The Directors are pleased to present their 50th Annual Report together
 with the Audited Financial Accounts for the year ended 31st March, 2011
 :
 
 1.  SNAP SHOT OF FINANCIAL RESULTS:                      (Rs. in Lacs)
 
                              For the year ended     For the year ended 
                              31st March, 2011       31st March, 2010
 
 Income                           7,162                   6,490
 
 Profit before Interest,
  Depreciation                    1,827                   1,376
 
 Interest                           154                     246
 
 Depreciation                       520                     559
 
 Profit before Taxation           1,144                     572
 
 Provision for Taxation:
 
 Current tax                      (220)                    (75)
  
 Deferred Tax Credit                100                   (201)
 
 Fringe Benefit Tax                   0                       0
 
 Profit for the year                769                     307
 
 Balance brought forward
 from last period                 1,109                   1,074
 
 Balance carried forward          1,490                   1,108
 
 2.  OPERATIONAL PERFORMANCE:
 
 During the financial year ended 31st March 2011, the sales and
 operating income increased from Rs. 6490 Lacs to Rs. 7162 Lacs. The net
 profit after tax stood at Rs.769 Lacs as against Rs. 307 Lacs during
 the previous year. During the year under review, the company had
 discontinued the operations at Mayfair Banquets situated at Palm Beach
 Galleria Mall, Vashi, New Mumbai and Hermes Shopping Centre, Nagar
 Road, Yerawada, Pune.
 
 3.  DIVIDEND:
 
 During the year under review, your company had declared an Interim
 dividend of Rs. 0.24 (12%) per equity share for the financial year
 ended 31st March 2011 at its Board meeting held on January 31, 2011.
 
 Your Directors have recommended dividend of Rs. 0.06 (3%) per Equity
 share of Rs. 21- each for the financial year ended 31st March, 2011,
 which if approved at the ensuing annual general meeting, will be paid
 to the shareholders.
 
 4.  DIRECTORS:
 
 In terms of the provisions of sections 255 and 256 of the Companies
 Act, 1956, Mr. R.K.P. Shankardass and Mr. Mahendra V. Doshi, Directors
 of the Company, retire by rotation at the ensuing Annual General
 Meeting and being eligible have offered themselves for reappointment.
 
 During the year under review, Mrs. Krishna Kumari Ghai ceased to be the
 Director of the Company due to her sudden death on 14th November, 2010.
 
 Mr. Vikram Seth was appointed as an Additional Director pursuant to the
 provisions of Section 260 of the Companies Act, 1956 in its meeting
 held on April 29, 2011. The approval of the shareholders is being
 sought for the appointment of Mr. Vikram Seth as Director of the
 Company at its ensuing Annual General Meeting of the company.
 
 A brief resume of the Director reappointed/appointed at the ensuing
 Annual General Meeting, nature of expertise and name of companies in
 which he holds directorship and/or membership/chairmanship of the
 committees of the Board as stipulated under clause 49 of the Listing
 Agreement is annexed to the Notice forming part of the Annual Report.
 
 5.  MANAGEMENT DISCUSSION AND ANALYSIS:
 
 A separate report on the Management Discussion and Analysis is attached
 as a part of the Annual Report.
 
 6.  DIRECTORS RESPONSIBILTY STATEMENT:
 
 Pursuant to Section 217(2AA) of the Companies Act, 1956 the Directors
 confirm the following:
 
 (i) In preparation of the accounts, the applicable accounting standards
 have been followed along with proper explanation relating to material
 departures;
 
 (ii) The directors have selected such accounting policies and applied
 them consistently and made judgments and estimates that are reasonable
 and prudent so as to give true and fair view of the state of affairs of
 the Company as at 31st March, 2011 and of the Profits of the Company 
 for the year ended 31st March 2011;
 
 (iii) The Directors have taken proper and sufficient care for
 maintenance of adequate accounting records in accordance with the
 provisions of the Companies Act, 1956 for safeguarding the assets of
 the Company and for preventing and detecting fraud and other
 irregularities;
 
 (iv) The Directors have prepared the annual accounts on a going concern
 basis.
 
 7.  SUBSIDIARY COMPANIES:
 
 During the year under review Sandco 1165 Limited and Hotel Kankeshwar
 Private Limited became the wholly owned subsidiary of the Company.
 
 In terms of the approval granted by your Directors vide circular
 resolution dated March 7, 2011 and in compliance with the circular
 issued by Ministry of Corporate Affairs on February 8, 2011, copies of
 the Balance Sheet, Profit and Loss account, Report of the Board of
 Directors and Auditors of Subsidiaries have not been attached with the
 Balance Sheet of the Company. The Annual Accounts and other related
 detailed information of the
 
 Company as well as of the subsidiary companies will be made available
 to the shareholders of the holding and subsidiary companies seeking
 such information at any point of time. The Annual accounts of the
 company as well as of the subsidiary companies will also be kept open
 for inspection by any shareholder in the head office of the company and
 the subsidiary companies concerned.
 
 8.  EMPLOYEES STOCK OPTION SCHEME:
 
 During the year under review, 10,000 (Ten thousand) options vested in
 favour of an eligible employee of the company. The said options were
 not exercised by the Grantee and thereafter lapsed. Also, the Grantee
 ceased to be an employee of the Company on December 17, 2010 by reason
 of resignation and therefore the balance unvested Options aggregating
 to 40,000 (Forty Thousand) options held by the Grantee have lapsed.
 
 9.  CONSOLIDATED FINANCIAL STATEMENTS:
 
 Your Directors have pleasure in attaching the duly audited Consolidated
 Financial Statements of the holding compnay and all its subsidiaries as
 a part of the Annual Report and prepared in accordance with the
 Accounting Standards 21 issued by the Institute of Chartered
 Accountants of India and where applicable, Listing Agreement, as
 prescribed by the Securities Exchange Board of India.
 
 10.  FIXED DEPOSITS:
 
 During the Year under review, your Company has not accepted or invited
 any deposits from public.
 
 11.  CORPORATE GOVERANCE:
 
 The Company has adopted the corporate governance policies which has set
 out the systems, process and policies vital to enable companies to
 compete globally in a sustained manner and let them flourish and grow.
 A separate report on Corporate Governance as stipulated under clause 49
 of the Listing Agreement forms part of the Annual report. A Certificate
 from the auditors of the Company M/s V. Sankar Aiyar & Co., confirming
 compliance with the conditions of Corporate Governance as stipulated
 under the aforesaid clause 49 is annexed to this report.
 
 12.  CODE OF BUSINESS CONDUCT AND ETHICS:
 
 As prescribed by the listing Agreement, the Board has adopted a Code
 of Conduct for the Board Members and Senior Management Personnel.
 During the year under review, all the Board members and the senior
 management personnel have complied with the Companys Code of Conduct.
 A declaration to this effect signed by the CEO has been obtained.
 
 13.  LISTING:
 
 The equity shares of your company are presently listed on Bombay Stock
 Exchange Limited and company has paid the listing fees for the
 financial year 2011-2012.
 
 14.  PARTICULARS OF EMPLOYEES:
 
 During the year under review, the Company has not employed any person
 who was in receipt of remuneration which, in aggregate, was not less
 than Rupees Five Lacs per month or Rupees Sixty Lacs per annum.
 
 15.  CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
 EARNINGS AND OUTGO:
 
 Information in accordance with the provisions of section 217(1)(e) of
 the Companies Act, 1956 read with companies (Disclosures of Particulars
 in the Report of the Board of Directors) Rules, 1988 regarding
 conservation of energy and technology is that the Company has entered,
 to avail international technology and expertise, into various strategic
 agreements with Inter-Continental Hotels Corporation, USA (IHC) and its
 affiliates. As a part of these agreements, IHC and its affiliates are
 required to provide technical services, marketing reservation and
 system support to the Company for its Hotel situated at Marine
 Drive-Mumbai.
 
 FOREIGN EXCHANGE EARNING AND OUTGO:
 
                                                         (Rs. in Lacs)
 
 Particulars                              Current Year   Previous year
                                             2010-2011       2009-2010
 
 CIF Value of Imports                            57              32
 
 Expenditure in Foreign Currency                376             219
 
 Earnings in Foreign Exchange                 2,025           2,169
 
 16.  RELATED PARTY DISCLOSURES:
 
 The company has made disclosures in compliance with the Accounting
 Standards on Related Party Disclosures as required by clause 32 of the
 Listing Agreement with the stock exchanges.
 
 17.  AUDITORS:
 
 At the Annual General Meeting, M/s. V. Sankar Aiyer & Co, Chartered
 Accountants who are the Statutory Auditors of the Company, will retire
 and being eligible, have offered themselves for re-appointment as the
 Companys auditors. In the terms of the provisions of Section 224
 (1)(B) of the Companies Act, 1956, the Company has obtained a written
 confirmation from M/s. V. Sankar Aiyer & Co that their re-appointment,
 if made, at the ensuing Annual General Meeting, would be in conformity
 within the limits specified in the Section.
 
 18.  ACKNOWLEDGEMENTS:
 
 Your Directors wish to place on record their appreciation for the
 continued support and co-operation of the shareholders, banks, various
 regulatory authorities and central and state government officials,
 vendors, customers and for valuable contributions made by the employees
 of the company
 
                           For and on behalf of the Board of Directors
 
                                                             RAVI GHAI
                                          Chairman & Managing Director
 
 Mumbai
 Dated: April 29, 2011