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Notes to Accounts of Savera Industries Ltd.

Mar 31, 2018

NOTE 1.1 : Rights attached to Equity Shareholders:

The company has only one class of equity shares having a par value of Rs. 10/- per share. Each shareholder is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company, after distribution of all preferential amount, in proportion to their shareholdings.

NOTE 2 : NOTES ON FIRST-TIME ADOPTION OF IND AS

The financial statements of the Company for the year ended 31st March 2018, together with comparatives for the year ended 31st March 2017 have been prepared in accordance with Ind AS notified till date. In preparing these financial statements, the opening balance sheet as on 01st April 2016 (being the date of transition) has been prepared. For the purpose of transition to Ind AS, the Company has followed the guidance prescribed in Ind AS 101, First-Time Adoption of Indian Accounting Standards, with April 1, 2016 as the transition date and Generally Accepted Accounting Principles (GAAP) as the previous GAAP.

The transition to Ind AS has resulted in changes in the presentation of the financial statements, disclosures in the notes thereto and accounting policies and principles. The accounting principles set out in notes have been applied in preparing the Financial Statements for the year ended 31st March 2018 and the comparative information. An explanation of how the transition from previous GAAP to Ind AS has affected the Companyâs Balance Sheet and Statement of Profit and Loss, is set out in clause (i) and (ii). Exemptions on the first-time adoption of Ind AS availed in accordance with Ind AS 101 have been set out in clause 1(vi).

The following reconciliation provides the effect of transition to Ind AS from IGAAP in accordance with Ind AS 101:

1. Equity as at April 1st, 2016 and March 31st, 2017

2. Net Profit for the year ended March 31st, 2017

(v) There were no significant reconciliation between cash flows prepared under IGAAP and those prepared under Ind AS.

(vi) Exemption availed on first time adoption of Ind AS 101 as at transition date:

1. As per para D7AA of Ind AS 101, Property, Plant and Equipments and Intangible assets were carried in the statement of financial position prepared in accordance with previous GAAP on 31st March, 2016. The Company has elected to regard such carrying values as deemed cost at the date of transition.

2. As per para D19B of Ind AS 101, Investment in equity instruments can be measured at fair value through other comprehensive income. The Company has elected to fair value through other comprehensive income its equity instruments.

(vii)Notes to Clause 1(i):

1. Reversal of Proposed Dividend:

Under IGAAP, the proposed dividend was recognized as liability for the period to which it relates. Under Ind AS, dividend is recognized in the period in which obligation to pay is established. Accordingly, the proposed dividend liability recognized in the year 2015-16 amounting to Rs. 43.07 lakhs (including dividend distribution tax) has been reversed and the same recognized as an apportionment to in Other Equity of the year 2016-17 i.e. the year in which the obligation to pay was established.

2. Prior Period Adjustments:

Under IGAAP, the prior period errors and omissions were rectified prospectively by giving effect to the statement of profit and loss and by separately disclosing the nature and amount as prior period item, whereas Ind AS 8 requires retrospective adjustment of material prior period errors by restating the comparative amounts for periods presented. Accordingly, the Company has reversed the excess provision created prior to 01st April 2016 on account of income tax amounting to Rs. 8.42 lakhs by adjusting respective assets, liabilities and equity as on 01st April 2016.

3. Fair Value Adjustments of Equity Instruments:

As per IGAAP, long-term investments are usually carried at cost, however if there is decline in the value of the investments (other than temporary) such decline is recognized and carrying amount of the investments is reduced to that extent. Under Ind AS 109, the equity instruments are measured at fair value through Other Comprehensive Income. Accordingly, the gain on fair valuation of equity instruments on 01st April 2016 amounting to Rs. 145.19 lakhs and Rs. 20.16 lakhs as on 31st March 2017 is recognized under Other Comprehensive Income of Other Equity. The tax effect on the net gain recognized in OCI, amounting to Rs. 6.66 lakhs is considered as charge to OCI.

4. Fair Value Adjustment of Deposits:

As per IGAAP, the rental deposits were carried at historical cost until the completion of tenure and were adjusted for any credit losses at the time of receipt. As per Ind AS 109, deposits being classified as financial assets are to be initially recognized at fair value by discounting the cash flows over the expected life using effective interest rate and are subsequently measured at amortized cost. Accordingly, Fair value loss as on 01st April 2016 amounting to Rs. 89.73 lakhs is adjusted to respective assets, liabilities and equity as on 01st April 2016 and Fair value Gain on account of amortization as on 31st March 2017 amounting to Rs. 48.29 lakhs is recognized in Statement of Profit and Loss.

5. Deferred Tax effect on temporary differences under Ind AS:

Under IGAAP deferred tax was accounted using income approach, which focuses on timing 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 focus 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 has resulted in an additional deferred tax liability of Rs. 62.45 lakhs as on 01st April 2016 and reversal of deferred tax liability of Rs. 1.52 lakhs as on 31st March 2017.

6. Gain/Loss on Net Defined Benefit Liability/Asset:

As per IGAAP, gains and losses on remeasurement of net defined benefit liability/asset are recognized in the Statement of Profit and Loss, whereas under Ind AS the same has been recognized in Other Comprehensive Income by accumulating in a separate component of equity. Accumulated loss (excluding tax) on remeasurement of net defined benefit liability amounting to Rs. 13.60 lakhs as on 31st March 2017 have been transferred to a separate component of Equity. The tax effect on the net gain recognized in OCI, amounting to Rs. 4.50 lakhs is considered as charge to OCI.

7. Gratuity Expense:

The cost of the defined benefit plans and the present value of the defined benefit obligation are based on actuarial valuation using the projected unit credit method. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. Accordingly, the effect of such changes in assumptions as on 01st April 2016 resulted in additional provision of Rs. 15.85 lakhs and reversal of excess provision as on 31st March 2017 Rs. 25.85 lakhs.

8. Depreciation on Revalued Asset:

An amount equivalent to depreciation on revalued portion of an asset is transferred from revaluation reserve under IGAAP. Under Ind AS since the company has opted the option of deemed cost on the date of transition i.e. as on 01st April 2016, the depreciation on revalued portion is to be charged to Statement of Profit and Loss. Consequently, an amount of Rs. 4.57 lakhs being depreciation on the revalued portion is charged to Statement of Profit and Loss.

(viii) Others:

Under IGAAP, actuarial gains and losses related to the defined benefit schemes for Gratuity and liabilities towards employee leave encashment were recognised in the statement of profit or loss. Under Ind AS, the actuarial gains and losses form part of re-measurement of the net defined benefit liability / asset which is recognised in the Other Comprehensive Income (OCI). Consequently, the tax effect of the same has also been recognised in OCI instead of statement of profit or loss.

NOTE 3 : Financial Instruments :

i. Financial Risk Management:

The Board takes the reponsibility in overseeing the risk management plan for the company. The Risk Management Policy facilitates in identifying the risks associated with the operations of the company and in giving the suitable measures/solutions to mitigate the same. Major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuous basis.

The Financial Risks in a Business Entity can be classified as Market Risk, Credit Risk and Liquidity Risk. The status of these Risks at the Company is as brought out hereunder:

a) Market Risk :

Market risk is the risk that the changes in market prices such as foreign exchange rates, interest rates and equity prices will affect the Companyâs income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

b) Credit Risk :

Credit risk arises from the possibility that customers or counterparty to financial instruments may not be able to meet their obligations. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, analysis of historical bad debts and ageing of accounts receivable. Credit risks arises from cash and cash equivalents, deposits with banks, financial institutions and others, as well as credit exposures to customers, including outstanding receivables. The Companyâs policy is to place cash and cash equivalents and short term deposits with reputable banks and financial institutions. There are no significant concentrations of credit risk within the company.

c) 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 Companyâs approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to Companyâs reputation.

The table below provides details regarding the remaining contractual maturities of significant financial liabilities at the reporting date 31.03.2018.*

* The table has been drawn up based on undiscounted cash flows of financial liabilities based on the earliest date on which the company can be required to pay.

The table includes both interest and principal cash flows.

ii. Fair Values Hierarchy

A. Financial assets and Financial liabilities measured at fair value in the statement of financial position are categorized into three levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1 - Quoted Prices (unadjusted) in active markets for financial instruments

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 rely as little as possible on entity specific estimates

Level 3 - If one or more of the significant inputs is not based on observable maket data, the instrument is included in level 3.

B. Valuation Techniques:

a. The Carrying value of financial assets and liabilities with maturities less than 12 months are considered to be representative of their fair value.

b. Fair value of fixed interest rate financial assets and liabilities carried at amortised cost is determined by disounting the cash flows using a discounting rate equivalent to market rate applicable to similar assets and liabilities as at the balance sheet date.

C. There has been no change in the valuation methodology for Level 3 inputs during the year. The Company has not classified any material financial instruments under Level 3 of the fair value hierarchy. There were no transfers between Level 1 and Level 2 during the year.

iv. Capital Management:

The Companyâs capital management objectives are:

- to ensure the Companyâs ability to continue as a going concern

- to provide an adequate return to shareholders

The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of Balance Sheet.

Management assesses the Companyâs capital management in order to maintain an efficient overall financing structure while avoiding excessive leverage. This takes into account the subordination levels of the Companyâs various classess of debt. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt.

The Company declared Final Dividend of Rs. 215.34 lakhs (including Dividend Distribution Tax) and Rs. 43.07 lakhs (including Dividend Distribution Tax) for the year ended 31st March, 2017 and 2016 respectively.âThe Company has on 14th February, 2018 declared an Iterim Dividend of Rs. 172.28 lakhs (including Dividend Distribution Tax) which has been considered in the accounts for the year ended 31st March, 2018.

NOTE 4 : Employee Benefits :

The disclosure required by Indian Accounting Standard 19, âEmployee Benefitsâ is as follows:

The Companyâs obligation towards Gratuity being Defined Benefit Plans have been actuarially valued, the details of which as on 31st March 2018, 31st March 2017 and 01st April 2016 are given below:

NOTE 5 : Micro and small enterprises :

A. (i) There is no interest paid/payable during the year by the company to the suppliers covered under Micro, Small, Medium Enterprises Development Act, 2006

(ii) The above information takes into account only those suppliers who have responded to the enquiries made by the company for the purpose.

B. Balances of some of the Trade Receivables, Other Assets, Trade and Other Payables are subject to confirmation/reconciliation and consequential adjustment, if any. Reconciliations are carried out on ongoing basis. Provisions, wherever considered necessary, have been made. However, management does not expect to have any material financial impact of such pending confirmation/reconciliation.

NOTE 6 : Other Significant Disclosures

i. Disclosure pursuant to Ind AS 37, â Provisions, Contingent Liabilities and Contingent Assetsâ

A. Provision:

Wherever any liability has been recognized by the company, the necessary provisions were made in the books of accounts.

B. Contingent Liabilities:

The contingent liabilities are those which are not recognized as liability.

Income Tax:

For the assessment year 2006-07, the income tax assessment of the company was reopened against which the company filed a petition in the Supreme Court. The Supreme Court has directed the Madras High Court to dispose off the case on merits. In the meanwhile, in the reassessment of the company no further tax is due. Hence there would not be any further liability on the company on this ground.

The amount of TDS demands as per TRACES is Rs. 22.73 lakhs. The Company is in the process addressing the errors for necessary rectification.

Charges Payable to TANGEDCO:

The company has entered into an Energy Wheeling Agreement on 15th December 2014 with M/s. Clarion Wind Farm Private Limited (CWFPL) to draw power approximately 3,50,000 units per month @ Rs. 5.90 per unit. Tamil Nadu Generating & Distributing Corporation Limited (TANGEDCO) issued a show-cause notice directing the company to furnish documents to substantiate the companyâs claim that the power drawn under the Energy Wheeling Agreement is under âcaptive consumer statusâ and the âcaptive generator statusâ to CWFPL failing which a cross subsidy surcharge would be levied on the company amounting to Rs. 216.06 lakhs for the years 2014-15, 2015-16 and 2016-17.

The company has responded to the show cause notice and submitted the necessary documents to prove its captive consumer status and also requested CWFPL to submit the necessary documents as required by the TANGEDCO to prove the Captive Generator Status. The company has also obtained an undertaking from CWFPL vide their letter dated 26th April 2018 that the CWFpL would bear cross subsidy surcharge, if any imposed by the TANGEDCO on the company, if the Captive Generator Plant norms are not complied with due to the default by CWFPL. In view of the undertaking by CWFPL there will not be any contingent liability on our company, since such contingent liability will be borne by captive generator i.e. CWFPL.

iv. Exceptional Items

Exceptional items represents Rs.97.55 lakhs, being loss on closure of Savera Purple, Bangalore Rs. 65.04 lakhs and Food Buddy Outdoor Catering Divison, Chennai - Rs. 32.51 lakhs during the year ended 31st March, 2018.

v. Segment Reporting

The companyâs only business is Hotelliering and hence disclosure of segment wise information is not applicable under Ind AS 108 âOperating Segmentsâ. There is no Geographical segment to be reported since all the operations are undertaken in one geographical area.

vi. Figures are rounded off to nearest rupee.

vii. Previous year figures have been rearranged or regrouped wherever necessary.

Mar 31, 2017

Rights attached to Equity Shareholders:

(b) Shareholder holding more than 5 % of Equity Shares of the company

1. Micro and Small Enterprises:

i) There is no interest paid / payable during the year by the Company to the suppliers covered under Micro, Small, Medium Enterprises Development Act, 2006

ii) The above information takes into account only those suppliers who have responded to the enquiries made by the Company for the purpose.

2. Disclosure pursuant to Accounting Standard 29- âProvisions, Contingent Liabilities and Contingent Assetsâ

Income Tax Matters: Assessment Year 2006-07

The Assessment was reopened beyond a period of 4 years from the end of the assessment year which in the opinion of company''s tax consultants is not valid in law. The Writ Petition filed by the company in the Madras High Court questioning the validity of the reopening was dismissed along with other appeals though the reasons for reopening the assessment were different from other cases. The Writ filed by the company before the Supreme Court and the same was disposed off by the Supreme Court directing the High Court to dispose off the case on merits

In the meanwhile, Assessing Officer(AO) completed the assessment demanding Rs.30.96 lakhs. The appeal filed against this before the CIT (A) was decided in our favour. Against this, CIT (A)''s order, department filed an appeals before the ITAT. The same was decided by ITAT in favour of the Company.

Assessment Year 2010-11

The Commissioner of Income Tax passed an Order under section 263 setting aside the earlier assessment to consider the allowability of renovation expenses and preoperative expenses aggregating to Rs.143.36 lakhs. The appeal filed before the Tribunal was decided in our favour. It is not known whether the department filed an appeal in the High Court. The department filed an appeal before the High Court of Madras and the company understand from the council that the case was disposed off by the High Court in our favour in the open Court but the order is yet to be received.

Assessment Year 2012-13

AO disallowed the expenditure of Rs.33.96 lakhs resulting in a demand of Rs.19.77 lakhs. The appeal filed before CIT (A) was decided in our favour. The department filed an appeal before the ITAT. The same was decided by ITAT in favour of the Company.

Proposed Dividend

The Board of Directors have proposed a final dividend of Rs.1.5 per equity share amounting to Rs.2,15,34,453 /- inclusive of corporate dividend tax. The proposal is subject to the approval of shareholders at the Annual General Meeting. In terms of revised Accounting Standard (AS) 4 ''Contingencies and Events occurring after the Balance Sheet date'' as notified by the Ministry of Corporate Affairs through amendments to Companies (Accounting Standards) Amendment Rules, 2016, dated 30 March 2016, proposed dividend is not recognized as a liability as on 31 March 2017. Accordingly, the balance of Reserves and surplus is higher by Rs.2,15,34,453 /-(including corporate dividend tax) and the balance of Short term provisions is lower by an equivalent amount as on 31 March 2017.

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

4. Previous year figures have been re-grouped wherever necessary.

5. Third party balances are subject to confirmation.

Mar 31, 2016

1. The financial statements for the year ended 31st March, 2016, have been prepared in accordance with the Revised Schedule III of the Companies Act, 2013. Previous year figures have been re- grouped wherever necessary.

2. Disclosure in the Annual Report 2015-16 in respect of Income Tax Matters Assessment Year 2006-07

The Assessment was reopened beyond a period of 4 years from the end of the assessment year which in the opinion of companyâs tax consultants is not valid in law. The Writ Petition filed by the company in the Madras High Court questioning the validity of the reopening was dismissed along with other appeals though the reasons for reopening the assessment were different from other cases. The Writ filed by the company is pending before the Supreme Court.

In the meanwhile, Assessing Officer(AO) completed the assessment demanding Rs.30.96 lakhs. The appeal filed against this before the CIT (A) was decided in our favour. Against this, CIT (A)âs order, department filed an appeals before the ITAT

Assessment Year 2010-11

Assessment Year 2012-13

AO disallowed the expenditure of Rs.63.96 lakhs resulting in a demand of Rs.19.77 lakhs. The appeal filed before CIT (A) was decided in our favour. The department filed an appeal before the ITAT.

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

Mar 31, 2015

1. The company has only one class of equity shares having a par value of Rs. 10/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in the case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their share holding.

2. During the year ended March 31, 2015, the amount of per share dividend recognized as distribution to equity shareholder was Rs. 1.20/- (Previous year Rs. 1.20/-)

3. Secured by First Charge on entire Land & Building, Movable & Immovable Assets of the Compa- ny situated at Door No. 146, Dr. Radhakrishnan Road, Chennai -4. & Property admeasuring 18.15 grounds, situated at Avinashi Road, Coimbatore

4. Disclosure pursuantto Accounting Standard 18 "Related Parties disclosure":

As per Accounting Standard - AS 18 "Related Parties Disclosure" notified by the Companies (Accounting Standards) Rules, the required information are given below:

1) List of Related Par ties are as follows

A) Subsidiary Company : Elkhill Agrotech Pvt Ltd

B) Key Management Personnel : Mr. A. Ravikumar Reddy, Managing Director

Mrs. A. Nina Reddy, Joint Managing Director

5. Key Management Personnel :

Key Management Personnel comprise of Managing Director and Joint Managing Director who have the authority and the responsibility for planning and controlling the activities of the Company. The remuneration paid to such director's is Rs. 56.10 Lakhs (Previous year Rs. 49.80 Lakhs)

6. As per Accounting Standards 21 on "Consolidated Financial Statement", Accounting Standard 23 on "Accounting for investments in Associates in Consolidated Financial Statements" the Company has presented consolidated financial statements separately including that of subsidiary in this annual report.

7. Pre-operative expenses represent the start up cost in setting up the units and have been amortized over a period of 5 years.

8. Renovation expenditure has been treated as deferred revenue expenditure and amortized over a period of three (3) years for the previous years.

9. Micro and Small Enterprises:

i) There is no interest paid / payable during the year by the Company to the suppliers covered under Micro, Small, Medium Enterprises Development Act, 2006

ii) The above information takes into account only those suppliers who have responded to the enquiries made by the Company for the purpose.

10. Salaries, wages and other benefits include Managerial Remuneration under section 198 ofthe Companies Act, 2013, which are as follows:

11. The financial statements for the year ended 31st March, 2015, have been prepared in accordance with the Revised Schedule III of the Companies Act, 2013. Previous year figures have been re- grouped wherever necessary.

12. Disclosure in the Annual Report 2014-15 in respect of Income Tax matters

Assessment Year 2006-07

The Assessment was reopened beyond a period of 4 years from the end of the assessment year which in the opinion of company's tax consultants is not valid in law. The Writ Petition filed by the company in the Madras High Court questioning the validity of the reopening was dismissed along with other appeals though the reasons for reopening the assessment were different from other cases. The Writ filed by the company is pending before the Supreme Court.

In the meanwhile, Assessing Officer(AO) completed the assessment demanding Rs.30.96 lakhs. The appeal filed againstthis is pending before the CIT (A).

Assessment Year 2010-11

The Commissioner of Income Tax passed an Order under section 263 setting aside the earlier assessment to consider the allowability of renovation expenses and pre-operative expenses aggregating to Rs.143.36 lakhs. The appeal is pending before the Tribunal.

Assessment Year 2012-13

AO disallowed the expenditure of Rs.63.96 lakhs resulting in a demand of Rs.19.77 lakhs. The appeal is pending before CIT (A).

The company has been advised that they have fair chances of winning the appeal and there may not be any demand payable by the company in all these three years.

13. The impairment loss is estimated at Rs. 109.21 lakhs in relation to the assets of Walnut Hotel unit at Hyderabad, since the business is discontinued and the realisable value will be less than the carrying amount. Accordingly, the provision is made in the Profit & Loss Statement.

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

Mar 31, 2014

A) Corporate Information:

Savera Industries Limited is incorporated in India in November, 1969, and is engaged in the business of Hoteliering. Shares of the Company are listed in Bombay Stock Exchange Ltd (BSE) and Madras Stock Exchange Ltd (MSE).

1. Disclosure pursuant to Accounting Standard 18 "Related Parties disclosure":

As per Accounting Standard - AS 18 "Related Par ties Disclosure" notiied by the Companies (Accounting- Standards) Rules, 2006, the required information are given below :

1) List of Related Parties are as follows

A) Subsidiary Companies Elkhill Agrotech Pvt Ltd

B) Key Management Personnel Mr.A.Ravikumar Reddy, Managing Director

Mrs.A.Nina Reddy, Joint Managing Director

Key Management Personnel :

Key Management Personnel comprise of Managing Director and Joint Managing Director who have the authority and the responsibility for planning and controlling the activities of the Company. The remuneration paid to such directors is X 49.80 Lakhs (Previous year X 55.18 Lakhs)

2. As per Accounting Standards 21 on "Consolidated Financial Statement", Accounting Standard 23 on "Accounting for investments in Associates in Consolidated Financial Statements'' the Company has presented consolidated financial statements separately including that of subsidiary entity in this annual report.

3. Pre-operative expenses represent the start up cost in setting up the units and have been amor tized over a period of 5 years.

4. Renovation expenditure has been treated as deferred revenue expenditure and amor tized over a period of three (3) years for the previous years.

5. Micro and Small Enterprises:

i) There is no interest paid / payable during the year by the Company to the suppliers covered under Micro, Small, Medium Enterprises Development Act, 2006.

ii) The above information takes into account only those suppliers who have responded to the enquiries made by the Company for the purpose.

6. The financial statements for the year ended 31 st March, 2014, have been prepared in accordance with the Revised Schedule VI of the Companies Act, 1956. Previous year figures have been re- grouped wherever necessary.

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

Mar 31, 2013

1. Disclosure pursuant to Accounting Standard 18 "Related Parties disclosure":

As per Accounting Standard AS 18 "Related Parties Disclosure" notified by the Companies (Accounting Standards) Rules, 2006 the required information are given below :

1) List of Related Parties are as follows

A) Subsidiary Companies : Elkhill Agrotech Pvt Ltd

Savera Hotels & Resorts Limited

B) Key Management Personnel : Mr.A.Ravikumar Reddy, Managing Director

Mrs.A.Nina Reddy, Joint Managing Director

Key Management Personnel:

Key Management Personnel comprise of Managing Director and Joint Managing Director who have the authority and the responsibility for planning and controlling the activities of the Company. The remuneration paid to such,directors is X 55.18 Lakhs (Previous year t 74,40 Lakhs)

2. As per Accounting Standards 21 on "Consolidated Financial Statement", Accounting Standard 23 on "Accounting for investments in Associates in Consolidated financial Statements'' the Company has presented consolidated financial statements separately including that of subsidiaries entities in this annual report.

3. Pre-operative expenses represent the start up cost in setting up the units and have been amortized over a period of 5 years

4. Renovation expenditure has been treated as deferred revenue expenditure and amortized over a period of three (3) years for the previous years.

5. Micro and Small Enterprises:

i) There is no interest paid / payable during the year by the Company to the suppliers covered under Micro, Small, Medium Enterprises Development Act, 2006

ii) The above information takes into account only those suppliers who have responded to the enquiries made by the Company for the purpose.

6. Salaries, wages and other benefits include Managerial Remuneration under section 349 of the Companies Act, 1956, which are as follows:

7. The financial statements for the year ended 31 st March, 2013, have been prepared in accordance with the Revised Schedule VI of the Companies Act, 1956. Previous year figures have been re- grouped wherever necessary.

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

Mar 31, 2012

(i) Of the above, following were allotted:

As fully paid up Bonus Shares:

59,64,000 Shares in 2010-11 by capitalisation of Securities Premium Reserve and General Reserve

(ii) The company has only one class of equity shares having a par value of Rs.10/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in the case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

(iii) During the year ended March 31, 2012, the amount of per share dividend recognized as distribution to equity shareholder was Rs. 1.20/- (Previous year Rs.1.20/-)

1. Disclosure pursuant to Accounting Standard 15- "Employee Benefits":

Under the employee Benefits - Staff Costs are as follows : The Company's contribution to Provident fund is Rs. 47.00 lakhs (Previous year Rs. 34.35 lakhs), ESI is Rs. 17.38 lakhs (Previous year Rs. 10.79 lakhs ) and Gratuity is Rs. 37.23 lakhs (Previous year Rs.16.74 lakhs). PF Contribution to Key Management Personnel viz., Managing Director and Executive Director (Operations) is Rs. 0.19 lakhs (Previous year Rs. 0.19 lakhs).

2. Disclosure pursuant to Accounting Standard 18 "Related Parties disclosure":

There were no transactions with the Related Parties during the year under review.

3. As per Accounting Standards 21 on "Consolidated Financial Statement", Accounting Standard 23 on "Accounting for investments in Associates in Consolidated Financial Statements' the Company has presented consolidated financial statements separately including that of subsidiaries entities in this annual report.

4. Pre-operative expenses represent the start up cost in setting up the units and have been amortized over a period of 5 years.

5. Renovation expenditure has been treated as deferred revenue expenditure and amortized over a period of three (3) years.

6. Micro and Small Enterprises:

i) There is no interest paid/payable during the year by the Company to the suppliers covered under Micro, Small, Medium Enterprises Development Act, 2006

ii) The above information takes into account only those suppliers who have responded to the enquiries made by the Company for the purpose.

7. The financial statements for the year ended 31st March, 2012, have been prepared in accordance with the Revised Schedule VI of the Companies Act, 1956. Previous year figures have been regrouped wherever necessary.

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

Mar 31, 2011

A) Being a Hotel industry, the company is exempt vide order No. 46/112/2009 CL - III dated i 15.05.2009 to furnish Quantitative details.

b) Term Loans from Banks (Industrial Finance Branch) are secured by the following Charges on the Assets.

f) Pre-operative expenses represent the start up cost in setting up the units and has been i amortised over a period of 5 years.

g) Renovation expenditure has been treated as deferred revenue expenditure and amortised over a period of three (3) years.

h) Disclosure Under AS - 6: out of the total depreciation of Rs.94 thousands for the year, Rs.49 thousands debited to Profit and Loss Account and balance Rs.5 thousands transferred to revaluation reserve account.

i) Disclosure Under AS - 15 (Revised) - Under the employee Benefits-Staff Cost, the Company's contribution to Provident fund is Rs.5 thousands (Previous year Rs.3 thousands), ESI is Rs.9 thousands (Previous year Rs.1 thousands) and Gratuity Rs.3 thousands (Previous year Rs. 2847 ousands). PF contribution to Key Management Personnel viz., Managing Director and Executive Director (Operations) is Rs.19 thousands (Previous year Rs.19 thousands).

j) As per Accounting Standard -AS 18 "Related Parties disclosure" the required information are given below:

- The company disclosed that Water was purchased for Rs.1962 thousands (Previous year i Rs.1543 thousands) from M/s. Shyam Hotels & Restaurants where directors of the company are common.

- The company disclosed that the fixed assets were purchased for Rs. 52000 thousands from M/s. Amaravathi Restaurants (P) Ltd. where directors of the company are common.

- The company disclosed that the receivables from the subsidiary companies are Rs.11135 thousands (Previous year Rs.13816 thousands).

k) Accounting for Leases AS-19: Cost of asset purchased on HP basis is Rs.12024 thousands. Lease Rental Payable in the next one year is Rs.2503 thousands, in the next 1 to 5 year is Rs.6267 thousands and more than 5 years is nil.

I) Earning Per Share AS-20:

m) As per Accounting Standards 21 on "Consolidated Financial Statement", Accounting Standard 23 on "Accounting for investments in Associates in Consolidated Financial Statements' the Company has presented consolidated financial statements separately including that of subsidiaries entities in this annual report.

n) Deferred Tax: In accordance with the Accounting Standard 22 (AS-22) 'Accounting for Taxes on Income', the Company has provided for deferred tax and the net deferred tax liability as on 31st March, 2011 comprises of the following:

o) Micro, Small and Medium Enterprises:

(a) There is no interest paid / payable during the year by the Company to the suppliers covered under Micro, Small and Medium Enterprises Development Act, 2006

(b) The above information takes into account only those suppliers who have responded to the enquiries made by the Company for the purpose.

p) Previous year figures have been regrouped wherever necessary.

q) The figures have been rounded off to nearest rupee.

Schedules 1 to 19 form an integral part of the Balance Sheet and the Profit and Loss Account.

Mar 31, 2010

A) Disclosure Under AS -15 (Revised) - Under the Employee Benefits Staff Costs the Companys contribution to Provident Fund is Rs.25,23 Thousands (Previous year Rs.29,61 Thousands).

b) As per Accounting Standards 21 on "Consolidated Financial Statement", Accounting Standard 23 on "Accounting for Investments in Associates in Consolidated Financial Statements" the Company has presented consolidated financial statements separately, including that of subsidiaries entities in this annual report.

c) Previous year figures have been regrouped wherever necessary.

d) The figures have been rounded off to nearest rupee.

Schedules 1 to 19 form an integral part of the Balance Sheet and the Profit and Loss Account.

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