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

Mar 31, 2023

Notes to Deferred Tax:

i) The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

ii) Significant management judgement is required in determining provision for income tax, deferred income tax assets and liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable income by each jurisdiction in which the relevant entity operates and the period over which deferred income tax assets will be recovered.

iii) In the previous year, the Company had recognised Deferred tax assets on unabsorbed business losses and unabsorbed Depreciation as it was confident that it would be able to generate sufficient taxable profits (post recovery from Covid -19 pandemic) against which these unabsorbed business losses and depreciation could be utilised.

Rights and terms attached to equity shares

(i) The Company has issued one class of shares referred to as Equity Shares having a par value of ? 2/-. Each holder is entitled to one vote per share.

(ii) 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.

(iii) 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.

Description of nature and purpose of each reserve:

(a) Capital Reserve: Capital reserve mainly consists of capital profit on sale of business undertaking and profit on re-issue of forfeited shares.

(b) Capital Redemption Reserve: Capital Redemption Reserve was created on redemption of Debentures in earlier years.

(c) Securities Premium: Securities premium represents the premium charged to the shareholders at the time of issuance of equity shares. The securities premium can be utilised based on the relevant requirements of the Companies Act, 2013

(d) General Reserve: The Company has transferred a portion of the net profit before declaring dividend to general reserve.

(e) Retained Earnings: Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.

(f) Other Comprehensive Income: This represents the cumulative actuarial gain and losses on remeasurement of the defined benefit plans.

i) The Saraswat Co-op. Bank Ltd. had sanctioned credit facilities comprising of term loan of ? 300.00 lakhs, overdraft facility of ? 1500.00 lakhs and non-funded Bank Guarantee provided of ? 100.00 lakhs, which are secured by a mortgage charge by deposit of title deeds of Company''s immovable property being Caravela Beach Resort Goa and pledge of shares of Saraswat Bank (Refer Note 7A).

ii) Particulars of terms of repayment of loans / rate of interest

A) Rate of Interest: PLR Less 5.75 bps, i.e. 8.75% p.a. at present

B) Repayment:

Overdraft: Repayable in 7 years or on demand with a moratorium of 2 years with reduction of ? 150.00 lakhs in each of the next financial year.

During the year, on the request of the Company, the term loan facility has been cancelled and the overdraft facility limit has been reduced to ? 100.00 lakhs.

The Company is not declared a willful defaulter by the bank from whom the above borrowing is taken.

The Company''s present borrowing from Bank as above are secured by mainly immovable property of the Company as mentioned above and not on the security of the Current Assets of the Company and Company is not required to submit any quarterly statement of Current Assets to the lender.

The Vehicle term loans taken from Bank in earlier years have been utilised for purchase of vehicles and have since been fully repaid during the year.

The operations of the Company''s hotel at Goa were temporarily closed for part of the previous year (May 4, 2021 to August 11,2021) due to COVID-19 pandemic attack which affected the revenue of previous year. Hence, the figures of the current year are not comparable with the figures of the previous year. Refer Note 35.

Other disclosures as per Ind AS 115: "Revenue from Contracts with Customers''''

i) Revenue from contracts with customers is recognised by the Company, net of indirect taxes.

ii) The Company derived its revenue from the transfer of goods and services over time in its major service lines.

iii) Contract balances: Advance collection is recognised when payment is received before the related performance obligation is satisfied. This includes advances received from customers towards hotel services. Revenue is recognised once performance obligation is met, i.e. on room stay, sale of food and beverages. provision of banquet & weddings and conference services. The particulars of contract balances outstanding are given in Note 23.

The Company has not surrendered or disclosed as income during the year or previous year, any transactions not recorded in the books of account in the tax assessment under the Income Tax Act, 1961.

The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year or previous year

1. The discount rate is based on the prevailing market yields of Indian Government securities as at the Balance Sheet date for the estimated term of obligations.

2. The estimates of rate of escalation in salary is considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market.

3. The gratuity plan is funded through Life Insurance Corporation of India and earned leave is unfunded.

27.2 In the year 2018 - 2019, an ex-employee of the Company, after receiving the Notice of termination with respect of her employment with the Company, made defamatory allegations against the Company and its Directors. The Company appointed legal advisors and the matter is being handled under their guidance and advice. A majority of the complaints filed by the ex-employee have been closed by the concerned authorities. The Company’s legal advisers are of the view that no other claims of the ex-employee are legally maintainable with respect to the Medico-Legal cases filed by the disgruntled ex-employee against the Company and its Directors. Furthermore, the Company and its Directors have filed Criminal and Civil Defamation Suits against the said ex-employee due to the defamatory allegations, etc. The respective authorities have passed Process Orders and a Charge-Sheet in the favour of the Company and its Directors.

27.3 The Company signed two wage settlement agreements during the year ended March 31, 2023 and thus closed four legal cases with the Employees Union for the period from February 2013 to March 2022 and paid arrears of '' 371.36 lakhs net of provision of '' 255.41 lakhs made in earlier years. Negotiations for the settlement of the third chartered of demands are in progress. The Company is hopeful for an early settlement.

27.4 The date of implementation of the Code on Social Security, 2020 (‘the Code’) relating to employee benefits is yet to be notified by the Government and when implemented will impact the contributions by the Company towards benefits such as Provident Fund, Gratuity, etc. The Company will assess the impact of the Code and give effect in the financial results when the Code and Rules thereunder are notified.

27.5 Refer Note 39 ( c ) for particulars of payment of remuneration to managerial personnel, which is included in the Employees Benefits Expenses.

32. CONTINGENT LIABILITIES

('' in Lakhs)

Particulars

As at March 31, 2023

As at March 31, 2022

a)

Claims against the Company not acknowledged as debts

65.66

65.16

b)

Pending Bank Guarantees

44.00

31.86

c)

Other Contingent liabilities:

A. In respect of claims against the Company pending appellate / judicial decisions, not acknowledged as debts:

i) Provident Fund dues and charges

7.03

7.03

ii) Customs Duty

102.19

102.19

iii) Annual Recurring Fees for the Casino - State Government (settled in full)

223.80

223.80

iv) Income-tax disputed in appeals / rectifications.

85.82

84.28

B. By Employees

240.84

120.66

Contd...

('' in Lakhs

Particulars

As at

March 31, 2023

As at

March 31, 2022

d)

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 availed by the Company. The Company has disputed the same. The Company has also filed a representation with the Ministry of Commerce, New Delhi on March 22, 2016 and February 22, 2017. No further communication has been received in response. Since from various State High Courts matters on similar issue are moving to the Supreme Court of India, the Company filed a petition before the Supreme Court of India for seeking the relief in the matter. The Company’s petition has been admitted and matter has been tagged to the other similar matters pending before the Court. The matter is pending disposal before the Supreme Court. As a consequence, the authorities have denied the export benefits available to the Company under Service Export Incentive Scheme (SEIS) for the year 2015-16 and 201617 aggregating to '' 41.24 lakhs for which necessary applications have been made by the Company. Since no approvals have been received so far and in view of denial referred to above, the value of benefits for the above years will be recognised in the Books of Accounts on getting the necessary approval from the Authorities.

460.73

460.73

e)

The Company expects a reimbursement of '' 10.00 lakhs (Previous year '' 10.00 lakhs) in respect of the above contingent liabilities.

f)

The Company is hopeful that on disposal of litigations as referred to in item (a) to (d) 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 further raised along with applicable interest thereon, which is presently unascertainable.

33. COMMITMENTS

('' in Lakhs

Particulars

As at

March 31, 2023

As at

March 31, 2022

a)

Estimated amount of Contracts remaining to be executed on capital account and not provided for (net of advances)

7.25

2.90

34. SEGMENT INFORMATION

Hotel business is the Company’s only business segment and hence disclosure of segment-wise information is not applicable under Indian Accounting Standard 108 -“Operating Segments”.

35. IMPACT OF COVID-19

The business for the first quarter of previous year was impacted due to the outbreak of third wave of COVID-19.

During the current year, the Company saw strong rebound in the business aided by leisure travel and gradual pickup in business travel. The Company will continue to closely monitor any material changes to future economic conditions on account of COVID-19 to assess any possible impact on the Company.

36. FINANCIAL RISK MANAGEMENT

36.1 Risk Management Framework

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s Risk Management Framework. The Board of Directors has established the Audit Committee, which is responsible for developing and monitoring the Company''s risk management policies. The Committee reports regularly to the Board of Directors on its activities.

The Company''s risk management policies are established to identify and analyse the risk faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company''s Audit Committee oversees how management monitors compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Audit Committee is assisted in its oversight role by the internal audit team. The internal audit team undertakes both regular and adhoc reviews of risk management controls and procedures and the results of which are reported to the audit committee.

The Company has exposure to the following risks arising from financial instruments:

• Credit Risk

• Liquidity Risk

• Market Risk

a) Credit Risk

Credit risk arises from the possibility that customers, or counterparty to financial instruments may not be able to meet their obligations. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial conditions, current economic trends, analysis of historical bad debts and ageing of accounts receivable. Credit risks arise from cash and cash equivalents, deposits with banks, financial institutions and others, as well as credit exposures to customers, including outstanding receivables.

The Company''s policy is to place cash, cash equivalents and short term deposits with reputable banks and financial institutions.

The Company has established a credit policy under which each new customer is analysed individually for credit worthiness before entering into a contract. Sale limits are established for each customer, reviewed regularly and any sales exceeding those limits require approval from the appropriate authority. There are no significant concentrations of credit risk within the Company.

b) Liquidity Risk

Liquidity risk is the risk that the Company may encounter in meeting the obligations associated with its financial liabilities, which are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions. This needs to be done without incurring unacceptable losses or risking damage to Company''s reputation.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times. Management also ensures that the Company does not breach borrowing limits or covenants on any of its borrowing facilities. Such forecasting takes into consideration the Company''s debt financing plans, covenant compliance and taking into consideration the internal statement of financial position ratio targets.

c) Market Risk

Market Risk is the risk that the changes in market prices such as foreign exchange rates, interest rates and equity prices will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

The Company uses derivatives to manage its exposure to foreign currency risk and interest rate risk. All such transactions are carried out within the guidelines set by the Risk Management Committee.

Foreign Currency Risk

The primary market risk to the Company is foreign exchange risk. The Company is exposed to foreign exchange risk through its purchases from overseas suppliers and payment of services availed in various foreign currencies. The Company pays off its foreign exchange exposure within a short period of time, thereby mitigating the risk of material changes in exchange rate of foreign currency exposure.

b) Fair Value Measurements

The carrying amount of financial assets and financial liabilities measured at amortised cost in the Financial Statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled. All the fair values as disclosed above have been determined on the basis of Level 3 hierarchy except in respect of investment in mutual funds which are determined on the basis of Level 1 hierarchy.

38. DIVIDEND

a) The dividends declared by the Company and approved by the Board of Directors are based on the profits and retained earnings available for distribution as reported in the Financial Statements of the Company.

b) The Board of Directors at its meeting held on May 19, 2023, has approved the payment of second Interim Dividend of '' 1.40 (70%) per share of face value of '' 2/- (Previous year '' 1.40 (70%)) for Financial Year 2022-23. The outgo for the Interim Dividend will be '' 647.07 lakhs. With this, the total Interim Dividend for the Year will be '' 3.40 (170%) per share of face value of '' 2/-(Previous Year '' 1.40 (70%). The total outgo for the two Interim Dividends will be '' 1571.46 lakhs (Previous year '' 647.07 lakhs).

40 OTHER MATTERS

a) From April 1,2022, based on advice received, the Company has considered the cost of operational items of circulating stock like

crockery, cutlery, glassware, silverware, linen, etc., which are issued as consumption cost. As a result of the above change in the accounting estimate, the net profit of the Company for the year ended March 31,2023 and value of closing inventory as at March 31, 2023 are lower by '' 64.60 lakhs and '' 64.60 lakhs respectively.

b) Refer note 38 (b) for Interim Dividend.

41 ADDITIONAL REGULATORY INFORMATION:

Following disclosures are made to the best of the information, knowledge and belief of the Management as required by sub-clause (L) of clause (6) of General Instructions for preparation of Balance Sheet in Division II of Schedule III to the Companies Act, 2013:

a) The Company has not made any loans or advances in the nature of loans to Promoters, Directors, KMPs and the related parties either severally or jointly with any other person during the year.

b) The Company has not entered into any transactions with companies struck off by the Registrar of Companies (ROC).

c) There were no charges, which were yet to be registered with ROC beyond the statutory period as on the close of the Financial Year. there was no satisfaction of charge as on March 31,2023, which was yet to be registered with ROC.

d) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

e) No funds have been received by the Company from any person(s) entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

f) The Company does not have any subsidiaries, joint ventures and associates during the year ended March 31,2023, hence, disclosure for compliance with number of layers of companies is not applicable.

g) The disclosure regarding effect of Scheme of Arrangements being accounted for in the Books of Accounts in accordance with the Scheme and accounting standards and deviations, if any is not applicable to the Company as no such Scheme was filed by the Company for approval before any authority.

h) Disclosures in respect of other items of the sub-clause (L) of clause (6) of General Instructions for preparation of Balance Sheet in Division II of Schedule III to the Companies Act, 2013 have been given elsewhere in the Financial Statements to the extent applicable to the Company.

. The Current Ratio is higher due to increase in Current Investment, which were invested out of increased profits in the current year.

ii Debt Equity Ratio has gone up due to utilisation of Overdraft Limit of '' 80 lakhs at the year-end.

iii Debt Service Coverage Ratio has increased due to increase in cash operating earnings of the current year over previous year.

iv Return on Equity Ratio has increased due to increase in the profit after tax for the current year.

Inventory Turnover Ratio has not been given since the Company holds inventory for the consumption in the service of food & beverage and the proportion of such inventory is insignificant to cost of goods sold.

Trade Receivable Turnover Ratio has increased with increase in volume of business and credit offered to various

vi parties during the current year.

vii Trade Payable Ratio has increased due to improved business volume during the current year.

iii Net Profit Ratio has improved during the current year with improvement in business volume and cost containment measures taken during the year.

ix Return on Capital Employed improved with improvement in operating margins during the current year.

* The Return on Equity shown here has been calculated by using the Average Shareholder''s Equity over the 12 month period and not as at March 31, 2023

Previous period figures have been re-grouped/ re-classified wherever necessary, to conform to current period''s 43 classification and to comply with the requirements of the amended Schedule III to the Companies Act, 2013 effective April 1, 2021.


Mar 31, 2021

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 availed by the Company. The Company has disputed the same. The Company has also filed a representation with the Ministry of Commerce, New Delhi on March 22, 2016 and February 22, 2017. No further communication has been received in response. Since from various State High Courts matters on similar issue are moving to the Supreme Court of India, the Company filed a petition before the Supreme Court of India for seeking the relief in the matter. The Company''s petition has been admitted and matter has been tagged to the other similar matters pending before the Court. The matter is pending disposal before the Supreme Court. As a consequence, the authorities have denied the export benefits available to the Company under Service Export Incentive Scheme (SEIS) for the year 2015-16 and 2016-17 aggregating to '' 4,123,884/- for which necessary applications have been made by the Company. Since no approvals have been received so far and in view of denial referred to above, the value of benefits for the above years will be recognised in the books of accounts on getting the necessary approval from the Authorities.

e) The Company expects a reimbursement of '' 1,000,000/- (Previous year '' 1,000,000) in respect of the above contingent liabilities

f) The Company is hopeful that on disposal of litigations as referred to in item (a) to (d) 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 further raised along with applicable interest thereon, which is presently unascertainable.

Notes: i) A demand of '' 7,962,070/- (Previous Year '' 7,962,070/-) was raised by the Income Tax Department on completion of AY 2011-12 by disallowing certain claims made by the Company. The Commissioner (Appeals) has deleted the disallowances made by the Income Tax Department and accordingly the above demand does not exists presently. The Income Tax Department had carried the matter further before the Income Tax Appellate Tribunal (ITAT) against the order of the Commissioner (Appeals). The appeal filed by the Income Tax Department has been dismissed by the ITAT vide Appellate Order dated June 3, 2019. Accordingly, the above demand does not survive now.

ii) The Income Tax Authorities have filed appeals against the orders passed by the ITAT for AY 2010-11,2011-12 and 2012-13 with the High Court, which are pending. The ITAT has allowed these appeals in favour of the Company. The Company has not been served with the appeal memo yet and it is not known against which relief appeals have been filed. Further, the tax effect in each of these appeals is less than the prescribed limits for not filing the appeals by the Income Tax Authorities. Hence, these appeals are liable to be withdrawn by the Income Tax Authorities for which an application has been made by the Company. In view of the above, no further provision is required to be made for any tax liability for the above 3 years.

34. SEGMENT INFORMATION

Hotel business is the Company''s only business segment and hence disclosure of segment-wise information is not applicable under Indian Accounting Standard 108 - “Operating Segments”.

35. IMPACT OF COVID-19

Covid-19 pandemic has impacted and continues to impact business operations were closed from March 25, 2020 till September 30, 2020 due to lockdown and restrictions imposed by the Government. The resort was operational from October 1,2020 till April 30, 2021 and again its operations were suspended effective from May 4, 2021 in view of second wave of COVID-19, which spread over the entire country.

In evaluating the impact of Covid-19 on its ability to continue as a going concern and its possible impact on its financial position, the management has assessed the impact of macro-economic conditions on its business and the carrying values of its major assets comprising of Property, Plant & Equipment, trade receivables, investments and other assets as at the balance sheet date. The management has carefully considered the circumstances and risk exposures arising from Covid-19 situation for developing estimates based on all available information in its assessment of impact thereof on its financial reporting.

As on the reporting date, the Company has liquid funds in mutual fund investment of '' 1203.68 lakhs besides undrawn sanctioned loan if needed of '' 1800.00 lakhs from a bank which is estimated as sufficient to meet. The estimated cash requirement during the next twelve months. Currently there are no debts.

Based on aforesaid assessment and the fact that the Company has no loan debts and enough liquid funds, the management believes that the Company will continue as a going concern and will be able to meet all is obligations as well as recover the carrying amount of its assets as on the balance sheet date.

Management believes that it has considered all the possible impact of known events arising from Covid-19 pandemic in the preparation of these financial statements. The associated economic impact is highly dependent on variables that are difficult to predict. The impact assessment of Covid-19 is a continuing process given the uncertainties associated with its nature and duration and actual results may differ materially from these estimates. The Company will continue to monitor any material changes to future economic conditions and any significant impact of these changes would be recognised in the financial statements as and when these material changes to economic conditions arise.

Risk Management Framework

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Board of Directors has established the Audit Committee, which is responsible for developing and monitoring the Company''s risk management policies. The Committee reports regularly to the Board of Directors on its activities.

The Company''s risk management policies are established to identify and analyse the risk faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company''s Audit Committee oversees how management monitors compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Audit Committee is assisted in its oversight role by the internal audit team. The internal audit team undertakes both regular and adhoc reviews of risk management controls and procedures and the results of which are reported to the audit committee.

The Company has exposure to the following risks arising from financial instruments:

• Credit Risk

• Liquidity Risk

• Market Risk

a) Credit Risk

Credit risk arises from the possibility that customers, or counterparty to financial instruments may not be able to meet their obligations. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial conditions, current economic trends, analysis of historical bad debts and ageing of accounts receivable. Credit risks arise from cash and cash equivalents, deposits with banks, financial institutions and others, as well as credit exposures to customers, including outstanding receivables.

The Company''s policy is to place cash, cash equivalents and short term deposits with reputable banks and financial institutions.

The Company has established a credit policy under which each new customer is analysed individually for credit worthiness before entering into a contract. Sale limits are established for each customer, reviewed regularly and any sales exceeding those limits require approval from the appropriate authority. There are no significant concentrations of credit risk within the company.

b) Liquidity Risk

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

Consistent with others in the industry, the Company monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by Equity. Net debt is calculated as total borrowings (including ‘current and non-current term loans'' as shown in the Balance Sheet) less cash and cash equivalents.

Liquidity risk is the risk that the Company may encounter in meeting the obligations associated with its financial liabilities which are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions. This needs to be done without incurring unacceptable losses or risking damage to Company''s reputation.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times. Management also ensures that the Company does not breach borrowing limits or covenants on any of its borrowing facilities. Such forecasting takes into consideration the Company''s debt financing plans, covenant compliance and taking into consideration the internal statement of financial position ratio targets.

c) Market Risk

Market risk is the risk that the changes in market prices such as foreign exchange rates, interest rates and equity prices will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

The Company uses derivatives to manage its exposure to foreign currency risk and interest rate risk. All such transactions are carried out within the guidelines set by the risk management committee.

Foreign Currency Risk

The primary market risk to the Company is foreign exchange risk. The Company is exposed to foreign exchange risk through its purchases from overseas suppliers and payment of services availed in various foreign currencies. The Company pays off its foreign exchange exposure within a short period of time, thereby mitigating the risk of material changes in exchange rate of foreign currency exposure.

Interest Rate Risk

The Company adopts a policy to hedge the interest rate movement in order to mitigate the risk with regards to floating rate linked loans based on the market outlook on interest rates. This is achieved partly by entering into fixed rate instruments and partly by borrowing at a floating rate and using interest rate swaps as hedges of the variability in cash flows attributable to interest rate risk.

b) Fair Value Measurements

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled. All the fair values as disclosed above have been determined on the basis of Level 3 hierarchy except in respect of investment in mutual funds which are determined on the basis of Level 1 hierarchy.

Events occurring after the reporting period:

There was further spread of COVID-19 in the second wave of infection in the months of March & April 2021. There were fresh restrictions and lockdown imposed by the Government. Consequently the operation of the Company''s resort at Goa were suspended temporarily from May 4, 2021 to ensure safety to the guests, employees and their families and to control the spread of corona virus.

Instance of financial irregularities in fraud committed:

An employee of the Company committed certain financial irregularities in the nature of fraud inter alia by misappropriation of money collected from sale of scrap and certain other manipulations and unauthorized acts aggregating to '' 1,239,509/- during the year. The Company has initiated required action and filed police complaint and first information report against the said ex-employee for forgery, falsification of documents and other criminal acts as advised. Pending completion of the investigation by the police, the Company has recovered an amount of '' 360,859/- and the balance unrecovered amount of '' 878,650/- as on March 31,2021 is due and recoverable from the said ex-employee, which is shown under ‘Other Current Assets'' in Note 10B. After the close of the financial year, the Company has further recovered '' 329,601/- out of the amounts recoverable and police investigation is in progress.

The previous year''s figures have been regrouped / reclassified, wherever necessary to conform to the current year''s presentation.


Mar 31, 2018

1. Company Overview and Significant Accounting Policies

1.1 Company overview

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 and National Stock Exchange. The Company is primarily engaged in the Hotel Business through its “Caravela Beach Resort”, a five-star Deluxe Resort situated in South Goa.

1.2 Basis of preparation of financial statements

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under the historical cost convention on the accrual basis except for certain financial instruments, which are measured at fair values, and the provisions of the Companies Act, 2013 (‘Act’). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.

The Company has adopted all the Ind AS standards and the adoption was carried out in accordance with Ind AS 101, First time adoption of Indian Accounting Standards. The transition was carried out from Indian Accounting Principles generally accepted in India as prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (IGAAP), which was the previous GAAP.

These financial statements are the first financial statements of the Company under Ind AS. Reconciliations and descriptions of the effect of the transition has been summarized in note 2.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

1.3 Functional & Presentation Currency

These financial statements are presented in Indian Rupees (INR), which is also the company’s functional currency.

1.4 Use of estimates

The preparation of the financial statements in conformity with Ind AS requires management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. Although these estimates are based on the management’s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.

2. FIRST-TIME ADOPTION OF IND AS

I. First-time adoption of Ind AS

a) These are company’s first financial statements prepared in accordance with Indian Accounting Standards Ind AS. The Company has adopted all the Ind AS and the adoption was carried out in accordance with Ind AS 101 ‘First time adoption of Indian Accounting Standards’. The transition was carried out from Generally Accepted Accounting Principles in India (Indian GAAP) as prescribed under Section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules, 2014, which was the “Previous GAAP”.

b) The significant accounting policies set out in Note 1 have been applied in preparing the financial statements for the year ended March 31, 2018; March 31, 2017 and the opening Ind AS balance sheet on the date of transition i.e. April 1, 2016.

c) In preparing its Ind AS opening balance sheet as at April 1, 2016 and in presenting the comparative information for the year ended March 31, 2017, the Company has adjusted amounts previously reported in the financial statements prepared in accordance with Previous GAAP, and how the transition from Previous GAAP to Ind AS has affected the Company’s financial position, financial performance and cash flows.

d) This note explains the principal adjustments made by the Company in restating its previous GAAP financial statements to Ind AS, in the opening balance sheet as at April 1, 2016 and in the financial statements as at and for the year ended March 31, 2017.

II. Optional exemptions from retrospective application

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under

Ind AS. The Company has applied the following exemptions:

a) Deemed cost for Property, Plant and Equipment (PPE), Intangible assets: The Company has elected to measure all the items of PPE and intangible assets at its previous GAAP carrying values, which shall be the deemed cost as at the date of transition. As per FAQs issued by Accounting Standards Board (ASB) by Ind AS Transition Facilitation Group of Ind AS (IFRS) Implementation Committee of ICAI, deemed cost, is the amount used as a surrogate for the cost or depreciated cost and for the purpose of subsequent depreciation or amortisation, deemed cost becomes the cost as the starting point. Information regarding gross block of assets, accumulated depreciation and provision for impairment under Previous GAAP has been disclosed in Note 3 forming part of the financial statements.

b) Long Term Foreign Currency Monetary Items: Paragraph D13AA of Ind AS 101 permits a first time adopter of Ind AS to continue the policy adopted for accounting for exchange difference arising from translation of long term foreign currency monetary items recognised in the financial statement as per the previous GAAP. The Company opted for this exemption and accordingly, it did not make any adjustment to the foreign exchange loss of Rs. 4,06,989/- capitalised to various items of Property, Plant and Equipment in the financial year ended March 31, 2017.

c) Derecognition of financial assets and financial liabilities: The Company has elected to use the exemption for derecognition of financial assets and financial liabilities prospectively i.e. after April 1, 2016.

III. Mandatory exemptions from retrospective application

The Company has applied the following exceptions to the retrospective application of Ind AS as mandatorily required under

Ind AS 101:

a) Estimates: On assessment of the estimates made under the Previous GAAP financial statements, the Company has concluded that there is no necessity to revise the estimates under Ind AS, as there is no objective evidence of an error in those estimates. However, estimates that were required under Ind AS but not required under Previous GAAP are made by the Company for the relevant reporting dates reflecting conditions existing as at that date.

b) Classification and measurement of financial assets: The classification of financial assets to be measured at amortised cost or fair value through other comprehensive income is made on the basis of the facts and circumstances that existed on the date of transition to Ind AS.

IV Transition to Ind AS - Reconciliations

The following reconciliations provide the explanations and quantification of the differences arising from the transition from Previous GAAP to Ind AS in accordance with Ind AS 101:

a) Effect of Ind AS adoption on the balance sheet as at April 1, 2016 and March 31, 2017 Note 38A & 38B

b) Reconciliation of total equity as at March 31, 2017 and April 1, 2016 Note 38C

c) Reconciliation of Statement of Profit and Loss for the year ended March 31, 2017 Note 38D

d) Reconciliation of total comprehensive income for the year ended March 31, 2017 Note 38E

e) Adjustments to Statement of Cash flows for the year ended March 31, 2017 Note 38F

V Notes to Reconciliations:

a) Remeasurement of defined benefit plans

Both under previous GAAP and Ind AS, the Company recognised costs related to its post-employment defined benefit plan on an actuarial basis. Under previous GAAP, the entire cost, including actuarial gains and losses, are charged to statement of profit and loss. Under Ind AS, remeasurements (comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets excluding amounts included in net interest on the net defined benefit liability) are recognised to retained earnings through OCI. Thus, remeasurements loss has been reduced from the net profit of the FY 2016-17 and has been recognised in OCI (net of tax). This has no resulting impact on equity.

b) Deferred Taxes

Under previous GAAP, deferred tax accounting was done using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Under Ind AS, accounting of deferred taxes is done using the Balance Sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base.

c) Fair Valuation of Security Deposit

Under previous GAAP, Interest Free Security Deposit are recorded at their transaction value. Under Ind AS all financial assets are to be recognised at fair value at initial recognition and subsequently at amortised cost. Accordingly, company has fair valued these security deposit under Ind AS. Difference between Fair Value and Transaction value has been recognised as Deferred rent.

d) Reclassification of freehold land to Investment Property

The Company has reclassified certain items of assets and liabilities to comply with the requirements of Ind AS. This has no impact on equity and net profit.

e) Government Grant being State Incentive Subsidy

The Company received Capital Subsidy of Rs. 25,00,000/- from State Government by way of incentive to set up a hotel project in Goa in the year 1987-88, which was included as part of Capital Reserve under the previous GAAP. Though the said subsidy was not specific to any depreciable asset, the same was used for setting up of the hotel project. Since the depreciable assets acquired during the period when the hotel project was set up in 1987-88 have been fully depreciated now, the amount of the said subsidy has been transferred from capital reserve to retained earnings as part of Ind AS adjustments on April 1, 2016.

Notes:

3.1 Refer Note 2 (II) (a) for exemption availed.

3.2 Additions to Fixed Assets include Rs. 406,989 /- (Previous Year Rs. 3,329,526/-) being loss due to fluctuation in foreign currency rates (in relation to foreign currency loans) capitalised in accordance with Accounting Standard-11 Notification under previous GAAP Refer Note 2 (II)(b) for exemption availed in respect of accounting of the foreign exchange difference as per existing accounting policy under previous GAAP.

3.3 On transition to Ind AS, carrying value of Property, Plant and Equipment under the previous GAAP is considered as the deemed cost under Ind AS. Breakup of the said Gross block as at April 1, 2016 is as under:

Notes to Deferred Tax:

i) The company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

ii) In India, in case income tax payable on book profit (that is Minimum alternate tax - ‘MAT’) exceeds the income tax payable on tax profit, the differential amount shall be carried forward as a MAT credit for a period of 15 years. The said MAT credit can be offset against any future income tax payable. The Company does not have any such MAT credit as at March 31, 2018 or March 31, 2017 or April 1, 2016.

iii) Significant management judgement is required in determining provision for income tax, deferred income tax assets and liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable income by each jurisdiction in which the relevant entity operates and the period over which deferred income tax assets will be recovered.

4.1 Margin Money Deposit of Rs. 2,497487/- in the previous year included Rs. 1,435,716/-, which were with a maturity period exceeding 12 months, now regrouped under Other Non Current Assets in Note 8.

5.1 Rights and terms attached to equity shares

(i) 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.

(ii) 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.

(iii) 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

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

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

6.1 Nature of Securities:

i) Term Loans were secured by a mortgage by deposit of title deeds of 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. All the loans have been fully repaid in the financial year ended March 31, 2017.

ii) Vehicle loans are secured by hypothecation of respective vehicles.

iii) Cash Credits from Bank of Baroda and Bank of India were secured by hypothecation of Company’s inventories of stocks, stores and provisions, goods in transit and other moveable items and book debts. Cash Credits from them have been fully repaid during the year and the Company has requested the said banks to close the said facilities.

iv) Working Capital facilities including Cash Credit limit from Axis Bank are secured by exclusive first hypothecation charge on the current assets, present and future and further secured by collateral security by extension of exclusive first charge on entire movable fixed assets, present and future, (excluding vehicles) and first charge by way of mortgage on hotel property at Varca, Goa.

NOTES:

1. The discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated term of obligations.

2. The estimates of rate of escalation in salary is considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market.

3. The gratuity plan is funded through Life Insurance Corporation of India and earned leave is unfunded.

7. OPERATING LEASE ARRANGEMENTS

a) 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.

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

8. SEGMENT INFORMATION

Hotel business is the Company’s only business segment and hence disclosure of segment-wise information is not applicable under Indian Accounting Standard 108 - “Operating Segments”.

9. FINANCIAL RISK MANAGEMENT

9.1 Risk Management Framework

The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Board of Directors has established the Audit Committee, which is responsible for developing and monitoring the Company’s risk management policies. The Committee reports regularly to the Board of Directors on its activities.

The Company’s risk management policies are established to identify and analyse the risk faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company’s Audit Committee oversees how management monitors compliance with the Company’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Audit Committee is assisted in its oversight role by an internal audit team. Internal audit team undertakes both regular and adhoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

The Company has exposure to the following risks arising from financial instruments:

- Credit Risk

- Liquidity Risk

- Market Risk

a) Credit Risk

Credit risk arises from the possibility that customers or counterparty to financial instruments may not be able to meet their obligations. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, analysis of historical bad debts and ageing of accounts receivable. Credit risks arise from cash and cash equivalents, deposits with banks, financial institutions and others, as well as credit exposures to customers, including outstanding receivables.

The Company’s policy is to place cash and cash equivalents and short term deposits with reputable banks and financial institutions.

The company has established a credit policy under which each new customer is analysed individually for creditworthiness before entering into contract. Sale limits are established for each customer, reviewed regularly and any sales exceeding those limits require approval from the appropriate authority. There are no significant concentrations of credit risk within the company.

b) Liquidity Risk

Liquidity risk is the risk that the Company will encounter if there is difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to Company’s reputation.

Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times. This is done so that the Company does not breach borrowing limits or covenants on any of its borrowing facilities. Such forecasting takes into consideration the Company’s debt financing plans, covenant compliance and compliance with internal statement of financial position ratio targets.

Capital Risk Management

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

Consistent with others in the industry, the Company monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by Equity. Net debt is calculated as total borrowings (including ‘current and noncurrent term loans’ as shown in the balance sheet) less cash and cash equivalents.

c) Market Risk

Market risk is the risk that the changes in market prices such as foreign exchange rates, interest rates and equity prices will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

The Company uses derivatives to manage its exposure to foreign currency risk and interest rate risk. All such transactions are carried out within the guidelines set by the risk management committee.

Foreign Currency Risk

The primary market risk to the Company is foreign exchange risk. The Company is exposed to foreign exchange risk through its purchases from overseas suppliers and payment of services availed in various foreign currencies. The Company pays off its foreign exchange exposure within a short period of time, thereby mitigating the risk of material changes in exchange rate of foreign currency exposure.

The following tables displays foreign currency risk from financial instruments as at March 31, 2018 and March 31, 2017:

For the year ended March 31, 2018 and March 31, 2017, the effect of every percentage point of depreciation and appreciation in the exchange rate between the Indian Rupees and respective foreign currency, is as under:

Interest Rate Risk

The Company adopts a policy to hedge the interest rate movement in order to mitigate the risk with regards to floating rate linked loans based on the market outlook on interest rates. This is achieved partly by entering into fixed rate instruments and partly by borrowing at a floating rate and using interest rate swaps as hedges of the variability in cash flows attributable to interest rate risk.

b) Fair Value Measurements

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled. All the fair values as disclosed above have been determined on the basis of Level 3 hierarchy.

10. DIVIDEND

The dividends declared by the Company are based on the profits available for distribution as reported in the financial statements of the Company.

ii) Proposed Dividend

The Board of Directors of the Company at its meeting held on May 17, 2018 has recommended a payment of final dividend of 10 percent, i.e. Rs. 0.20 per equity share of Rs. 2/- each for the financial year ended March 31, 2018. The final dividend as above is subject to the approval of the shareholders at the ensuing Annual General Meeting and hence is not recognised as a liability in the enclosed financial statements. If approved, the above dividend would result into a cash outflow of Rs. 11,143,960/-, inclusive of dividend distribution tax of Rs. 1,900,110/-.

11. RELATED PARTY DISCLOSURES

(a) Related parties

i) Subsidiary Company: None

ii) Parties where control exists: None

iii) Key Management Personnel:

Mr. Sunder G. Advani Chairman & Managing Director

Mr. Haresh G. Advani Executive Director (Whole-time Director)

Mr. Prahlad S. Advani Director Operations (Whole-time Director)

Mr. Nilesh Jain Company Secretary

Mr. Shankar Kulkarni Chief Financial Officer

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

Mrs. Menaka S. Advani Non-Executive Director and relative

Mrs. Nina H. Advani Non-Executive Director and relative

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

M/s. D. M. Harish & Co., Advocates A Partnership firm wherein relative of Mr. Adhiraj Harish,

Non-Executive Director of the Company, is a partner.

M/s. Malvi Ranchoddas & Co. Solicitors & Advocates A Partnership firm wherein Mr. Prakash Mehta, NonExecutive Director of the Company, is a partner.

M/s. S. D. Israni Law Chambers A Law firm wherein Mr. S. D. Israni, Non-Executive

Director of the Company, is a partner.

12A. Adjustments to Statement of Cash flows:

There were no material differences between the Statement of Cash Flows presented under Ind AS and the previous GAAP.


Mar 31, 2016

1. The Company has issued one class of shares referred to as equity shares having a par value of '' 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.. I n 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 immovable properties of the Company situated at Varca Village, 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, at our request Bank of India has converted a part of the Rupee Loan amounting to Rs.Nil (Previous year Rs.15,800,000/-) into Foreign Currency Loan.

8. Vehicle loans are secured by hypothecation of respective vehicles.

9 Out of the above, in the previous year, an amount of Rs.2361,092/- being Deferred tax liability, in respect of depreciation adjustment in accordance with transitional provisions of Schedule II to the Companies Act, 2013 was adjusted against the opening retained earnings in Note 4 above.

10. 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.

NOTES:

11. Capital Work in Progress includes expenses of Rs.6,065,816/- (Previous year Rs.6,110,229/-) incurred on renovation/refurbishing of the hotel, pending completion of the work (pending allocation).

12. Additions to Fixed Assets include Rs. 3,329,526/- (Previous Year Rs.1,911,541/-) being loss due to fluctuation in foreign currency rates (in relation to foreign currency loans) capitalized in accordance with Accounting Standard-11 Notification.

13. Depreciation for the year includes ? Nil (Previous Year ? 7,276,090/-) in respect of carrying amount of assets whose useful life is over as on 1st April, 2014, adjusted against the opening retained earnings in Note 4 in terms of transitional provisions of Schedule II to the Companies Act, 2013.

14 The Company had made an investment of Rs.143,000,000/- (Previous Year Rs.7,000,000/-) in 142,537 units (Previous Year 6977.324 units) of SBI Premier Liquid Fund (Daily Dividend) and of Rs.5,500,000/- (Previous Year Rs.Nil) in 5472 units (Previous Year Nil units) of SBI Short Term Ultra Debt Fund (Daily Dividend) as current investment during the year, which was fully redeemed during the year itself.

15. Other Supplies and Expenses of Rs.11,350,348/- (Previous Year Rs.8,617,503/-) includes Rs.1,065,619/- (Previous Year Rs.880,981/-) and Consultancy, Legal and Professional charges of Rs.11,670,577/- (Previous Year Rs.12,072,741/-) includes '' 975,629/- (Previous Year Rs.986,623/-) in respect of expenses incurred on Spa and Ayurveda Operating charges respectively.

16. COMMITMENTS:

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.1,536,472/-(Previous Year Rs.1,440,452/-) 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.

17. CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF:

a) Claims against the Company not acknowledged as debts Rs.8,445,679/- (Previous Year Rs.6,216,374/-).

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 License 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 disposal of appeal by 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 Government against the above liability.

d) The Department of Home, Goa issued demand letter dated July 10, 2014 and September 8, 2014 requiring the Company to pay Rs.22,380,246/- (Previous year Rs.22,380,246/-) towards annual recurring fee 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 replies to the said notices denying the liability. The Department of Home, Goa has issued a show notice dated November 19, 2015 for recovery of the said amount, which has been disputed by the Company and a suitable reply has been filed with the Department of Home, Goa on March 8, 2016.

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 Rs.16,189,700/-), Rs.18,923,016/- (Previous year Rs.18,923,016/-) and Rs.10,960,269/- (Previous year Rs.10,960,269/-) respectively availed by the Company. The Company has disputed the same. The Company has also filed a representation with the Ministry of Commerce, New Delhi on March 22, 2016 and no further communication has been received in response thereto.

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

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.4,72,598/- (Previous year Rs.4,72,598/-) under section 14B of the Employees Provident Fund & Miscellaneous Provisions Act,1952 and interest of Rs.2,30,840/- (Previous Year '' 2,30,840/-) under Section 7-Q of the aforesaid Act as the same are disputed and appeal has been filed, which is pending before the Employees Provident Fund Appellate Tribunal.

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 alleged 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 and directed the Company to pay the differential duty of Rs.4,259,549/- (Previous year Rs.4,259,549/-) being the duty forgone on the aforesaid imports along with 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 Rs.4,959,549/-) 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 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. Likewise, certain employees of the Company''s hotel have also claimed certain benefits and filed complaints before labour commissioner/court at Goa, which are pending at various stages. The aggregate claims have been estimated by the Company at Rs.8,635,000/- (Previous Year Rs.8,635,000/-). Pending disposal of these matters, no provision has been made for these additional benefits/claims.

l) The Company has received show cause cum demand notice dated February 1, 2016 for FY 2011-12, 2012-13 and 2013-14 from Service Tax Department demanding total amount of Rs.3,673,342/- plus interest and penalty (Previous Year Rs. Nil). The Company has not accepted this demand and has filed a suitable reply, which is pending.

m) The Company is hopeful that on disposal of litigations as referred to in item (a) to (l) 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 further raised along with applicable interest thereon, which is presently unascertainable.

18. 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, 2016. This 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 (Refer Note 9.1)

19. The Company has paid Rs.1,50,000/- (Previous Year Rs.1,50,000/-) and Rs.30,000/- (Previous year is Rs.30,000/-) and service tax of Rs.25,200/- (Previous Year Rs.22,248/-) thereon to a partner of the auditors for tax audit fee and for attending to taxation matter respectively.

20. The Unclaimed dividend for the year 2009-10, 2010-11, 2011-12, 2012-13, 2013 -14, 2014-15 and 2015-16 aggregating to Rs.1,515,690/- (Previous Year Rs.1,555,692/-) will be deposited at the appropriate time as and when applicable.

21. 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”.

21. 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. During the year under reference, the Company funded its gratuity liability through a Group Gratuity Fund administered by Life Insurance Corporation of India and paid Rs.13,000,000/- (Previous Year Nil) as initial contribution including for past services. The obligation for leave encashment is recognized on actuarial valuation basis.

22. 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 172).

(vi) Salary per month - Rs.3,711,107/- (Previous year Rs.3,620,030/-).

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

(viii) In addition to the provision made for gratuity as per actuarial 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.

h Mr Sunder G. Advani and Mr Haresh G Advani were reappointed as the Managing Director (CMD) and Executive Director (ED) of the Company respectively for five years i.e. March 1, 2013 to February 28, 2018 by the Special resolutions passed by the Shareholders of the Company at the 25th Annual General Meeting held on September 17, 2012. The Ministry of Corporate Affairs (MCA) has approved their re-appointment for five years up to February 28, 2018 and payment of remuneration to them for three years up to February 29, 2016. The Company has made an application to the Central Government on December 30, 2015 for approval for payment of remuneration to CMD for the balance period from March 1, 2016 under section 196 and other applicable provisions of the Companies Act, 2013, which is pending. Similar application is being made for ED. The managerial remuneration to the extent of Rs.5.24 lakhs to CMD and Rs.2.24 lakhs to ED is in excess of the specified limits for the period up to 31st March 2016. The CMD and the ED will respectively hold the aforesaid monies in trust pending refund thereof to the Company.

23 LEASE:

24.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.

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

26. Note: The above foreign exchange earnings include an amount of Rs.14,404,563/-, for which declaratory certificates are awaited from Travel Agents.

27. COMPARATIVE FIGURES OF PREVIOUS YEAR:

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


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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