Notes to Accounts of Supreme Holdings & Hospitality (India) Ltd.

Mar 31, 2018

Nature of securities and terms of repayments for long - term borrowings

a) Loan from other party

Rs. 2,200.00 lakhs is secured by way first ranking exclusive mortgage by the Mortgagor in favour of the Security Trustee over the Mortgage Properties, first ranking exclusive pledge over the pledged properties in favour of the security trustee and personal guarantees issued by the personal guarantors in favour of the security trustee. The loan carries fixed interest @ 16.5% p.a. and is repayable in quarterly installments starting from quarter ended 31 December 2019 and ending in quarter ended 30 September 2022.

Note - 31 Financial risk management objectives and policies

The Company''s principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to finance and support Company''s operations. The Company''s principal financial assets include loans given, trade and other receivables, cash and cash equivalents, other bank balances and refundable deposits that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The Company''s senior management ensures that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks.

Financial risk management

The Company has exposure to the following risks arising from financial instruments:

(i) Market risk, (ii) Credit risk and (iii) Liquidity risk

i. Market risk

Market risk arises from the Company''s use of interest bearing financial instruments. It is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in interest rates (interest rate risk) or other market factors. Financial instruments affected by market risk include borrowings, loan givens, fixed deposits and refundable deposits.

a Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to the risk of changes in market interest rates as the funds borrowed by the Company is at fixed interest rate. b Foreign currency risk

Currency risk is not material, as the Company''s primary business activities are within India and does not have significant exposure in foreign currency.

ii. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities including security deposits, loans to employees and other financial instruments.

a) Trade receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The Company has entered into contracts for sale of residential units. The payment terms are specified in the contracts. The Company is exposed to credit risk in respect of the amount due. However, in case of sale, the legal ownership is transferred to the buyer only after the entire amount is recovered. In addition, the amount due is monitored on an ongoing basis with the result that the Company''s exposure to bad debts is not significant. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions industries and operate in largely independent markets.

b) Financial Instrument and cash deposits

With respect to credit risk arising from the other financial assets of the Company, which comprise bank balances, cash, loans to related parties and other parties, other receivables and deposits, the Company''s exposure to credit risk arises from default of the counterparty, with a maximum exposure equal to the carrying amount of these assets. Credit risk from balances with banks is managed by Company''s treasury in accordance with the Company''s policy. The Company limits its exposure to credit risk by only placing balances with local banks. Given the profile of its bankers, management does not expect any counterparty to fail in meeting its obligations.

iii. Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company monitors its risk to a shortage of funds using a recurring liquidity planning tool. This tool considers the maturity of both its financial investments and financial assets (e.g. trade receivables, other financial assets) and projected cash flows from operations. The cash flows, funding requirements and liquidity of Company is monitored under the control of Treasury team. The objective is to optimize the efficiency and effectiveness of the management of the Company''s capital resources. The Company''s objective is to maintain a balance between continuity of funding and borrowings. The Company manages liquidity risk by maintaining adequate reserves and borrowing facilities, by continuously monitoring forecasted and actual cash flows and matching the maturity profiles of financial assets and liabilities.

The Company currently has sufficient cash on demand to meet expected operational expenses, including the servicing of financial obligations.

The table below summarizes the maturity profile of the Company''s financial liabilities based on contractual undiscounted payments:

Note - 33 Fair value measurement

The fair value of the financial assets are included at amounts at which the instruments could be exchanged in a current transaction between willing parties other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair value:

(a) Fair value of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, approximate their carrying amounts largely due to the short-term maturities of these instruments

(b) Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such

as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for the expected losses of these receivables.

b) Fair value hierarchy

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs)

Note - 34 First time adoption of Ind AS

A) First Ind AS financial statement

These financial statements, for the year ended 31 March 2018, are the first, the Company has prepared in accordance with Ind AS. For the period up to and including the year ended 31 March 2017, the Company prepared its financial statements in accordance with the accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (previous GAAP).

Accordingly, the Company has prepared its financial statements to comply with Ind AS for the year ended 31 March 2018, together with comparative data as at and for the year ended 31 March, 2017, as described in the summary of significant accounting policies. In preparing there financial statements, the Company’s opening balance sheet was prepared as at 01 April 2016, the Company’s date of transition. There notes explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 01 April 2016 and the financial statements as at and for the year ended 31 March 2017.

I Optional exemptions availed

Ind AS 101 allows first-time adopters certain optional exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions:

i) Deemed cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment 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 de-commissioning liabilities. This exemption is also applicable for intangible assets and investment property covered under Ind AS 38 and Ind AS 40respectively. Accordingly, the Company has elected to measure all of its property, plant and equipment, intangible assets and investment property at their previous GAAP carrying value.

ii) Investment in subsidiaries, associates and joint ventures

"Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its investment in subsidiaries, associates and joint ventures as recognized in the financial statements 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.

Accordingly, the Company has elected to measure all of its investments in subsidiaries, associates and joint ventures at their previous GAAP carrying value."

II Mandatory exceptions applied:

The following are the mandatory exceptions that have been applied in accordance with Ind AS 101 in preparing these financial statements: i) Estimates

An entity''s 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 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP except where Ind AS required a different basis for estimates as compared to the previous GAAP.

ii) Derecognition of financial assets and financial 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-t

time adopter to apply the derecognition requirements in Ind AS 109 retrospectively from a date of the entity''s 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 applied the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

iii) 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) Reconciliation of equity and total comprehensive income

C) Impact of Ind AS adoption on the statement of cash flows for the year ended 31 March 2017 -

All the adjustments on account of Ind AS are non - cash in nature and hence, there is no material impact on the statement of cash flows.

Note -1. Segment information

Disclosure under Ind AS 108 - ’Operating Segments’ is not given as, in the opinion of the management, the entire business activity falls under one segment, viz., Real estate development. The Company conducts its business in only one Geographical Segment, viz., India.

Note - 2.

In the opinion of the Board, the Current Assets, Loans and Advances are approximately of the value stated as realizable in the ordinary course of business and the provision for all known liabilities are adequate.

Note - 3.

Previous year figures have been regrouped / reclassified, wherever necessary, to correspond with current year classification.

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Mar 31, 2016

(ii) Aggregate number of equity shares issued for consideration other then cash during the period of five year immediately preceding the year in which balance sheet was prepared :

Pursuant to amalgamation of Jatia Hotels & Resorts Private Limited and Royalways Trading & Investment Service Private Limited with the company, the company has allotted 2,66,82,553 Equity Share of Rs.10 Each during the year 2011-12 to the share holders of Jatia Hotels & Resorts Private Limited and Royalways Trading & Investment Services Private Limited.

(iii) Term/ right attached to equity:

The company has only one class of share capital namely Ordinary Shares having par value of Rs. 10/- per share. Each holder of Ordinary Shares is entitled to one vote per share. In the event of liquidation of the company, the holders of Ordinary 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 Ordinary Shares held by the shareholder.

Terms of Borrowings:

The Company has been sanction term loan of Rs. 85.00 Crores from a Bank The terms and condition of the term loan are as under

1 Interest Rate: 2.75% (Bank''s spread) over Base Rate

2 Moratorium Period: Moratorium period of 2 years

3 Repayment: 9 unequal quarterly installments

4 “Security: The term loan is secured by exclusive charge byway of Equitable Mortgage of project land, superstructure, material at site & work in progress and hypothecation of movable assets, receivables and other assets. The term loan is further secured by personal guarantee of Vinod Jatia, Prateek Jatia and Vidip Jatia.”

Notes

(i) Loan & Advances to related parties includes advance to its subsidiary Helmet Traders Ltd of Rs.75,83,300/-(P.Y.Rs.77,83,300/-)

ii) The Company has given Bank Guarantee for Rs. 5,00,000/- (P.Y. 500,000/-)

iii) The Company has mortgaged its part Land at Panvel of Rs.232.26 Lacs to a Bank towards the Credit Facilities sanctioned to a Body Corporate.

During the year the Company has provided gratuity (Defined Benefit Scheme) on the basis of actuarial valuation done . The current year is being first year of actuarial valuation, the previous year comparative information has not been furnished.

Note 5

The name of the Micro, Small and Medium Enterprises suppliers defined under “The Micro Small Enterprises Development Act,2006” could not be identified, as the necessary evidence is not in the possession of the Company.

Note 6

In the opinion of the Board, the Current Assets, Loans and Advances are approximately of the value stated as realizable in the ordinary course of business and the provision for all known liabilities are adequate.

Note 7

Till the financial year 2013-14, the Company has charged depreciation as per rates provided under schedule XIV of Companies Act, 1956.

With effective from 01st April, 2014, the Company has charged depreciation on its assets based on the useful life as stipulated under schedule II of Companies Act, 2013. Based on the transitional provision as provided in Note 7(b) of the Schedule II, Rs. 1,20,843/- (Net of Tax) has been adjusted against opening balance of retained earnings in the financial year 2014-15.

Note 8

Previous year figures are regrouped and rearranged, wherever necessary, to make them comparable with those of the current year''s figures.

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Mar 31, 2015

Note 1A Corporate Information

The Supreme Holdings & Hospitality (India) Limited (the company) is a public limited company domiciled in India and incorporated under the provisions of Companies Act 1956. The company is engaged in hospitality and constructions of commercial and residential complex activities.

(ii) Term/ right attached to equity:

The company has only one class of share capital namely Ordinary Shares having par value of Rs. 10/- per share. Each holder of Ordinary Shares is entitled to one vote per share. In the event of liquidation of the company, the holders of Ordinary 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 Ordinary Shares held by the shareholder.

Terms of Borrowings:

During the year the Company has been sanction term loan of Rs. 85.00 Crores from a Bank The terms and condition of the term loan are as under

1 Interest Rate: 2.75% (Bank's spread) over Base Rate

2 Moratorium Period: Moratorium period of 2 years

3 Repayment: 9 unequal quarterly instalments

4 Security: The term loan is secured by exclusive charge by way of Equitable Mortgage of project land, superstructure, material at site & work in progress and hypothecation of movable assets, receivables and other assets. The term loan is further secured by personal guarantee of Vinod Jatia, Prateek Jatia and Vidip Jatia."

Notes

i) Expenses payable to Related Parties includes dues to a firm in which Directors are partners Rs. NIL (P.Y. Rs. 9,000/-)

Note 2

The name of the Micro, Small and Medium Enterprises suppliers defined under "The Micro Small Enterprises Development Act,2006" could not be identified, as the necessary evidence is not in the possession of the Company.

Note 3

In the opinion of the Board, the Current Assets, Loans and Advances are approximately of the value stated as realizable in the ordinary course of business and the provision for all known liabilities are adequate.

Note 4 Related Party Disclosures A Subsidiary Company

1 Helmet Traders Limited

B Key Management Personnel

2 Vinod Kumar Jatia

3 Prateek Jatia

4 Vidip Jatia

C Entities Controlled by Key Management Personnel or their relatives

5 Subhkaran & Sons

6 Makalu Trading Ltd

Note 5

Till the financial year 2013-14, the Company has charged depreciation as per rates provided under schedule XIV of Companies Act, 1956.

With effective from 01st April, 2014, the Company has charged depreciation on its assets based on the useful life as stipulated under schedule II of Companies Act, 2013. Based on the transitional provision as provided in Note 7(b) of the Schedule II, Rs. 1,20,843/- (Net of Tax) has been adjusted against opening balance of retained earnings.

Note 6

Previous year figures are regrouped and rearranged, wherever necessary, to make them comparable with those of the current year's figures.

Note 7

Disclosure as per clause 32 of the Listing Agreement in the respect of Loans and Advances in the nature of Loans given to Subsidiaries and Associates

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Mar 31, 2014

I) Estimated amount of contracts remaining to be executed

Particulars 31.03.2014 31.03.2013

Commitments

Estimated amount of contracts remaining to 13837514 13630000 be executed on capital account and not provided for 13837514 13630000

ii) The Company has given Bank Guarantee for Rs. 5,00,000/- (P.Y. Nil)

iii) The Company has mortgaged its part Land at Panvel of Rs.231.34 Lacs to a Bank towards the Credit Facilities sanctioned to Associate Concern.

The name of the Micro, Small and Medium Enterprises suppliers defined under "The Micro Small Enterprises Development Act,2006" could not be identified, as the necessary evidence is not in the possession of the Company.

Note 2

In the opinion of the Board, the Current Assets, Loans and Advances are approximately of the value stated as realizable in the ordinary course of business and the provision for all known liabilities are adequate.

Note 3 Related Party Disclosures

List of related parties with whom transaction have been taken place and relationship A Subsidiary Company

1 Helmet Traders Limited

B Key Management Personnel

2 Vinod Kumar Jatia

3 Prateek Jatia

4 Vidip Jatia

C Entities Controlled by Key Management Personnel or their relatives

5 Subhkaran & Sons

6 Grandeour Hotels Pvt Ltd

Previous year figures are regrouped and rearranged, wherever necessary, to make them comparable with those of the current year''s figures.

Note 4

Disclosure of Loans/Advances and Investments in its own shares by the listed companies, their Subsidiaries, Associates etc, pursuant to Circular CRD/GEN/2003/1 Dated February 6, 2003 of The Stock Exchange, Mumbai.

Note : In respect of Loans & Advances to Subsidiary there is no repayment schedule and no interest is charged on above loan.

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Mar 31, 2013

Note 1A Corporate Information

The Supreme Holdings & Hospitality (India) Limited (the company) is a public limited company domiciled in India and incorporated under the provisions of Companies Act 1956. The company is engaged in hospitality and constructions of commercial and residential complex activities.

Board of Directors of the Company at their meeting held on 16th March, 2013 have approved to develop a residential and commercial complex at Pune land in lieu of hospitality project and accordingly the land at Pune and other expenses related thereto have been converted from Fixed Assets and CWIP to inventory.

Note 2

The name of the Micro, Small and Medium Enterprises suppliers defined under "The Micro Small Enterprises Development Act,2006" could not be identified, as the necessary evidence is not in the possession of the Company.

Note 3

In the opinion of the Board, the Current Assets, Loans and Advances are approximately of the value stated as realizable in the ordinary course of business and the provision for all known liabilities are adequate.

Note 4 Related Party Disclosures

List of related parties with whom transaction have been taken place and relationship

A Subsidiary Company

1 Helmet Traders Limited

B Key Management Personnel

2 Vinod Kumar Jatia

3 Prateek Jatia

C Entities Controlled by Key Management Personnel or their relatives

4 Subhkaran & Sons

5 Grandeour Hotels Pvt Ltd

Note 5

Previous year figures are regrouped and rearranged, wherever necessary, to make them comparable with those of the current year''s figures.

Note 6

Disclosure of Loans/Advances and Investments in its own shares by the listed companies, their Subsidiaries, Associates etc, pursuant to Circular CRD/GEN/2003/1 Dated February 6, 2003 of The Stock Exchange, Mumbai.

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Mar 31, 2012

(i) Agreegate number of equity shares issued for consideration other then cash during the period of five year immediately preceding the year in which balance sheet Prepared :

Pursuant to amalgmation of Jatia Hotels & Resorts Private Limited and Royalways Trading & Investment Service Private Limited with the company, the company has allotted 2,66,82,553 Eauity Share of Rs. 10 Each during the year 2011-12 to the share holders of Jatia Hotels & Resorts Private Limited and Royalways Trading & Investment Services Private Limited.

Note 1 Contingent Liabilities and Commitments (to the extent not provided for)

i) Estimated amount of contracts remaining to be executed

Particulars 31.03.2012 31.03.2011

Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for 980,323,995 991,007,000

980,323,995 991,007,000

ii) The Company has mortgaged its part Land at Panvel of Rs. 218.42 Lacs to a Bank towards the Credit Facilities sanctioned to Associate Concern.

Note 2

The name of the Micro, Small and Medium Enterprises suppliers defined under "The Micro Small Enterprises Development Act,2006" could not be identified, as the necessary evidence is not in the possession of the Company.

Note 3

Balances of Loans and Advances and Sundry Creditors are subject to confirmations.

Note 4

In the opinion of the Board, the Current Assets, Loans and Advances are approximately of the value stated as realizable in the ordinary course of business and the provision for all known liabilities are adequate.

Note 5

Cenvat Credit Receivable of Rs. 1,53,08,860/- includes Rs. 1,37,28,580/- which is not eligible for Cenvat Credit in terms of "Cenvat Credit (Amendment) Rules 2011". However, the management believes that such taxes would be available as Cenvat Credit in the future and therefore the entire amount is shown as Cenvat Credit Receivable.

Note 6 Related Party Disclosures

List of related parties with whom transaction have been taken place and relationship

A Subsidiary Company

1 Helmet Traders Limited

B Key Management Personnel

2 Vinod Kumar Jatia

3 Prateek Jatia

C Entities Controlled by Key Management Personnel or their relatives

4 Subhkaran & Sons

5 Dilshad Trading Co Pvt Ltd

Note 7

Previous year figures are regrouped and rearranged, wherever necessary, to make them comparable with those of the current year's figures.

Note : In respect of Loans & Advances to Subsidiary there is no repayment schedule and no interest is charged on above loan.

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Mar 31, 2011

1. Contingent Liabilities not provided for and Estimated amount of contract remaining to be executed:

i) Estimated amount of contracts remaining to be executed on capital account not provided for Rs. 9,910.07 Lacs (net of advances)( Previous YearRs. 110 Lacs)

ii) The Company has mortgaged its part Land at Panvel of Rs.218.42 lacs to a Bank towards the credit facilities sanctioned to associate concern.

2. In the opinion of the Board, the Current Assets, Loans and Advances are approximately of the value stated as realizable in the ordinary course of business and the provisions of all known liabilities are adequate.

3. Balances of Loans and Advances and Sundry Creditors are subject to confirmations

4. Cash in hand includes dollars in hand Rs 34,353.71/- (PY. Rs. 34,730.72/-).

5. The name of the Micro, Small and Medium Enterprises suppliers defined under "The Micro Small and Medium Enterprises Development Act, 2006" could not be identified, as the necessary evidence is not in the possession of the Company.

6. Loans and Advances include Rs. 89.91 Lac (P.Y Rs. 95.06 Lac) amount due from Helmet Traders Limited a subsidiary of the Company and Rs.Nil (P.YRs. 130.96 Lac) due from an assosiate concern Makalu Trading Ltd. Maximum Balance outstanding during the year is 1124.02 Lac (P.Y 741.36 Lac)

7. The Hon'ble Bombay High Court has by its order dated 29th July. 2011 sanctioned the scheme of amalgamation of Jatia Hotels & Resorts Private Limited ("First Transferor Company") and Royalways Trading & Investment Private Limited ("Second Transferor Company") with the company we.f from 1st April 2010 being the appointed date. ,

As per the Scheme of Amalgamation the company has to issue 2,66,82,553 fully paid up Equity Shares of Rs. 10/- each to the shareholders of Jatia Hotels & Resorts Private Limited (35 shares for every 2 Equity Shares of Rs. 10/-each held) and 1668 fully paid up Equity Shares of Rs. 10/- each to the shareholders of Royalways Trading & Investment Private Limited (1 Share for every 6 equity shares of Rs. 10/- each held). As the allotment of shares is pending, the corresponding amount of Rs.2,668.26 Lac has been stated as "Share Capital Pending allotment" as at 31st March, 2011. All the assets and liabilities of Transferor Companies have been transferred and vested in the Company.

The difference of Rs.3265.29 lacs arised on adjustment of aggregate value of the assets of transferor companies reduced by the aggregate value of the liabilities, including the profit and loss account and reserves over the aggregate value of the new equity shares to be issued and allotted by the company to the shareholders of Transferor Companies pursuant to the scheme of amalgamation has been reduced from security premium account.

The accounting treatment and recognition of the above is done in accordance with the Scheme of Amalgamation.

The assets vested with the company pursuant to scheme of Amalgamation, are under process of being transferred in name of the Company.

8. Previous year figures pertains only results of the company and current year figures include results of the transferor companies under the scheme of amalgamation, hence current year figures are not comparable.

9. During the year company has retrospectively changed its method of providing depreciation on fixed assets from the Written Down Value ('WDV') method at the rates prescribed in Schedule XIV to the Companies Act, 1956 to Straight Line Method ('SLM') at the Schedule XIV rates. The change has effected into reversal of depreciation charged earlier of Rs 7,83,183/-. Of the said amount Rs 3,47,150/- has been adjusted in Profit and Loss Account and Rs 4,36,033/- has been adjusted in incidental expenses pertaining to Capital WIP. Had the company continued to use the earlier basis of providing depreciation, the charge to Profit and Loss Account after taxation for the current year would have been higher by Rs 14,318/- and the net block of fixed assets and reserve and surplus would have been lower by Rs 14,318/- and Capital WIP would have been lower by 4,36,033/-.

10. Related Party Disclosures :

List of related parties with whom transaction have taken place and relationship;

A. Subsidiary Company

1 Helmet Traders Limited

B. Key Management Personnel

2 Vinod Kumar Jatia

3 Prateek Jatia

4 Rudrapattana Gunduramiah Narayana Swamy

C. Entities controlled by Key Management Personnel or their relatives

5 Subhkaran & Sons

6 Makalu Trading Ltd.

7 Ogardhani Exports Pvt.Ltd.

8 Dilshad Trading Co.Pvt.Ltd.

11. Previous year figures are regrouped and rearranged, wherever necessary, to make them comparable with those of the current year's figures.

12. The Company is constructing a Hotel Project at Pune. The expenditure incurred during the construction period are classified as "Incidental Expenses during Construction"'pending Capitalisation and the same is included in Capital Work in Progress, which will be apportioned to the fixed assets on the completion of the said Project. Necessary details as per Part II of Schedule VI of the Companies Act, 1956 have been disclosed in Annexure "A".

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Mar 31, 2010

1. Contingent Liabilities not provided for:

i) Estimated amount of contracts remaining to be executed on capital account not provided for Rs. 110 Lacs (net of advances)( Previous Year Rs. 110 Lacs)

2. In the opinion of the Management, the Current Assets, Loans and Advances are approximately of the value stated as realizable in the ordinary course of business and the provisions of all known liabilities are adequate.

3. The Balances and classification of some of the Loans and Advances, Sundry Creditors and other liabilities shown in the Financial Statements are as per the ledgers and are subject to confirmation and consequent reconciliation and adjustment.

4. Loans and Advances include Rs. 95, 06,300/- (P.Y Rs. 94, 71,300/-) amount due from Helmet Traders Limited a subsidiary of the Company. Maximum Balance outstanding during the year is 95, 06,300/- (P.Y. 95, 51,300/-)

5. During the earlier years the company had purchased Land at Panvel for a total consideration of Rs. 418.40 Lacs (P.Y. Rs. 418.40 Lacs) but the same is still not registered in the name of the Company.

6. The company does not have any employees on its payroll as at 31st March, 2010 hence provision for gratuity has not been made.

7. During the year the Company has transferred its employees to the associate concern hence gratuity liability of Rs. 40,000/- (P.Y. 3,22,472/-) due to them have been written back.

8. Deferred Tax Liability for the current year amounting to Rs.9,55,615/- (Previous year Rs. 12,06,218/-) has been recognized in the Profit & Loss Account.

10. The names of the Micro, Small and Medium Enterprises suppliers defined under "The Micro Small and Medium Enterprises Development Act, 2006" could not be identified, as the necessary evidence is not in the possession of the Company.

13. Related Party Disclosures :

List of related parties with whom transaction have taken place and relationship;

Sl. No. Name of Related Party Relationship

1 Helmet Traders Limited Subsidiary Company

2 Vinod Kumar Jatia Key Management Personnel

3 Prateek Jatia Key Management Personnel

4 Makalu Trading Ltd.

5 Subhkaran & Sons

6 Royalways Trading & Investment Service Pvt. Ltd.

7 Jat a Hotels & Resorts Pvt. Ltd. Entities controlled by Key Management Personnel or their relatives.

14. The Company has entered into MOU with two associate concerns for purchase of Land at Panvel for its new business activity of development & running of Hotels & Resorts. An amount of Rs. 6,90,00,000/- Lacs (PY Rs. 6,90,00,000/) has been paid as advance for purchase of the said land up to year-end. The Land will be capitalized in the year in which agreement will be executed.

15. The Company has paid Rs. 1,74,20,000/- (P.Y. 40,20,000/-) towards Share Application money to an associate concern, Jatia Hotels & Resorts Private Limited, the allotment of shares thereof pending up to 31st March, 2010

16. Other Income Includes Rs. 80,00,000/- (P.Y. Rs. Nil) from assignment of Key Man Insurance Policy in favor of director.

17. Previous year figures are regrouped and rearranged, wherever necessary, to make them comparable with those of the current years figures.

19. The Company has transferred the balance of Rs. Nil (P.Y. Rs. 80, 06, 095/-) appearing in the Reserve Fund in terms of Section - 45 IC(1)of Reserve Bank of India Act, 1934 to General Reserve as the Company has deregistered itself as a NBFC and the balance of the said Reserve Fund is no more required.

20. Previous years figures have been audited by other than Churiwala & Co.