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Notes to Accounts of Jindal Hotels Ltd.

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 – 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.