1.  Secured Loans :
 
 a) Term Loans outstanding of Rs. 1.05 crores from Tourism Finance
 Corporation of India Ltd. (TFCI) are secured on pari- passu basis by
 way of mortgage of land and building at Indore, Pune & Vadodara and
 hypothecation of the movables, present and future, except stocks of all
 kinds including operating supplies, stores, and spares offered to the
 bankers for securing the working capital loans and also by way of
 pledge of shares belonging to promoters.
 
 b) Corporate Loan outstanding of Rs. 7.00 crores from Tourism Finance
 Corporation of India Ltd. (TFCI) is secured by way of mortgage of land
 and building at Indore and hypothecation of the movables, present and
 future, except stocks of all kinds including operating supplies,
 stores, and spares offered to the bankers for securing the working
 capital loans and also by way of pledge of shares belonging to
 promoters.
 
 c) Term Loan outstanding of Rs. 1.45 crores from HUDCO is secured on
 pari- passu basis by way of mortgage of land and building at Indore,
 Pune & Vadodara and hypothecation of the movables, present and future,
 except stocks of all kinds including operating supplies, stores, and
 spares offered to the Bankers for securing the working capital form.
 
 d) Term Loans outstanding of Rs. 5.81 crores from Madhya Pradesh
 Financial Corporation (MPFC) are secured by way of mortgage of land and
 building at Indore and/ hypothecation of the movable, present and
 future, except stocks of all kinds including operating supplies, stores
 and spares offered to the Bankers for securing the working capital
 finance.
 
 e) Term Loans outstanding of Rs. 69.20 crores from State Bank of India
 of are secured by way of mortgage of land and building at Indore,
 Vadodara & Pune and hypothecation of movables, present and future,
 except stocks of all kinds including operating supplies and spares
 offered to the Bankers for securing the working capital finance.
 
 f) Term Loan outstanding of Rs. 0.68 crores from State Bank of India is
 securitized against the lease rent receivables of Nokia India (P) Ltd.
 at Indore.
 
 g) Term Loan outstanding of Rs. 10.07 crores from State Bank of Mysore
 is secured by way of mortgage of land and building at Indore, Vadodara
 & Pune and hypothecation of movables, present and future, except stocks
 of all kinds including operating supplies and spares offered to the
 Bankers for securing the working capital finance.
 
 h) Term Loan outstanding of Rs. 3.51 crores from Axis Bank Ltd is
 secured by way of mortgage of land and building at Indore, Baroda &
 Pune and hypothecation of the movable, present and future, except
 stocks of all kinds including operating supplies, stores and spares
 offered to the Bankers for securing the working capital finance.
 
 i) Term Loan outstanding of Rs. 5.32 crores from Axis Bank Ltd is
 secured by way of hypothecation of the movable, present and future,
 except stocks of all kinds including operating supplies, stores and
 spares offered to the Bankers for securing the working capital finance.
 The equitable mortgage for this loan is yet to be created.
 
 j) Corporate Loan outstanding of Rs. 0.44 crores from Axis Bank Ltd is
 secured by first charge by way of hypothecation of stocks of food,
 beverages, operating supplies stores, spares, book debt of the company
 and also by way of second charge on the immovable properties of the
 company.
 
 k) Cash credit outstanding of Rs. 6.19 crores State Bank of India is
 secured by first charge by way of hypothecation of stocks of food,
 beverages, operating supplies, stores, spares, book-debts (excluding
 credit card receivables), bills etc. of the company and also by way of
 a second charge on the immovable properties of the company at Indore,
 Baroda and Pune.
 
 l) Cash credit outstanding of Rs. 0.91 crores from Axis Bank Ltd. is
 secured by first charge by way of hypothecation of stocks of food,
 beverages, operating supplies, spares and book debts, bills etc. of the
 company and also by way of a second charge on the immovable properties
 of the company at Indore, Baroda and Pune.
 
 m) Corporate loan outstanding of Rs.10.68 crores from Axis Bank Ltd. is
 secured by first charge by way of hypothecation of stocks of food,
 beverages, operating supplies, stores, spares, book-debts, bills etc.
 of the company and Second charge on the immovable properties of the
 company at Indore and Baroda and also by way of pledge of shares
 belonging to promoters.
 
 n) Vehicle loans from Tata Capital Ltd. are secured by way of
 hypothecation charge on the specific vehicles.
 
 o) Vehicle loans from HDFC Bank Limited are secured by way of
 hypothecation charge on specific vehicles.
 
 p) Vehicle loans from Axis Bank Ltd. are secured by way of
 hypothecation charge on specific vehicles.
 
 q) All term loans except vehicle loans from Tata Capital Ltd.,HDFC Bank
 Limited and Axis Bank Ltd. are personally guaranteed by some of the
 director of the company.
 
 r) Installment falling due within next 12 months Rs. 2523.61 lacs
 (Previous year Rs. 2501.83 Lacs).
 
 2.  Contingent Liabilities not provided for :
 
 a) Guarantees given on behalf of other companies - Rs. 6821.82 lacs (PY
 Rs. 5621.82 lacs)
 
 b) Disputed statutory liabilities in respect of service tax not
 provided for : 
 
                                                    (Rs. In lacs)
 
                                             31.03.11      31.03.10
 
 i) Tax Demanded                               175.01        256.78
 
 ii) Penalty thereon                              Nil        256.78
 
 iii) Interest (to be levied in case of 
 confirmation of demand)                       105.87        148.35
 
 iv) Total                                     280.88        661.91
 
 The hon''ble tribunal has denied levy of penalty and also denied some
 demand being time barred. The Company has filed Writ Petition against
 the order of tribunal before the Indore Bench of hon''ble High Court of
 M.P and the same is pending for final hearing. The hon''ble court has
 stayed the demand till final hearing.
 
 c) Customs duties saved against imports under EPCG scheme - Rs. 968.80
 lacs (PY Rs. 750.38 lacs)
 
 d) Claims against the company not acknowledged as debt : Rs. 5.06 lacs
 (PY Rs. 5.06 lacs)
 
 e) Disputed liability not provided for in respect of :
 
 i.  Vat Tax Rs. 20.73 lacs (PY Rs. 20.73 lacs) pertains to Input tax
 rebate of exemption period being adjusted against presumptive tax of
 exemption period.
 
 ii.  Entry Tax Rs. 4.64 (PY Rs. 4.64 lacs) lacs pertains to entry tax
 on some items which were considered taxable in the assessment.
 
 The above matters are pending before Deputy Commissioner Vat Tax,
 Indore. Against the VAT tax order the Company has also filed Writ
 Petition before the Hon''ble High Court of MP, Jabalpur which is being
 admitted and pending for hearing.
 
 f) Disputed liability of Rs. 88.29 lacs (PY Nil) not provided for in
 respect of Income tax. The matters are pending before Commissioner
 (Appeals), Baroda.
 
 3.  During the year under review, company was not engaged in the
 business of developing and selling of properties, hence the Company has
 not provided primary segmental information for these segments as per
 Accounting Standard - 17 on Segment Reporting issued by the ICAI.
 
 4.  The Company adopted the Accounting Standards 15 Employee Benefits
 effective from April 1, 2007.
 
 Defined Benefit Plans : The Company makes annual contributions to the
 Employee''s Group Gratuity scheme of the SBI Life Insurance Co. Ltd., a
 funded defined benefit plan for the qualifying employees. The scheme
 provides for lump sum payment to vested employees at retirement, death
 while in employment or on termination of employment as per the terms of
 the scheme.  Vesting occurs upon completion of five years of service.
 
 The present value of the defined benefit obligation and current service
 cost were measured using the Projected Unit Credit Method, with
 actuarial valuations being carried out at each balance sheet date.
 
 5.  Related Party Disclosure :
 
 a) Relationship during the year :
 
 i) Key Management Personnel
 
 Sajid Dhanani – Managing Director
 
 Munawar Garbadawala – Director
 
 Capt. Salim Sheikh – Director
 
 ii) Subsidiary Companies
 
 Barbeque-Nation Hospitality Limited
 
 Malwa Hospitality Pvt Ltd
 
 iii) Associate Companies/ Firms/ Relatives
 
 Ahilya Hotels Limited
 
 Aries Hotels Pvt Ltd
 
 Bharat Equity Service Ltd.
 
 Clearwater Capital Partners (Cyprus) Ltd.
 
 Dhanani Securities Ltd.
 
 Kruger Chemical Ltd
 
 M.P. Agro Industries Ltd.
 
 M.Y. Merchant
 
 Status Travels
 
 Uniera Laboratories Pvt. Ltd.
 
 Welterman International Ltd.
 
 6.  Income Tax Liability for the year is estimated at Rs. 94.63 lacs
 (PY Rs. 73.73 lacs).
 
 7.  In the opinion of the Board, the Current Assets, Loans and Advances
 are approximately of the value stated, if realised, in the ordinary
 course of business. Provision for all known liabilities is adequate and
 not in excess of the amount reasonably necessary. Loans given to
 parties covered u/s 301 of the Companies Act,1956 are interest free and
 are realizable on demand.
 
 8.  Leave encashment has been determined based on the available leave
 entitlement at the end of the calendar year. The incremental amount so
 calculated is debited to Employees Emoluments.
 
 9.  The turnover of the Company by way of Food and Beverages and sale
 of shops do not admit of quantitywise details.
 
 10.  The balances in party accounts are subject to confirmation.
 
 11.  Based on the information available with the Company, there are no
 dues to micro and small enterprises under the Micro, Small and Medium
 Enterprises Development Act.
 
 12.  No provision has been made for diminution, if any, in the value of
 investments held for long term as in the opinion of the management
 company would be able to recover at least the cost of the investments.
 
 13.  In pursuance of the resolution passed at the EGM held on 03.05.06
 the company had issued 0.50% Foreign Currency Convertible Bonds of US$
 1,00,000 each totaling to US$ 7.50 million. The Bonds were listed at
 Luxemburg Stock Exchange, London. The Bondholders has exercised their
 option to convert the shares and accordingly 46,68,000 shares @ Rs.
 75/- each (face value Rs.  10/- each) has been allotted on 10.05.2010
 in lieu of FCCB.
 
 14.  Fixed deposits from public includes Matured but unclaimed deposits
 of 14 parties totaling to Rs. 2.30 lacs.
 
 15.  Figures of previous year have been regrouped, rearranged and
 recast wherever necessary so as to make them comparable with those of
 current year.