1.  Estimated amount of contracts remaining to be executed on capital
 account and not provided for Rs 319.63 lacs (Previous Year Rs.Nil)
 
 2.  Claims against the company not acknowledged as debts Rs 60.47 lacs
 (Previous Year Rs.60.47 lacs).
 
 3.  Contingent liabilities not provided for
 
 a) Rs.284.86 lacs (Previous Year Rs.517.81 lacs), comprises of customer
 related cases - Rs.180.35 lacs (Previous Year Rs.332.03lacs), Vendor
 related cases - Rs.92.00 lacs (Previous Year Rs.89.02 lacs), Employee
 related cases - Rs.12.51 lacs (Previous Year Rs.23.69lacs), Property
 Related Rs.Nil (Previous Year Rs 6.36 lacs) and Sales Tax Rs Nil
 (Previous Year Rs 66,7 lacs).
 
 b) Rs.433.64 lacs, (Previous Year Rs.433.64 lacs), in respect of a suit
 filed by NOIDA creditors, in which the Company was included as one of
 the defendants.
 
 c) Simple interest calculated at contracted rates in respect of certain
 loans availed by the company from others, amounts to Rs.208.27 lacs
 (Previous Year Rs.158.27 lacs) upto 31st March 2011. In the opinion of
 the Management, no provision is considered necessary in respect of the
 above as the matter is in the process of settlement and the company
 does not expect any liability to arise in the future.
 
 d) In respect of Assessment Year 2006-07, 2007-08 and 2008-09 the
 company has filed appeals before the Commissioner of Income Tax -
 Appeals, against tax demand of Rs.38.34 lacs and with reference to the
 treatment of ASCF. Pending outcome of the appeal and considering the
 set off against carried forward losses and unabsorbed depreciation, no
 provision has been made in respect of the above.
 
 4.  Service Tax, Interest, Penalty and Additional Penalty aggregating
 to Rs.557.03 lacs (Previous Year Rs.557.03 lacs) have been demanded by
 Service Tax authorities. The company has appealed against the above
 said order before CESTAT and pre deposited a sum of Rs.30 lacs.  The
 company is advised by its legal counsel that the stand taken by the
 company is valid and hence no provision is considered necessary at this
 stage.
 
 5.  ASCF being 55% of sale value is treated as Deferred Income and
 recognised as income over the period of the respective contracts. In
 respect of Assessment Years from 1997-98 to 2001- 02, the Income Tax
 Appellate Tribunal (ITAT) has passed orders against the said accounting
 treatment followed by the company and to treat them as income in the
 respective year of receipt.  There are no tax demand on account of
 available carried forward losses unabsorbed depreciation.  The company
 has appealed against this before High Court of Madras and the case is
 pending.  The ITAT Chennai has recently decided in favour of Assesee in
 a similar case and accepted the treatement followed by the company. In
 view of the above, management is of the view that no provision for
 Income Tax is required at this stage.
 
 6.  A financial institution took symbolic possession of a property
 situated at Ooty - Fern Hill under the Securitization and
 Reconstruction of Financial Asset and Enforcement of Security Interest
 Act (SARFAESI) for default in repayment of loans together with
 interest/penal interest. The case is pending before Debt Recovery
 Appellate Tribunal (DRAT) with regard to adjudication in respect of One
 Time Settlement (OTS) scheme proposed by the Company. Any incremental
 liability which may accrue pursuant to the OTS will be accounted in the
 year of such settlement. Pending settlement as on 31st Mar 2011, the
 company has deposited with the institution a sum of Rs.536 lacs as per
 directions of Debt Recovery Tribunal (DRT) / DRAT.
 
 The company has been providing interest at the contracted rate on the
 principal portion of loan amount, whereas, the lender has been claiming
 compound interest including penal interest. The Management considers
 that no additional provision towards such claim is required at this
 stage, pending disposal of the OTS proposal.
 
 7.  The company had revalued certain lands in the years 1989, 1992 and
 1999 by appointing an external valuer based on the then prevailing
 market value. The surplus on revaluation amounting to Rs.2020.58 lacs
 (after making adjustment for sale effected in the interim period),
 stands credited to Revaluation Reserve.  During the current year, the
 company has sold a portion of the land at a location which was revalued
 in the earlier years. Consequently, revaluation reserve to the extent
 of Rs.61.3S lacs has been withdrawn in the current year.
 
 8.  Registration of leasehold lands and buU~ngs situated at Peermedu
 (Rs.1684 lacs), and Kulumanali (Rs.2053.68 lacs) taken on lease are
 pending and action is being taken to get them registered.
 
 9.  a) Leasehold lands include Rs.2053.68 lacs paid to Manchanda
 Resorts Private Ltd (MRPL), a wholly owned subsidiary towards long term
 lease of the property at Kulu Manali. The company has also invested
 Rs.60.08 lacs in the equity of MRPL. MRPL has accumulated losses of
 Rs.1412.90 lacs as on 31.03.2011.  The Management is of the opinion
 that no provision is required in respect of such deposits/investments
 as the present value of the property is estimated at Rs.3139.60 lacs as
 per valuation report dated 22.11.2010.
 
 The said property has also been provided as a security in respect of
 the loans availed by the company.
 
 b) The Company holds 98% shares in Sterling Holidays (Ooty) Limited and
 Sterling Holiday Resorts (Kodaikanal) Limited and invested Rs.9.80 lacs
 towards share capital. (Previous Year Rs.9.80 lacs). The company has
 advanced Rs.1013.51 lacs (Previous year Rs.807.35 lacs) towards resorts
 running and maintenance expenses. The accumulated losses as on
 31.3.2011 of these subsidiaries are Rs.597.47 lacs and Rs.558.74 lacs
 (Rs.488.96 and Rs.379.16 lacs) respectively. In view of the steps taken
 by the these companies to turn around the operations, the future
 business plan approved by the respective Companies Board and further
 funding planned in the said properties for improving the quality of
 resorts, the Management is of the view that there is no permanent
 diminution in the value of investment and sum advanced and these
 amounts are good and recoverable.
 
 10.  Five cottages located at Ooty - Fern Hill and included under
 ''Buildings'' are given on lease for a period of 99 years to a customer.
 
 11. The capital work in progress (CWIP) includes value of certain
 resorts under construction for more than 10 years. The Company intends
 to develop such properties during the ensuing years. In the opinion of
 the Management, no impairment provision is required in respect of such
 properties as their estimated market value together with the market
 value of appurtenant land far exceeds the book value of those
 properties as per valuation report dated 22.11.2010.
 
 12.  During the year, the Company has advanced Rs.50 lacs (Previous
 Year Nil) to Sterling Holiday Financial Services Limited (SHFSL). The
 management is of the view that this loan is good and recoverable
 considering that this is a short term loan and SHFSL has adequate
 resources to repay such loan.
 
 13. The Company has transferred land and buildings at Goa and Himachal
 Pradesh as per the Arbitration Award in respect of disputes with
 certain parties. As per the terms of the Arbitration, one of the
 parties has agreed to hand over possession of certain buildings
 equivalent to a value of Rs.150 lacs (Previous Year Rs.150 lacs) and
 the same is shown as under Loans and Advances, which in the opinion of
 the Company is good and recoverable.
 
 14. The Company had in the past transferred a property at Goa and part
 of the sale consideration amounting to Rs.527 lacs (included in Sundry
 Debtors) is retained by the buyer pending compliance of certain
 conditions. The company is confident of recovering this amount as it
 has taken effective steps for discharge of its obligations. In view of
 the above, the same is considered as good and recoverable.
 
 15. Secured Loan - Security Details
 
 15.1 Term Loan from a Financial Ir itution is secured by 
 i) Deposit of title deeds of the immovable assets (other than Time
 share portion) both present and future at Fern Hill - Ooty.
 
 ii) Guarantee of former Managing Director and a former Director of the
 Company.
 
 15.2 Loan from Others viz., a Non Banking Finance Company (NBFC) is
 secured by equitable mortgage of properties belonging to the Company
 situated at Munnar, Yercaud, Puri, Darjeeling and Mussorie. This is
 also further secured by property at Kulu Manali belonging to Manchanda
 Resorts Private Limited, the wholly owned subsidiary of the Company.
 
 16.  In respect of term loan availed from NBFC:
 
 I. Financial investors have executed an undertaking agreeing not to
 sell/alienate their shareholding in the company during the currency of
 the term loan.
 
 ii. Sanction condition requires the Company to deposit the funded
 interest portion of the loan amount disbursed in a separate bank
 account or with debt funded instrument. Pursuant to this, the Company
 has invested such amounts in debt funded instrument and the same is
 grouped under current investments. The balance as at the year end is
 Rs.209.84 lacs (Previous Year Rs.Nil).
 
 17.  Deposit account under bank balance includes margin deposit with
 banks towards guarantees obtained, of Rs.22,47,684 (Previous Year
 Rs.16,95,327).
 
 18. Advance Subscription towards Customer Facilities (ASCF) referred to
 under Accounting policies represent income to be taken credit for in
 the Profit & Loss account of future years, spread over the holiday
 entitlement period and the same is shown under the head Deferred
 Income in the Balance Sheet under Sources of Funds. The Company has
 made an application dated 28.06.2002, under section 211(4) of the
 Companies Act, 1956, to the Department of Company Affairs, New Delhi,
 seeking their approval for the presentation of the same.
 
 19. The Company has infused additional funds into operation by way of
 equity as well as debt in the last few years and has substantially
 repaid its high cost debt and also has plans to raise additional equity
 in the immediate future. It has a comfortable working capital cycle.
 Substantial improvements are being made to the quality of resorts by
 refurbishment / renovation. The marketing team is being strengthened by
 recruiting qualified and experienced personnel.
 
 In view of this, the Company expects to substantially improve the
 operating performance in the ensuing years. Hence in the view of the
 Management, the Going Concern Assumption is not affected.
 
 20.  Debtors, Creditors Balances and Loans and Advances are subject to
 confirmation.
 
 21. The breakup of Deferred Tax Liabilities (DTL) and Deferred Tax
 Assets (DTA) as on 31.03.2011 is as under:
 
 As a prudent measure, Deferred Tax Asset (DTA) has been recognized only
 to the extent of Deferred Tax Liablity (DTL).
 
 22. RELATED PARTY INFORMATION
 
 Disclosure of related party transactions in accordance with Account
 Standard (AS -18) Related Party Disclosure issued by the Institute of
 Chartered Accountants India.
 
 (a) The list of Related Parties as identified by the Management is as
 under
 
 Key Management Personnel (KMP) 
 
 1) Mr. R.Subramanian - Chairman and Managing Director (CMD)
 
 2) Mr. Sidarth Shankar - Joint Managing Director (JMD)
 
 Subsidiary Companies 
 
 1) Sterling Holidays (Ooty) Limited
 
 2) Sterling Holiday Resorts (Kodaikanal) Limited
 
 3) Manchanda Resorts Private Limited
 
 Enterprise owned by / over which Key Managerial Personnel is able to
 exercise significant influence
 
 1) Sterling Tree Magnum India Limited
 
 2) Brindavan Farms Private Limited
 
 3) Madurai Meenakshi Farms Private Limited
 
 4) CGK Finvest (Madras) Private Limited
 
 5) Kamadhenu Business Fortune Limited
 
 6) Concorde Digital Technologies Pvt.Ltd
 
 7) V Serve India Manpower Limited
 
 8) Srivari Farms Pvt Ltd
 
 9) Spring Field Holiday Services Private Ltd
 
 10) Sterling Marketing Services Private Limited
 
 Notes on Segment Reporting
 
 a.  Business Segments
 
 The Company has considered business segment as the primary segment for
 disclosure.
 
 The business segments are: Time Share Sales & Resorts and Hotel Sales.
 
 The above segments have been identified taking into account the
 organization structure as well as the differing risks and returns of
 the segments.
 
 b.  Segment Assets include all operating assets used by the respective
 segment and consist principally of operating cash, debtors, inventories
 and fixed assets net of allowances and provisions. Segment Liabilities
 include all operating liabilities and consist primarily of creditors
 and accrued liabilities. Segment Assets and Liabilities do not include
 Income Tax Assets and Liabilities.
 
 24.The lists of undertaking covered under the Micro, Small and Medium
 Enterprises Development Act (MSMDA), 2006, were determined by the
 company on the basis of information available with the company. As
 explained by the company, there were no principal and /or interest due
 remaining unpaid as at 31st March 2011 in respect of undertakings
 covered by the MSMDA.
 
 25.Disclosure pursuant to Accounting Standard - 15 (Revised) Employee
 Benefits
 
 a.  Defined Contribution Plans
 
 Contribution of Rs.62.47 lacs (Previous Year Rs.26.72 lacs) towards
 Defined Contribution Plan is recognized as expense and included in
 employee cost (Sch 13) in the Profit and Loss account.
 
 c.  Employees Stock Purchase Scheme [ESPS] - 2010
 
 The Company has instituted Employees Stock Purchase Scheme (ESPS) vide
 resolution passed at the Annual General
 
 Meeting held on 29.09.2010 in terms of which the Company can issue upto
 21,00,000 Equity Shares to eligible employees.  The scheme is proposed
 to be implemented in 2011- 2012 on receipt of approval from Bombay
 Stock Exchange (BSE).
 
 d) Value of Imports calculated on CIF basis - Rs.Nil (Previous Year Rs.
 Nil)
 
 e) Expenditure in foreign currency - Rs.9.81 Lacs (Previous Year Rs.
 Nil)
 
 f) Earnings in foreign currency - Rs.NIL (Previous Year Rs. Nil)
 
 26.  In the opinion of the Management and to the best of their
 knowledge and belief the value on realization of current assets and
 loans and advances would not be less than the amount at which they are
 stated in the Balance Sheet.
 
 27.  The figures are rounded off to the nearest rupee.  Previous year
 figures, are regrouped wherever necessary, to match with current year''s
 grouping.