Mar 31, 2018
2. RECENT ACCOUNTING PRONOUNCEMENTS:
Ind AS 115: Revenue from contracts with Customers
On 28th March, 2018, Ministry of Corporate Affairs (MCA), has notified the Ind AS 115, Revenue from contracts with Customers. The core principal of new standard is that an Entity should recognize the revenue to depict the transfer of promised goods or services to Customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. Further, the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flow arising from the entityâs contracts with customers. The effective date for adoption of Ind AS 115 is financial period beginning on or after 1st April, 2018. The Company will adopt the standard on 1st April, 2018 using cumulative catch up transition method and accordingly comparative for the year ending or ended 31st March, 2018 will not be retrospectively adjusted. The effect on adoption of Ind AS 115 on the operation of the Company is being assessed by the Company.
1 The Company has adopted Previous GAAP as the deemed cost as per the exemption under Ind AS 101. Accordingly, the company has set the Net Block as per Previous GAAP as on April 1, 2016 as the Gross Block under Ind AS.
2 The Company has paid Lease Hold land premium of Rs. 5,24,249/- on 06.07.1984. The total lease period ended on 05.05.2030. In view of Indian Accounting Standard 38, issued by ICAI, the Company has written of proportionate amount of Rs. 11,396/- during the year under review.
3 Depreciation and Amortization :
The terms of repayment of long term loans are as under
(i) HDFC BANK LTD - Repayable in 36 EMI of Rs. 48.38 Lacs and remaining 84 EMI of Rs.65.79 Lacs each at the rate of Interest @ 8.75%, commencing from month May-2017, till month April-2027. The said Term Loan had been taken over from Bank Of Maharashtra on and from 31.03.2017
Security Provided:
Term Loan from HDFC BANK LIMITED is secured by Exclusive Charge by way of Registered Mortgage over companyâs Lease Hold Land bearing City Survey No.202 to 208, Free Hold land bearing City Survey no 193 to 195 and property situated on city Survey No, 199 & 196, paiki, of the Company and personal guarantee of Director of the Company and also that of Lease Hold Land owners.
(ii) Vehicle Loan:
Kotak Mahindra Prime Ltd : Various vehicle loan repayable in differential EMI, which commenced from April 2013, till month Aprilâ18 at the interest rate ranging from 8.80% to 11.25% p.a.
State Bank of India : vehicle loan repayable in 72 EMI of Rs. 22,880/-, which commenced from January 2016, till month December 2021 at the interest rate 9.85% p.a.
BMW Finance Services : Various vehicle loans repayable in 84 EMI of Rs. 33,301/-, which commenced from April 2011, till month April 2018 at the interest rate 10% p.a.
ICICI Bank Ltd : vehicle loan repayable in 60 EMI of in different EMI, which commenced from Aug 2017, till month July 2022 at the interest rate 8.36% p.a.
Security Provided:
Vehicle Loan are secured against Hypothecation of specific vehicles and personal guarantee of two Directors.
(iii) SIDBI : Subordinated debt - Repayable after 3 years of moratorium from month October,2016, in 47 monthly installments of Rs. 6,05,000/- each and last installment of Rs. 5,65,000/- at fixed rate of interest @ 15.25 % p.a. with monthly rests. The Company had repaid the loan to SIDBI during the year 2016-17.
There is no default in repayment of Loan Installment and interest thereon of all types of Loans.
(iv) Unsecured loan from director and intercorporate
Unsecured loan from direcor are repayabale within 1-2 years and Intercorporate Loans are carring interest ranging from @ 09.50% to 12.25% p.a.
a) Name of the related party and nature of relationship: -
Sr No Particulars Relationship
I Key Managerial Personnel / Directors:
Ambalal Chhitabhai Patel Chairman (Non-Executive Independent Director)
Shri Piyush D Shah Managing Director
Ms. Shagun Mehra Whole time Director
Mr. S C Patel Chief Finanace Officer
Ms. Karuna Advani Company Secretory
Satvik P Agrawal Non Executive Non Independent Director
Chanda P Agrawal Non-Executive Director
Jatil Gordhanbhai Patel Non Executive Independent Director
Mukund Prahlad Bakshi Non Executive Independent Director
Nilesh D Shah Non Executive (Upto 18th March, 2017)
II Relatives of Key Managerial Personnel
Nilesh D Shah Yamini N Jalan Shantaben D Shah Piyush D Shah HUF Prachi S Agrawal Munira N Agrawal Munish D Shah Hardik Agrawal
III Entities controlled by Directors/Relatives of Directors
Jamunadevi Educational Trust Global Gourmet Private Limited Om Hospitality Private Limited Nand Kishore Enterprises Private Limited Synergy Stock Holdings Private Limited Nazar Art Gallery
Level 1 : Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period.
Level 2 : The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3 : If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
There are no transfers between levels 1 and 2 during the year.
The Companyâs policy is to recognize transfers into and transfers out of fair value hierarchy levels at the end of the reporting period.
(ii) Valuation technique used to determine fair value
Specific valuation techniques used to value financial instruments include:
- the use of quoted market prices or dealer quotes for similar instruments
- the fair value of the remaining financial instruments is determined using discounted analysis.
The carrying amounts of trade receivables, electricity deposit, employee advances, cash and cash equivalents and other short term receivables, trade payables, unclaimed dividend, borrowings, and other current financial liabilities are considered to be the same as their fair values, due to their short-term nature.
The Companyâs Board of Directors has overall responsibility for the establishment and oversight of the Companyâs risk management framework.
The Companyâs risk management policies are established to identify and analyses the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Companyâs activities.
(A) Credit risk
Credit risk is the risk that counter party will not meet its obligation under a financial instrument leading to a financial loss. The company is exposed to credit risk from investments, trade receivables, cash and cash equivalents, loans and other financial assets. The Companyâs credit risk is minimized as the Companyâs financial assets are carefully allocated to counter parties reflecting the credit worthiness.
(B) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the Companyâs short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
(i) Maturities of financial liabilities
The tables herewith analyses the Companyâs financial liabilities into relevant maturity groupings based on their contractual maturities for:
The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.
(c) Market Risk
(i) Price Risk
The company is mainly exposed to the price risk due to its investments in equity instruments. The price risk arises due to uncertainties about the future market values of these investments. The above instruments risk are arises due to uncertainties about the future market values of these investments.
Management Policy
The company maintains its portfolio in accordance with the framework set by the Risk management Policies. Any new investment or divestment must be approved by the board of directors, chief financial officer and Risk Management committee.
(ii) Currency Risk
The company has no significant Exposure for Exportâs revenue and import of raw material and Property, Plant and Equipment so the company is not subject to risk that changes in foreign currency value impact.
CAPITAL MANAGEMENT Note: 39
Risk management
For the purpose of the companyâs capital management, equity includes equity share capital and all other equity reserves attributable to the equity holders of the Company. The Company manages its capital to optimize returns to the shareholders and makes adjustments to it in light of changes in economic conditions or its business requirements. The Companyâs objectives are to safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate return to shareholders through continuing growth and maximize the shareholdersâ value. The management and Board of Directors monitor the return on capital as well as the level of dividends to shareholders.
Disclosure as required by Ind AS 101 first time adoption of Indian Accounting Standards Note: 40 Transition to Ind AS:
These are the Companyâs first Standalone Financial Statements prepared in accordance with Ind AS.
The accounting standards notified u/s 133 of the Companies Act, 2013 and the Accounting policies set out in note 1.2 have been applied in preparing the financial statements for the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS balance sheet at April 1, 2016 (The Companyâs date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP).
An explanation of how the transition from previous GAAP to Ind AS has affected the Companyâs financial position, financial performance and cash flows is set out in the following tables and notes.
A. Exemptions and exceptions availed
Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied by the Company in the transition from previous GAAP to Ind AS.
A.1 Ind AS optional exemptions
A.1.1 Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all of its Property, Plant and Equipment (PPE) as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for decommissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets.
Accordingly, the Company has elected to measure all of its PPE ,Intangible assets at their previous GAAP carrying value.
A.1.2 Designation of previously recognized financial instruments
Ind AS 101 allows an entity to designate investments in equity instruments at Fair Value through Other Comprehensive Income (FVOCI) on the basis of the facts and circumstances at the date of transition to Ind AS. The Company has elected to apply this exemption for its investment in equity investments.
A.2 Ind AS Mandatory Exceptions
A.2.1 Estimates
An entityâs estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at April 1, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:
- Investment in equity instruments carried at FVOCI.
A.2.2 De-recognition of financial assets and liabilities
Ind AS 101 requires a first time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first time adopter to apply the derecognition requirements in Ind AS 109 retrospectively from a date of the entityâs choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the time of initially accounting for those transactions.
The Company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.
A.2.3 Classification and measurement of financial assets
Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.
B Reconciliations between previous GAAP and Ind AS
The following tables represent the reconciliations of Balance Sheet, Total Equity, Total Comprehensive Income, and Cash Flows from previous GAAP to Ind AS.
C Notes to reconciliations:-
1 Investments at Fair value through Other Comprehensive Income
Under the previous GAAP, the application of the relevant accounting standard resulted in all these investments being carried at cost less diminution in the value which is other then temporary. In accordance with Ind AS, financial assets representing investment in equity shares of entities have been fair valued. The company has designated investments as at fair value through other comprehensive income as permitted by Ind AS 109 resulting in increase in carrying amount by '' 2.77 lakhs as at 31 March 2017 and by '' 1.91 lakhs as at 1 April 2016.
2 Deferred Tax
Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind-AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind-AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP.
3 Provision for Dividend
Under previous GAAP, dividends proposed by the board of directors along reporting date but before the approval of financial statements were considered to be adjusting event and accordingly recognized (along with related dividend distribution tax) as liabilities at the reporting date. Under Ind AS, dividends proposed by the board are considered to be non-adjusting event. Accordingly, provision for proposed dividend and dividend distribution tax recognized under previous GAAP has been reversed.
4 Retained Earnings
Retained earnings as at April 1, 2016 has been adjusted consequent to the above Ind AS adjustments.
5 Other Comprehensive Income
Under Ind AS, all items of income and expense recognized in a period should be included in Statement of Profit and Loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in Statement of Profit and Loss but are shown in the Statement of Profit and Loss as âOther Comprehensive Incomeâ, includes remeasurement of Employee Benefit obligation and fair valuation of Equity Instruments through OCI and Income tax relating to these items. The concept did not exist under the previous GAAP.
6 Actuarial Gain/ Loss
Under the previous GAAP, actuarial gains and losses were recognized in Statement of Profit and Loss. Under Ind AS, the actuarial gains and losses form part of remeasurement of the net defined benefit of liability / asset which is recognized in Other Comprehensive Income. Consequently, the tax effect of the same has also been recognized in Other Comprehensive Income under Ind AS instead of Profit and Loss. The actuarial gain for the year ended 31 March 2017, were '' 3.98 Lakhs and the tax effect thereon '' 1.31 Lakhs.
Note: 7
The Company declares and pays dividend in Indian Rupees. The dividend has not been recommended by the Board of Directors for the year ended 31st March, 2018. (Dividend recommended as on 31st March, 2017: Rs. 0.80 per equity share)
Note: 8
The standalone financial statements were authorized for issue in accordance with a resolution passed by the Board of Directors on 29th May, 2018. The financial statements as approved by the Board of Directors are subject to final approval by its Shareholders.
Note: 9
The figures as on the transition date and previous year have been re-arranged and regrouped wherever necessary to make them comparable with those of the current year.
Mar 31, 2015
1. Terms/ right attached to equity shares
The Company has only one class of equity shares of par value of Rs.10
per share.Each holder of equity shares is entitled to one vote per
share.
In the event of liquidation of the Company,the holders of equity shares
will be entitled to receive remaining assets of the Company,after
distribution of all preferential amounts.The distribution will be in
proportion to the number of equity shares held by the members.
The Company declares and pays dividend in Indian Rupees. The dividend
proposed by the Board of Directors is subject to the approval of the
members in the ensuing Annual General Meeting.
During the year ended 31st March 2015,the amount per share recognized
as dividend distribution to equity members was Rs.0.80 (31st March
2014: Rs.0.80)
Cash Credit from B.O.M. (P.Y. S.B.I.) is secured by Exclusive Charge by
way of Registered Mortgage over company's lease hold land bearing City
Survey No.202 to 208, free hold land bearing City Survey no 193 & 194,
building constructed thereon,hypothecation of movable assets acquired
/to be acquired out of Cash Credit limit,hypothecation of entire
movable assets of the Company and personal guarantee of two Directors
2. Amount of Income Tax has been provided as per provision of Section
115 JB of the Income Tax Act, 1961.
3. The Board of Directors are of the opinion that discounted net future
generation from the Assets in use and shown in the schedule of fixed
assets, is more than the carrying amount of fixed assets in Balance
Sheet, as such, no provision for Impairment of Assets is required to be
made in terms of the requirement of accounting standard (AS - 28)
"Impairment of Assets" issued by the Institute of Chartered Accountants
of India for the year ended 31.03.2015.
4. Segment Reporting
The Company operates in one reportable operating segment i.e.
Hoteliering
5. The Investment made by the company is held in its own name
6. Contingent Liabilities & Commitments:
2014-15 2013-14
a Estimated amount of contracts 1,02,464 42,820
(Net of advances) remaining to be
executed on capital account not
provided for
b Counter Bank Guarantee furnished 1,122 1,660
for supply of Natural Gas from
VMSS and also for availing benefit
under EPCG Scheme.
c Claims against the Company, Nil Nil
not acknowledged as debt.
7. Related Party disclosure under Accounting Standard 18.
The Company has no subsidiary or joint venture concern. The Company has
identified all the related parties' transactions during the year, as
per details given below:
During the year, there were no amounts written off or written back from
such parties.
Key Management Party Related Parties
1. Piyush D. Shah Nilesh D Shah
Nilesh D Shah HUF
Chanda P Shah
Yamini N Jalan
Piyush D. Shah HUF
Shantaben D Shah
Munish D. Shah HUF
Satvik P. Agrawal
Prachi S. Agrawal
Shagun Kunal Mehra
Sunita M Agarwal
Munish D Shah
Munira N Agrawal
Hardik Agrawal
Jamunadevi Educational Trust
Global Gourmet Pvt Ltd.
(rs. in '000)
8. Pursuant to the enactment of Companies Act 2013, the company has
applied the estimated useful lives as specified in Schedule II, as
disclosed in Accounting Policy on Depreciation and Amortisation.
Accordingly the un amortised carrying value is being depreciated /
amortised over the revised / remaining useful lives. The written down
value of Fixed Assets whose lives have expired as at 1st April 2014
have been adjusted, net of tax, in the opening balance of Surplus in
Profit and Loss Account, amounting to Rs.1,38,37,117/-. Change in use
full life of the Fixed Assets has increased the amount of depreciation
charge for the year under review by Rs.85,36,611/ - on Fixed assets
installed up to 31.03.2014,as compared to the provision of erstwhile
Schedule XIV of the Companies act,1956
9. During the year under review, there is a change in method of
charging to the revenue, the cost of various operating inventories from
" Purchase Cost Basis" to "Actual Consumption Basis". Due to this
change, there is a Net Decrease in expense of Operating Inventories by
Rs. 347,694/- in the Statement of Profit & Loss of the year under
review.
10. The Company has defended a Civil Suit filed by M/s. Phonographic
Performance Ltd. (PPL) in the Court of Law. PPL claims to have Copy
Rights of public performance of sound recordings of about 250 Music
Companies in India. All those who use these sound recording in public
place or commercial establishment, in any form or technology, they must
obtain prior license from PPL at certain amount of fees. The company
has not obtained such license from them, hence, PPL has filed a Civil
Suit. The company claims that it is not required to avail license from
PPL on certain legal grounds. Board is of opinion that Company has
valid defense in this case and has a fair chance to succeed in the said
Civil Suit. In any case , the said license fee if required to be paid
will be not more than INR 1,00,000/-.
11. In the opinion of the Board, the assets other than Fixed Assets have
value on realization in the Ordinary course of Business at least equal
to the amount at which they are stated in Balance Sheet. The adequate
provision of all known liabilities have been made in the accounts.
12. Previous year figure have been reclassified, regrouped, wherever
necessary and recast to make comparable with those of year under
review.
Mar 31, 2014
A) Amount of Income Tax has been provided on Taxable Income of the
Company as per provision of the Income Tax Act, 1961.
B) The Board of Directors are of the opinion that discounted net
future generation from the Assets in use and shown in the schedule of
fixed assets, is more than the carrying amount of fixed assets in
Balance Sheet, as such, no provision for Impairment of Assets is
required to be made in terms of the requirement of accounting standard
(AS - 28) "Impairment of Assets" issued by the Institute of Chartered
Accountants of India for the year ended 31.03.2014.
C) Segment Reporting The Company operates in one reportable operating
segment i.e. Hoteliering
D) The Investment made by the company is held in its own name
E) Earnings Per Share As per Accounting Standard 20 of ICAI, New
Delhi, Basic and Diluted Earning per Share are as under:
(Rs. in ''000)
Particulars 2013-14 2012-13
A Basic Earnings per Share
(1) Net Profit after Tax 17,275 24,437
(2) Number of Equity Shares At
the beginning of the year 60,00,000 60,00,000
Issued during the year
on preferential basis for proportionate - -
period
Weightage Average
Number of Equity Shares 60,00,000 60,00,000
Basic Earnings per Shares 2.88 4.07
B Diluted Earnings Per Share
(1) Net Profit after Tax duly adjusted 17,275 24,437
(2) Numbers of Equity Share at the beginning
of the year 60,00,000 60,00,000
Issued during the year on preferential
basis - -
Diluted Potential Equity Shares - -
Weightage Average Number
of Equity Shares 60,00,000 60,00,000
Diluted Earning Per Share 2.88 4.07
C Face Value of Equity shares (Rs.) 10 10
(Rs. in ''000)
Particulars 2013-14 2012-13
I) Contingent Liabilities & Commitments:
a Estimated amount of contracts
(Net of advances) remaining to be executed on
capital account not provided for 42,820 37,495
b Bank Guarantee for supply of Natural Gas
from VMSS and also for availing benefit under
EPCG Scheme. 16,600 1,791
Mar 31, 2013
A) Amount of Income Tax has been provided on Taxable Income of the
Company as per provision of the Income Tax Act, 1961.
B) The Board of Directors are of the opinion that discounted net future
generation from the Assets in use and shown in the schedule of fixed
assets, is more than the carrying amount of fixed assets in Balance
Sheet, as such, no provision for Impairment of Assets is required to be
made in terms of the requirement of accounting standard (AS - 28)
"Impairment of Assets" issued by the Institute of Chartered Accountants
of India for the year ended 31.03.2013.
C) Segment Reporting
The Company operates in one reportable operating segments i.e.
Hoteliering
D) The Investment made by the company is held in its own name
E) Previous year figure have been classified, regrouped and recast to
make comparable with those of year under review.
Mar 31, 2012
A) Terms/ right attached to equity shares
The Company has only one class of equity shares having a par value of
Rs.10 per share. Each holder of equity shares is entitled to one vote
per share. The Company declares and pays dividends in Indian Rupees.
The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting.
During the year ended 31st March 2012, the amount of per share dividend
recognized as distributions to equity shareholders was Rs.0.80 (31st
March 2011: Rs.0.80)
In the event of liquidation of the Company, the holders of equity shares
will be entitled to receive remaining assets of the Company, after
distribution of all preferential amounts. The distribution will be in
proportion to the number of equity shares held by the shareholders.
Terms of Repayment of Term Loan
State Bank of India TL-3 is for New Hotel Project, which is under
progress. Full amount of Term Loan disbursement up to Rs. 2666.00 lacs is
yet to avail. Moratorium period of loan repayment is up to March, 2014.
Thereafter, loan is repayable in 26 quarterly installment of
differential amount. The year of last installment will be 2019-20. The
loan is carrying interest Para 13th as on 31 no 9
Security Provided:
Term Loan from S.B.I. is secured by first charge by way of EM over
company's lease hold land bearing s.no. 202-208, free hold land
bearing R.S. no. 194-C.S. no 193-194, Building constructed
thereon, hypothecation of Movable Assets acquired/to be acquired out of
Term Loan, hypothecation of stock & receivable of the Company and
personal guarantee of two Directors of the Company.
Vehicle Loan are secured against Hypothecation of specific vehicles.
There is no default in repayment of Loan Installment and interest
thereon.
Unsecured Loans are received from Promoters/ Relatives of Promoters/
Group Companies. All unsecured Loans are interest free and repayable
after 18 months from end of Financial Year. There is no default in
repayment of Unsecured Loan.
The Major components of Deferred Tax Liability are as under
C C Limit from S.B.I. is secured by first charge by way of EM over
company's lease hold land bearing s.no. 202 to 208, free hold land
bearing R.S. no. 194-C.S. no 193-194, Building constructed
thereon, hypothecation of Movable Assets acquired/to be acquired out of
Term Loan, hypothecation of stock & receivable of the Company and
personal guarantee of two Directors of the Company.
A Company has written off Lease Hold land premium of Rs. 11,396/- for
the year under review on straight line basis, considering total Lease
Hold Land period up to 05.05.2030.
B Company has incurred expenses of Rs.96,55,443/-(P.Y.73,76,377/-)
towards expansion project on hand, which are pending for allocation. On
completion of the project, these expenditures will be apportioned to
respective group of assets. However borrowing cost up to 31.03.2012 of
Rs.1,03,34,960/-have been allocated to Land-Rs.65,71,659/- to Hotel
Building-36,27,951/- and Plant & Machinery-Rs. 135,430/- and grouped
into Capital Work in Progress, New Hotel. '
A) Amount of Income Tax has been provided on Taxable Income of the
Company as per provision of the Income Tax Act, 1961.
B) The Board of Directors are of the opinion that discounted net future
generation from the Assets in use and shown in the schedule of fixed
assets, is more than the carrying amount of fixed assets in Balance
Sheet, as such, no provision for Impairment of Assets is required to be
made in terms of the requirement of accounting standard (AS - 28)
"Impairment of Assets" issued by the Institute of Chartered
Accountants of India for the year ended 31.03.2012.
C) Segment Reporting
The Company operates in one reportable operating segments i.e.
Hotel leering
D) The Investment made by the company is held in its own name
The rate of escalation in salary (p.a.) considered in actuarial
valuation is worked out after into account inflation, seniority,
promotion and other relevant factors such as supply and demand in the
employment market. Mortality rate are obtained from the relevant data
of Life Insurance Corporation of India.
(b) Liability in respect of Provident Fund is provided on actual
contribution basis.
E) During the year ended 31st March. 2012 the revised schedule VI
notified under the Companies Act,1956 has become applicable to the
company for preparation and presentation of its financial statement.
The adoption of revised schedule VI does not impaired cogitation and
measurement principles followed for preparation of financial
statements. However, it has significant impact in preparation and
disclosures made in financial statements. The Company has also
reclassified the previous year's figures in accordance with the
requirements applicable in the current year. In view of this
reclassification certain figures of the current year are not strictly
comparable with those of previous year.
Mar 31, 2010
1. In the opinion of Board and to the best of their knowledge and
belief:
a. All the current assets, loans and advances will have the value on
realization in the ordinary course of business at least equal to the
amount at which they are stated in the Balance Sheet.
b. Provision for all known liabilities is adequate and not in excess
of the amount reasonably necessary. There is no liability contingent or
otherwise except those stated in the Balance Sheet.
2. Debit and credit balances are subject to confirmation.
3. Company had paid Premium of Rs. 5,24,249 towards Leasehold Land on
06.07.1984. The total Lease Period is extended up to 05.05.2030. In
view of Accounting Standard 26, issued by The Institute of Chartered
Accountants of India, New Delhi and made mandatory from 01.04.03,
company has written off proportionate amount of Rs. 11,396/- during the
year under review.
4. In line with the Industry practice, the quantitative details of
turnover and consumption have not been disclosed as the same is not
practicable. The company has availed exemption u/s 211(4) of the
Companies Act, 1956 of such disclosure, as required under Para 3(i)(a)
and 3(ii)(d) of Part II, Schedule VI of the Companies Act, 1956, for
the F.Y. 2009-10 from The Ministry of Corporate Affairs, Government of
India, New Delhi vide their letter No. 46/1/2010-CL-III dated
20-01-2010.
5. Amount of Income Tax and Fringe Benefit Tax have been provided on
Taxable Income of the Company as per provision of the Income Tax Act,
1961.
6. As explained to us the Company has not received any intimation from
"suppliers" regarding their status under the micro, small and medium
Enterprises Development Act,2006 and hence the Disclosure, if any,
relating to amounts unpaid as at the year end together with interest
paid / payable as required under the said Act have not been given.
7. Figures of previous year have been regrouped, rearranged and recast
wherever necessary so as to make them comparable with those of current
year.
8. The Board of Directors is of the opinion that discounted net future
generation from the Assets in use and shown in the schedule of fixed
assets, is more than the carrying amount of fixed assets in Balance
Sheet, as such, no provision for Impairment of Assets is required to be
made in terms of the requirement of accounting standard (As - 28)
"Impairment of Assets" issued by the Institute of Chartered Accountants
of India for the year ended 31.03.2010.
9. Segment Reporting. The Company operates in one reportable
operating segments i.e. Hoteliering.
10. The Investment made by the company are held in its own name. (Rs.
In Lacs )
Sr.
No. Particulars 2009-10 2008-09
11. Value of Imports Nil Nil
12. Earning in foreign currency as per
Certificate submitted by Management 100.86 100.28
13. Expenditure in foreign currency:
a Travelling 7.56 1.46
b Capital Expenditures 9.50 45.40
c Decorative Expenses 0.74 -
Total 17.80 46.86
14. Contingent Liabilities & Commitments:
a Estimated amount of contracts
(Net of advances) remaining to
be executed on capital account not
Provided for Nil Nil
b Bank Guarantee for supply of Natural
Gas from VMSS and
also for availing benefit under EPCG Scheme. 10.89 7.90
15. Company has incurred Capital Expenditures of Rs. 30.53 lacs (P Y Ã
Rs. 16.87 lacs) towards expansion project on hand, which are pending
for allocation. As explained to us, on completion of Project on hand,
these Expenditures will be apportioned to respective group of Capital
Assets.
16. Deferred Tax Liability (Net) under Accounting Standard 22.
(a) The Company has accounted for Deferred Tax Liability as under:
(i) Rs. 177.57 lacs, being net deferred tax liability up to 31.03.2009
has already been created.
(ii) Rs. 17.42 lacs, being net deferred tax expense for the year, has
been charged to Profit & Loss Account.
(iii) The total net deferred tax liability as at 31.03.2010 is Rs.
194.99 lacs
17. Related Party disclosure under Accounting Standard 18. Company
has no subsidiary or joint venture concern.
The Company has identified all the related parties transactions during
the year, as per details given below: During the year, there were no
amounts written off or written back from such parties.
Key Management
Parties Related Parties Related Parties
1. Piyush D. Shah Daudayal R. Shah Alka N Shah
2. Nilesh D.Shah Daudayal R. Shah HUF Sunita M Agarwal
Nilesh D Shah HUF Munish D Shah
Chanda P Shah Munira N Agrawal
Yamini D Shah Hardik Agrawal
Piyush D. Shah HUF Om Hospitality Pvt Ltd
Shantaben D Shah Synergy Stock Holdings
Pvt Ltd
Munish D. Shah HUF Jamunadevi Educational
Trust
Satvik P. Agrawal Kalayan Confection &
Catrarers
Prachi S. Agrawal Kalyan Restaurants
Shagun Kunal Mehra Hotel Kalyan & Restaurants
18. The proposed dividend on Equity Shares is provided at 8% p.a. i.e.
Rs. 0.80 per equity share on all the shares at the beginning of the year.
On Additional 11,75,540 Equity Shares, allotted during the year,
provision for dividend is made at 8% on pro rata basis i.e. Rs. 0.04 per
equity share, for the year under review.
19. During the year under review, Company has issued 11,75,540 Equity
Shares of Rs. 10/- each at premium of Rs. 10/- each on preferential
basis. As at 31.03.2010, Company has pending warrant application money
of Rs. 65,01,000 consisting of 13,01,000 warrants, convertible into
Equity Shares, having paid up value of Rs. 5/- per warrant, The
proceeds of the issue of above shares have been utilized for the
purpose of repayment of term loan and unsecured loans, augmentation of
working capital, up gradation and / or modernization of plant /
property of the Company.