Home  »  Company  »  EIH Associated  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of EIH Associated Hotels Ltd.

Mar 31, 2016

1. Contingent Liabilities and Commitments (to the extent not provided for)

a) Claims against the Company not acknowledged as debts pending appellate / judicial decisions :

The Management believes that the outcome of the above will not have any material adverse effect on the financial position of the Company.

b) Guarantees :

Counter guarantees issued to banks and remaining outstanding Rs, 3.84 Million (2015 - Rs, 3.97 Million).

c) Capital Commitments :

The estimated amount of contracts remaining to be executed on Capital Account and not provided for net of advances Rs, 16.09 Million (2015 - Rs, 51.70 Million).

2. The method of determining cost for valuation of inventories has been changed from ''First-in-First-out'' to ''Cumulative Weighted Average'' during the current year. As a result of this change, the profit of the Company for the year ended 31st March, 2016 is higher by '' 0.50 Million. Unserviceable/damaged/discarded stocks and shortages are charged to the Statement of Profit and Loss as per past practice.

3. The Company has adopted useful life of fixed assets as stipulated by Schedule II to the Companies Act, 2013 except for the hotel buildings for computing depreciation. In the case of the hotel buildings of the Company, due to superior structural condition, management decided to assess the balance useful life by independent technical expert. As per the certificates of the technical expert as on 31.03.2015, the balance useful life of the hotel buildings of the Company ranges between 50 to 60 years. The carrying amount of each of the hotel buildings is being depreciated over its residual life. Leased vehicles are mortised over their respective lease period or five years, whichever is earlier. Long Term Leasehold lands are mortised over respective lease period(s).

4. Traded Goods:

a. Inventory of Stores & Operating Supplies includes Boutique Stock at year end Rs, 2.89 Million (2015 - Rs, 2.05 Million). Corresponding opening stock Rs, 2.05 Million (2015 - Rs, 1.41 Million)

b. Other Services includes revenue from sale of Boutique Stock at year end Rs, 18.27 Million (2015 - Rs, 19.72 Million)

c. Purchases include purchase of Boutique Stock during the year Rs, 12.54 Million ( 2015 - Rs, 13.88 Million).

a) Company is required to spend of Rs, 7.21 Million (2015 - Rs, 5.80 Million ) on account of CSR activities during the year ended 31st March, 2016 under section 135 of the Companies Act, 2013.

5. Segment Reporting:

As the Company''s activity is limited to hotels, there is no separate reportable segment as per the Accounting Standard (AS-17) on "Segment Reporting".

6. Related Party Disclosures:

The details of transactions entered into with Related Parties during the year are as follows: (A) NAMES OF THE RELATED PARTIES I. Key Management Personnel & their relatives

Mr. Vikram Oberoi - Managing Director Mr. P.R.S. Oberoi - Relative of Mr Vikram Oberoi Mr. Samidh Das - Chief Financial Officer Ms. Indrani Ray - Company Secretary

a. Fixed Assets as on 31.03.2016 includes assets acquired under finance lease amounting to Rs, 15.65 Million (2015 - Rs, 18.47 Million ). This includes an amount of Rs, 3.60 Million (2015 - Rs, 0.65 Million ) being assets acquired during the year under finance lease and capitalized in line with the requirement of Accounting Standard (AS-19) on "Accounting for Leases". Depreciation for the year includes an amount of Rs, 3.60 Million (2015 - Rs, 4.48 Million) being depreciation charged on these assets.

b. Disclosures in respect of Company''s operating lease arrangements entered on or after 1st April, 2001 under Accounting Standard (AS-19) on "Leases":

General description of the Company''s operating lease arrangements:

i) The Company has entered into operating lease arrangements for:

a. residential premises for its employees and

b. shops, office space and residential premises given on operating lease to third parties.

Some of the significant terms and conditions of the arrangements are:

- Lease agreements are not non-cancellable in nature and may generally be terminated by either party by serving a notice;

- The lease agreements are generally renewable by mutual consent on mutually agreeable terms.

ii) Rent in respect of the above is charged/credited to the Statement of Profit and Loss.

7. The previous year''s figures have been regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year Financial Statements and are to be read in relation to the amounts and other disclosures relating to the current year.

Chairperson of two committees

( ) Numbers within brackets represent participation in meetings through video-conferencing @ Only Audit Committee and Stakeholders Relationship Committee has been considered as per Regulation 26 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations")


Mar 31, 2015

1. Shares allotted as fully paid up pursuant to contract(s) without payment being received in cash :

Of the above 30,468,147 (2014 - 30,468,147) Equity shares, 9,086,666 (2014 - 9,086,666) Equity shares of Rs. 10 each have been allotted as fully paid up in 2006 - 2007 pursuant to scheme of Amalgamation of Indus Hotels Corporation Limited with the Company without payments being received in cash.

2. a) The Company has adopted useful life of fixed asset as stipulated by Schedule II to the Companies Act, 2013 except for as stated below:

i. In case of hotel buildings of the Company, due to superior structural condition, management decided to assess the balance useful life by independent technical expert. Based on the certification of the technical expert the carrying amount of the hotel buildings after setting aside residual values are being depreciated over residual life ranging from 50 to 60 years. Had the Company continued to compute depreciation at the same method and rates as applied in the previous year, depreciation charge for the current year would have been lower by Rs. 48.30 Million.

ii. Leased Vehicles - over their respective lease period or five years, whichever is earlier.

iii. Long Term Leasehold Lands are amortised over their respective lease period(s).

b) Depreciation for the year as per statement of Profit and Loss includes Rs. 0.46 Million ( 2014 - Rs. 0.46 Million) being depreciation on the increased value of land & building due to the effect of revaluation in line with the 'Application Guide on the Provisions of schedule II to the Companies Act, 2013' of the Institute of Chartered Accountants of India. Equivalent amount has also been transferred from Revaluation Reserve to General Reserve. Corresponding figure of Rs. 0.46 Million in the previous year was adjusted from Revaluation Reserve.

3. Contingent Liabilities and Commitments (to the extent not provided for)

a) Claims against the Company not acknowledged as debts pending appellate / judicial decisions :

As at 31st March 2015 2014 Rupees Rupees Million Million

1 Land & Building, Property Tax and Water Tax 14.46 7.48

2 Value Added Tax 26.12 9.26

3 Excise Duty 0.08 0.08

4 Service Tax 72.36 72.36

5 Luxury Tax 29.59 17.05

6 Income Tax 17.16 30.45

7 other Claims 1.33 1.00

The Management believes that the outcome of the above will not have any material adverse effect on the financial position of the Company.

b) Guarantees :

(i) Counter guarantees issued to banks and remaining outstanding Rs. 3.97 Million (2014 - Rs. 3.42 Million).

c) Capital Commitments :

The estimated amount of contracts remaining to be executed on Capital Account and not provided for net of advances Rs. 51.70 Million (2014 - Rs. 5.46 Million).

4. Current Tax

The Company has calculated its tax liability for the year and adjusted the same fully against Minimum Alternative Tax (MAT), resulting in no additional tax expenses for the year (2014 - Rs. Nil).

5. Traded Goods:

a. Inventory of Stores & Operating Supplies includes Boutique Stock at year end Rs. 2.05 Million (2014 - Rs. 1.41 Million). Corresponding opening stock Rs. 1.41 Million (2014 - Rs. 1.55 Million)

b. Other Services includes revenue from sale of Boutique Stock at year end Rs. 19.72 Million ( 2014 - Rs. 27.38 Million)

c. Purchase include purchase of Boutique Stock during the year Rs. 13.88 Million (2014 - Rs. 19.10 Million).

6. Segment Reporting:

As the Company's activity is limited to hotels, there is no separate reportable segment as per the Accounting Standard (AS-17) on "segment Reporting".

6. Leases:

a. Fixed Assets as on 31.03.2015 includes assets acquired under finance lease amounting to Rs. 18.47 Million (2014 - Rs. 22.88 Million). This includes an amount of Rs. 0.65 Million (2014 - Rs. 5.09 Million ) being assets acquired during the year under finance lease and capitalised in line with the requirement of Accounting Standard (AS-19) on "Accounting for Leases". Depreciation for the year includes an amount of Rs. 4.48 Million (2014 - Rs. 6.09 Million) being depreciation charged on these assets.

b. Disclosures in respect of Company's operating lease arrangements entered on or after 1st April, 2001 under Accounting Standard (AS-19) on "Leases":

General description of the Company's operating lease arrangements:

i) The Company has entered into operating lease arrangements for:

a. residential premises for its employees and

b. shops, office space and residential premises given on operating lease to third parties.

Some of the significant terms and conditions of the arrangements are:

* Lease agreements are not non-cancellable in nature and may generally be terminated by either party by serving a notice;

* The lease agreements are generally renewable by mutual consent on mutually agreeable terms.

ii) Rent in respect of the above is charged/credited to the Statement of Profit and Loss.

7. The previous year's figures have been regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year Financial Statements and are to be read in relation to the amounts and other disclosures relating to the current year.


Mar 31, 2013

1.depreciation

a) Depreciation has been provided for in the Accounts on "Straight Line Method" at the rates prescribed in Schedule XIV to the Companies Act, 1956, except for as stated below:

i. Buildings at Regent Estate, Shimla - over the lease period(s).

ii. Leased Vehicles - over their respective lease period or five years, whichever is earlier.

iii. Long Term Leasehold Lands are amortised over their respective lease period(s).

b) Depreciation for the year includes amortisation on revalued leasehold land acquired pursuant to Scheme of Amalgamation (Note 31 ) amounting to Rs. 1.27 Million ( 2012 - Rs. Nil ) out of which Rs. 0.46 Million ( 2012 - Rs. Nil ) has been adjusted against Revaluation Reserve.

2. Highlights of scheme of Amalgamation sanctioned by Hon''ble Madras High Court on 6th February, 2013

a) Particulars of amalgamating companies:

Pursuant to a Scheme of Amalgamation ("the sanctioned Scheme") under sections 391 to 394 of the Companies Act, 1956, sanctioned by Hon''ble Madras High Court on 6th February, 2013, Island Hotel Maharaj Limited ("the Transferor Company") having one hotel at Cochin, namely "Trident, Cochin" has been amalgamated with the Company i.e. EIH Associated Hotels Limited operative 1st April, 2011 (''the Appointed Date"). Both the Companies are engaged in the business of hoteliering. As a result of the amalgamation the entire undertaking of the Transferor Company stands transferred to and vests in the Company as a going concern from the Appointed Date without any further act, deed or thing and the Transferor Company stands dissolved without winding up.

b) Effective date of amalgamation:

The sanctioned Scheme has become effective from 28th February, 2013 ("the Effective Date") upon certified copies of the order of the Hon''ble Madras High Court having been filed with Registrars of Companies as per requirements of Section 391(3) of the Companies Act, 1956.

c) Method of Accounting:

The Company has accounted for the amalgamation which is in the nature of merger under the pooling of interests method, in accordance with the Accounting Standard (AS-14), "Accounting for Amalgamation" . Accordingly, all assets and liabilities, including reserves of the Transferor Company have been recorded in the books of account of the Company at their respective book values as on Appointed Date.

d) The amalgamation, as per the sanctioned Scheme, has been accounted for in the books of the Company in the following manner:

1) Since the Company holds 100% (along with its nominees) of the issued, subscribed and paid-up capital of the Transferor Company, all shares held by the Company (along with its nominees) in the share capital of the Transferor Company shall stand cancelled without any further act or deed, from the Appointed Date. There would neither be allotment of any new shares nor any payment be made to any person whatsoever in consideration or in lieu of the transfer and vesting of the Undertaking / Business of the Transferor Company in the Company.

2) The paid up Equity Share Capital of Rs. 319.71 Million appearing in the books of account of the Transferor Company and the corresponding Investments of Rs. 889.36 Million in respect thereof appearing in the books of account of the Company stand cancelled against each other and the difference arising there from amounting to Rs. 569.65 Million has been adjusted against the Securities Premium Account of the Company.

3) The debit balance in the Profit and Loss Account of Rs. 505.25 Million appearing in the Financial Statements of the Transferor Company has been aggregated with the balance in the Profit and Loss Account appearing in the Financial Statements of the Company.

e) The employees of the Transferor Company in service as on the Effective Date have become employees of the Company on the same terms and conditions on which they were engaged by the Transferor Company without treating it as a break, discontinuance or interruption in service on the said date. Accordingly, the services of such Employees for the purpose of provident fund or gratuity or superannuation or other statutory purposes and for all purposes will be reckoned from the date of their respective appointments with the Transferor Company.

f) All contracts, deeds, bonds, agreements, arrangements, engagements and other instruments of whatsoever nature to which the Transferor Company was a party or to the benefit of which the Transferor Company may be eligible and which have not lapsed and are subsisting on the Effective Date remain in full force and effect against or in favour of the Company, as the case may be, and are enforceable by or against the Company as fully and effectually as if, instead of the Transferor Company, the Company was a party or beneficiary thereto.

g) The Financial Statements of the current year include transactions pertaining to Trident, Cochin, the only hotel of the Transferor Company, and are therefore to that extent not comparable with those of previous year.

h) Loss of the Transferor Company for the period 1st April, 2011 to 31st March, 2012 has been included in the Surplus in Statement of Profit and Loss. (Note 3).

3. Contingent Liabilities and Commitments (to the extent not provided for)

a) Claims against the Company not acknowledged as debts pending appellate / judicial decisions :

As at 31st March 2013 2012 Rupees Rupees Million Million

1 Land & Building, Property Tax and Water Tax 14.59 152.17

2 Value Added Tax 3.44 1.25

3 Excise Duty 0.08 0.08

4 Service Tax 9.88

5 Luxury Tax 8.32

6 Other Claims 2.71 1.17

b) Capital Commitments

The estimated amount of contracts remaining to be executed on Capital Account and not provided for net of advances Rs. 8.01 Million (2012 - Rs. 1.00 Million).

4. Current Tax

The Company has calculated its tax liability for the year and adjusted the same fully against Minimum Alternative Tax (MAT), resulting in no additional tax expenses for the year (2012 - Rs. Nil).

5. Rights Issue of Equity Shares

The Company made a Rights Issue of 10,881,481 Equity Shares of Rs. 10 each at a premium of Rs. 90 per share (Issue price Rs. 100 per share). For every existing 9 Equity Shares, 5 Shares were issued as Rights. Shares were allotted on 21st October, 2012. Out of the proceeds of Rights Issue, Rs. 108.81 Million were credited to Equity Share Capital and Rs. 979.34 Million to the Securities Premium Account. Rights Issue expenses of Rs. 28.33 Million have been adjusted against Securities Premium Account. Accordingly, the Company''s Equity Share Capital has increased from Rs. 195.87 Million to Rs. 304.68 Million and Securities Premium Account increased from Rs. 126.00 Million to Rs. 1,077.01 Million.

6. Other payments to Auditors in the matter of:

i. Rights Issue of Equity Shares : Rs. 1.57 Million (inclusive of service tax) (2012- Nil) has been adjusted against Securities Premium Account.

ii. Amalgamation of erstwhile Island Hotel Maharaj Limited with the Company: Rs. 0.34 Million (inclusive of service tax) (2012-Nil) included in "Amalgamation Expenses" (Note 30).

7. Segment Reporting:

As the Company''s activity is limited to only hotel operations, there is no separate reportable segment as per the Accounting Standard (AS-17) on "Segment Reporting".

8. Related Party Disclosures:

The details of transactions entered into with Related Parties during the year are as follows:

(A)

I. Key Management Personnel

Mr. Vikram Oberoi - Managing Director

II. Enterprise in which Key Management Personnel have significant influence

EIH Limited

9. Leases

a. Fixed Assets acquired under finance lease amounting to Rs. 24.07 Million (2012 - Rs. 22.15 Million) being the assets acquired between 1st April, 2001 and 31st March, 2013. This includes an amount of Rs. 7.64 Million (2012 - Rs. 5.31 Million) being assets acquired during the year under finance lease and capitalised in line with the requirement of Accounting Standard (AS-19) on "Accounting for Leases". Depreciation for the year includes an amount of Rs. 5.41 Million (2012 - Rs. 5.34 Million) being depreciation charged on these assets.

b. Disclosures in respect of Company''s operating lease arrangements entered on or after 1st April, 2001 under Accounting Standard (AS-19) on "Leases":

General description of the Company''s operating lease arrangements:

i) The Company has entered into operating lease arrangements for:

a. residential premises for its employees and

b. shops, office space and residential premises given on operating lease to third parties.

Some of the significant terms and conditions of the arrangements are:

- Lease agreements are not non-cancellable in nature and may generally be terminated by either party by serving a notice;

- The lease agreements are generally renewable by mutual consent on mutually agreeable terms.

ii) Rent in respect of the above is charged/credited to the Statement of Profit and Loss.

10. The previous year''s figures have been regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year Financial Statements and are to be read in relation to the amounts and other disclosures relating to the current year.


Mar 31, 2012

A) Rights, preferences and restrictions attached to shares:

The Company has one class of equity shares having a par value of Rs 10 per share. Each shareholder is eligible for one vote per share held and such dividend as proposed by the Board of Directors, subject to the approval of the shareholders in the ensuring Annual General Meeting.

b) Shares allotted as fully paid up pursuant to contract(s) without payment being received in cash (during 5 years immediately preceding 31st March, 2012):

Of the above 19,586,666 (2011 - 19,586,666) Equity Shares, 9,086,666 (2011 - 9,086,666) Equity Shares of Rs 10 each have been allotted as fully paid up in 2006-2007 pursuant to the Scheme of Amalgamation of Indus Hotels Corporation Limited with the Company without payments being received in cash.

1 (a) Long Term Defined Benefit Plans in respect of Gratuity and Compensated Absences on 31st March, 2012 as per Actuarial Valuations using Projected Unit Credit Method and recognised in the Financial Statements in respect of Employee Benefit Scheme:

2. Contingent Liabilities and Commitments (to the extent not provided for)

i. Claims against the Company not acknowledged as debt:

Claims against the Company not acknowledged as debts pending settlement of disputes amounting to Rs 157.52 Million (2011 - Rs 150.29 Million). The Company has paid Rs 4.44 Million (2011- Rs 13.02 Million) under protest.

ii. Capital commitments:

The estimated amount of contracts remaining to be executed on Capital Account and not provided for net of advances Rs 1.00 Million (2011 - Rs 38.07 Million).

3. Depreciation

Depreciation has been provided for in the Accounts on "Straight Line Method" at the rates prescribed in Schedule XIV to the Companies Act, 1956, except for specified assets as stated below, which are depreciated as follows and in respect of which depreciation amounts are not less than those prescribed under the Companies Act, 1956:

i. Buildings, Lift and Electrical Fittings at Regent Estate, Shimla, over their lease period of twenty one years or over the remaining lease period from the date of installation, whichever is earlier.

ii. Leased Vehicles over their respective lease period or five years, whichever is earlier.

iii. Depreciation includes Rs 10.83 Million (2011 - Rs 13.01 Million) being provision for amortisation of long term leasehold land.

4. Current Tax

The Company has calculated its tax liability for the year and adjusted the same fully against Minimum Alternative Tax (MAT) resulting in no additional tax expense for the year (2011 - Rs 2.40 Million).

5. Proposed amalgamation of our subsidiary (Island Hotel Maharaj Limited)

The Board has approved a Scheme of Amalgamation in the nature of merger of our wholly owned subsidiary, Island Hotel Maharaj Limited with the Company with effect from the appointed date being 1st April, 2011.

The Scheme is subject to and will come into effect upon receipt of necessary approvals and completion of requisite formalities for which steps and proceedings have already been initiated by the companies concerned. Pending the same, no effect of the Scheme has been given in the attached accounts of the Company.

6. Proposed Rights Issue of Equity Shares

The Board of Directors of the Company at a meeting held on 28th March, 2012, approved a Rights issue of Equity Shares upto Rs 1,100.00 Million. The draft Letter of Offer was filed with the Securities and Exchange Board of India (SEBI) on 30th March, 2012 and can be accessed on the SEBI website.

7. Details of Consumption and Purchases:

The Company is not required to give quantitative and value wise information in respect of purchase, consumption, turnover, stock etc. as the same is exempted vide Circular No. SO 301(E) dated 08.02.2011 issued by Ministry of Corporate Affairs, Government of India.

8. Segment Reporting

As the Company's activity is limited to only hotel operations, there is no separate reportable segment as per the Accounting Standard (AS-17) on "Segment Reporting" notified pursuant to the Companies (Accounting Standards) Rules, 2006.

9. Related Party Disclosures

The details of transactions entered into with Related Parties during the year are as follows:

(A)

I. Subsidiary Company

Island Hotel Maharaj Limited

II. Key Management Personnel

Mr. Vikram Oberoi - Managing Director

III. Enterprise in which Key Management Personnel have significant influence

EIH Limited

10. Leases

a. Fixed Assets acquired under finance lease amounting to Rs 22.15 Million (2011 - Rs 22.13 Million) being the assets acquired between 1st April, 2001 and 31st March, 2012. This includes an amount of Rs 5.31 Million (2011 - Rs 13.39 Million) being assets acquired during the year under finance lease and capitalised in line with the requirement of Accounting Standard (AS-19) on "Accounting for Leases" notified pursuant to the Companies (Accounting Standards) Rules, 2006. Depreciation for the year includes an amount of Rs 5.34 Million (2011 - Rs 3.90 Million) being depreciation charged on these assets.

b. Disclosures in respect of Company's operating lease arrangements entered on or after 1st April, 2001 under Accounting Standard (AS-19) on Leases:

i) General description of the Company's operating lease arrangements:

The Company has entered into operating lease arrangements primarily for hiring office premises, site offices and residential premises for its employees and for giving premises on rent to tenants. Some of the significant terms and conditions of the arrangements are:

- Lease agreements are not non-cancellable in nature and may generally be terminated by either party by serving a notice;

- The lease agreement are generally renewable by mutual consent on mutually agreeable terms.

ii) Rent in respect of the above is charged/credited to the Profit and Loss Account.

11. The previous year's figures have been regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year Financial Statements and are to be read in relation to the amounts and other disclosures relating to the current year.


Mar 31, 2010

1. The estimated amount of contracts remaining to be executed on Capital Account and not provided for net of advances Rs. 4.03 Million (2009 - Rs. 9.44 Million).

2. Contingent liabilities not provided for in respect of :

(a) claims against the Company not acknowledged as debts pending settlement of disputes amounting to Rs. 107.93 Million (2009 - Rs. 85.47 Million).

(b) guarantee given by the Company for Rs. 350.00 Million (2009 - Rs. 350.00 Million) to a bank on behalf of its wholly owned Subsidiary Company, Island Hotel Maharaj Limited.

(c) counter guarantee given by the Company to the extent of Rs. 25.00 Million (2009 - Rs. 25.00 Million) to Deutsche Bank.

(d) property tax demand of Rs. 5.34 Million (2009 - Rs. 5.34 Million) in respect of The Oberoi Rajvilas, Jaipur, against which the Company has filed a Civil Writ Petition in the High Court of Rajasthan which is pending adjudication. However, the Company has paid Rs. 3.64 Million (2009 - Rs. 3.64 Million) under protest.

(e) sales tax demand amounting to Rs. 1.06 Million (2009 - Rs. 1.06 Million) against which the Company has preferred an appeal. The Company made a payment of Rs. 0.45 Million (2009 - Rs. 0.45 Million) under protest.

(f) Urban Development Tax demand amounting to Rs. 3.51 Million (2009 - Rs. 3.01 Million) against which the Company has preferred an appeal. The Company has made a payment of Rs. 1.50 Million (2009 - Rs. 0.89 Million) under protest.

3. There are no reported Micro and Small Enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006, to whom the Company owes dues.

4. During the year, long term leasehold land except for perpetual leases have been depreciated over the remaining period of lease, commencing from the date the land was put to use for commercial purposes. As a result, a sum of Rs. 0.64 Million (2009 - Rs. 0.64 Million), has been included in Depreciation and charged to the Profit and Loss Account for the year.

5. Depreciation has been provided for in the Accounts on "Straight Line Method" at the rates prescribed in Schedule XIV to the Companies Act, 1956, except for specified assets as stated below, which are depreciated as follows and in respect of which depreciation amounts are not less than those prescribed under the Companies Act, 1956:

(i) Buildings, Lift and Electrical Fittings at Regent Estate, Shimla, over their lease period of twenty one years or over the remaining lease period from the date of installation, whichever is earlier.

(ii) Leased Vehicles over their respective lease period or sixty months, whichever is earlier.

(iii) Long term Leasehold Lands, other than perpetual leases are depreciated over the balance period of the leases commencing from the date the land was put to use for commercial purposes.

7. Fixed Assets acquired under finance lease amounting to Rs. 11.10 Million (2009 - Rs. 9.77 Million) being the assets acquired between 1st April, 2001 and 31st March, 2010. This includes an amount of Rs. 5.95 Million (2009 - Rs. 1.74 Million) being assets acquired during the year under finance lease and capitalised in line with the requirement of Accounting Standard (AS-19) on "Accounting for Leases" notified pursuant to the Companies (Accounting Standards) Rules, 2006. Depreciation for the year includes an amount of Rs. 2.59 Million (2009 - Rs. 2.38 Million) being depreciation charged on these assets.

8. Inventories are valued at cost which is based on First-in First-out method or net realisable value, whichever is lower. Unserviceable/damaged/discarded stocks are charged to the Profit and Loss Account.

9. The Company has calculated its tax liability after considering Minimum Alternative Tax (MAT). This has not resulted in an additional tax expense as MAT is to be set off against any future tax liability and, accordingly MAT Credit Entitlement has been shown under Loans and Advances in the Balance Sheet as at 31st March, 2010.

10. As the Companys activity is limited to only hotel operations, there is no separate reportable segment as per the Accounting Standard (AS-17) on "Segment Reporting" notified pursuant to the Companies (Accounting Standards) Rules, 2006.

11. Earnings in Foreign Currencies on Sales : (As per return submitted to DGFT)

12. The details of transactions entered into with Related Parties during the year are as follows: (A)

(I) Subsidiary Company

Island Hotel Maharaj Limited

(II) Key Management Personnel

Mr. Vikram Oberoi - Managing Director

(III) Enterprise under common control

EIH Limited

13. The previous years figures have been regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

 
Subscribe now to get personal finance updates in your inbox!