1.  Scheme of Amalgamation of Springfield Hotels Pvt. Ltd with the
 Company :
 
 During the previous year ended 31st March, 2010, Springfield Hotels
 Pvt. Ltd. (SHPL) has ceased to be a wholly owned subsidiary of the
 Company, as the Hon’ble High Court of Judicature at Bombay, vide its
 order dated 10th July 2009 has approved the Scheme of Amalgamation of
 SHPL with the Company. According to the scheme, SHPL stands dissolved
 without being wound up from the Effective Date i.e. from 20th August
 2009.
 
 2.  Equity Shares and Warrants :
 
 During the year 2007-08 the Company had received funds by way of
 Preferential Allotment of Equity shares and Equity warrants aggregating
 to Rs.13,91,20,000/. Out of the said proceeds Rs.5,26,63,947/- has been
 utilized towards purchase of fixed assets, Rs.8,64,56,053/- has been
 utilized towards meeting capital expenditure and other Corporate
 Initiatives till date and balance now is NIL. Share Warrant application
 money of Rs.59,20,000/- has been forfeited during the previous year and
 consequently the amount has been transferred to Capital Reserve
 Account.
 
 3.  Contingent Liabilities
 
 i. Estimated amount of contracts remaining to be executed on capital
 account and not provided for as on 31st March, 2011 Rs.20,77,420/-
 (Previous Year Rs.21,77,420/-).
 
 ii. Counter guarantees given to banks and others for guarantees
 provided by them against credit facilities Rs.52,93,74,970/- (Previous
 Year Rs.4,66,58,045/-).
 
 iii.  Claims against the Company not acknowledged as debts
 Rs.49,62,000/- (Previous Year Rs. 54,00,000/-).
 
 4.  The Company has not received any intimation from its vendors
 regarding their status under Micro, Small and Medium Enterpirses
 Development Act, 2006 and hence the disclosures, if any under the said
 Act have not been made.
 
 5.  Fixed Deposits of Rs. 3,41,47,337/- (Previous Year Rs.
 3,31,75,127/-) has been placed as security with the banks against bank
 guarantees / credit facilities extended by them.
 
 6  a) Sundry debtors include overdue lease debtor of Rs.5,00,000/-
 (Previous Year Rs.15,00,000/-). The management is confident of recovery
 and has taken steps to recover the same, including legal action against
 the party. Considering the security available with the Company and the
 outcome of recovery process, no provision is considered necessary by
 the management against the said outstanding.
 
 b) Sundry Debtors against whom the Company has fled the legal suits for
 recovery are being reviewed by the legal department on year-to-year
 basis. The Company is hopeful of recovery of these amounts. Accordingly
 no provision has been made for any loss, which may occur on this
 account.
 
 7.  Classification of debtors as secured and debtors / loans and
 advances as unsecured considered good are as evaluated and certified by
 the management, which has been relied upon by the auditors.
 
 8.  Balances of sundry debtors, sundry creditors and certain loans and
 advances are subject to confirmation / reconciliation and adjustments,
 if any in respect thereof.
 
 9.  Loans & advances includes inter corporate deposits (along with
 interest accrued and due thereon) aggregating to Rs.  4,12,98,447/-
 (Previous Year Rs. 4,00,19,181/-) due from certain companies. Having
 regards to the long-term involvement in these companies, the management
 is of the view that no provision is considered necessary on these
 accounts.
 
 10.  Miscellaneous operating expenses and sundry expenses include fines
 and penalties of Rs 2,800/- (Previous Year Rs. 5,800/-).
 
 11.  Disclosure as per Accounting Standard – 29 – Provisions,
 Contingent Liabilities and Contingent Assets issued by the Institute of
 Chartered Accountants of India :
 
 Provisions for claims for damage obligations (legal or otherwise)
 including provision for claims for damages, leakages, shortage and
 non-delivery of consignments are on account of routine matters where
 the Company anticipates probable outfow. The claims in respect of which
 legal suits are fled against the company are fully provided on the
 basis of legal suit amounts. For the other claims the amount of
 provision is based on the estimate made by the Company considering the
 facts and circumstances of each case. The timing and the amount of cash
 outfows that will arise from these matters will be determined only on
 settlement of actual cases and claims with the respective parties.
 
 12.  Managerial Remuneration:
 
 The Managerial Remuneration paid to Mr. Areef Patel, Whole-time
 Director, designated as Executive vice Chairman, for the year ended
 March 31, 2011 is under provision of section 269 read with Schedule
 XIII of the Companies Act, 1956 and is within the limits envisaged
 under part B of Clause 1 of Section II of Part II of the said Schedule
 XIII.
 
 13.  Related party disclosures
 
 Related Parties have been classifed as per Accounting Standards of
 Institute of Chartered Accountants of India as under :
 
 A) Individuals owning directly or indirectly an interest in the voting
 power of the reporting enterprise that gives them signifcant infuence
 over the enterprise, and relative of such individual (Clause 3(c) of AS
 18).
 
 Mr. Asgar S. Patel and his relatives within the meaning of section 6
 read with Schedule IA of the Companies Act, 1956.
 
 B) Key Management Personnel and relatives of such personnel ( Clause
 3(d) of AS18)
 
 Mr. Areef Patel and his relatives within the meaning of section 6 read
 with Schedule IA of the Companies Act,1956.
 
 C) Enterprises over which any person described in (A) or (B) is able to
 exercise signifcant infuence (Clause 3(e) of AS 18)
 
 a) Wall Street Securities & Investment (India) Ltd.
 
 b) Transways Combines Pvt. Ltd.
 
 c) Patel Real Estate Developers Pvt. Ltd.
 
 d) One Capitall Ltd.
 
 e) Patel Holdings Ltd.
 
 f) Wall Street Derivatives and Financial Services (India) Pvt. Ltd.
 
 g) Natasha Constructions Pvt. Ltd.  
 
 h) Natasha Homes Pvt. Ltd.
 
 i) Natasha Construction Projects Pvt. Ltd.
 
 j) A. S. Patel Trust
 
 k) Goldman (Patel Family) Benifciaries Trust