251,946/- (Previous year Rs. Nil) for the period from December 15, 2013 to March 31, 2014, which was approved by the Shareholders of the Company in the Annual General Meeting held on December 15, 2010, for which an application has been made to the Central Government under Section 314 (1B) of the Companies Act, 1956 and the approval is awaited.

19. The above remuneration excludes provision for gratuity and leave availment since it is provided on an actuarial valuation of the Company''s liability to all its employees.

20. Lease:

20.1. The Company has taken certain premises on operating lease. Rentals are with reference to lease terms and other consideration. The aggregate lease rentals payable are charged as rent in the Profit and Loss Account.


Mar 31, 2013

1 Corporate Information:

Advani Hotels & Resorts (India) Limited is a Public Limited Company, which was incorporated on March 13, 1987 in the name of Ramada Hotels (India) Limited. The Shares of the Company are listed on Bombay Stock Exchange, National Stock Exchange and Delhi Stock Exchange. The Company is primarily engaged in the Hotel Business through its "Ramada Caravela Beach Resort” a five star Deluxe Resort situated in South Goa.

2.1. The Company has issued one class of Shares referred to as equity shares having a par value of Rs.2/- each. Each holder is entitled to one vote per Share.

2.2. The Company declares and pays dividends in Indian Rupees. The payment of interim dividend is approved by the Board of Directors and ratified by the Shareholders. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting.

2.3. In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

2.4. Particulars of shareholders holding more than 5% shares:

2.5. No shares of the Company have been reserved for issue under options and contracts/commitments for the sale of shares/disinvestment.

2.6. The Company has not issued any security which is convertible into equity/preference shares.

3. Commitments:

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.15,383,661/- (Previous Year Rs.18,971,905/-) net of advances.

(b) Other Commitments:

In terms of Non-Compete Agreement dated May 30, 2008, the Company as seller of its Flight Catering Unit to a party, has agreed and given an undertaking not to compete with the catering business of the said party in Goa for a period of ten years from the aforesaid date of Agreement.

4. Contingent liabilities not provided for in respect of:

(a) Claims against the Company not acknowledged as debts Rs.2,545,833/- (Previous Year Rs.3,832,553/-)

(b) Pending Bank Guarantees:

Particulars: 2012-13 2011-12 Rupees Rupees

Bank Guarantees 9,407,484 6,785,484

(c) Demand of Rs.3,652,000/- (Previous Year Rs.2,922,000/-) for the period from 2008 to 2012 and interest thereon of Rs.851,040/- (Previous Year Rs.851,040/-) raised by the Goa Government vide letter dated April 4, 2012 for renewal of Amusement and Slot Machine Licence in respect of casino in the Company''s hotel at Goa has been disputed by the Company as unreasonable, irrational, discriminatory and unfair. The Company has taken a legal opinion and a writ petition has been filed for cancellation of the demand. Pending writ petition in the court, no provision has been made for the said demand.

(d) Demand raised by Income Tax authorities disputed by the Company in appeal and rectification proceedings, which are pending – Rs.2,607,583/- (Previous Year Rs.3,196,755/-).

(e) Demand raised by Service Tax Authorities, disputed by the Company in appeal, which is pending amounting to Rs. Nil (Previous Year Rs.175,862/-).

(f) Demand raised by Sales Tax authorities, disputed by the Company in appeal, which are pending amounting to Rs.1,215,646/- (Previous Year Rs.1,215,646/-).

(g) Demand raised by Entertainment Tax Authorities, disputed by the Company in appeal, which is pending amounting to Rs.43,180/- (Previous Year Rs.43,180/-).

(h) Demand of Rs.310,234/- (Previous Year Rs.310,234/-) raised by Luxury Tax Authorities for financial year 2007-08 is disputed by the Company and rectification application is pending.

(i) Certain employees of the Company''s flight catering unit i.e. Airport Plaza, which is sold in earlier year have demanded higher wages with effect from August 01, 2006. The matter is pending in the Labour Court. Pending disposal of the matter, no provision has been made for the additional wages, as the amount is indeterminate.

5. There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at March 31, 2013. This is information as required to be disclosed under "The Micro, Small and Medium Enterprises Development Act, 2006” (the Act) has been determined to the extent such parties have been identified on the basis of information available with the Company.

6. The Unclaimed Dividend for the year 2005-06, 2006-07, 2007-08, 2009-10, 2010-11, 2011-12 and 2012-13 aggregating to Rs.1,761,720/- (Previous Year Rs.1,460,349/-) will be deposited with Investor Education and Protection Fund (IEPF) at the appropriate time as and when applicable.

7. Segment Reporting under Accounting Standard 17:

Hotel business is the Company''s only business segment and hence disclosure of segment-wise information is not applicable under Accounting Standard 17 – "Segment Information”.

Defined Benefit Plan

In respect of Employees'' Retiring Gratuity, the present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized on actuarial valuation basis.

Other details:

(i) Gratuity is payable @ 15 days salary for each year of service subject to a maximum of Rs.1,000,000/- (Previous Year Rs. 1,000,000/-).

(ii) Leave is encashable on retirement/while in service/maximum leave accumulation is as per Company''s scheme from time to time.

(iii) The above information is as certified by the Actuary.

(iv) Salary Escalation is considered as advised by the Company which is in line with the industry practice considering promotion and demand and supply of the employee.

(v) Number of employees (average) 173 (Previous year 172).

(vi) Salary per month – Rs. 3,100,503/- (Previous year Rs. 2,721,593/-).

(vii) Contribution for next year – Rs. Nil (Previous year Rs. Nil).

(viii) In addition to the provision made for gratuity as per acturial valuation, the Company has made further provision of Rs. 50,000/- under the relevant provisions of the Goa Shop and Establishment Act, 1973.

8. Related Party Disclosures under Accounting Standard 18:

(a) Subsidiary Company: :None

(b) Parties where control exists: :None

(c) Key Management Personnel:

Mr. Sunder G. Advani : Chairman & Managing Director

Mr. Haresh G. Advani : Executive Director

Mr. Prahlad S. Advani : Vice President &

Asset Manager - Relative

(d) Other parties being relatives of Key Management Personnel with whom transactions have taken place during the year:

Mrs. Menaka S. Advani : Director and relative

(e) Other related parties with whom transactions have taken place during the year:

M/s. D. M. Harish & Co., Advocates : A Partnership firm wherein

Mr. Anil Harish, Non-Executive Director of the Company, is a Partner

M/s. Malvi Ranchoddas & Co., Solicitors & Advocates : A Partnership firm wherein

Mr. Prakash V. Mehta, Non-Executive Director of the Company, is a Partner

9.1. The Managerial Remuneration of Rs.7,365,150/- (Previous Year Rs.6,819,823/-) to the Chairman and Managing Director (CMD) and Rs.4,651,104/- (Previous Year Rs.4,261,200/-) to Executive Director (ED) has been paid/provided in accordance with the resolutions approved by the Shareholders of the Company at the Annual General Meetings held on September 26, 2007 and September 17, 2012 read with the resolutions passed by the Board of Directors in their meeting held on July 10, 2012, February 08, 2013 and May 13, 2013. However, in view of inadequacy of profits for the year under consideration, the total managerial remuneration paid exceeds the limits prescribed under the Companies Act, 1956 by Rs.

8,416,254/- (Previous Year Rs.6,693,217/-). The Company is making applications to the Central Government for approval of waiver of the said excess remuneration paid. Similar waiver for excess remuneration paid during the previous year was approved by the Central Government vide their approval letters dated October 26, 2012 for CMD and ED.

9.2. The above remuneration excludes provision for gratuity and leave availment since it is provided on an actuarial valuation of the Company''s liability to all its employees.

10. Lease:

10.1. The Company has taken certain premises on operating lease. Rentals are with reference to lease terms and other consideration. The aggregate lease rentals payable are charged as rent in the statement of Profit and Loss.

10.2. Future commitments in respect of minimum lease payments payable for non-cancelable operating leases entered into by the Company:

11. Comparative Figures of Previous Year:

The previous year''s figures have been recast/regrouped/rearranged, wherever necessary for comparison purpose.


Mar 31, 2012

1 Corporate Information:

Advani Hotels & Resorts (India) Limited is a Public Limited Company, which was incorporated on March 13, 1987 in the name of Ramada Hotels (India) Limited. The shares of the Company are listed on Bombay Stock Exchange and National Stock Exchange. The Company is primarily engaged in the Hotel Business through its "Ramada Caravela Beach Resort," a five star Deluxe Resort situated in South Goa.

2.1. The Company has issued one class of shares referred to as equity shares having a par value of Rs. 2/-. Each holder is entitled to one vote per share.

2.2. The Company declares and pays dividends in Indian Rupees. The payment of interim dividend is approved by the Board of Directors and ratified by the Shareholders. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting.

2.3. In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

2.4. No shares of the Company have been reserved for issue under options and contracts/commitments for the sale of shares/disinvestment.

2.5. The Company has not issued any security which is convertible into equity/preference shares.

3.1. Nature of Securities:

Term Loans are secured by a mortgage by deposit of title deeds of all the immovable properties of the Company situated at Village Varca, Salcette, Goa, a first charge by way of hypothecation of all the movables (except book debts and inventories) including machinery, spares, tools and accessories, present and future and certain collateral securities.

3.2. Out of the above loans, the Bank of Baroda has converted an amount of Rs. 40,000,000/- into Foreign Currency FCNR(B) Loan carrying interest rate of around 7.25% p.a. (650 bps over LIBOR) after close of the financial year.

4.1. Cash Credits are secured by hypothecation of Company's inventories of stocks, stores and provisions, goods in transit and other moveable items and book debts.

4.2. Secured by lien marked on fixed deposit receipt.

NOTES:

5.1. Capital Work in Progress include expenses of Rs. 17,186,342/- (Previous year Rs. 496,775/-) incurred on renovation/refurbishing of the hotel, pending completion of the work (pending allocation).

5.2. Additions to Fixed Assets include Rs. Nil (Previous Year Rs. 435,344/-) being loss due to fluctuation in foreign currency rates capitalised in accordance with AS-11 Notification.

5.3. After deducting Rs.Nil (Previous year Rs. 4,760/-) excess provided in earlier years, which is written back.

6.1. Note: A Margin Money deposit with a carrying amount of Rs. 15,000,000/- (Previous year Rs. Nil) is subject to lien marked by a Bank for loan taken against the said Fixed Deposit.

7. Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 18,971,905/- (Previous Year Rs. 2,586,391/-) net of advances.

(b) Other Commitments:

In terms of Non-Compete Agreement dated May 30, 2008, the Company as seller of its Flight Catering undertaking to a party, has agreed and given a committment not to compete with the catering business of the said party in Goa for a period of ten years from the aforesaid date of Agreement.

8. Contingent liabilities not provided for in respect of:

(a) Claims against the Company not acknowledged as debts Rs. 3,832,553/- (Previous Year Rs. 6,524,488/-)

(b) Pending Bank Guarantees:

Particulars: 2011-12 2010-11 Rupees Rupees

Bank Guarantees 6,785,484 6,785,484



(c) Demand of Rs. 2,922,000/- (Previous Year Rs. Nil) for the period from 2008 to 2012 and interest thereon of Rs. 851,040/- (Previous Year Rs. Nil) raised by the Goa Government vide letter dated April 4, 2012 for renewal of Amusement and Slot Machine Licence in respect of casino in the Company's hotel at Goa has been disputed by the Company and Company is contemplating taking appropriate proceeding in that behalf. Pending that no provision has been made for the said demand.

(d) Demand raised by Income Tax authorities disputed by the Company in appeal and rectification proceedings, which are pending - Rs. 3,196,755/- (Previous Year Rs. 2,578,815/-).

(e) Demand raised by Service Tax Authorities, disputed by the Company in appeal, which is pending amounting to Rs. 1,75,862/- (Previous Year Rs. Nil).

(f) Demand raised by Sales Tax authorities, disputed by the Company in appeal, which are pending amounting to Rs.1,215,646/- (Previous Year Rs. 1,215,646/-).

(g) Demand raised by Entertainment Tax Authorities, disputed by the Company in appeal, which is pending amounting to Rs. 43,180/- (Previous Year Rs. 43,180/-).

(h) Demand of Rs. 310,234/- (Prev. Year Nil) raised by Luxury Tax Authorities for financial year 2007-08 is disputed by the Company and rectification application is pending.

(i) Certain employees of the Company's flight catering unit i.e. Airport Plaza, which is sold in earlier year have demanded higher wages with effect from August 01, 2006. The matter is pending in the Labour Court. Pending disposal of the matter, no provision has been made for the additional wages, as the amount is indeterminate.

9. There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at March 31, 2012. This is information as required to be disclosed under "The Micro, Small and Medium Enterprises Development Act, 2006" (the Act) has been determined to the extent such parties have been identified on the basis of information available with the Company.

10. The Unclaimed dividend for the year 2005-06, 2006-07, 2007-08, 2009-10 and 2010-11 aggregating to Rs. 1,460,349/- (Previous Year Rs. 646,686/-) will be deposited at the appropriate time as and when applicable.

11. Segment Reporting under Accounting Standard 17:

Hotel business is the Company's only business segment and hence disclosure of segment-wise information is not applicable under Accounting Standard 17 - "Segment Information".

Defined Benefit Plan

In respect of Employees' Retiring Gratuity, the present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized on actuarial valuation basis.

Other details:

(i) Gratuity is payable @ 15 days salary for each year of service subject to a maximum of Rs. 1,000,000/- (Previous Year Rs. 1,000,000/-).

(ii) Leave is encashable on retirement/while in service/maximum leave accumulation is as per Company's scheme from time to time.

(iii) The above information is as certified by the Actuary.

(iv) Salary Escalation is considered as advised by the Company which is in line with the industry practice considering promotion and demand and supply of the employee.

(v) Number of employees (average) 172 (Previous year 180).

(vi) Salary per month - Rs. 2,721,593/- (Previous year Rs. 2,724,677/-).

(vii) Contribution for next year - Rs. Nil (Previous year Rs. Nil).

12. Related Party Disclosures under Accounting Standard 18:

(a) Subsidiary Company: : None

(b) Parties where control exists: : None

(c) Key Management Personnel:

Mr. Sunder G. Advani : Chairman & Managing Director

Mr. Haresh G. Advani : Executive Director

Mr. Prahlad S. Advani : Vice President &

Asset Manager - Relative

(d) Other parties being relatives of Key Management Personnel with whom transactions have taken place during the year:

Mrs. Menaka S. Advani : Director and relative

Mrs. Nina H. Advani : Relative

Ms. Lalita S. Advani : Relative

Mrs. Natasha Mirchandani : Relative

Mr. Jihan H. Advani : Relative

Mrs. Indira Thadani : Relative

Mrs. Rukmani G. Advani : Relative

Mrs. Sabrina D. Jhangiani : Relative

(e) Other related parties with whom transactions have taken place during the year:

Mr. K. Kannan : Non-executive Director

Mr. Prakash V. Mehta : Non-executive Director

Mr. Anil Harish : Non-executive Director

M/s. D. M. Harish & Co., Advocates : A Partnership firm wherein

Mr. Anil Harish is a partner

M/s. Malvi Ranchoddas & Co., Solicitors & Advocates : A Partnership firm wherein

Mr. Prakash V. Mehta is a partner Sunder Advani Investments Private Limited : A Company wherein Mr. Sunder G. Advani and Mrs. Menaka S. Advani are Directors

13.1. The Managerial Remuneration of Rs. 6,819,823/- (Previous year Rs. 5,300,397/-) to the Chairman and Managing Director (CMD) and Rs. 4,261,200/- (Previous year Rs. 3,308,093/-) to Executive Director (ED) has been paid/provided in accordance with the resolutions approved by the shareholders of the Company in the Annual General Meeting held on September 26, 2007 read with the resolution passed by the Board of Directors in their meeting held on May 7, 2010 and May 13, 2011. However, in view of inadequacy of profits for the year under consideration, the above remuneration exceeds the limits prescribed under the Companies Act, 1956 by Rs. 6,693,217/- (Previous year Rs. 5,008,490/-). The Company is making an application to the Central Government for approval of waiver of the excess remuneration paid. Similar waiver for excess remuneration was approved by the Central Government vide approval dated October 11, 2011 for CMD and approval dated October 7, 2011 for ED.

13.2. The above remuneration excludes provision for gratuity and leave availment since it is provided on an actuarial valuation of the Company's liability to all its employees.

14. Lease:

14.1. The Company has taken certain premises on operating lease. Rentals are with reference to lease terms and other consideration. The aggregate lease rentals payable are charged as rent in the Statement of Profit and Loss.

14.2. Future commitments in respect of minimum lease payments payable for non-cancelable operating leases entered into by the Company:

15. Comparative Figures of Previous Year:

During the year ended 31st March, 2012, the revised Schedule VI notified under the Companies Act, 1956, has become applicable to the Company for preparing and presenting the Financial Statements. The Company has reclassified previous year figures, which were prepared and presented in the financial statements in accordance with pre-revised Schedule VI to the Companies Act, 1956, to conform to this year's classification. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it significantly impacts presentation and disclosures made in the financial statements, particularly presentation of balance sheet.


Mar 31, 2011

1. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.2,586,391/- (Previous Year Rs.541,680/-) net of advances.

2. Contingent liabilities not provided for in respect of:

(a) Claims against the Company not acknowledged as debts Rs.6,524,488/- (Previous Year Rs.5,603,834/-).

(c) The Company had given a Corporate Guarantee of Rs.83,640,000/- in earlier years on behalf of its then subsidiary Company M/s. Advani Pleasure Cruise Company Private Limited to Bank of Baroda, Mumbai, which was 51% of the sanctioned loan amount of Rs. 164,000,000/- (Previous Year Rs. 164,000,000/-). The above Corporate Guarantee has been extinguished during the year.

(d) Demand raised by Income Tax authorities disputed by the Company in appeal and rectification proceedings, which are pending - Rs.2,578,815/- (Previous Year Rs.1,065,815/-).

(e) Demand raised by Sales Tax authorities, disputed by the Company in appeal, which are pending amounting to Rs. 1,215,646/- (Previous Year Rs.1,215,646/-).

(f) Demand raised by Entertainment Tax Authorities, disputed by the Company in appeal, which are pending amounting to Rs.43,180/- (Previous Year Rs.43,180/-).

(g) Certain employees of the Company's flight catering unit i.e. Airport Plaza, which is sold in earlier year have demanded higher wages with effect from August 01, 2006. The matter is pending in the Labour Court. Pending disposal of the matter, no provision has been made for the additional wages, as the amount is indeterminate.

3. There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at March 31, 2011. This is information as required to be disclosed under "The Micro, Small and Medium Enterprises Development Act, 2006" (the Act) has been determined to the extent such parties have been identified on the basis of information available with the Company.

4. The Unclaimed dividend for the year 2005-06, 2006-07, 2007-08 and 2009-10 aggregating to Rs.646,686/- (Previous Year Rs. 655,741/-) will be deposited at the appropriate time as and when applicable.

5. (a) Current Assets, Loans and Advances (Schedule "G") include Rs NIL (Previous Year Rs. 91,045,154/-) due from theerstwhile Subsidiary Company, viz. Advani Pleasure Cruise Company Private Limited, out of which Rs. NIL (Previous Year Rs. 25,452,377/-) is considered doubtful and provided for.

(c) Cash and Bank balances (Schedule "G") includes Rs.129,056/- (Previous year Rs.129,056/-) with Priyadarshini Mahila Co-op. Bank Limited on Current Account. Maximum balance Rs.129,056/- (Previous Year Rs. 129,112/-).

6. As the turnover of the Company includes sale of food and beverage, it is not possible to give quantity-wise details of sale and consumption of food and beverage. The Department of Company Affairs vide its general exemption notification No. S.O. 301 (E) dated February 8, 2011 has exempted the Company from giving such details for the year ended March 31, 2011.

7. Segment Reporting under Accounting Standard 17:

Hotel business is the Company's only business segment and hence disclosure of segment-wise information is not applicable under Accounting Standard 17 - "Segment Information".

8. The disclosures required under Accounting Standard 15 "Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006, are given below.

Defined Benefit Plan

In respect of Employees' Retiring Gratuity, the present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized on actuarial valuation basis.

Other details:

(i) Gratuity is payable @ 15 days salary for each year of service subject to a maximum of Rs. 1,000,000/- (Previous Year Rs. 350,000/-).

(ii) Leave is encashable on retirement / while in service/ maximum leave accumulation is as per Company's scheme from time to time.

(iii) The above information is as certified by the Actuary.

(iv) Salary Escalation is considered as advised by the Company which is in line with the industry practice considering promotion and demand and supply of the employee.

(v) Number of employees (average) 180 (Previous year 188).

(vi) Salary per month - Rs. 2,724,677/-(Previous year Rs.1,968,047/-).

(vii) Contribution for next year - Rs. Nil (Previous year Rs. Nil).

10. Related Party Disclosures under Accounting Standard 18:

(a) Subsidiary Company:

(i) Advani Pleasure Cruise Company Private Limited (51%) (Ceased to be a subsidiary during the year w.e.f. September 20, 2010 consequent to sale of Investments).

(ii) Advani Flight Catering Service Private Limited (100%) (Company has applied to the Registrar of Companies, Goa for striking off its name from the Register of Companies and the final approval of dissolution is awaited).

(b) Parties where control exists: None

(c) Key Management Personnel:

Mr. Sunder G. Advani - Chairman & Managing Director

Mr. Haresh G. Advani - Executive Director

Mr. Prahlad S. Advani - Vice President & Asset Manager - Relative

(d) Other parties being relatives of Key Management Personnel with whom transactions have taken place during the year:

Mrs. Menaka S. Advani - Director and Relative

Mrs. Nina H. Advani - Relative

Ms. Lalita S. Advani - Relative

Mrs. Natasha Mirchandani - Relative

Mr. Jihan H. Advani - Relative

Mrs. Indira Thadani - Relative

Mrs. Rukmani G. Advani - Relative

Mrs. Sabrina D. Jhangiani - Relative

(e) Other related parties with whom transactions have taken place during the year:

Mr. K. Kannan - Non-executive Director

Mr. Prakash V. Mehta - Non-executive Director

Mr. Anil Harish - Non-executive Director

M/s. D.M. Harish & Co., Advocates (A Partnership firm wherein Mr. Anil Harish is a Partner)

M/s. Malvi Ranchoddas & Co. Solicitors & Advocates (A Partnership firm wherein Mr. Prakash V. Mehta is a Partner)

Sunder Advani Investments Private Limited (A Company wherein Mr. Sunder G. Advani and Mrs. Menaka S. Advani are Directors).

11. The Company has taken certain premises on operating lease. Hitherto the rentals were expensed out on straight line method. On a review, the management has changed the basis of charging the rentals from straight line basis to with reference to lease terms and other considerations. The change has not impacted the profits of the current year. The aggregate lease rentals payable are charged as rent in the Profit and Loss Account.

12. Additional information pursuant to the provisions of paragraphs 3 and 4 of Part - II and Part - IV of Schedule VI to the Companies Act, 1956 are given as under to the extent applicable:

Notes:

(a) The above Managerial Remuneration has been paid / provided in accordance with the resolutions approved by the shareholders of the Company in the Annual General Meeting held on September 26, 2007 read with the resolution passed by the Board of Directors in their meeting held on May 7, 2010. However, in view of inadequacy of profits for the year under consideration, the above remuneration exceeds the limits prescribed under the Companies Act, 1956 by Rs.5,008,490/- (Previous year Rs.5,007,200/-) and therefore, the Company is making an application to the Central Government for approval of waiver of the excess remuneration paid. Similar waiver for excess remuneration was approved by the Central Government vide approval dated January 20, 2011 for CMD and approval dated March 15, 2011 for ED.

(b) The above remuneration excludes provision for gratuity and leave availment since it is provided on an actuarial valuation of the Company's liability to all its employees.

(c) Since there is no commission paid or payable to the above managerial personnel in this year or previous year, computation of Net Profit under Section 198 (1) read with Section 349 of the Companies Act for the year ended March 31, 2011 is not applicable, hence not given.

(d) Payments to and Provisions for Employees of Rs.86,600,090/- (Previous year Rs.76,407,4107-) include Rs.296,396/- (Previous year Rs. Nil) payable to Mr. Prahlad S. Advani, Asset Manager and a relative of the Directors, in respect of which the Company has made an application to the Central Government for approval under Section 314 (1-B) of the Companies Act, 1956, which is awaited.

13. (a) During the year, the Company has sold its stake in its subsidiary viz. Advani Pleasure Cruise Company Private Limited (APCCPL) to Delta Corp Limited (the Acquirer) in terms of the Agreement dated September 20, 2010 at a consideration of Rs.24,501,000/-. In view of sale of shares as stated above, APCCPL is no longer a subsidiary of the Company with effect from September 20, 2010.

(b) The Company's other subsidiary Advani Flight Catering Services Private Limited, which had not commenced any business operations, has applied under the Easy Exit Scheme, 2011 to the Registrar of Companies, Goa for striking off its name under Section 560 of the Companies Act, 1956 and the final approval of dissolution is awaited.

(c) In terms of the Agreement for sale of shares referred to above, the Company had furnished a bank guarantee of Rs. 15,000,000/- to the Acquirer as and by way of security for the performance of its obligation to transfer the casino gaming license to APCCPL. The Company has fulfilled its obligation to transfer the casino gaming license after the close of the financial year and accordingly the bank guarantee of Rs. 15,000,000/- has since been cancelled.

14. Rent (Schedule J) includes Rs.7,800,000/- (Previous Rs. Nil) being amount deposited for Jetty Office equivalent to six months rent for the said Jetty office paid to Fisheries Dept., Government of Goa written off on pre-mature termination of leave and license agreement during the year. The aforesaid deposit is payable to the erstwhile subsidiary APCCPL in terms of the Share Purchase Agreement dated September 20, 2010, which has since been paid after the close of the year.

15. Previous year's figures have been recast / regrouped / rearranged, wherever necessary for comparison sake.


Mar 31, 2010

1. Benefits arising out of Duty Free Scrips, utilised for the acquisition of fixed assets are, with effect from April 1, 2009, being adjusted against the cost of the related asset, as against the practice hitherto followed of recognising the same as income. Consequent upon the change, miscellaneous income for the year is lower by Rs. 1,843,819/- with a corresponding deduction in the value of fixed assets, as also reduction in the depreciation thereon

2. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 541,680/- (Prev. year Rs. 15,763,930/-) net of advances.

3. Contingent liabilities not provided for in respect of:

(a) Claims against the Company not acknowledged as debts Rs. 5,603,834/- (Prev. year, net of counter claims, Rs. 8,785,164/-).

(b) Pending Bank Guarantees:

Current year Previous year Rupees Rupees

Bank Guarantees 6,785,484 7,885,484

(c) The Company has given a Corporate Guarantee of Rs. 84,000,000/- (Prev. year Rs.84,000,000/-) on behalf of its subsidiary Company M/s. Advani Pleasure Cruise Company Private Limited to Bank of Baroda, Mumbai. The Corporate Guarantee is 51% of the sanctioned loan amount of Rs. 164,000,000/- (Prev. year Rs.164,000,000/-). As on March 31, 2010, the guarantee stood at Rs. 80,117,060/- (Prev.year Rs.63,805,332/-) being 51% of the loan of Rs. 1,570,92,275/- (Prev. year Rs.125,108,495/-) availed by subsidiary Company. The above corporate Guarantee has since been extinguished after the close of the year.

(d) Demand raised by Income Tax authorities disputed by the Company in appeal and rectification proceedings, which are pending - Rs. 1,065,815/- (Prev. year Rs. 1,065,815/-).

(e) Demand raised by Sales tax and luxury tax authorities, disputed by the Company in appeal, which are pending amounting to Rs.1,215,646/- (Prev. year Rs. 5,881,182/-).

(f) Certain employees of the Companys flight catering unit i.e. Airport Plaza, which is sold in previous year have demanded higher wages with effect from August 01, 2006. The matter is pending in the Labour Court. Pending disposal of the matter, no provision has been made for the additional wages, as the amount is indeterminate.

4. There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at March 31, 2010. This is information as required to be disclosed under "The Micro, Small and Medium Enterprises Development Act, 2006" (the Act) has been determined to the extent such parties have been identified on the basis of information available with the Company,

6. The Unclaimed dividend for the year 2005-06, 2006-07 and 2007-08 aggregating to Rs.655,741/- (Previous Year Rs. 678,755/-) will be deposited at the appropriate time as and when applicable.

6. (a) Current Assets, Loans and Advances (Schedule "G") include Rs 91,045,154/- (Previous year Rs.635,231/-) due from the Subsidiary Company, viz. Advani Pleasure Cruise Company Private Limited, out of which Rs. 25,452,377/- (Prev.year Rs.635,231/-) is considered doubtful and provided for.

(c) Cash and Bank balances (Schedule "G") includes Rs. 129,056/- (Previous year Rs. 129,122/-) with Priyadarshini Mahila Co-op Bank Limited on Current Account. Maximum balance Rs.129,122/- (Previous Year Rs. 129,122/-).

(d) Duty Credit Scrips recognized in the Profit and Loss Account amount to Rs.Nil (Previous year Rs. 1,310,285/-) being on capital account is included under Other Income.

7. As the turnover of the company includes sale of food and beverage, it is not possible to give quantity-wise details of sale and consumption of food and beverage. The Department of Company Affairs vide its Order No. 46/183/2008-CL-lll dated 17th October, 2008 has exempted the Company from giving such details for the year ended March 31, 2008, March 31, 2009 and March 31, 2010.

8. Segment Reporting under Accounting Standard 17:

Hotel business is the Companys only business segment and hence disclosure of segment-wise information is not applicable under Accounting Standard 17 - "Segment Information".

Defined Benefit Plan

In respect of Employees Retiring Gratuity, the present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized on actuarial valuation basis.

Other details:

a. Gratuity is payable @ 15 days salary for each year of service subject to a maximum of Rs.350,000/-.

b. Leave is encashable on retirement / while in service/ maximum leave accumulation is a per companys scheme from time to time.

c. The above information is certified by the actuary.

d. Salary Escalation is considered as advised by the company which in line with the industry practice considering promotion and demand and supply of the employee.

e. Number of employees (average) 188 (Previous year 191).

f. Salary per month - Rs. 1,968,047/- (Previous year Rs. 1,949,253/-).

g. Contribution for next year - Rs. Nil (Previous year Rs. Nil)

11. Related Party Disclosures under Accounting Standard 18:

(a) Subsidiary Companies:

(i) Advani Pleasure Cruise Company Private Limited (51%) (ceased to be a subsidiary after the close of the year)

(ii) Advani Flight Catering Service Private Limited (100%)

(b) Parties where control exists: None

(c) Key Management Personnel:

Mr. Sunder G. Advani ... Chairman & Managing Director

Mr. Haresh G. Advani ... Executive Director

Mr. Prahlad S. Advani ... Manager - Asset Management and Relative (Son)

(d) Other parties being relatives of Key Management Personnel with whom transactions have taken place during the year:

Mrs. Menaka S. Advani ... Director and relative (Wife)

(e) Other related parties with whom transactions have taken place during the year: Mr. K. Kannan ... Non-executive Director

Mr. Prakash V. Mehta ... Non-executive Director Mr. Anil Harish ... Non-executive Director

D.M. Harish & Co., Advocates (A Partnership firm wherein Mr. Anil Harish is a partner)

M/s. Malvi Ranchhodas & Co. Solicitors & Advocates (A Partnership firm wherein Mr. Prakash V. Mehta is a partner)

9. (a) For the year ended 31.03.2009, a provision of Rs. 22,185,000/- was made for diminution in the value of the shares of the Companys in its subsidiary viz. Advani Pleasure Cruise Company Private Limited. Subsequent to the close of the accounting year ended 31.03.2010, the said shares have been sold by the Company to Delta Corp Limited (the Acquirer) in terms of the Agreement dated 20lh September, 2010 at a consideration of Rs. 24,500,000/-. Accordingly, the provision earlier made is now no longer required and has been written back. (Refer to Schedule J-1). Necessary entries for sale of shares and further expenses of approximately Rs. 85 lakhs relating thereto will be passed in the financial year 2010-2011.

(b) In view of sale of shares as stated above, Advani Pleasure Cruises Company Private Limited is no longer a subsidiary of the Company with effect from 20th September, 2010.

(c) In terms of the Agreement for sale of shares referred to above, the Company after the close of the year, furnished a bank guarantee of Rs. 15,000,000/- to the Acquirer as and by way of security for the performance of its obligation to transfer the casino gaming license to Advani Pleasure Cruises Company Private Limited by 20th December, 2010. The Company has made an application for transfer of the gaming license, which is under consideration of the concerned authorities. Accordingly, this amount of Rs. 15,000,000/- is a contingent liability not provided for.

(d) The Company has paid a security deposit of Rs. 7,800,000/- to the Government of Goa for Jetty Premises at Goa. In terms of the Agreement for sale referred to above, the Company is obliged to refund the above deposit to Advani Pleasure Cruise Co. Pvt. Ltd. on receipt of refund from the Government of Goa for which an application has been made, which is pending. The Company has provided for this liability in the enclosed accounts. (Refer Schedule J-1)

10. Previous years figures have been recast / regrouped / rearranged, wherever necessary for comparison sake.

 
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