1. In the opinion of Board and to the best of their knowledge and
a. All the current assets, loans and advances will have the value on
realization in the ordinary course of business at least equal to the
amount at which they are stated in the Balance Sheet.
b. Provision for all known liabilities is adequate and not in excess
of the amount reasonably necessary. There is no liability contingent or
otherwise except those stated in the Balance Sheet.
2. Debit and credit balances are subject to confirmation.
3. Company had paid Premium of Rs. 5,24,249 towards Leasehold Land on
06.07.1984. The total Lease Period is extended up to 05.05.2030. In
view of Accounting Standard 26, issued by The Institute of Chartered
Accountants of India, New Delhi and made mandatory from 01.04.03,
company has written off proportionate amount of Rs. 11,396/- during the
year under review.
4. In line with the Industry practice, the quantitative details of
turnover and consumption have not been disclosed as the same is not
practicable. The company has availed exemption u/s 211(4) of the
Companies Act, 1956 of such disclosure, as required under Para 3(i)(a)
and 3(ii)(d) of Part II, Schedule VI of the Companies Act, 1956, for
the F.Y. 2009-10 from The Ministry of Corporate Affairs, Government of
India, New Delhi vide their letter No. 46/1/2010-CL-III dated
5. Amount of Income Tax and Fringe Benefit Tax have been provided on
Taxable Income of the Company as per provision of the Income Tax Act,
6. As explained to us the Company has not received any intimation from
suppliers regarding their status under the micro, small and medium
Enterprises Development Act,2006 and hence the Disclosure, if any,
relating to amounts unpaid as at the year end together with interest
paid / payable as required under the said Act have not been given.
7. Figures of previous year have been regrouped, rearranged and recast
wherever necessary so as to make them comparable with those of current
8. The Board of Directors is of the opinion that discounted net future
generation from the Assets in use and shown in the schedule of fixed
assets, is more than the carrying amount of fixed assets in Balance
Sheet, as such, no provision for Impairment of Assets is required to be
made in terms of the requirement of accounting standard (As - 28)
Impairment of Assets issued by the Institute of Chartered Accountants
of India for the year ended 31.03.2010.
9. Segment Reporting. The Company operates in one reportable
operating segments i.e. Hoteliering.
10. The Investment made by the company are held in its own name. (Rs.
In Lacs )
No. Particulars 2009-10 2008-09
11. Value of Imports Nil Nil
12. Earning in foreign currency as per
Certificate submitted by Management 100.86 100.28
13. Expenditure in foreign currency:
a Travelling 7.56 1.46
b Capital Expenditures 9.50 45.40
c Decorative Expenses 0.74 -
Total 17.80 46.86
14. Contingent Liabilities & Commitments:
a Estimated amount of contracts
(Net of advances) remaining to
be executed on capital account not
Provided for Nil Nil
b Bank Guarantee for supply of Natural
Gas from VMSS and
also for availing benefit under EPCG Scheme. 10.89 7.90
15. Company has incurred Capital Expenditures of Rs. 30.53 lacs (P Y –
Rs. 16.87 lacs) towards expansion project on hand, which are pending
for allocation. As explained to us, on completion of Project on hand,
these Expenditures will be apportioned to respective group of Capital
16. Deferred Tax Liability (Net) under Accounting Standard 22.
(a) The Company has accounted for Deferred Tax Liability as under:
(i) Rs. 177.57 lacs, being net deferred tax liability up to 31.03.2009
has already been created.
(ii) Rs. 17.42 lacs, being net deferred tax expense for the year, has
been charged to Profit & Loss Account.
(iii) The total net deferred tax liability as at 31.03.2010 is Rs.
17. Related Party disclosure under Accounting Standard 18. Company
has no subsidiary or joint venture concern.
The Company has identified all the related parties transactions during
the year, as per details given below: During the year, there were no
amounts written off or written back from such parties.
Parties Related Parties Related Parties
1. Piyush D. Shah Daudayal R. Shah Alka N Shah
2. Nilesh D.Shah Daudayal R. Shah HUF Sunita M Agarwal
Nilesh D Shah HUF Munish D Shah
Chanda P Shah Munira N Agrawal
Yamini D Shah Hardik Agrawal
Piyush D. Shah HUF Om Hospitality Pvt Ltd
Shantaben D Shah Synergy Stock Holdings
Munish D. Shah HUF Jamunadevi Educational
Satvik P. Agrawal Kalayan Confection &
Prachi S. Agrawal Kalyan Restaurants
Shagun Kunal Mehra Hotel Kalyan & Restaurants
18. The proposed dividend on Equity Shares is provided at 8% p.a. i.e.
Rs. 0.80 per equity share on all the shares at the beginning of the year.
On Additional 11,75,540 Equity Shares, allotted during the year,
provision for dividend is made at 8% on pro rata basis i.e. Rs. 0.04 per
equity share, for the year under review.
19. During the year under review, Company has issued 11,75,540 Equity
Shares of Rs. 10/- each at premium of Rs. 10/- each on preferential
basis. As at 31.03.2010, Company has pending warrant application money
of Rs. 65,01,000 consisting of 13,01,000 warrants, convertible into
Equity Shares, having paid up value of Rs. 5/- per warrant, The
proceeds of the issue of above shares have been utilized for the
purpose of repayment of term loan and unsecured loans, augmentation of
working capital, up gradation and / or modernization of plant /
property of the Company.