1.  Estimated amount of contracts remaining to be executed on capital
 account and not provided for (as certified by the Management) Rs.
 101.82 lacs (2010 – Rs.  55.41 lacs).
 
 2.  Contingent liabilities not provided for in respect of:
 
 a) Claims against the Company not acknowledged as debts and not
 provided for pending appellate /Judicial decisions:
 
 i) VAT / Entry Tax Rs. 69.14 lacs (2010 – Rs. 2.08 lacs)
 
 ii) House Tax / Water Tax Rs. 28.12 lacs (2010 – Rs. 101.21 lacs)
 
 No provision has been made as the probability of the claim succeeding
 is remote.
 
 b) The Income Tax Department has appealed to the Hon''ble High Court,
 Allahabad against the order of the Income Tax Appellate Tribunal
 upholding the views of the Company in respect of the claim of deduction
 regarding earnings in convertible foreign exchange under Section 80 HHD
 for Assessment Years 1989-90 to 1991-92 and luxury tax claimed under
 Section 43B for Assessment Years 1987-88 to 1990-91. The total amount
 disputed (excluding interest and penalties) in the matter aggregates to
 Rs. 58.59 lacs (2010- Rs. 58.59 lacs). The Company , based on expert
 analysis, is hopeful of a favourable decision from the Hon''ble High
 Court, Allahabad.
 
 c) A stay has been granted by the Hon''ble Allahabad High Court as
 regards applicability of the notification under section 3 of the U P
 Industrial Disputes Act, 1947 regarding minimum wages applicable to
 hotels in U.P.. Liability, if any, is unascertained.
 
 d) A stay has been granted by Hon''ble High Court of Allahabad , Lucknow
 Bench in the matter of applicability of Provident Fund during infancy
 period. Liability, if any, is unascertained.
 
 e) Certain employees have filed claims in various courts / legal forums
 against suspension/termination etc. and have sought reliefs. The
 ultimate liability, if any, with respect to these claims is currently
 not ascertainable and in the opinion of management, would not have
 material effect on the financial statements.
 
 3.1 Balance confirmations have not been received from most of the
 parties showing debit/credit balances.
 
 3.2 In the opinion of the Board, the value on realization of current
 assets, loans & advances in the ordinary course of business will not be
 less than the amount at which they are stated in the Balance Sheet.
 
 3.3 Debts over six months (considered good) inter-alia include Rs.
 2,608,792 in respect of which legal proceedings have been initiated
 against parties under section 138 of The Negotiable Instruments Act,
 1881. The Company based on legal opinion is virtually certain of its
 recovery and accordingly no provision is required.mn respect of which
 legal
 
 4.  Margin Deposit of Rs. 100,000 (2010- Rs. 66,608) and Fixed Deposit
 of Rs. 145,240 (2010 – Rs. 140,000) have been made / lodged for
 obtaining guarantees in favour of Government Authorities.
 
 5.2 The Company does not use derivative financial instruments such as
 forward exchange contracts and interest rates swaps to hedge its risks
 associated with foreign currency fluctuations and interest rate or for
 trading/speculation purposes.
 
 6.1 The Company has not received from majority of parties any
 information / memorandum (as required to be filed by Suppliers /
 Vendors with the notified authority under Micro, Small and Medium
 Enterprises Development Act, 2006), claiming their status as Micro,
 Small or Medium Enterprises.
 
 7.  Pending assessments of Luxury Tax,Value Added Tax, Service Tax,
 Expenditure Tax, House & Water Tax etc. further liability, if any,
 could not be ascertained and provided for in account.
 
 8.  The Company has unutilised Cash Credit Limit of Rs. 160 lacs (2010
 - Rs. 160 lacs) from Allahabad Bank which is secured by hypothecation
 of present and future movable assets i.e. stock of provisions, wines,
 crockery, linen and other stores and also present and future book debts
 of the Company''s hotels and is additionally secured by mortgage of the
 Company''s hotels at Agra & Jaipur aggregating to Rs. 678 lacs. This is
 personally guaranteed by Chairman cum Managing Director (ex & present).
 
 9.  Fixed deposit of Rs. 40,599,760 have been lodged with Allahabad
 Bank for availing overdraft limit not exceeding Rs. 300 Lacs.
 
 10.  No amount is paid / payable by the Company under Section 441A of
 the Companies Act, 1956 (Cess on turnover) since rules specifying the
 manner in which the Cess shall be paid has not been notified yet by
 Central Government.
 
 11.  Depreciation has been provided in the accounts on Straight Line
 Method at rates prescribed in Schedule XIV to the Companies Act, 1956
 except for specific assets stated below where different rates are
 applied which are not less than those prescribed under the Companies
 Act, 1956 :
 
 i) Leasehold land is amortised over a period of 30 years. Leasehold
 land acquired on 99 years basis is not amortised.
 
 ii) Intangible assets viz Trade Marks and Computer Software are being
 amortised over a period of sixty months.
 
 12. Since depreciation has been calculated on the revalued costs, the
 difference of depreciation on original cost and the revalued figures
 amounting to Rs. 1,024,668 (2010 - Rs. 1,024,668) has been withdrawn
 from the revaluation reserve and deducted from the gross depreciation
 for the year.
 
 13.1 Managerial Remuneration paid / payable to Directors
 
 Note: As the future liabililty for gratuity and leave encashment is
 provided on an actuarial basis for the Company as a whole, the amount
 pertaining to the directors is not ascertainable and, therefore, not
 included above.
 
 14.1 (i) The Company has entered into operating Lease arrangement for
 office premises, guest houses and residential premises of
 employees/directors. Some of the significant terms and conditions of
 the arrangements are:
 
 - lease agreements are not non-cancellable in nature and may be
 terminated by either party by serving a notice
 
 - lease arrangements which are not non-cancellable are generally
 renewable by mutual consent on mutually agreeable terms
 
 (ii) Rent in respect of above are charged to Profit & Loss account.
 
 15.1 General description of arrangements- 
 
 (i) Future lease rental payments are determined on the basis of annual
 lease payment as per agreement.
 
 (ii) At the expiry of the lease term, the Company has an option either
 to return the assets or extend the term by giving notice in writing.
 
 15.2 (i) The Company has also entered into operating leases relating to
 shops etc. Shop licence fee has been recognised as income in the Profit
 & Loss Account.
 
 16. The primary reporting of the Company has been prepared on the basis
 of business segments. The Company has only one business segment, which
 is hotel operations and allied business services and operates in a
 single business segment based on the nature of its products, the risks
 and return, the organisation structures and the internal financial
 reporting systems. Accordingly, the figures in these financial
 statements relate to the Company''s single business segment.
 
 Secondary segment reporting is prepared on the basis of the
 geographical location of its operations. The operating interests of the
 Company are confined to India in terms of the operations. Accordingly,
 the figures in the financial statements relate to the Company''s single
 geographical segment being operations in India.
 
 17.  Details of transactions entered into with related parties during
 the year 
 
 A) Related parties and their relationship
 
 i) Subsidiary Companies – Nil 
 
 ii) Key Management Personnel :-
 
 a) Directors
 
 Shri Birendra Kumar ( Chairman & Managing Director)
 
 Shri Apurv Kumar (Joint Managing Director)
 
 Shri Rupak Gupta (Joint Managing Director)
 
 Smt. Supriya Gupta (Executive Director)
 
 Shri Rakesh M Gupta
 
 Shri Sushil Kumar
 
 Shri Arvind Kumar
 
 b) Relatives of Directors 
 
 Shri Upendra Kumar 
 
 Shri Manish Kumar 
 
 Smt. Rajeshwari Kumar 
 
 Smt. Renuka Kumar 
 
 Shri Anoop Kumar 
 
 Shri Binay Kumar
 
 Shri Ravi M Gupta 
 
 Shri Alok Kumar 
 
 Shri Vivek Kumar 
 
 Shri Arjun Kumar
 
 Shri Akshay Gupta 
 
 Smt. Minakshi Gupta (Late)
 
 Enterprise in which Key Management Personnel have significant
 influence:
 
 U.P. Hotels Clarks Limited
 
 U.P. Hotels India Limited
 
 Kalyani Holdings and Finance Limited
 
 Indian Textiles Company Private Limited
 
 Indian Textiles Company (Holdings) Private Limited
 
 Hotel Clarks Varanasi Limited
 
 Great Value Hotels Private Limited
 
 Carbon Paste Limited
 
 Banaras House Private Limited
 
 Banaras House IGA South Asia Limited
 
 Bonita India Limited
 
 Banaras International Limited
 
 Banaras Global Limited
 
 Banaras House Engineering Private Limited
 
 U P Export Industries Limited
 
 ANK Travels Limited
 
 Silk Emporium
 
 Oriental Textiles
 
 Jaipur Silk Emporium
 
 Rastriya Vikas Limited
 
 Oriental Emporium
 
 Jaipur Shop
 
 Chandauli Agro Dairy Products Private Limited
 
 Pride Hospitality Private Limited
 
 Clarks Brij Hotels (I) Private Limited
 
 18.  Employees Benefits
 
 18.1 Defined Contribution Plans.
 
 The Company makes contribution towards Provident Fund and ESIC for
 qualifying employees. The Provident Fund & ESIC plans are operated by
 Regional Provident Fund Commissioner and Director Employees State
 Insurance Corporation. The Company is required to contribute a
 specified percentage of payroll cost to the retirement benefit schemes
 to fund the benefits. The only obligation of the Company with respect
 to their retirement benefit plan is to make specified contribution at
 specified rates.
 
 18.2 Defined Benefit Plan Gratuity
 
 The Company makes annual contribution to Employees Group Gratuity cum
 Life Insurance Scheme of Life Insurance Corporation of India (funded)
 at all units except Khajuraho. The scheme provide for lump sum payment
 to vested employees on departure of an amount equal to 15 days salary
 (last drawn) for each completed year of service. Vesting occur on
 completion of five years service. The recent actuarial valuation was
 carried out at 31st March, 2011 by Life Insurance Corporation of India
 under the Projected Unit Credit Method. The Actuarial valuation at one
 unit is carried out by an Actuary under the Projected Unit Credit
 Method. Provisions are made to bring gratuity liability in line with
 actuarial valuation. The funds are invested by Life Insurance
 Corporation of India.
 
 18.3 Gratuity expenses and leave encashment have been recognised under
 the head employees remuneration & welfare expenses
 
 19.  The Company has not made any remittances in foreign currencies on
 account of dividends during the year and does not have information to
 the extent to which remittances in foreign currencies on account of
 dividend have been made by or on behalf of non resident shareholders.
 
 20.  The Company is not required to give any quantitative and valuewise
 information in respect of purchases, consumption, turnover, stocks etc.
 as the same is exempted vide Notification No. S.O.  301(E) dated 8th
 February, 2011 issued under Section 211(3) of the Companies Act, 1956
 by the Ministry of Corporate Affairs, Government of India.
 
 21.  The figures for the previous year have been re-grouped / recast as
 far as practicable to make them comparable with those of the current
 year.