Notes to Accounts of Sagar Tourist Resorts Ltd.

Mar 31, 2014

Note 1 Corporate information

The Company is engaged in Hotel Business.

Note 2 Other non-current assets - Company does not maintain any other non current asset, other than those reported in aforesaid notes.

Note 3 Current investments - Company has not made any Current Investment during the current or previous reporting period.

Note 4 Non-current investments - Company has not made any Non Current Investment during the current or previous reporting period.

Note 5

Contingent Liability in respect of dividend on Rs.200/- Lakhs 12.5% Optionally Cumulative Redeemable Preference Shares is Rs.25,00,000/- (Previous Year Rs.25,00,000/-). Further there may be nominal liability on account of interest, penalty for delay in depositing VAT, Service tax. Tax Deducted at Source, Luxury Tax and Employees Provident Fund.

Note 6

In view of the unabsorbed depreciation and carry forward losses of the past years and in absence of convincing evidence regarding availability of sufficient future taxable income Deferred Tax Asset has been taken at nil and it shall be re-assessed at each balance sheet date.

Note 7

Depreciation has been provided in the accounts on Written down value method at rates prescribed in Schedule XIV of the Companies Act, 1956.

Note 8

In the absence of all information as to whether any of the suppliers are Small Scale and Ancillary Industrial Undertaking, provision for interest payable on delayed payment, if any, to such suppliers is not made. Interest will be paid as and when the claim is made. No such claim has been received by the Company during the year or subsequent to the year end. Staggered payments to few suppliers is as per the agreed terms with the parties.

Note 9

Balances of Debtors and Creditors and advances are as per books of account. Confirmation of balances has been sought and replies are awaited in some cases

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Mar 31, 2013

Note 1 - Corporate information

The Company is engaged in Hotel Business.

Note 2 Other king-term liabilities - Company does not have any other long term liabilities, other than reported above during the current financial year

Note 3 Non-current investments - Company has not made any Non Current Investment during the current or previous reporting period.

Note 4 Other non-current assets - Company does not maintain any other non current asset, other than those reported in aforesaid notes.

Note 5 Current investments - Company has not made any Current Investment during the current or previous reporting period.

Note 6 Other income - Company has not earned any other non operational income during the current or previous reporting period.

Note - 7

Contingent Liability in respect of dividend on Rs.200/- Lakhs 12.5% Optionally Cumulative Redeemable Preference Shares is Rs.25,00,000/- {Previous Year Rs.25,00,000/-). Further there may be nominal liability on account of interest, penalty for delay in depositing VAT, Luxury Tax and Employees Provident Fund.

Note-8

In view of the unabsorbed depreciation and carry forward losses of the past years and in absence of convincing evidence regarding availability of sufficient future taxable income Deferred Tax Asset has been taken at nil and it shall be re-assessed at each balance sheet date.

Note - 9

Depreciation has been provided in the accounts on Written down value method at rates prescribed in Schedule XIV of the Companies Act, 1956. The method of charging depreciation has been changed from straight line method to written down value method to ensure better presentation of accounts.

Note - 10

Payment and provision for remuneration to the Managing Director :-.

A sum of Rs. 1,00,000,00/- has been paid as remuneration to Managing Director which is as per the approval granted by the Central Government.

Note - 11

In the absence of all information as to whether any of the suppliers are Small Scale and Ancillary Industrial Undertaking, provision for interest payable on delayed payment, if any, to such suppliers is not made. Interest will be paid as and when the claim is made. No such claim has been received by the Company during the year or subsequent to the year end. Staggered payments to few suppliers is as per the agreed terms with the parties.

Note - 12

Balances of Debtors and Creditors and advances are as per books of account. Confirmation of balances has been sought and replies are awaited in some cases,

Other related parties with whom no business has been transacted during the year under review:-

1) Sagar Art (International) Films Private Limited

2) Gouri Films Private Limited

3) Sagar Agro & Herbal Private Limited

4) Sagar Information Technology (India) Private Limited

5) Sagar Systems Limited

6) Sagar Global Ventures Pvt. Ltd. Note - 36

Previous Year figures have been regrouped and rearranged as far as practicable to make them comparable withthose of current year.

Note - 13

In the opinion of the Board of Directors the advances are approximately of the values stated i realised in the ordinary course of business.

Note - 14

The provisions for all known liabilities are adequate and not in excess of the amount considerei reasonably necessary.

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Mar 31, 2012

Note 1 - Corporate information

The Company is engaged in Hotel Business.

Note 2 Long-term borrowings

Notes:

(i) Company has not issued any Bonds or Debentures.

(iii) None of the Loans are secured by Directors of the company or any other person.

(iv) Company has not made any repayment of its Loans. However considering the terms of Loans, company cannot be considered as defaulter in repayment of any of its Loans.

(v) No Long Term Borrowings are mature for payment during the current reporting period.

Note 3 Other long-term liabilities - Company does not have any other long term liabilities, other than reported above during the current financial year

Note 4 Short-term borrowings

Notes:

(ii) None of the borrowings of the Company are guaranteed by Directors or any other person.

(iii) In accordance with terms of borrowings, Company has not defaulted in payment of any amount due thereon.

Note 5 Non-current investments - Company has not made any Non Current Investment during the current or previous reporting period.

Note 6 Other non-current assets - Company does not maintain any other non current asset, other than those reported in aforesaid notes.

Note 7 Current investments - Company has not made any Current Investment during the current or previous reporting period.

Note 8 Other income - Company has not earned any other non operational income during the current or previous reporting period.

Note-9

Contingent Liability in respect of dividend on Rs. 200/- Lakhs 12.5% Optionally Cumulative Redeemable Preference Shares is Rs. 25,00,000/- (Previous Year Rs. 25,00,000/-).

Note-10

In view of the unabsorbed depreciation and carry forward losses of the past years and in absence of convincing evidence regarding availability of sufficient future taxable income Deferred Tax Asset has been taken at nil and it shall be re-assessed at each balance sheet date.

Note-11

Depreciation has been provided in the accounts on Straight Line Method at rates prescribed in Schedule XIV of the Companies Act, 1956.

Note-12

Payment and provision for remuneration to the Managing Director:-

A sum of Rs. 6,00,000.00/- has been paid as remuneration to Managing Director which is as per the approval granted by the Central Government.

Note-13

In the absence of all information as to whether any of the suppliers are Small Scale and Ancillary Industrial Undertaking, provision for interest payable on delayed payment, if any, to such suppliers is not made. Interest will be paid as and when the claim is made. No such claim has been received by the Company during the year or subsequent to the year end. Staggered payments to few suppliers is as per the agreed terms with the parties.

Note-14

Balances of Debtors and Creditors and advances are as per books of account. Confirmation of balances has been sought and replies are awaited in some cases.

Note-15

Other related parties with whom no business has been transacted during the year under review:-

1) Sagar Art (International) Films Private Limited

2) Gouri Films Private Limited

3) Sagar Agro & Herbal Private Limited

4) Sagar Information Technology (India) Private Limited

5) Sagar Systems Limited

6) Sagar Lila Finvest (India) (P) Ltd.

Note-16

Previous Year figures have been regrouped and rearranged as far as practicable to make them comparable with those of current year.

Note-17

In the opinion of the Board of Directors the advances are approximately of the values stated if realised in the ordinary course of business.

Note-18

The provisions for all known liabilities are adequate and not in excess of the amount considered reasonably necessary.

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Mar 31, 2010

1. Contingent Liability in respect of dividend on Rs.200/- Lakhs 12.5% Optionally Cumulative Redeemable Preference Shares is Rs.25,00,0007- (Previous Year Rs.25,00,000/-).

2. In view of the unabsorbed depreciation and carry forward losses for the past seven years and in absence of convincing evidence regarding availability of sufficient future taxable income Deferred Tax Asset has been taken at nil and it shall be re-assessed at each balance sheet date.

3. An amount of Rs.41,808/- has been provided for accrued gratuity liability. Thus gratuity has been provided on accrual basis. Provision for Bonus amounting to Rs.54,467/- has been made.

4. Depreciation has been provided in the accounts on Straight Line Method at rates prescribed in Schedule XIV of the Companies Act, 1956.

5. The Companys turnover is in respect of Food and Beverage, Guest Accommodation and other Services Income and it is not practical to give quantitative details. However, consumption in value is as under :-

6. Payment and provision for remuneration to the Managing Director :-

A sum of Rs.5,50,000/- has been paid as remuneration to Managing Director which is as per the approval granted by the Central Government.

7. In the absence of all information as to whether any of the suppliers are Small Scale and Ancillary Industrial Undertaking, provision for interest payable on delayed payment, if any, to such suppliers is not made. Interest will be paid as and when the claim is made. No such claim has been received by the Company during the year or subsequent to the year end. Staggered payments to few suppliers is as per the agreed terms with the parties.

8. Balance in respect of Sundry Debtors and Sundry Creditors though verbally confirmed yet written confirmation is awaited from some of the parties.

9. Sundry Debtors include

10. The Companys related party balances and transaction are summarised as follows :-

Other related parties with whom no business has been transacted during the year under review:-

1) Sagar Art (International) Films Private Limited

2) Gouri Films Private Limited

3) Sagar Agra & Herbal Private Limited

4) Sagar Information Technology (India) Private Limited

5) Sagar Systems Limited

6) Sagar Lila Finvest(lndia) (P) Ltd.

11. Overdraft facility from Indian Bank, Bombay is secured by Fixed Deposits in the name of Late Smt Lila Sagar.

12. Previous Year figures have been regrouped and rearranged as far as practicable to make them comparable with those of current year.

13. In the opinion of the Board of Directors the advances are approximately of the values stated if realised in the ordinary course of business.

14. The provisions for all known liabilities are adequate and not in excess of the amount considered reasonably necessary.

15. Information pursuant to part IV of Schedule VI to the Companies Act, 1956. Balance Sheet abstract and Companys General Business Profile.

V Generic Name of principal products / services of the Not applicable being Hotel Company as per monetary terms Item Code No. (IIC Code) Product Description.