1. COMPANY OVERVIEW
M/s U G HOTELS AND RESORTS LIMITED, a public limited company
established in 1986 and has set up the first 5 Star Resort Project in
Himachal Pradesh, India. It has emerged a tourist destination of
reckoning and is named as Shilon Resort-Forty acres of Switzerland.
The company is engaged in the business of running and maintaining
Hotel Business and all other related and ancillary objects.
2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
Statement of compliance
The financial statements are prepared under the historical cost
convention on an accrual basis, in accordance with the generally
accepted accounting principles in India and in compliance with the
applicable accounting standards as notified under the Companies
(Accounting Standards) Rules, 2006, as amended and as per Revised
Schedule VI to the Companies Act, 1956. All assets and liabilities have
been classified as current or non-current as per the Company''s normal
operating cycle and other criteria set out in the Revised Schedule VI
to the Companies Act, 1956.
Use of estimates
The presentation of financial statements in conformity with the
generally accepted accounting principles requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities and disclosure of contingent liabilities as on date of the
financial statements and the reported amount of revenues and expenses
during the reporting year. Differences between the actual results and
estimates are recognized in the year in which the results are known or
3. CONTINGENT LIABILITIES
Particulars Current Year Previous year
i) Suit filed against the Company by
UMAK Investment Company Rs. 12.30
Crore Rs. 12.30
ii) Suit filed against the Promoter
Directors of the Company and others Rs. 4.35
Crore Rs. 4.35
in their personal capacity by UMAK
Investment Company Private Limited
iii) Tax demand notice under the H.P.
Tax on Luxuries ( in Hotels and Rs. 43.64
Lodging Houses) Act, 1979 dated
* The Company has filed appeal against this demand of Luxury tax
liability at Honorable High Court of Shimla.
4. Demand Order under Section 7A of the Employees'' Provident Funds
and Miscellaneous Provisions Act, 1952 has passed for the period of 08/
07 to 04/2010 of Rs. 2,30,119/-, Company has paid it on vide challan
No. 00718 dated 7lh May, 2013.
5. Provision for Income Tax has not been made, there being no Income
tax liability as there was a loss during the year and also accumulated
losses from previous year.
6. Balance standing to the debit and credit of parties are subject to
confirmation from them.
7. In the opinion of the management, all current assets, loans and
advances have a value of realization at least equal to the extent
considered good and stated in the Balance Sheet.
8. Ministry of Company Affairs has vide its Notification No. S.O. 301
(E) dated 08 February, 2011 has exempted the Company from the
requirement of disclosure of quantitative details as per Part-ll of
Schedule VI of the Companies Act 1956, in the financial statements
subject to fulfillment of the conditions stipulated in paragraph 2 of
this notification. Company has been complied all conditions as
mentioned in Notification.
9. C.I.F. Value of Imports -NIL.
10. Value of consumption of raw material components and spare parts.
11. BASIC AND DILUTED EARNING PER SHARE
Basic earnings per share are computed by dividing the net profit/
(loss) attributable to equity shareholders for the year by the weighted
average number of equity shares outstanding during the year. Diluted
earnings per share are computed using the weighted average number of
equity shares and also the weighted average number of equity shares
that could have been issued on the conversion of all dilutive potential
equity shares. The dilutive potential equity shares are adjusted for
the proceeds receivable, had the shares been actually issued at fair
value. Dilutive potential equity shares are deemed converted as of the
beginning of the year, unless they have been Issued at a later date.
The number of equity shares and potential diluted equity shares are
adjusted for stock split, bonus shares and the potential dilutive
effect of employee stock option.plans as appropriate. Basic and
diluted earning per share for the year-ended 31.03.2013 is as under:
12. RELATED PARTY TRANSACTION
Pursuant to Accounting Standard (AS-18) - Related Party Disclosure
following parties are to be treated as Related Parties. Relationship
Name of the related parties
i) Related parties where control exists
Subsidiary Company U. G. Buildcon Pvt. Ltd
ii) Other related parties
Key management personnel Mr. Umesh Phalpher
(Chairman & Managing Director) Mr. Harmit Ghai (Whole Time Director)
13. DEFERRED TAX
In compliance with Accounting Standard 22 (AS 22) - ''Accounting for
taxes on income'', as notified under the Companies (Accounting
Standards) Rules, 2006, as amended, the Company in the absence of a
virtual certainty of future profits, has not recognized any deferred
tax assets during the current year.
14. EMPLOYEE BENEFITS
As per Accounting Standard 15 Employee Benefits (Revised 2005), the
disclosures of employee benefits as defined in Accounting Standard are
The Company has classified the various benefits provided to employees
I. Defined Contribution Plans
a. Provident Fund
b. Employer''s Contribution to Employees'' Pension Scheme 1995
During the year, the Company has recognized the following amounts in
the Profit and Loss Account for the above Plans: Rs.0.57Lacs
II. Defined Benefit Plans
Contribution to Gratuity Fund (Non- Funded Scheme)
In accordance with Accounting Standard 15 (Revised 2005), Actuarial
Valuation was performed in respect of the aforesaid defined benefit
plan based on the following assumptions:
15. The Company has a subsidiary company hence the requirements of
Accounting Standard-21 relating to consolidate Financial Statements is
applicable to the Company.
16. Previous year figures have been regrouped, rearranged &
reclassified where ever considered necessary to confirm current year