1.  In the opinion of Board and to the best of their knowledge and
 belief:
 
 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
 20-01-2010.
 
 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,
 1961.
 
 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
 year.
 
 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 ) 
 
 Sr. 
 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
 Assets.
 
 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.
 194.99 lacs
 
 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.
 
 Key Management 
 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 
                                              Pvt Ltd
 
                     Munish D. Shah HUF       Jamunadevi Educational 
                                              Trust
 
                     Satvik P. Agrawal        Kalayan Confection & 
                                              Catrarers
 
                     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.