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Notes to Accounts of Viceroy Hotels Ltd.

Mar 31, 2016

1. In relation of Secured (Term) Loans:

Asset Subservient charge on movable and immovable assets of Hyderabad Marriott hotel and

Reconstruction Subservient charge on movable and immovable fixed assets of company (except Company of India Bangaloreand Chennaiprojects).

Limited- Taken over The existing Limit Further secured by Second Charge on Mortgage by Deposit of Title from Axis Bank Deeds of Landed Properties (1)In Sy.No.140 (new No. 181) admeasuring 14,092 Sq.yards Limited (2) In Sy.No.139 admeasuring 346.72 Sq.Yards (3) 1-3-1-36/1admeasuring 220 & 220

Sq.Yards (4) In Sy.No.139 admeasuring 216.60, 216.60 and 216.60 Sq.Yards all are situated in Lower Tank Bund Road, Kavadiguda, Hyderabad.

Asset A first charge by way of hypothecation of all the Company’s immovable properties

Reconstruction movable plant and machinery etc. and on Receivables excluding the receivables

Company of India required by Operator as operating expenses for operation of the Project, present and

Limited- Taken future, subject to prior charge of the working capital lenders for securing the working

over from IDFC capital facilities to the maximum of Rs.4 Crores and charge on all intangibles.

Limited Charge/assignment on all the Company’s contracts/documents for the Projects

Asset Reconstruction a) First pari passu charge on movable assets at Hyderabad Marriot Hotel.

Company of India b) First pari-passu charge on immovable assets of Hyderabad Marriot Hotel (by way of Unrated- Talr deposition title deeds with IDFC (at present with ARCIL) as an agent of Debenture from Axis Bank Limited Trustee)

IARC Ltd - Taken Hypothecation of Machinery/Goods/ Stocks and Book Debts in business. Extension of over from Laxmi equitable mortgage already created over the Land and Commercial Building Property Vilas Bank situated at D. No. 3-6-199 and 3-6-199/1, Himayat Nagar, Hydrabad admeasuring 1416.66 sq.yards.

Canara Bank First Charge on the entire fixed assets including mortgage over immovable assets and charge on movables) of Hyderabad Courtyard Hotel Project situated at Municipal Door NO. 1-3-1016to 1024, lower tank bund Gandhi Nagar, Hyderabad

State Bank Of India First Charge on the entire fixed assets of proposed Hotel Courtyard, Hyderabad, ranking pari passu with other term lender i.e. Canara Bank, R.P, Road, Branch, Secunderabad, including Equitable Mortgage of Land admeasuring 6263 Sq Yds situated at Kavadiguda, Hyderabad.

Bank of Maharastra Hypothecation Of Stocks & Receivables Of "Country add By Marriott" Hotel Sitauted At Gandhinagar, Lower Tank Bund Road, Hyderabad With Exclusive First Charge, Hypothecation Of Entire Current Assets, Present And Future Goods, Stocks, Of Raw Materials, Items, Inventories, Stocks, Present And Future Tangible And Intangible Assets etc.,

- Properties mentioned in S.No.1 to 4 are originally in the name of Minerva Enterprises Pvt Ltd and these were transferred to the company through a scheme of arrangement approved by Hon’ble High of Court of Andhra Pradesh vide its order dated 1st May 2007. However, the revenue records are required to be updated to reflect the above title change.

- Properties mentioned in S.No.5to 8 were originally in the name of Krishna Cold Drinks Pvt Ltd (the then name of Viceroy Hotels Limited).Subsequently company changes its name several times i.e. from Krishna Cold Drinks Private Limited to Shri Kishna Bottlers Private Limited and further as Palace Heights Hotels Private Limited.

Palace Heights Hotels Private Limited was converted as public limited company namely Palace Heights Hotels Limited and finally became Viceroy Hotels Limited vide incorporation certificate of Registrar of Companies dated 21-09-2001. However, the revenue records are required to be updated to reflect the above name changes and conversions with regard to the title.

- Properties mentioned in S.No.9 is originally inthe name of Shri P. Prabhakar Reddy was invested by him as capital in a partnership firm which was subsequently converted as Minerva Enterprises Private Limited and this property was transferred to the company through a scheme of arrangement approved by Hon’ble High of Court of Andhra Pradesh vide its order dated 1st May 2007. However, the revenue records are required to be updated to reflect the above title change.

2. Slump Sale:

Viceroy Hotels Limited has transferred all assets and liabilities pertaining to undertaking on a basis to M/s. Banjara Hospitalities Private Limited(BHPL) at a lump sum consideration of Rs. 3,17,00,000/-discharged by BHPL byway of issue of 31,70,000 fully paid equity shares of Rs 10/- each.

3. 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.

4. Previous year’s figures and current year’s figures have been regrouped, recanted, wherever necessary.

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


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.


Mar 31, 2012

1. In relation of 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, 2012, due to suppliers who constitute a "small scale industrial undertaking".

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

i) Claims against the 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/s Crustum Products Pvt Ltd for Rupee term loan of Rs.8.65 crores availed from Oriental Bank of Commerce.

4. 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.

(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, Andra 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 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 crores.

(iv) The company has availed Redeemable Non convertible Debentures aggregating Rs.50croresfromAxisBank 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 FY2008 and during the year under review. During the financial year 2011-2012 the Company has to repay a sum of Rs. 2 Crores of debentures as per agreement but the company has not made the same during the financial year 2011-2012.

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.

A Slump sale was made during the year of the ongoing projects (Bangalore Project) for a net consideration of Rs. 212,15,02,357/-to Viceroy Bangalore Hotels Pvt. Ltd which resulted a capital reserve ofRs. 68,87,995/-.

6. Since Central Government had 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 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, 2012. 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.

7. 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 Circular in the consolidated balance sheet in aggregate for each subsidiary.

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

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


Mar 31, 2011

1. In relation of 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 31" March, 2011, due to suppliers who constitute a "small scale industrial undertaking".

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

i) Claims against the company pending appellate / Judicial decisions:

a) E.S.I Rs 67,70,937/- (Previous Yerar 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. 29,50,300/-

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

4. 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.

(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 sanctioned by State Bank of Mysore, State Bank of Indore, State Bank of India and Canara Bank aggregating to Rs.112.00 crores for the Bangalore hotel project are secured by Pari- Passu first charge on the fixed assets of Bangalore Project. Apart from this the loans are also secured by deposit of lease deed of 53 years pertaining to the Bangalore project.

(iv) Term loans from State Bank of India and Canara Bank for the Hyderabad Courtyard hotel project aggregating to Rs.95.00 crores are secured by the first parri passu charge on the fixed assets of the Courtyard hotel project.

(v) 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 FY2008 and during the year under review, the company has not created any Debenture Redemption reserve. The company has redeemed Rs. 7.5 crores of these Non convertible Debentures during the year under review.

5. In relation of Related Party Disclosures in compliance with Accounting Standard :

However, during the financial year ended 31st March 2011, except Managerial remuneration no transaction were recorded between the company and any related party mentioned above, in respect of services.

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 segment to be reported.

7. Capital Work-in-Progress includes Pre-operative expenses of Rs.2843.61 lakhs pertaining to the Non- Refundable Deposit paid to the land lords for taking land on long lease of 53 years for the Bangalore hotel project.

8. Since Central Government had 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 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, 2011. 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.

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 Circular in the consolidated balance sheet in aggregate for each 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, 2010

1. In relation of 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 31" March, 2010, due to suppliers who constitute a "small scale industrial undertaking".

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

I) Claims against the company pending appellate / Judicial decisions:

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

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

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

4. In compliance with Part II of Schedule - VI to the Companies Act, 1956; the detailed information regarding quantitative particulars is as under:

5. 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.

(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 sanctioned by State Bank of Mysore, State Bank of Indore, State Bank of Indi and Canara Bank aggregating to Rs.112.00 crores for the Bangalore hotel project are secured by Pari-Passu first charge on the fixed assets of Bangalore Project. Apart from this the loans are also secured by deposit of lease deed of 53 years pertaining to the Bangalore project.

(iv) Term loans from State Bank of India and Canara Bank for the Hyderabad Courtyard hotel project aggregating to Rs.95.00 crores are secured by the first parri passu charge on the fixed assets of the Courtyard hotel project.

(v)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 FY2008 and during the year under review, the company has not created any Debenture Redemption reserve.

However, during the financial year ended 31st March 2010, except Managerial remuneration no transaction were recorded between the company and any related party mentioned above, in respect of services.

6. The Companys 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. Pre-operative expenses include Rs.2843.61 lakhs pertaining to the Non- Refundable Deposit paid to the land lords for taking land on long lease of 53 years for the Bangalore hotel.

8. Previous years figures and current years figures have been regrouped, recasted, wherever necessary to improve figures presentation.

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

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