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Notes to Accounts of Graviss Hospitality Ltd.

Mar 31, 2023

Deferred Tax Asset on unabsorbed depreciation, unabsorbed business losses and other temporary differences available as per the Income Tax Act, 1961 has been recognized, since it is probable that taxable profit will be available to adjust them in the future years. Unabsorbed depreciation which forms major portion of the Deferred Tax Asset can be carried forward and set off against the profits for unlimited number of years under the Indian Income Tax Act, 1961 and profitability projections based on current margins show sufficient profits for set-off in future.

NOTE â36'' - A. CONTINGENT LIABILITIES:

i Bank Guarantees given to the extent of Rs. 7 lacs (previous year Rs. 7 lacs).

ii In the matter of VAT demand, interest and penalty aggregating to Rs. 48.69 lacs for the year 2010-11, the Company is hopeful of getting the orders in its favour and hence has not made provision for the same in the financial statements.

Note: Commitments which are material and which will result in a penalty disproportionate to the benefits involved, based on the judgment of the management are only disclosed.

The Company has classified the various benefits provided to employees as under: a Defined Contribution Plans:

The company has recognized contribution to Provident & other funds of Rs 42.02 lacs in the Profit & Loss Account for F.Y. 2022-23 (Rs. 32.21 lacs for F.Y. 2021-22).

45. Amounts if any due to Micro, Small and Medium Enterprises under Micro, Small and Medium Enterprises Development Act, 2006 could not be disclosed as such parties could not be identified from the records of the Company.

46. The Company does not have any asset whose useful life if different from the significant part of that asset.

47. (i) Due to brought forward losses of earlier years, no provision for current tax has been made.

(ii) During the financial year, the Company has elected to exercise the option permitted under section 115BAA of the Income tax act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019.

(iii) Excess provision for tax of earlier years has been reversed based on the assessment / appellate orders received.

48. Current and non-current classification of assets and liabilities in the balance sheet has been made based on the professional judgment of the management.

49. Hospitality business is the Company''s only business segment and hence disclosure of segment-wise information is not applicable under Ind AS 108 - Operating Segments.

50. The Company has an investment in the equity shares of Graviss Catering Private Limited, a subsidiary, with a share capital of Rs. 7.65 lacs and has also granted interest free loans to the said subsidiary of Rs. 351.66 lacs. The accumulated losses of the said subsidiary exceed its net worth. In the opinion of the management, having regard to the long term interest of the Company in the said subsidiary and considering that the subsidiary will be able to get regular orders of decoration and earn sufficient margin to meet the fixed costs, there is no diminution in the value of investments and the Company is also hopeful of recovering the loan.

51. The Company has an investment in the equity shares of Graviss Hotels and Resorts Limited, a subsidiary, with a share capital of Rs. 5.00 lacs and also has granted interest free loan to the said subsidiary of Rs. 2,817.07 lacs. The accumulated losses of the said subsidiary exceed its net worth. The said subsidiary had purchased lands at various places for developing hotels. Due to change in the business plans, the subsidiary is exploring to sell these lands alongwith the buildings constructed so far. In the assessment of the management, the market value of the lands acquired would be more than the original cost and hence there is no diminution in the value of investment and company is also hopeful of recovering the loan.

52. In the opinion of the management there are no indications that the assets of the company may be impaired as on the balance sheet date.

NOTE â55'' - FAIR VALUE MEASUREMENTS:

The following disclosures are made as required by Ind AS-113 pertaining to Fair value measurement:

(a) Accounting classification and fair values

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in current transaction between willing parties, other than in a forced or liquidation sale.

Financial risk management

The Company has exposure to the Credit risk, Liquidity risk and Market risk arising from financial instruments.

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 Risk Management Committee (RMC), which is responsible for developing and monitoring the Company''s risk management policies.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits to control / monitor risks and adherence to limit. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities.

The Audit Committee overseas 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 risks faced by the Company. The Audit Committee is assisted by internal audit. Internal audit undertakes reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s financial risk management policy is approved by the Board of Directors.

Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables.

Trade receivables: The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period.

Cash and cash equivalents:

The Company held cash and cash equivalents of Rs.169.66 lacs as at 31 March 2023 (31 March 2022 - Rs.71.99 lacs). The cash and cash equivalents are held with reputed banks.

Liquidity Risk:

Liquidity risk refers to the risk that the Company cannot meet its financial obligations on time. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Management is responsible for liquidity funding as well as settlement management. In addition, processes and policies related to such risks are overseen by management.

The following table shows a maturity analysis of the anticipated cash flows for the Company''s non-derivative financial liabilities on an undiscounted basis, which therefore differ from both carrying value and fair value.

Market Risk:

Market risk is the risk that changes in market price such as foreign exchange rates, interest rates and commodity prices, will affect the Company''s income or value of its financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables, long term debt and commodity prices. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and commodity price risk.

Interest rate risk:

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates, in cases where the borrowings are measured at fair value through the Statement of profit and loss. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.

Cash flow sensitivity analysis for variable-rate instruments: A reasonably possible decrease by 100 basis points in interest rates at the reporting date would have positive impact (before tax) by Rs Nil and Rs. Nil for the outstanding balances as on 31st March 2023 and 31st March 2022. Similarly, a reasonable possible increase by 100 basis points in interest would have negative impact (before tax) by same amounts.

Currency risk:

The Company is exposed to currency risk on account of its operating and financing activities. The functional currency of the Company is Indian Rupee.

To the extent the exposures on purchases and borrowings are not economically headed by the foreign currency denominated receivables, the Company uses derivative instruments, like, foreign exchange forward contracts to mitigate the risk of changes in foreign currency exchange and principal only swap rates. Company does not use derivative financial instruments for trading or speculative purposes.

The Company evaluates exchanges rate exposure arising from foreign currency transactions and the Company follows established risk management policies including the use of derivatives like foreign exchange forward contracts to hedge exposure.

Sensitivity analysis:

A reasonably possible strengthening of the Indian Rupees against USD at March, 31 by Rs. NIL would have positive impact (before tax) by Rs NIL and Rs NIL for the net outstanding balance as on 31-03-2023 and 31-03-2022 respectively. Similarly a reasonably possible weakening of the Indian Rupee against USD would have a negative impact (before tax) by same amounts.

Capital Management

For the purpose of the Company''s capital management, capital includes issued capital, convertible instruments and reserves. The primary objective of the Company''s Capital Management is to maximise shareholder value. The company manages its capital structure and makes adjustments, if any, required in the light of the current economic environment and other business requirements.

NOTE â56'' - LEASES:

(a) Right of Use Assets

The Company has leases for Building. With the exception of short-term leases and leases of low-value underlying assets, each lease is reflected on the balance sheet as a right-of-use asset and a lease liability. The Company classifies its right-of-use assets in a consistent manner to its Property, plant and equipment.

Each lease generally imposes a restriction that, unless there is a contractual right for the Company to sublease the asset to another party, the right-of-use asset can only be used by the Company.

Depreciation on ROU Assets is recognized on a straight line basis which is included under Depreciation and other Amortization Expenses in Statement of Profit and Loss.

Rental payments for short term leases and assets not considered as leases under IND AS 116 was Rs.10.28 lakhs for F.Y. 2022-23 and Rs.8.92 lakhs for F.Y. 2021-22.

57. During the F.Y. 2021-22, the Company has converted its leasehold land at Marine Drive, Mumbai to Occupancy Class - I land (Freehold Land) by making payment of conversion premium of Rs.28.17 crores.

58. During the previous year ended 31st March, 2022, the Company has disposed off its holding in one of its wholly owned subsidiary, i.e., Hotel Kanakeshwar Private Limited for cash at fair value. Accordingly, Hotel Kanakeshwar Private Limited is no longer the subsidiary of the Company from 17.02.2022.

59. 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 statements when the Code and Rules thereunder are notified.

60. New Standards or other amendments Issued but not yet effective

Ministry of Corporate Affairs (MCA), on March 31,2023, through the Companies (Indian Accounting Standards (Ind AS)) Amendment Rules, 2023 amended certain existing Ind ASs with effect from April 01, 2023. Following are few key amendments:

Ind AS 1 - Presentation of Financial Statements & Ind AS 34 - Interim Financial Reporting:

Material accounting policy information (including focus on how an entity applied the requirements of Ind AS) shall be disclosed instead of significant accounting policies as part of financial statements.

Ind AS 107 - Financial Instruments: Disclosures:

Information about the measurement basis for financial instruments shall be disclosed as part of material accounting policy information.

Ind AS 8 - Accounting policies, changes in accounting estimate and errors:

Clarification on what constitutes an accounting estimate provided.

Ind AS 12 - Income Taxes:

This amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences.

None of the amendments notified by MCA which are applicable from April 1, 2023 are expected to have any material impact on the financial statements of the Company.

61. Additional disclosure under the regulatory requirements:

(a) Title deeds of immovable properties not held in the name of the Company:

The title deeds, comprising all the immovable properties of land and buildings, are held in the name of the Company as at the balance sheet date.

(b) Reconciliation of quarterly returns / statements submitted to the banks with the books of accounts

The company has obtained Overdraft facility from bank against security of current assets. However, as per the terms of the sanction of facility, no quarterly return or statement of current assets is required to be filed by the company with banks.

(d) With reference to Borrowings as per financial statements for the year ended March 31, 2023, we confirm that all material charges created/ satisfied during FY 2022-23 have been registered with the Ministry of Corporate Affairs.

(e) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall:

i. 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

ii. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(f) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

i. 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

ii. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

(g) There is no proceeding which has been initiated or pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(h) The Company does not have any capital work-in-progress or in-tangible asset under development.

(i) The Company is not declared wilful defaulter by any bank or financial institution or other lender.

(j) The Company has not applied for any scheme of arrangement u/s 230 to 237 of Companies Act, 2013.

(k) The Company does not have any transaction not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act, 1961.

(l) The Company is not covered under section 135 of Companies Act, 2013. Hence it is not required to make CSR expense.

(m) The Company have not traded or invested in Crypto currency or Virtual Currency during the year.

(n) The company has not granted any loans or advances in the nature of loan to promoter, director, KMP

(a) Improvement in ratio is mainly on account of increase in current investments due to increased revenue and improved collections.

(b) Improvement in ratio is due to improved profitability and repayment of borrowings leading to lower finance cost.

(d) The company has not presented the Inventory turnover ratio since the Company holds inventory for consumption in the service of food and beverages and the proportion of such inventory is insignificant to Total Assets.

(e) Improvement in ratio is due to increased profitability and improved payment cycle.

(f) Improvement in ratio is due to substiantial increase in turnover and consequently resulting in improved working capital.

(g) Variance is on account of profit on sale of subsidairy in previous financial year. Further, during the year, the current investments have increased substantially.

63. Previous year figures:

Previous year''s figures have been reclassified / regrouped wherever necessary to conform to current year''s classification / grouping. Figures in brackets are in respect of the previous year.

Mar 31, 2018

NOTE NO 1 Company Overview

GRAVISS HOSPITALITY LIMITED was incorporated in 1959. The Registered Office of the Company is located at Pune. Its shares are listed in Bombay Stock Exchange (BSE). It is engaged in the hospitality business having one hotel in the name of Inter-Continental at Marine Drive Mumbai.

NOTE NO. 2 Basis for preparation:

The Financial Statements are prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (Act) read with Rule 4A of Companies (Accounts) Second Amendment Rules, 2015, Companies (Indian Accounting Standards) Rules, 2015; and the other relevant provisions of the Act and Rules thereunder. The Financial Statements have been prepared under historical cost convention basis except for derivative financial instruments, certain financial assets and financial liabilities which have been measured at fair value.

For all the periods upto 31st March 2017, the financial statements were prepared under historical cost convention in accordance with the accounting standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014. These financial statements for the year ended 31 March 2018 are the first the Company has prepared in accordance with Ind AS. Refer to note- 54 for information on how the Company adopted Ind AS.

The Company''s presentation and functional currency is Indian Rupees and all values are rounded off to the nearest lacs (INR 00,000), except when otherwise indicated.

The Financial Statements were authorized for issue in accordance with a resolution of the directors on 17-05- 2018.

NOTE NO. 3

Use of Judgement, Assumptions and Estimates

The preparation of the Company''s financial statements requires management to make informed judgements, reasonable assumptions and estimates that affect the amounts reported in the financial statements and notes thereto. Uncertainty about these could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in the future periods. These assumptions and estimates are reviewed periodically based on the most recently available information. Revisions to accounting estimates are recognized prospectively in the Statement of Profit & Loss in the period in which the estimates are revised and in any future periods affected.

In the assessment of the Company, the most significant effects of use of judgments and/or estimates on the amounts recognized in the financial statements relate to the following areas:

a) Financial instruments

b) Useful lives of property, plant & equipment

c) Valuation of inventories

d) Measurement of recoverable amounts of assets / cash-generating units

e) Assets and obligations relating to employee benefits

f) Evaluation of recoverability of deferred tax assets; and

g) Provisions and Contingencies.

NOTE 4 - A. CONTINGENT LIABILITIES:

i Bank Guarantees given to the extent of Rs. 13.61 lacs (previous year Rs. 13.61 lacs).

ii The Company is hopeful of getting the order in favour from the Appellate Authorities in respect of income tax demand of Rs. 5.17 lacs for the assessment year 2012-13 since the Company has got the tribunal order in its favour in respect of the similar disallowances/additions to income relating to earlier years and accordingly no provision is made for the same in the financial statements.

iii In the matter of VAT demand and penalty of Rs. 88 lacs for the year 2010-11, the Company is hopeful of getting the order in its favour and hence has not made provision for the same in the financial statements.

iv The Company has received Show Cause notice from Service Tax Authorities denying the utilization of input tax credit of one unit against the tax payable of another unit for the years 2009-10 to 2012-13 for an amount of Rs. 101 lacs. The company has replied to the Commissioner. The company has been legally advised that they would not result in outflow of the resources, considering various judgements in favour of the Company on similar issue.

B. Capital and Other Commitments

Estimated amount of contracts remaining to be executed on capital account- Rs. NIL -(Previous year-Rs. NIL lacs)

Note: Commitments which are material and which will result in a penalty disproportionate to the benefits involved, based on the judgement of the management are only disclosed.

NOTE 5 - RETIREMENT BENEFIT:

Disclosure pursuant to Accounting Standard -19 âEmployee Benefitsâ:

The Company has classified the various benefits provided to employees as under:

a Defined Contribution Plans:

The company has recognized contribution to Provident Fund of Rs.59 lacs in the Profit & Loss Account.

6. Amounts if any due to Micro, Small and Medium Enterprises under Micro, Small and Medium Enterprises Development Act, 2006 could not be disclosed as such parties could not be identified from the records of the Company.

7. The Company does not have any asset whose useful life if different from the significant part of that asset.

8. Due to losses, no provision for current tax has been made.

9. Current and non-current classification of assets and liabilities in the balance sheet has been made based on the professional judgement of the management.

10. Hospitality business is the Company''s only business segment and hence disclosure of segment-wise information is not applicable under Ind AS 108 Operating Segments.

11. The Company has an investment in the equity shares of Graviss Catering Private Limited, a subsidiary, with a share capital of Rs. 7.65 lacs and has also granted interest free loans to the said subsidiary of Rs. 397.13 lacs. The accumulated losses of the said subsidiary exceed its net worth. In the opinion of the management, having regard to the long term interest of the Company in the said subsidiary and considering that the subsidiary is able to get regular orders of decoration and earn sufficient margin to meet the fixed costs, there is no diminution in the value of investments and the Company is also hopeful of recovering the loan.

12. The Company has an investment in the equity shares of Graviss Hotels and Resorts Limited, a subsidiary, with a share capital of Rs. 5 lacs and also has granted interest free loan to the said subsidiary of Rs. 6,925.42 lacs. The accumulated losses of the said subsidiary exceed its net worth. The said subsidiary had purchased lands at various places for developing hotels. Due to change in the business plans, the subsidiary is exploring to sell these lands alongwith the buildings constructed so far. In the assessment of the management, the market value of the lands acquired would be more than the original cost and hence there is no diminution in the value of investment and company is also hopeful of recovering the loan.

13. In the opinion of the management there are no indications that the assets of the company may be impaired as on the balance sheet date.

14. The Company has entered into a Business Transfer Agreement during the year for purchase of the catering business of Ice Hospitality Private Limited, (a related party) for a consideration of Rs. 750 lacs as a going concern on slump sale basis. The consideration of the sale has been adjusted against the amount receivable from Graviss Fast Foods Private Limited (another related party).

NOTE 15 - FAIR VALUE MEASUREMENTS:

The following disclosures are made as required by Ind AS-113 pertaining to Fair value measurement:

(a) Accounting classification and fair values

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

Financial risk management

The Company has exposure to the Credit risk, Liquidity risk and Market risk arising from financial instruments.

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s financial risk management policy is approved by the Board of Directors.

Credit Risk

Cash and cash equivalents:

The Company held cash and cash equivalents of Rs 145.59 lacs as at 31 March 2018 ( 31 March 2017-Rs. 57.87 lacs, 1st April 2016-Rs 120.70 lacs). The cash and cash equivalents are held with reputed banks.

Liquidity Risk:

Interest rate risk:

Cash flow sensitivity analysis for variable-rate instruments: A reasonably possible decrease by 100 basis points in interest rates at the reporting date would have positive impact (before tax) by Rs 3.39 lacs and Rs. 3.72 lacs for the outstanding balances as on 31st March 2018 and 31st March 2017 respectively. Similarly a reasonable possible increase by 100 basis points in interest would have negative impact (before tax) by same amounts.

Currency risk:

The Company is exposed to currency risk on account of its operating and financing activities. The functional currency of the Company is Indian Rupee.

Sensitivity analysis:

A reasonably possible strengthening of the Indian Rupees against USD at March, 31 by Rs. NIL would have positive impact (before tax) by Rs NIL and Rs NIL for the net outstanding balance as on 31-03-2018 and 31-03-2017 respectively. Similarly a reasonably possible weakening of the Indian Rupee against USD would have a negative impact (before tax) by same amounts.

Capital Management

16. Disclosures as required by Indian Accounting Standard (Ind AS) 101 - First Time Adoption of Indian Accounting Standards

(A) First Time Adoption of Ind AS

The financial statements for the year ended 31 March 2018, are the first the Company has prepared in accordance with Ind AS. For periods up to and including the year ended 31 March 2017, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for year ended on 31 March 2018, together with the comparative period data as at and for the year ended 31 March 2017. In preparing these financial statements, the Company''s opening balance sheet was prepared as at 1 April 2016, the Company''s date of transition to Ind AS. This note explains the mandatory exceptions and optional exemptions availed by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1 April 2016 and the financial statements as at and for the year ended 31 March 2017.

(i) Mandatory exceptions:

a) Estimates:

The estimates as at 1 April 2016 and 31 March 2017 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies). The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions as at 1 April 2016, the date of transition to Ind AS and as at 31 March 2017.

b) Derecognition of financial assets & financial liabilities

The Company has applied the de-recognition requirements in Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS.

c) Classification and measurement of financial assets

The Company has classified the financial assets in accordance with Ind AS 109 on the basis of facts and circumstances that exist at the date of transition to Ind AS.

d) Impairment of financial assets

At the date of transition to Ind AS, the company has determined that assessment of significant increase in credit risk since the initial recognition of a financial instrument would require undue cost or effort, the company has recognized a loss allowance at an amount equal to lifetime expected credit losses at each reporting date until that financial instrument is derecognized.

(ii) Optional exemptions (allowed as per Ind AS 101)

a) Use of Deemed cost

The company has elected to use previous GAAP revaluation of leasehold land (finance lease) which is the carrying value of the said land under the previous GAAP as deemed cost on the date of transition to Ind AS.

The Company has elected the option of carrying value as deemed cost for all other Property, Plant & Equipment as at the date of transition to Ind AS.

b) The Company has elected to apply previous GAAP carrying amount of its investments in subsidiaries as deemed cost as on the date of transition to Ind AS.

c) Business Combinations

Ind AS 101 provides the option to apply Ind AS 103 prospectively from transition date and accordingly the Company has elected to apply the same prospectively from transition date.

A Defined Employee Benefit Liabilities

Both under Indian GAAP and Ind AS, the Company recognised costs related to its post-employment defined benefit plan on an actuarial basis. Under Indian GAAP, the entire cost, including actuarial gains and losses, are charged to Statement of Profit or 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 in OCI. Due to this, for the year ended 31 March 2017, the employee benefit cost is reduced by Rs 72 lacs and remeasurement gains/ losses on defined benefit plans has been recognized in the OCI.

B Deferred Tax

Under Ind AS, Deferred Tax items are recognised in correlation to the underlying transaction either in the Statement of Profit & Loss, other comprehensive income or directly in equity. Accordingly deferred tax relating to employee benefits as above is reclassified from Statement of Profit & Loss to Other Comprehensive Income. This adjustment will not have any impact on the Total Comprehensive Income.

Under Ind AS deferred tax is to be created between the carrying value of non-depreciable asset and its tax base, following the balance sheet method. However, under IGAAP the same was not required to be created as the deferred tax was created only for the difference between accounting income and taxable income. Accordingly deferred tax liability of Rs. 2,370 lacs has been created by debiting the Retained Earnings on the difference between carrying value of the leasehold land (which was revalued in the earlier years) being the deemed cost under the previous GAAP on the date of transition to Ind AS and its tax base

B Standards Issued but not yet effective

Amendments to Ind AS 21, The Effects of Changes in Foreign Exchange Rates

The amendments to Ind AS 21, Foreign currency transactions and advance consideration clarifies the date of the transaction for the purpose of determining the exchange rate to be used on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency. The Company will adopt the amendments w.e.f. April 1, 2018.

The MCA has notified Ind AS 115 âRevenue from Contracts with Customersâ which is effective from 1 April 2018. These have not been adopted early by the company and accordingly, have not been considered in the preparation of the financial statements. The information that are expected to be relevant to the financial statements is provided below.

Amendments to Ind AS 115 Revenue from Contracts with Customers

Ind AS 115 establishes a five-step model to account for revenue arising from contracts with customers. Under Ind AS 115 revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The new revenue standard will supersede all current revenue recognition requirements under Ind AS. This standard will come in to force from accounting period commencing on or after 1st April 2018. The Company will adopt the new standard on the required effective date.

17. Previous year figures:

Previous year''s figures have been reclassified / regrouped wherever necessary to conform to current year''s classification / grouping. Figures in brackets are in respect of the previous year.

Mar 31, 2017

1. Contingent Liabilities:

2. Bank Guarantees given to the extent of Rs. 13.61 lacs (previous year Rs. 13.61 lacs).

3. During the year the Company has received order in favour from Appellate Tribunal for the assessment year 2009-10 and received refund.

The Company is hopeful of getting the order in favour from the Appellate Authorities in respect of income tax demand of Rs. 15 lacs for the assessment year 2011-12 to 2012-13 since the Company has got the tribunal order in its favour in respect of the similar disallowances / additions to income for the assessment year 2008-09 and 2009-10 and accordingly no provision is made for the same in the financial statements.

4. In the matter of VAT demand and penalty of Rs. 84 lacs for the year 2010-11,the Company is hopeful of getting the order in its favour and hence has not made provision for the same in the financial statements.

5. The Company has received Show Cause notice from Service Tax Authorities denying the utilization of input tax credit of one unit against the tax payable of another unit for the years 2009-10 to 2012-13 for an amount of Rs. 101 lacs. The company has replied to the Commissioner. The company has been legally advised that they would not result in outflow of the resources, considering various judgments in favour of the Company on similar issue.

6. Capital and Other Commitments

Estimated amount of contracts remaining to be executed on capital account- Rs. NIL -(Previous year-Rs. 28 lacs)

Note: Commitments which are material and which will result in a penalty disproportionate to the benefits involved, based on the judgment of the management are only disclosed.

7. Retirement benefit

Disclosure pursuant to Accounting Standard -15 (Revised) Employee Benefits:

The Company has classified the various benefits provided to employees as under:

Defined Contribution Plans:

The company has recognized contribution to Provident Fund of Rs.55 lacs in the Profit & Loss Account.

8. Amounts if any due to Micro, Small and Medium Enterprises under Micro, Small and Medium Enterprises Development Act, 2006 could not be disclosed as such parties could not be identified from the records of the Company.

9. The Company has opted for accounting the exchange difference arising on reporting of long term foreign currency monetary items in line with paras 46 and 46A Companies (Accounting Standards) Amendment Rules 2009/2011 on Accounting Standard (AS)11 notified by Government of India on March 31, 2009 and on 29th December, 2011 respectively. Accordingly an amount of Rs. NIL has been charged to Profit & Loss Account.

10. The Company does not have any asset whose useful life if different from the significant part of that asset.

11. Due to losses, no provision for current tax has been made.

12. Current and non-current classification of assets and liabilities in the balance sheet has been made based on the professional judgment of the management.

13. Hospitality business is the Company''s only business segment and hence disclosure of segment-wise information is not applicable under Accounting Standard 17- âSegment Reporting''.

14. The Company has an investment in the equity shares of Graviss Catering Private Limited, a subsidiary, with a share capital of Rs. 7.65 lacs and has also granted interest free loans to the said subsidiary of Rs. 392.13 lacs. The accumulated losses of the said subsidiary exceed its net worth. In the opinion of the management, having regard to the long term interest of the Company in the said subsidiary and considering that the subsidiary is able to get regular orders of decoration and earn sufficient margin to meet the fixed costs, there is no diminution in the value of investments and the Company is also hopeful of recovering the loan.

The Company has an investment in the equity shares of Graviss Hotels and Resorts Limited, a subsidiary, with a share capital of Rs. 5 lacs and also has granted interest free loan to the said subsidiary of Rs. 6,863.42 lacs. The accumulated losses of the said subsidiary exceed its net worth. The said subsidiary had purchased lands at various places for developing hotels. Due to change in the business plans, the subsidiary is exploring to sell these lands along with the buildings constructed so far. In the assessment of the management, the market value of the lands acquired would be more than the original cost and hence there is no diminution in the value of investment and company is also hopeful of recovering the loan.

15. In the opinion of the management there are no indications that the assets of the company may be impaired as on the balance sheet date.

16. (a) The Company has entered into a Business Transfer Agreement on 1st February 2017 for purchase of the Business undertaking of Alibaug of its subsidiary Graviss Hotels and Resorts Limited as a going concern on a slump sale basis. By virtue of the said agreement the building under construction, the loan to Hotel Kankeshwar Private Limited and liabilities were purchased on slump sale basis for a consideration of Rs. 2206.95 lacs to the holding Company and the consideration of the sale has been adjusted against the amount receivable from the said subsidiary.

17 The Company has acquired 2,45,000 equity shares of Rs 10 each fully paid of Hotel Kankeshar Private Limited for a consideration of Rs. 170 lacs during the year. Hotel Kankeshar Private Limited has become wholly owned subsidiary of the company.

18. During the year the company has discontinued its catering operations at Worli.

19. The Company has entered into an agreement with a company for supplying highly trained manpower in production and guest services and has received during the year service charges of Rs 96 lacs for the same.

20. Previous year figures:

Previous year''s figures have been reclassified / regrouped wherever necessary to conform to current year''s classification / grouping. Figures in brackets are in respect of the previous year.

Mar 31, 2016

1. Amounts if any due to Micro, Small and Medium Enterprises under Micro, Small and Medium Enterprises Development Act, 2006 could not be disclosed as such parties could not be identified from the records of the Company.

2. The Company has opted for accounting the exchange difference arising on reporting of long term foreign currency monetary items in line with paras 46 and 46A Companies (Accounting Standards) Amendment Rules 2009/2011 on Accounting Standard (AS)11 notified by Government of India on March 31, 2009 and on 29th December, 2011 respectively. Accordingly an amount of Rs. NIL has been charged to Profit & Loss Account.

3. The Company does not have any asset whose useful life if different from the significant part of that asset.

4. Due to losses, no provision for current tax has been made.

5. Current and non-current classification of assets and liabilities in the balance sheet has been made based on the professional judgment of the management.

6. Hospitality business is the Company''s only business segment and hence disclosure of segment-wise information is not applicable under Accounting Standard 17- âSegment Reporting''.

7. The Company has an investment in the equity shares of Graviss Catering Private Limited, a subsidiary, with a share capital of Rs. 7.65 lacs and has also granted interest free loans to the said subsidiary of Rs. 189.80 lacs. The accumulated losses of the said subsidiary exceed its net worth. In the opinion of the management, having regard to the long term interest of the Company in the said subsidiary and considering that the subsidiary is able to get regular orders of decoration and earn sufficient margin to meet the fixed costs, there is no diminution in the value of investments and the Company is also hopeful of recovering the loan.

The Company has an investment in the equity shares of Graviss Hotels and Resorts Limited, a subsidiary, with a share capital of Rs. 5 lacs and also has granted interest free loan to the said subsidiary of Rs. 9,240.32 lacs. The accumulated losses of the said subsidiary exceed its net worth. The said subsidiary had purchased lands at various places for developing hotels. Due to change in the business plans, the subsidiary is exploring to sell these lands along with the buildings constructed so far. In the assessment of the management, the market value of the lands acquired would be more than the original cost and hence there is no diminution in the value of investment and company is also hopeful of recovering the loan.

8. In the opinion of the management there are no indications that the assets of the company may be impaired as on the balance sheet date.

9. Previous year figures:

Previous year''s figures have been reclassified / regrouped wherever necessary to conform to current year''s classification / grouping. Figures in brackets are in respect of the previous year.

Mar 31, 2014

1. A Contingent Liabilities:

(a) Bank Guarantees given to the extent of Rs. 13.61 lacs (previous year Rs. 13.61 lacs).

(b) Income tax demand of Rs. 528.25 lacs. The Company has received income tax demands for the aforesaid amount in respect of Assessment years 2009-10 to 2011-12 on account of certain disallowances/additions to income and has preferred appeals with the appellate authorities /Tribunal. The Company is hopeful of getting the appellate/Tribunal order in favor and has not made any provision for the same in the financial statements.

(c) VAT demand and penalty of Rs. 88 lacs for the year 2010-11 which is contented before the Appellate Tribunal, Delhi. The Company is hopeful of getting the Tribunal order in favor and has not made any provision for the same in the financial statements.

B Capital and Other Commitments

(a) Estimated amount of contracts remaining to be executed on capital account NIL (Previous year NIL).

(b) Lease commitments are disclosed under Note B-3 below.

Note: Commitments which are material and which will result in a penalty disproportionate to the benefits involved, based on the judgment of the management are only disclosed.

2. Retirement benefit

Disclosure pursuant to Accounting Standard -15 (Revised) Employee Benefits:

The Company has classified the various benefits provided to employees as under:

Defined Contribution Plans:

The company has recognized contribution to Provident Fund of Rs.58.02 lacs in the Profit & Loss Account.

3. Information relating to Related Party Disclosures as per Accounting Standard issued by the Institute of Chartered Accountants of India, is given below:

A. List of Related Parties (relied on the details provided by the management):

i Shareholders/Directors

Mr Ravi Ghai, Mr Gaurav Ghai, Mr RKP Shankardass.

ii Other related parties where the common control exists

Graviss Holdings Pvt Ltd., Graviss Foods Pvt Ltd., Graviss Catering Pvt Ltd, Rich Graviss Products Private Limited, Graviss Brands Pvt Ltd., *Gaylord Pvt Ltd..Graviss Hotels & Resorts Limited, Crossword Beverages Pvt. Ltd*., Brown Hills Realty Pvt. Ltd.*

"West Hills Realty Pvt Ltd., ''Pure Ice Cream (LLC) *Baskin Robins India Pvt Ltd., "Graviss Food Solution Pvt. Ltd

"Oregon Realtys Pvt Ltd., "Perfect Live Stock Pvt Ltd., "Blue Ocean Holding Ltd.,"Pure Foods & Ice Cream, "G.L. Ice Creams, "IX. Ghai Trust,

"I.K. Ghai (Kwality Bombay) Foundation, Ghai Family Trust.

"Satinetta Finelease & Investments Pvt. Ltd., "Kwality Walls Fantasy Ltd. *PIC Gujarat Pvt Ltd. "Ambition Trading Pvt Ltd.

"Vishal Holdings Pvt Ltd., "Mayfair Hospitality Pvt Ltd, "Vanila Star Jeans (India) Pvt Ltd., "Amphitrite Investments

"Indomark Dairy & Equipments Pvt Ltd. *Kwality Real Estate Pvt Ltd.

(*no transactions during the year)

iii Managing and Joint Managing Director

Mr Ravi Ghai and Mr Gaurav Ghai

4. Amounts if any due to Micro, Small and Medium Enterprises under Micro, Small and Medium Enterprises Development Act, 2006 could not be disclosed as such parties could not be identified from the records of the Company.

13. The Company has opted for accounting the exchange difference arising on reporting of long term foreign currency monetary items in line with paras 46 and 46A Companies (Accounting Standards) Amendment Rules 2009/2011 on Accounting Standard (AS)11 notified by Government of India on March 31, 2009 and on 29th December, 2011 respectively. Accordingly an amount of Rs. NIL has been charged to Profit & Loss Account.

5. Due to losses, no provision for current tax has been made.

6. Current and non-current classification of assets and liabilities in the balance sheet has been made based on the professional judgement of the management.

7. Hospitality business is the Company''s only business segment and hence disclosure of segment-wise information is not applicable under Accounting Standard 17- ''Segment Reporting''.

8. The Company has an investment in the equity shares of Graviss Catering Private Limited, a subsidiary, with a share capital of Rs. 7.65 lacs and has also granted interest free loans to the said subsidiary of Rs. 195.80 lacs. The accumulated losses of the said subsidiary exceed its net worth. In the opinion of the management, having regard to the long term interest of the Company in the said subsidiary and considering that the subsidiary is able to get regular orders of decoration and earn sufficient margin to meet the fixed costs, there is no diminution in the value of investments and the Company is also hopeful of recovering the loan.

The Company has an investment in the equity shares of Graviss Hotels and Resorts Limited, a subsidiary, with a share capital of Rs. 5 lacs and also has granted interest free loan to the said subsidiary of Rs. 8,867.82 lacs. The accumulated losses of the said subsidiary exceed its net worth. The said subsidiary had purchased lands at various places for developing hotels. Due to change in the business plans, the subsidiary is exploring to sell these lands along with the buildings constructed so far. In the assessment of the management, the market value of the lands acquired would be more than the original cost and hence there is no diminution in the value of investment and company is also hopeful of recovering the loan

9. In the opinion of the management there are no indications that the assets of the company may be impaired as on the balance sheet date.

10. Previous year figures:

Previous year''s figures have been reclassified/regrouped wherever necessary to conform to current year''s classification / grouping. Figures in brackets are in respect of the previous year.

Mar 31, 2013

1. A Contingent Liabilities:

(a) Bank Guarantees given to the extent of Rs. 13.61 lacs (previous year Rs. 13.61 lacs).

(b) The company has received Income Tax demand of Rs. 452.22 lacs in respect of AY 2009-10 and Rs. 66.03 lacs in respect of AY 2010-

2 on account of certain disallowances / additions to income and has preferred appeals with the appellate authorities. The company is hopeful of getting the appellate orders in its favour and therefore has not made any provision for the same in the financial statements.

A Capital and Other Commitments

(a) Estimated amount of contracts remaining to be executed on capital account NIL (Previous year NIL)

(b) Lease commitments are disclosed under Note B-3 below.

Note: Commitments which are material and which will result in a penalty disproportionate to the benefits involved, based on the judgement of the management are only disclosed

3. Retirement benefit

Disclosure pursuant to Accounting Standard -15 (Revised) Employee Benefits:

The Company has classified the various benefits provided to employees as under::

Defined Contribution Plans:

The company has recognized contribution to Provident Fund of Rs.64.37 lacs in the Profit & Loss Account.

4. Finance Lease:

The Company has taken on finance lease, cost of assets having an aggregate value of Rs.132.30 lacs (previous year Rs. 132.30 lacs) upto March 2013 against which the future obligations aggregate to Rs. 60.22 lacs (previous year Rs.80.37 lacs) excluding the lease charge Rs. 9.62 lacs (previous year Rs. 16.33 lacs) and the same are payable as under:

5. Information relating to Related Party Disclosures as per Accounting Standard issued by the Institute of Chartered Accountants of India, is given below:

A. List of Related Parties (relied on the details provided by the management):

i Shareholders/Directors

Mr Ravi Ghai, Mr Gaurav Ghai, Mr RKP Shankardass.

ii Other related parties where the common control exists

Graviss Holdings Pvt Ltd., Graviss Foods Pvt Ltd., Graviss Catering Pvt Ltd, Rich Graviss Products Private Limited,

*Mahaniya Investments Pvt Ltd.,Graviss Hotels & Resorts Limited,Crossword Beverages Pvt. Ltd*., Brown Hills Realty Pvt. Ltd.*

*West Hills Realty Pvt Ltd., *Pure Ice Cream (LLC) *Baskin Robins India Pvt Ltd., *Graviss Food Solution Pvt. Ltd.

*Satinetta Finelease & Investments Pvt. Ltd.,* Kwality Walls Fanatasy Ltd.*PIC Gujarat Pvt Ltd. *Ambition Trading Pvt Ltd.

*Vishal Holdings Pvt Ltd., *Mayfair Hospitality Pvt Ltd, *Vanila Star Jeans (India) Pvt Ltd., *Amphitrite Investments.

*Indomark Dairy & Equipments Pvt Ltd. *Kwality Real Estate Pvt Ltd.

(*no transactions during the year)

iii Managing and Joint Managing Director

Mr Ravi Ghai and Mr Gaurav Ghai

6. Amounts if any due to Micro, Small and Medium Enterprises under Micro,Small and Medium Enterprises Development Act, 2006 could not be disclosed as such parties could not be identified from the records of the Company.

7. The Company has opted for accounting the exchange difference arising on reporting of long term foreign currency monetary items in line with paras 46 and 46A Companies (Accounting Standards) Amendment Rules 2009/2011 on Accounting Standard (AS)11 notified by Government of India on March 31, 2009 and on 29th December, 2011 respectively. Accordingly an amount of Rs. 12.14 lacs (loss) has been charged to Profit & Loss Account.

8. Provision for current tax during the year has been made on regular basis.

9. As approved by the shareholders by a special resolution in their Extra-ordinary General meeting held on 25th October, 2012, the Company bought back 1,59,25,925 equity shares of Rs. 2 each at a price of Rs. 27 per equity share for an aggregate amount of Rs. 4,300 lacs during the year by debiting share capital to the extent of Rs. 318.52 lacs and share premium to the extent of Rs. 3981.48 lacs. This buyback represented 18.42% of the issued, subscribed and paid up equity share capital of the Company. The Company has complied with the requirements of Regulation 12 (3) of the Securities and Exchange Board of India (Buyback of Securities) Regulation 1998 (as amended) and Section 77A of the Companies Act 1956. In accordance with the provisions of section 77AA of the Companies Act an amount of Rs. 318.52 lacs being the nominal value of shares bought back, has been transferred to the Capital redemption reserve account out of the profits of the Company.

10. Current and non-current classification of assets and liabilities in the balance sheet has been made based on the professional judgement of the management.

11. Hospitality business is the Company''s only business segment and hence disclosure of segment-wise information is not applicable under Accounting Standard 17- ''Segment Reporting''.

12. The Company has an investment in the equity shares of Graviss Catering Private Limited, a subsidiary, with a share capital of Rs. 7.65 lacs and has also granted interest free loans to the said subsidiary of Rs. 265.11 lacs. The accumulated losses of the said subsidiary exceed its net worth. In the opinion of the management, having regard to the long term interest of the Company in the said subsidiary and considering that the subsidiary is able to get regular orders of decoration and earn sufficient margin to meet the fixed costs, there is no diminution in the value of investments and the Company is also hopeful of recovering the loan.

The Company has an investment in the equity shares of Graviss Hotels and Resorts Limited, a subsidiary, with a share capital of Rs. 5 lacs and also has granted interest free loan to the said subsidiary of Rs. 8,502.34 lacs. The accumulated losses of the said subsidiary exceed its net worth. The said subsidiary has purchased lands at various places for developing hotels and is in the process of construction/development. In the opinion of the management, having regard to the long term interest of the Company in the subsidiary and the assessment of the management that the market value of the land acquired would be more than the original cost and that the subsidiary would be able to generate profits after it commences its operations, there is no diminution in the value of investment and company is also hopeful of recovering the loan.

13. In the opinion of the management there are no indications that the assets of the company may be impaired as on the balance sheet date.

14. Previous year figures:

Previous year''s figures have been reclassified/regrouped wherever necessary to conform to current year''s classification / grouping. Figures in brackets are in respect of the previous year.

Mar 31, 2012

1. A Contingent Liabilities:

(a) Bank Guarantees given to the extent of Rs. 13.61 lacs (previous year Rs. 236.66 lacs).

(b) Disputed property tax demand NIL (previous year Rs.259.48 lacs).

(c) The company has received Income Tax demand of Rs. 452.22 lacs in respect of AY 2009-10 on account of certain disallowances / additions to income and has preferred an appeal with the appellate authorities. The company is hopeful of getting the appellate order in its favour and therefore has not made any provision for the same in the financial statements.

B Capital and Other Commitments

(a) Estimated amount of contracts remaining to be executed on capital account NIL (Previous year NIL)

(b) Lease commitments are disclosed under Note B-3 below

Note: Commitments which are material and which will result in a penalty disproportionate to the benefits involved, based on the judgement of the management are only disclosed.

2. Retirement benefit

Disclosure pursuant to Accounting Standard -15 (Revised) Employee Benefits:

The Company has classified the various benefits provided to employees as under:

3. Information relating to Related Party Disclosures as per Accounting Standard issued by the Institute of Chartered Accountants of India, is given below:

A List of Related Parties (relied on the details provided by the management):

I Shareholders/Directors

Mr Ravi Ghai, Mr Gaurav Ghai, Mr. RKP Shankardass.

ii Other related parties where the common control exists

Graviss Holdings Pvt Ltd., Graviss Foods Pvt Ltd., Graviss Catering Pvt Ltd, Rich Graviss Products Private Limited,

Pure Foods & Ice Creams

'Mahaniya Investments Pvt Ltd., 'Graviss Hotels & Resorts Limited,

'Crossword Beverages Pvt. Ltd., *Brown Hills Realty Pvt. Ltd.

*ldar Hotels Pvt. Ltd., "Gaylord Pvt. Ltd., *Oregaon Realtys Pvt Ltd, 'Perfect Livestock Pvt. Ltd.,

*Satinetta Finelease & Investments Pvt. Ltd., 'Kwality Walls Fanatasy Ltd.

(*no transactions during the year)

iii Managing and Joint Managing Director

Mr Ravi Ghai and Mr Gaurav Ghai

4. Amounts if any due to Micro, Small and Medium Enterprises under Micro,Small and Medium Enterprises Development Act, 2006 could not be disclosed as such parties could not be identified from the records of the Company.

5. The Company has opted for accounting the exchange difference arising on reporting of long term foreign currency monetary items in line with paras 46 and 46A Companies (Accounting Standards) Amendment Rules 20/09/2011 on Accounting Standard (AS)11 notified by Government of India on March 31, 2009 and on 29th December, 2011 respectively. Accordingly an amount of Rs. 52.77 lacs (loss) has been charged to Profit & Loss Account.

6. Provision for current tax during the year has been made on regular basis.

7. The Company's banquet operations at Corinthians Club, Pune were sold during the year ended 31 March 2012. Profit on sale of Rs.30.46 lacs has been credited to the profit and loss account. (Loss on discontinued operations of Rs. 267 lacs for the year ended 31 March 2011).

8. Current and non-current classification of assets and liabilities in the balance sheet has been made based on the professional judgement of the management.

9. Hospitality business is the Company's only business segment and hence disclosure of segment-wise information is not applicable under Accounting Standard 17- 'Segment Reporting'.

10. The Company has an investment in the equity shares of Graviss Catering Private Limited, a subsidiary, of Rs. 7.65 lacs and has also granted interest free loans to the said subsidiary of Rs. 383.90 lacs. The accumulated losses of the said subsidiary exceed its net worth. In the opinion of the management, having regard to the long term interest of the Company in the said subsidiary there is no diminution in the value of investments and the Company is also hopeful of recovering the loan.

The Company has an investment in the equity shares of Graviss Hotels and Resorts Limited, a subsidiary, of Rs. 5 lacs and also has granted interest free loan to the said subsidiary of Rs. 10,555.67 lacs. The said subsidiary has purchased lands at various places for developing hotels and is in the process of construction / development. In the opinion of the management, having regard to the long term interest of the Company in the subsidiary and steps taken by the management to complete the projects, there is no diminution in the value of investment and company is also hopeful of recovering the loan.

11. In the opinion of the management there are no indications that the assets of the company may be impaired as on the balance sheet date.

12. Previous year figures:

Till the year ended 31st March 2011, the company was using pre-revised Schedule VI to the Companies Act, 1956, for preparation and presentation of its financial statements. During the year ended 31st March 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the company. The company has reclassified previous year figures to conform to this year's classification.

Mar 31, 2011

1. The Company is contingently liable in respect of:

(a) Bank Guarantees given to the extent of Rs. 236.66 lacs (previous year Rs. 509.68 lacs).

(b) Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. Nil (previous year Rs. 96.82 lacs).

(c) Disputed property tax demand Rs. 259.48 lacs (previous year Rs. 222.41 lacs).

2. Amounts if any due to Micro Enterprises, Small Enterprises and Medium Enterprises under Micro Enterprises, Small Enterprises and Medium Enterprises Development Act, 2006 could not be disclosed as such parties could not be identified from the records of the Company.

3. The Company has opted for accounting the exchange difference arising on reporting of long term foreign currency monetary items in line with Companies (Accounting Standards) Amendment Rules 2009 on Accounting Standard (AS)11 notified by Government of India on March 31, 2009. Accordingly an amount of Rs. 71.24 lacs (loss) being the balance in Foreign Currency Monetary item Translation difference account as on 31st March 2011 has been transferred to the Exchange Difference Account.

4. Retirement benefit:

Disclosure pursuant to Accounting Standard -15 (Revised) Employee Benefits: The Company has classified the various benefits provided to employees as under:

Defined Contribution Plans:

The company has recognized contribution to Provident Fund of Rs.83.34 lacs in the Profit & Loss Account.

5. Provision for current tax during the year has been made on regular basis after considering the MAT credit entitlements of earlier years which have been set off.

6. Amalgamation expenses are written off over a period of five years.

7. (b) Confirmations of balances from some of sundry debtors and creditors have not been received.

8. Information relating to Related Party Disclosures as per Accounting Standard issued by the Institute of Chartered Accountants of India, is given below:

A. List of Related Parties (relied on the details provided by the management):

I Shareholders/Directors

Mr Ravi Ghai, Mr Gaurav Ghai, Mr. RKP Shankardass.

II Other related parties where the common control exists

Graviss Holdings Pvt Ltd., Graviss Foods Pvt Ltd., Graviss Catering Pvt. Ltd, Rich Graviss Products Private Limited, Mahaniya Investments Pvt Ltd., Graviss Hotels & Resorts Limited, Crossword Beverages Pvt. Ltd.,* Great Indian Cigar Co. Pvt. Ltd.*

*ldar Hotels Pvt. Ltd., *Gaylord Pvt. Ltd., *Oregaon Realtys Pvt Ltd,* Perfect Livestock Pvt. Ltd., *Satinetta Finelease & Investments Pvt. Ltd.,* Kwality Walls Fanatasy Ltd. (*no transactions during the year)

III Managing and Joint Managing Director

Mr Ravi Ghai and Mr Gaurav Ghai

9. As the turnover of the Company consists of sale of food and beverages, quantitative details of the turnover and food and beverages consumed are not available and hence have not been given.

10. Hospitality business is the Companys only business segment and hence disclosure of segment-wise information is not applicable under Accounting Standard 17- Segment Reporting.

11. The Company has granted 50,000 share options under the Companys Employees Stock Option Scheme 2007. Since the employee to whom the said options were granted, resigned from the services of the company during the year, the options are not exercisable.

12. The Company has an investment in the equity shares of Graviss Catering Private Limited, a subsidiary, of Rs. 7.65 lacs and has also granted interest free loans to the said subsidiary of Rs. 369.07 lacs. The accumulated losses of the said subsidiary exceed its net worth. In the opinion of the management, having regard to the long term interest of the Company in the said subsidiary there is no diminution, other than temporary, in the value of investments and the Company is also hopeful of recovering the loan.

The Company has an investment in the equity shares of Graviss Hotels and Resorts Limited, a subsidiary, of Rs. 5 lacs and also has granted interest free loan to the said subsidiary of Rs. 9,204.21 lacs. The said subsidiary has purchased lands at various places for developing hotels and is in the process of construction / development. In the opinion of the management, having regard to the long term interest of the Company in the subsidiary and steps taken by the management to complete the projects, there is no diminution, other than temporary, in the value of investment and company is also hopeful of recovering the loan.

13. In the opinion of the management there are no indications that the assets of the company may be impaired as on the balance sheet date.

14. Previous years figures have been regrouped/rearranged wherever necessary to conform to the current years groupings.

Mar 31, 2010

1. The Company is contingently liable in respect of:

(a) Bank Guarantees given to the extent of Rs. 509.68 lacs (previous year Rs. 530.80 lacs).

(b) Estimated amount of contracts remaining to be executed on capital account and not provided for is approximately Rs. 96.82 lacs (previous year Rs.Nil lacs).

(c) Disputed property tax demand Rs.222.41 lacs (previous year Rs. 185.34 lacs).

2. Amounts if any due to Micro Enterprises, Small Enterprises and Medium Enterprises under Micro Enterprises, Small Enterprises and Medium Enterprises Development Act, 2006 could not be disclosed as such parties could not be identified from the records of the Company.

3. The Company has opted for accounting the exchange difference arising on reporting of long term foreign currency monetary items in line with Companies (Accounting Standards) Amendment Rules 2009 on Accounting Standard (AS)11 notified by Government of India on March 31, 2009. Accordingly the effect of exchange difference of Rs 129.63 lacs (gain) on long term loan in foreign currency has been recognized during the year by transferring to Foreign Currency Monetary Items Translation Difference Account. An amount of Rs 71.24 lacs (loss), being the balance in Foreign Currency Monetary Item Translation difference account as on 31st March 2010, is to be amortized in the subsequent years.

4. Retirement benefit:

Disclosure pursuant to Accounting Standard -15 (Revised) Employee Benefits:

The Company has classified the various benefits provided to employees as under:

Defined Contribution Plans:

The company has recognized contribution to Provident Fund of Rs. 61.43 lacs In the Profit & Loss Account.

Defined Benefit Plans:

5. Provision for current tax during the year is made on the basis of Minimum Alternate Tax (MAT) in accordance with section 115JB of the Income Tax Act, 1961. Considering the future profitability and taxable position in the subsequent years, MAT Credit entitlement of Rs. 30.00 lacs pertaining to earlier year has been recognized as an asset disclosed under the head Loans and Advances (Schedule F) in accordance with the Guidance note on "Accounting for Credit Available in respect of Minimum Alternate Tax" under the Income Tax Act, 1961 issued by the Institute of Chartered Accountants of India, with corresponding credit to Profit & Loss Account..

6. Amalgamation expenses are written off over a period of five years

7. The Companys operations at Ahmedabad were discontinued during the year ended 31 March 2010. Loss of Rs. 262.03 lacs charged to the profit and loss account due to discontinuance of operations is on account of write off of cost of improvements and other assets on the leased premise at this unit as shown below:

(b) Confirmations of balances from some of sundry debtors and creditors have not been received.

8. Information relating to Related Party Disclosures as per Accounting Standard issued by the Institute of Chartered Accountants of India, is given below:

A. List of Related Parties (relied on the details provided by the management):

I Shareholders/Directors

Mr Ravi Ghai. Mrs Krishana Ghai, Maharani Prithvibir Kaur, Mr Gaurav Ghai, Mr RKP Shankardass, (*no transactions during the year)

ii Other related parties where the common control exists

Graviss Holdings Pvt Ltd., Graviss Foods Pvt Ltd., Graviss Catering Pvt. Ltd, Rich Graviss Products Private Limited, Mahaniya Investments Pvt Ltd., Graviss Hotels & Resorts Limited, "Crossword Beverages Pvt. Ltd., ÃGreat Indian Cigar Co. Pvt. Ltd.

*ldar Hotels Pvt. Ltd., "Gaylord Pvt. Ltd., *Oregaon Realtys Pvt Ltd., Perfect Livestock Pvt. Ltd., Satinetta Finelease & Investments Pvt. Ltd., *Kwality Walls Fanatasy Ltd. ("no transactions during the year)

iii Managing and Joint Managing Director

Mr Ravi Ghai and Mr Gaurav Ghai

9. As the turnover of the Company consists of sale of food and beverages, quantitative details of the turnover and food and beverages consumed are not available and hence have not been given.

10. Hospitality business is the Companys only business segment and hence disclosure of segment-wise information is not applicable under Accounting Standard 17- Segment Reporting.

11. The Company has granted 50,000 share options under the Companys Employees Stock Option Scheme 2007 and these share options were outstanding as on 31 March 2010. Out of these options 10,000 options will vest in November 2010, 20,000 options in November 2011 and balance 20,000 options in November 2012.

12. The Company has an investment in the equity shares of Graviss Catering Private Limited, a subsidiary, of Rs. 7.65 lacs and has also granted interest free loans to the said subsidiary of Rs. 309.67 lacs. The accumulated losses of the said subsidiary exceed its net worth. In the opinion of the management, having regard to the long term interest of the Company in the said subsidiary there is no diminution, other than temporary, in the value of investments and the Company is also hopeful of recovering the loan.

The Company has in investment in the equity shares of Graviss Hotels and Resorts Limited, a subsidiary, of Rs. 5 lacs and also has granted interest free loan to the said subsidiary of Rs. 7407.63 lacs. The said subsidiary has purchased lands at various places for developing hotels and is in the process of construction / development. In the opinion of the management, having regard to the long term interest of the Company in the subsidiary and steps taken by the management to complete the projects, there is no diminution, other than temporary, in the value of investment and company is also hopeful of recovering the loan

13. In the opinion of the management there are no indications that the assets of the company may be impaired as on the balance sheet date.

14. Previous years figures have been regrouped/rearranged wherever necessary to conform to the current years groupings.

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