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Notes to Accounts of Viceroy Hotels Ltd.

Mar 31, 2015

1. The financial statements are prepared under the historical cost convention, on an accrual basis and comply with the Accounting Standards (AS) notified by the Companies (Accounting Standards) Rules, 2006. The preparation of the financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses. The Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Future results could differ from these estimates. The significant accounting policies adopted in the presentation of the financial statements are as under:

2. According to the information available with the Company, there are no amounts as at 31st March, 2015, due to suppliers who constitute a "small industrial undertaking".

3. Contingent Liabilities not provided for in respect of:-

i) Claims againstthe company pending appellate/judicial decisions:

a) E.S.I Rs. 67,70,937/- ( Previous Year Rs. 67,70,937/-)

ii) Guarantees:

Guarantees given to bank for the Bank Guarantee Rs.16,22,500/- limits availed by the company towards EPCG Bonds given to DGFT, Hyderabad

Previous Year Rs.16,22,500/-

iii) Corporate Guarantee given to subsidiary company M/s Crustum Products Pvt Ltd for Rupee term loan of Rs.8.65 Crores Sanctioned by Oriental Bank ofCommerce.

4. In relation to Related Party Disclosures in compliance with Accounting Standard:

Name Nature of Relationship with the company

Mr. P Prabhakar Reddy Managing Director

Mr. PChakradhar Reddy Director

Mr. K.Guravaraju CFO

Ms. Y K. Priyadarshini CS

M/s Cafe D' Lake Pvt. Ltd. Subsidiary

M/s Crustum Products Pvt. Ltd. Subsidiary

M/s Minerva Hospitalities Pvt. Ltd. Subsidiary

M/s Viceroy Chennai Hotels & Resorts Pvt. Ltd Subsidiary

M/s Viceroy Bangalore Hotels Pvt. Ltd. Associate

M/s Parvath Investments Private Limited Common Director

M/s Parvath Reddy Investments Private Limited KMP is a Member

M/s Viceroy Hospitality Services Private Limited Common Director

M/s Minerva Enterprises Private Limited Common Director

5. In accordance with provisions of Schedule II of Companies Act,2013,in case of fixed assets which have completed the useful life as at 31st March 2014,the carrying value as on 01.04.2014 amounting to Rs.15,70,50,572/- has been recognized in the Retainedearnings as a transitional provision.

Further in case of assets acquired prior to 1st April, 2014, the carrying value of assets is depreciated over the remaining useful life as specified inthe companies Act, 2013 effective1st April, 2014.

6. The Company's only business is Hoteliering and hence disclosure of segment-wise information is not applicable under Accounting Standard 17- 'Segmental Information' (AS-17). There is no geographical segmentto be reported.

7. Previous year's figures and currentyear'sfigures have been regrouped, recasted, wherever necessary.

8. Thefigures have been rounded off to the nearest rupee.


Mar 31, 2014

1. According to the information available with the Company, there are no amounts as at 31st March, 2014, due to suppliers who constitute a "small industrial undertaking".

2. Contingent Liabilities not provided for in respect of:-

i) Claims againstthe company pending appellate/judicial decisions:

a) E.S.I Rs. 67,70,937/- ( Previous Year Rs. 67,70,937/-)

b) Income Tax AY 2004-05 Rs. 25,95,736 & AY 2005-06 Rs. 73,14,584/-

3. In relation of Secured (Term) Loans:

(i) Term loans from IDFC Limited and Non Convertible Debentures from AXIS Bank aggregating to Rs. 126.00 crores are secured by Pari Passu first charge on the immovable and movable properties of Hyderabad Marriott Hotel, the said Term Loans were taken over by ARCIL (ASSET RECONSTRUCTION COMPANY OF INDIALTD).

(ii) Term loans from State Bank of India, Andhra bank and Canara Bank for the Hyderabad Courtyard hotel project aggregating to Rs. 95.00 crores are secured by the first Pari-Passu charge on the fixed assets of the Courtyard hotel project and Rs. 25.00 crores sanctioned during the previous year are secured against present and future credit card receivables and also personal guarantee of Managing Director, Mr. P. Prabhakar Reddy worth Rs. 22.79 crore.

(iii) The company has availed Redeemable Non convertible Debentures aggregating Rs.42.50 crores from Axis Bank Limited. It is secured against the immovable and movable properties of Hyderabad Marriott. The company has created a Debenture Redemption reserve of Rs. 500 lakhs for the FY 2008. As per the agreement during the financial years 2011-12,2012-13 and 2013-14 the Company has to repay a sum of Rs. 2 crore, Rs 10 crore and 16 crore of debentures respectively, but the company has not made the same during the financial years 2011-12, 2012-13 and 2013-14.

4. In relation to Related Party Disclosures in compliance with Accounting Standard:

Name Relation with the Company

Shri. P. Prabhakar Reddy Managing Director

M/s Cafe D'' Lake Pvt. Ltd. Subsidiary

M/s Crustum Products Pvt. Ltd. Subsidiary

M/s Minerva Hospitalities Pvt. Ltd. Subsidiary

M/s Viceroy Chennai Hotels & Resorts Pvt. Ltd Subsidiary

M/s Viceroy Bangalore Hotels Pvt. Ltd. Associate

5. The Company''s only business is hoteliering and hence disclosure of segment-wise information is not applicable under Accounting Standard 17- ''Segmental Information'' (AS-17). There is no geographical segment to be reported.

6. SaleofChennai Project Division:

Sale of the ongoing project (Chennai Project) was made during theyear fora consideration of Rs. 486.20 Crores To Ceebros Hotels Private Limited against transfer of Land and Capital work in Progress amounting to Rs. 743.72 Crores resulting in loss amounting to Rs. 257.52 Crores, An amount of Rs. 134.65 Crores received towards non - refundable advances from the earlier proposed buyers is forfeited and adjusted from the loss of Rs. 257.52 Crores resulting in a Net Loss of Rs. 122.87, the same is shown as Loss from extraordinary item in the Statement of Profit &loss.

Dues to Banks and Financial Institutions in respect of the Chennai project is Rs. 45 crores to Central Bank of India whichis Payable by 31-03-2015 and an Amount of Rs.13.83 is payable to IARC.

7. During the Year there is an Assignment to Asset Reconstruction Company (India) Limited (AARCIL) of loans facilities granted by Axis Bank amounting to Rs.42.50 Crores NCD''s and Term Loan amounting to Rs.20.00 Crores. Similarfacility isalsogranted by IDFCamounting to Rs.70.775 Crores.

8. Since Central Government has issued a notification No. S.O. 301(E) dated 8th February, 2011 in exercise of the powers conferred by Section 211(3) of the Companies Act, 1956 granting general exemption to some specified classof companies, including hotelcompanies, from disclosing certain information intheirprofitand lossaccount as required under Part-II of Schedule VI of the Companies Act, 1956 subject to fulfilment of few conditions, the Company has duly complied with all conditions of the notification to seek general exemption under Section 211(4) of the Companies Act, 1956, paras 3(i)(a) and 3(ii)(d) of Part II of Schedule VI of the Companies Act, 1956 dealing with the disclosure of quantitative details of turnover of each class of goods, opening and closing stock, purchases, production and consumption of raw material in the financial statements for the financial year ended 31st March 2013. In this regard the Board of Directors of the Company has passed necessary resolution to comply with the conditions of the notification forthe same.

9. The Board of Directors of the Company has by resolution has given consent to avail of the General Circular Nos: 2/2011 and 3/2011 dated 8th February, 2011 and 21st February, 2011 respectively issued by the Ministry of Corporate Affairs, Government of India giving general exemption to the companies under Section 212(8) of the Companies Act, 1956 for not attaching the balance sheet of the subsidiaries. The Company has disclosed necessary information as required in the said Circularinthe consolidated balance sheetinaggregateforeach subsidiary.

10. Previous year''s figures and current year''s figures have been regrouped, recasted, wherever necessary to improve figures presentation.

11. The figures have been rounded off to the nearest rupee.


Mar 31, 2013

1. Fixed Assets :

Revaluation Reserve represents increase in the value of land on account of Revaluation made during the financial year 1989-90. Gross Block consists of Value of Chennai land aggregating Rs. 148.55 crores pertaining to the Chennai Hotel project and Rs. 12.99 crores of Hyderabad Courtyard land.

2. According to the information available with the Company, there are no amounts as at 31st March, 2013, due to suppliers who constitute a "small industrial undertaking".

3. Contingent Liabilities not provided for in respect of:-

i) Claimsagainstthe Company pending appellate/judicial decisions:

a) E.S.I Rs. 67,70,937/- ( Previous Year Rs. 67,70,937/-)

b) Income Tax AY 2004-05 Rs. 25,95,736 & AY 2005-06 Rs. 73,14,584/-

( Previous Year AY 2004-05 Rs. 25,95,736/- & AY 2005-06 Rs. 73,14,584/-)

ii) Guarantees:

Guarantees given to bank for the Bank Guarantee limits Rs. 16,22,500/- availed by the Company towards EPCG Bonds given to DGFT, Hyderabad. Previous Year Rs. 16,22,500/-

iii) Corporate Guarantee given to subsidiary Company M/sCrustum Products Pvt Ltd for Rupee term loan of Rs. 8.65 crores availed from Oriental Bank of Commerce.

4. In relationofSecured (Term) Loans:

(i) Term loans from IDFC Limited and Non Convertible Debentures from AXIS Bank aggregating to Rs. 126.00 crores are secured by Pari Passu first charge on the immovable and movable properties of Hyderabad Marriott Hotel.

(ii) Term loans sanctioned by State Bank of India, State Bank of Mysore, State Bank of Indore, State Bank of Bikaner & Jaipur, Allahabad Bank, Indian Overseas Bank and UCO Bank aggregating to Rs. 350.00 crores for the Chennai Hotel Project are secured by Pari-Passu first charge on the immovable and movable properties of Chennai Hotel Project.

(iii) Term loans from State Bank of India, Andhra bank and Canara Bank for the Hyderabad Courtyard hotel project aggregating to Rs. 95.00 crores are secured by the first Pari-Passu charge on the fixed assets of the Courtyard hotel project and Rs. 25.00 crores sanctioned during the previous year are secured against present and future credit card receivables and also personal guarantee of Managing Director, Mr. P. Prabhakar Reddy worth Rs. 22.79 crore.

(iv) The Company has availed Redeemable Non convertible Debentures aggregating Rs.50 crores from Axis Bank Limited. It is secured against the immovable and movable properties of Hyderabad Marriott. The Company has created a Debenture Redemption reserve of Rs. 500 lakhs for the FY 2008. As per the agreement during the financial years 2011-12 and 2012-13 the Company has to repay a sum of Rs. 2 crore and Rs 10 crore of debentures respectively, but the Company has not made the same during the financial years2011-12and2012-13.

5. The Company''s only business is hoteliering and hence disclosure of segment-wise information is not applicable under Accounting Standard 17- ''Segmental Information'' (AS-17). There is no geographical segment to be reported.

6. Sale of Chennai Project Division : The Company has received anapproval for the proposal to sell the entire Chennai Project division comprising of Chennai Hotel Project and Chennai Residential Project to Ceebros Hotels , Chennai foratotal consideration of Rs.480 crore. The board at its meeting held onMay 08, 2013 has approved for the same.

The board also approved the draft postal ballot notice under Companies Act ,1956 read with the Companies (passing of the resolution by Postal Ballot) Rules, 2001 with regard to sale of the above said Chennai Project division.

7. Since Central Government has issued a notification No. S.O. 301(E) dated 8th Februray, 2011 in exercise of the powers conferred by Section 211(3) of the Companies Act, 1956 granting general exemption to some specified class of companies, including hotel companies, from disclosing certain information in their profit and loss account as required under Part-II of Schedule VI of the Companies Act, 1956 subject to fulfilment of few conditions, the Company has duly complied with all conditions of the notification to seek general exemption under Section 211(4) of the Companies Act, 1956, paras 3(i)(a) and 3(ii)(d) of Part II of Schedule VI of the Companies Act, 1956 dealing with the disclosure of quantitative details of turnover of each class of goods, opening and closing stock, purchases, production and consumption of raw material in the financial statements for the financial year ended 31st March 2013. In this regard the Board of Directors of the Company has passed necessary resolution to comply with the conditions of the notification for the same.

8. The Board of Directors of the Company has by resolution has given consent to avail of the General Circular Nos: 2/2011 and 3/2011 dated 8th February, 2011 and 21st February, 2011 respectively issued by the Ministry of Corporate Affairs, Government of India giving general exemption to the companies under Section 212(8) of the Companies Act, 1956 for not attaching the balance sheet of the subsidiaries. The Company has disclosed necessary information as required in the said Circularinthe consolidated balance sheetinaggregate for each subsidiary.

9. Previous year''s figures and current year''s figures have been regrouped, recasted, wherever necessary to improve figures presentation.

10. The figures have been rounded off to the nearest rupee.

 
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