Aruna Hotels Ltd. कंपली की लेखा नीति

Mar 31, 2025

1. Overview1.1 Corporate information

The Company was incorporated on 09th September 1960. The registered office of the company is located at 145, Sterling Road, Chennai, Tamil Nadu- 600034. The principal activities of the company are to carry out business of developing, owning, acquiring, renovating, operating, managing and promoting hotels, restaurants etc.

The Company is a public limited company incorporated and domiciled in India. The Company has its primarily listing on the BSE Ltd.

The Board of Directors approved the financial statements for the year ended March 31, 2025 and authorised for issue on 24th May, 2024.

1.2 Basis of preparation of financial statements Statement of Compliance

These financial statements have been prepared in accordance with Indian Accounting Standards (“Ind AS”) as prescribed under Section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules, 2015 and other provisions of the Companies Act, 2013 as amended from time to time.

Basis of preparation

These financial statements have been prepared on a historical cost basis, except for certain financial instruments which are measured at fair value at the end of each reporting period. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

The statement of cash flows has been prepared under indirect method, whereby profit or loss is adjusted for the effects of transactions of a non-cash nature, any deferrals, or accruals of past or future operating cash receipts or payments and items of income or expense associated with investing or financing cash flows. The cash flows from operating, investing, and financing activities of the Company are segregated.

As the year ended figures are taken from the source and rounded to the nearest digits (Rs. in Lakhs), the figures reported for the previous quarters might not always add up to the year end figures reported in this statement.

The significant accounting policies used in the preparation of the financial statements have been discussed in the respective notes.

1.3 Use of estimates and judgements

The preparation of the financial statements in conformity with the recognition and measurement principles of Ind AS requires management of the Company to make estimates, judgements and assumptions that affect the application of accounting policies and the reported balances of assets and liabilities, the disclosures of contingent liabilities as at the date of the financial statements and the reported amounts of income and expense for the periods presented.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised, and future periods are affected.

The Company uses the following critical accounting estimates in preparation of its financial statements.

Critical accounting estimates and judgements

Information about significant judgements and key sources of estimation made in applying accounting policies that have the most significant effects on the amounts recognized in the financial statements is included in the following notes:

• Useful lives of depreciable/ amortizable assets (tangible and intangible):

The Company reviews the useful life of property, plant, and equipment at the end of each reporting period. This reassessment may result in change in depreciation expense in future periods.

• Provisions and Contingencies:

The Company estimates the provisions that have present obligations as a result of past events, and it is probable that outflow of resources will be required to settle the obligations. These provisions are reviewed at the end of each reporting period and are adjusted to reflect the current best estimates. The Company uses significant judgements to disclose contingent liabilities. Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made. Contingent assets are neither recognised nor disclosed in the financial statements.

• Impairment Testing

Property, plant and equipment, Right-of-Use assets and intangible assets that are subject to depreciation/ amortisation are tested for impairment periodically including when events occur or changes in circumstances indicate that the recoverable amount of the cash generating unit is less than its carrying value. The recoverable amount of cash generating units is higher of value-in-use and fair value less cost to sell. The calculation involves use of significant estimates and assumptions which includes turnover and earnings multiples, growth rates and net margins used to calculate projected future cash flows, risk-adjusted discount rate, future economic and market conditions.

• Income Taxes

Deferred tax assets are recognised to the extent that it is regarded as probable that deductible temporary differences can be realised. The Company estimates deferred tax assets and liabilities based on current tax laws and rates and in certain cases, business plans, including management’s expectations regarding the manner and timing of recovery of the related assets. Changes in these estimates may affect the amount of deferred tax liabilities or the valuation of deferred tax assets and thereby the tax charge in the Statement of Profit and Loss

• Defined Benefit Plan

The cost of the defined benefit plans and the present value of the defined benefit obligation are based on actuarial valuation using the projected unit credit method. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each Balance Sheet date

• LeasesCritical judgements in determining the lease term:

Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset to Company’s operations taking into account the location of the underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances.

Critical judgements in determining the discount rate:

The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with similar characteristics.

1.4 Functional currency & presentation currency

The financial statements are presented in Indian Rupees (INR) which is the functional and presentation currency of the Company, and all values are rounded off to the lakhs with two decimals, except where otherwise indicated.

1.5 Current vs. Non-current classification of Assets and Liability

The Company present assets and liabilities in the Balance Sheet based on current/ non-current classification.

An asset is classified as current when it is:

• Expected to be realized or intended to be sold or consumed in normal operating cycle.

• Held primarily for the purpose of trading.

• Expected to be realized within twelve months after the reporting period; or

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All the other assets are classified as non-current.

A liability is classified as current when:

• It is expected to be settled in normal operating cycle.

• It is held primarily for the purpose of trading.

• It is due to be settled within twelve months after the reporting period; or

• There are no unconditional rights to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current.

Deferred Tax Assets and Liabilities are classified as non-current assets and liabilities respectively.

2. SIGNIFICANT ACCOUNTING POLICIES

A summary of the significant accounting policies applied in the preparation of the financial statements are as given below. These accounting policies have been applied consistently to all the periods presented in the financial statements.

2.1 Revenue recognition

The Company derives revenue primarily from rendering services related to hotel, restaurant etc. by providing accommodation and food to the guests.

Revenue is recognised at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring the goods or services to a customer i.e. on transfer of control of the goods or service to the customer. Revenue from sales of goods or rendering of services is net of Indirect taxes, returns and discounts.

To determine whether to recognize revenue, the Company follows a 5-step process:

1. Identifying the contract with a customer

2. Identifying the performance obligations

3. Determining the transaction price

4. Allocating the transaction price to performance obligations

5. Recognizing revenue when/as performance obligation(s) are satisfied.

Revenue is recognised at the transaction price that is allocated to the performance obligation. Revenue includes room revenue, food and beverage sale and banquet services which is recognised once the rooms are occupied, food and beverages are sold and other services that have been provided as per the contract with the customer.In relation to laundry income and other allied services, the revenue has been recognised by reference to the time of service rendered.

Other income

Other income majorly comprises of rental income, scrap revenue which is recognized when the right to receive the income is established as per the terms of contract, interest income, write back of creditors. It also includes the interest waived off on loans borrowed by the company.

Interest Income

Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable (provided that it is probable that the economic benefits will flow to the company and the amount of income can be measured reliably).

2.2 Employee Benefits Short-term employee benefits

The costs of all short-term employee benefits (that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service) are recognised during the period in which the employee renders the related service. The accruals for employee entitlements to benefits such as salaries and bonuses represent the amounts which the Company has a present obligation to pay as a result of the employee’s services and the obligation can be measured reliably. The accruals have been calculated at undiscounted amounts based on current salary levels at the Balance Sheet date.

Post Employment BenefitsDefined contribution plans

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts.

The eligible employees of the Company are entitled to receive post-employment benefits in respect of provident and family pension fund, in which both the employees and the Company make monthly contributions at a specified percentage of the employee’s eligible salary. The contributions made to the provident fund are charged to the Statement of Profit and Loss as incurred. In respect of contribution to the PF Fund, the Company has no further obligations beyond making the contribution, and hence, such employee benefit plan is classified as Defined Contribution Plan.

Defined benefit plans

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Company’s net obligation in respect of defined benefit plans is calculated by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets. The calculation of defined benefit obligation is performed annually by a qualified actuary using the projected unit credit method.

The company does not have any earmarked investments as they have not contributed to any gratuity funds. Hence, there is no plan assets as on 31.03.2025.

2.3 Property, Plant and equipment

Property, plant and equipment are stated at cost, less accumulated depreciation and impairment, except for Freehold land. The company follows revaluation model for Land and cost model for other classes of assets. Costs directly attributable to acquisition are capitalized until the property, plant and equipment are ready for use, as intended by the management.On transition to IND AS, the Company has elected to continue with the carrying value of all of its property plant and equipment recognised as at April 1, 2016, measured as per the previous GAAP, and use that carrying value as the deemed cost of such property plant and equipment. For the purpose of Proforma Ind AS financial information for the financial year ended March 31, 2016 the Company has provided the depreciation based on the estimated useful life of respective years and as the change in estimated useful life is considered as change in estimate, accordingly there is no impact of this roll back.

Depreciation on Plant, Property and Equipment

The depreciable amount of PP&E (being the gross carrying value less the estimated residual value) is depreciated on a systematic basis over its useful life.

Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets as follows:

Asset:	Useful Life:
Building	30 Years
Computers	3 Years
Equipment	5 Years
Furniture	10 Years
Plant & Machinery	15 Years
Servers	6 Years
Vehicles	8Years

Repairs and maintenance costs are recognized in the Statement of Profit and Loss when incurred.

De-recognition

An item of PPE is de-recognised at the time of its disposal or when it is assessed that no future economic benefit would accrue from it. The gain/ loss arising out of such disposal/retirement is taken to statement of profit or loss.

2.4 Investment Property

The properties that comprise a portion that is held to earn rentals or for capital appreciation

and another portion that is held for use in the supply of services or for administrative purposesand if such portions cannot be sold separately, then such properties are not classified as investment property under IND AS 40 if only an insignificant portion have been leased out and majority is held as owner occupied property.

2.5 Leases & Right to Use Assets

On inception of a contract, the Company assesses whether it contains a lease. A contract contains a lease when it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The right to use the asset and the obligation under the lease to make payments are recognised in the Company’s statement of financial position as a right-of-use asset and a lease liability.

The company elects not to apply the requirements in paragraphs 22-49 of IND AS 116 toshort-term leases and leases for which the underlying asset is of low value.The lease payments associated with those leases are recognized as an expense on a straight-line basis over the lease term.

2.6 Impairment of non-financial assets

The Company assesses at each reporting date, whether there is an indication that an asset may be impaired. An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value being higher of value in use and net selling price. Value in use is computed at net present value of cash flow expected over the balance useful lives of the assets. For assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or group of assets (Cash Generating Units - CGU).

An impairment loss is recognized as an expense in the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in earlier accounting period is reversed if there has been an improvement in recoverable amount.

2.7 Income Tax

Income Tax comprises current and deferred tax. It is recognized in the Statement of Profit and Loss except to the extent that it relates to an item recognized directly in equity or in Other Comprehensive Income.

Deferred Tax assets and liabilities shall be measured at the tax rates that are expected to apply to the period when the asset is realized, or the liability is settled based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes (i.e., tax base).

Deferred tax relating to items recognized outside the Statement of Profit and Loss is recognized either in Other Comprehensive Income (OCI) or in equity. Deferred tax items are recognized in correlation to the underlying transaction either in OCI or directly in equity.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.

2.8 Financial assets, financial liabilities

Financial assets and liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial assets and liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value measured on initial recognition of financial asset or financial liability. The Company derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. The Company derecognises financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or have expired.

Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost if these financial assets are held within a business whose objective is to hold these assets to collect contractual cash flows and the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Cash and cash equivalent

The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage.

Trade receivables

Trade receivables are initially recognised at fair value. Subsequently, these assets are held at amortised cost net of any expected credit losses. Loss allowance on trade receivables is measured at an amount equal to lifetime expected losses i.e., expected cash shortfall based on the management decision.

Impairment of financial assets (other than at fair value)

The Company assesses at each date of balance sheet whether a financial asset or a group of financial assets is impaired. Ind AS 109 requires expected credit losses to be measured through a loss allowance. The Company recognises lifetime expected losses for all contract assets and / or all trade receivables that do not constitute a financing transaction. In determining the allowances for doubtful trade receivables, the Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the receivables that are due and allowance rates used in the provision matrix. For all other financial assets, expected credit losses are measured at an amount equal to the 12-months expected credit losses or at an amount equal to the lifetime expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.

De-recognition of financial assets

The company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the company recognises its retained interest in the asset and an associated liability for amounts it may have to pay. On de-recognition of a financial asset in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognised in the Statement of profit and loss.

Financial liabilities and equity instruments Classification as debt or equity

Debt and equity instruments issued by the company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by a company entity are recognised at the proceeds received, net of direct issue costs.

Financial liabilities

All financial liabilities are subsequently measured at amortised cost using the effective interest method. The carrying amounts of financial liabilities that are subsequently measured at amortised cost are determined based on the effective interest method. Interest expense that is not capitalized as a part of cost of an asset is included in the “Finance Costs”.

The carrying amounts of the borrowings that are not measured at fair value are reasonable approximation of fair value, as they are floating rate instruments that are re-priced to market interest rates on or near the end of the reporting period. The interest expense recognized in Profit & Loss account will be based on the current market rate.

De-recognition of financial liabilities

The Company derecognises financial liabilities when, and only when, the Company’s obligations are discharged, cancelled, or have expired. An exchange with a lender of debt instruments with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, a substantial modification of the terms of an existing financial liability is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss.

2.9 Inventories

Stock of food and beverages and stores and operating supplies are carried at the lower of cost (computed on a Weighted Average basis) or net realisable value. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and selling expenses. Cost includes the fair value of consideration paid including duties and taxes (other than those refundable), inward freight, and other expenditure directly attributable to the purchase. Trade discounts and rebates are deducted in determining the cost of purchase.

2.10 Provisions, Contingent Assets and Contingent Liabilities Provisions:

The company recognizes a provision when there is a present obligation to transfer economic benefits as a result of past events, it is probable (more likely than not) that such a transfer will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material). When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is certain that reimbursements will be received, and the amount of the receivable can be measured reliably.

Contingent Assets:

Contingent assets usually arise from unplanned or other unexpected events that give rise to the possibility of an inflow of economic benefits. Contingent Assets are not recognized though are disclosed, where an inflow of economic benefits is probable.

Contingent Liabilities:

Contingent liability is a possible obligation arising from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events but is not recognized because it is not possible that an outflow of resources embodying economic benefit will be required to settle the obligations or reliable estimate of the amount of the obligations cannot be made.

2.11 Borrowing Cost

General and specific borrowing costs directly attributable to the acquisition or construction of qualifying assets that necessarily takes substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Borrowing costs consist of interest and other costs that the Company incurs in connection with the borrowing of funds

2.12 Statement of Cash Flows

Cash flows are reported using the indirect method, whereby profit/ (loss) before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. Cash flow for the year are classified by operating, investing and financing activities.

2.13 Earning per Share.

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effect of all potentially dilutive equity shares.

Ordinary Shares

Ordinary Shares are classified as equity share capital. Incremental costs directly attributable to the issuance of the new ordinary shares, share options and buyback are recognized as a deduction from equity, net of any tax effects.

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Mar 31, 2024

2. SIGNIFICANT ACCOUNTING POLICIES

A summary of the significant accounting policies applied in the preparation of the financial statements are as
given below. These accounting policies have been applied consistently to all the periods presented in the financial
statements.

2.1 Revenue recognition

The Company derives revenue primarily from rendering services related to hotel, restaurant etc. by providing
accommodation and food to the guests.

Revenue is recognised at an amount that reflects the consideration to which the Company expects to be entitled in
exchange for transferring the goods or services to a customer i.e. on transfer of control of the goods or service to
the customer. Revenue from sales of goods or rendering of services is net of Indirect taxes, returns and discounts.

To determine whether to recognize revenue, the Company follows a 5-step process:

1. Identifying the contract with a customer

2. Identifying the performance obligations

3. Determining the transaction price

4. Allocating the transaction price to performance obligations

5. Recognizing revenue when/as performance obligation(s) are satisfied.

Revenue is recognised at the transaction price that is allocated to the performance obligation. Revenue includes
room revenue, food and beverage sale and banquet services which is recognised once the rooms are occupied, food
and beverages are sold and other services that have been provided as per the contract with the customer.In relation
to laundry income and other allied services, the revenue has been recognised by reference to the time of service
rendered.

Other income

Other income majorly comprises of rental income, scrap revenue which is recognized when the right to receive the
income is established as per the terms of contract, interest income, write back of creditors. It also includes the interest
waived off on loans borrowed by the company.

Interest Income

Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest
rate applicable (provided that it is probable that the economic benefits will flow to the company and the amount of
income can be measured reliably).

2.2 Employee Benefits
Short-term employee benefits

The costs of all short-term employee benefits (that are expected to be settled wholly within 12 months after the
end of the period in which the employees render the related service) are recognised during the period in which the
employee renders the related service. The accruals for employee entitlements to benefits such as salaries and bonuses
represent the amounts which the Company has a present obligation to pay as a result of the employee’s services and
the obligation can be measured reliably. The accruals have been calculated at undiscounted amounts based on current
salary levels at the Balance Sheet date.

Post Employment Benefits

Defined contribution plans

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a
separate entity and will have no legal or constructive obligation to pay further amounts.

The eligible employees of the Company are entitled to receive post-employment benefits in respect of provident
and family pension fund, in which both the employees and the Company make monthly contributions at a specified
percentage of the employee’s eligible salary. The contributions made to the provident fund are charged to the Statement
of Profit and Loss as incurred. In respect of contribution to the PF Fund, the Company has no further obligations
beyond making the contribution, and hence, such employee benefit plan is classified as Defined Contribution Plan.

Defined benefit plans

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Company’s net
obligation in respect of defined benefit plans is calculated by estimating the amount of future benefit that employees
have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.
The calculation of defined benefit obligation is performed annually by a qualified actuary using the projected unit
credit method.

The company does not have any earmarked investments as they have not contributed to any gratuity funds. Hence,
there is no plan assets as on 31.03.2023.

2.3 Property, Plant and equipment

Property, plant and equipment are stated at cost, less accumulated depreciation and impairment, except for Freehold
land. The company follows revaluation model for Land and cost model for other classes of assets. Costs directly
attributable to acquisition are capitalized until the property, plant and equipment are ready for use, as intended
by the management.On transition to IND AS, the Company has elected to continue with the carrying value of all
of its property plant and equipment recognised as at April 1, 2016, measured as per the previous GAAP, and use
that carrying value as the deemed cost of such property plant and equipment. For the purpose of Proforma Ind AS

financial information for the financial year ended March 31, 2016 the Company has provided the depreciation based
on the estimated useful life of respective years and as the change in estimated useful life is considered as change in
estimate, accordingly there is no impact of this roll back.

Depreciation on Plant. Property and Equipment

The depreciable amount of PP&E (being the gross carrying value less the estimated residual value) is depreciated on
a systematic basis over its useful life.

De-recognition

An item of PPE is de-recognised at the time of its disposal or when it is assessed that no future economic benefit
would accrue from it. The gain/ loss arising out of such disposal/retirement is taken to statement of profit or loss.

2.4 Investment Property

The properties that comprise a portion that is held to earn rentals or for capital appreciation

and another portion that is held for use in the supply of services or for administrative purposesand if such portions
cannot be sold separately, then such properties are not classified as investment property under IND AS 40 if only an
insignificant portion have been leased out and majority is held as owner occupied property.

2.5Leases & Right to Use Assets

On inception of a contract. the Company assesses whether it contains a lease. A contract contains a lease when it
conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The right
to use the asset and the obligation under the lease to make payments are recognised in the Company’s statement of
financial position as a right-of-use asset and a lease liability.

The company elects not to apply the requirements in paragraphs 22-49 of IND AS 116 toshort-term leases and leases
for which the underlying asset is of low value.The lease payments associated with those leases are recognized as an
expense on a straight-line basis over the lease term.

2.6Impairment of non-financial assets

The Company assesses at each reporting date. whether there is an indication that an asset may be impaired. An asset
is treated as impaired when the carrying cost of the asset exceeds its recoverable value being higher of value in use
and net selling price. Value in use is computed at net present value of cash flow expected over the balance useful
lives of the assets. For assessing impairment. assets are grouped at the lowest levels for which there are separately
identifiable cash inflows which are largely independent of the cash inflows from other assets or group of assets (Cash
Generating Units - CGU).

An impairment loss is recognized as an expense in the Statement of Profit and Loss in the year in which an asset is
identified as impaired. The impairment loss recognized in earlier accounting period is reversed if there has been an
improvement in recoverable amount.

2.7 Income Tax

Income Tax comprises current and deferred tax. It is recognized in the Statement of Profit and Loss except to the
extent that it relates to an item recognized directly in equity or in Other Comprehensive Income.

Deferred Tax assets and liabilities shall be measured at the tax rates that are expected to apply to the period when the
asset is realized, or the liability is settled based on tax rates (and tax laws) that have been enacted or substantively
enacted by the end of the reporting period.

Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities
for financial reporting purposes and the corresponding amounts used for taxation purposes (i.e., tax base).

Deferred tax relating to items recognized outside the Statement of Profit and Loss is recognized either in Other
Comprehensive Income (OCI) or in equity. Deferred tax items are recognized in correlation to the underlying
transaction either in OCI or directly in equity.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets
against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the
Company intends to settle its current tax assets and liabilities on a net basis.

2.8Financial assets, financial liabilities

Financial assets and liabilities are recognised when the Company becomes a party to the contractual provisions of
the instrument. Financial assets and liabilities are initially measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and
financial liabilities at fair value through profit or loss) are added to or deducted from the fair value measured on
initial recognition of financial asset or financial liability. The Company derecognises a financial asset only when the
contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially
all the risks and rewards of ownership of the asset to another entity. The Company derecognises financial liabilities
when, and only when, the Company’s obligations are discharged, cancelled or have expired.

Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost if these financial assets are held within a business
whose objective is to hold these assets to collect contractual cash flows and the contractual terms of the financial
assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.

Cash and cash equivalent

The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of
cash that are subject to an insignificant risk of change in value and having original maturities of three months or less
from the date of purchase, to be cash equivalents. Cash and cash equivalents consist of balances with banks which
are unrestricted for withdrawal and usage.

Trade receivables

Trade receivables are initially recognised at fair value. Subsequently, these assets are held at amortised cost net of
any expected credit losses. Loss allowance on trade receivables is measured at an amount equal to lifetime expected
losses i.e., expected cash shortfall based on the management decision.

Impairment of financial assets (other than at fair value)

The Company assesses at each date of balance sheet whether a financial asset or a group of financial assets is
impaired. Ind AS 109 requires expected credit losses to be measured through a loss allowance. The Company
recognises lifetime expected losses for all contract assets and / or all trade receivables that do not constitute a
financing transaction. In determining the allowances for doubtful trade receivables, the Company has used a practical
expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The
provision matrix takes into account historical credit loss experience and is adjusted for forward looking information.
The expected credit loss allowance is based on the ageing of the receivables that are due and allowance rates used
in the provision matrix. For all other financial assets, expected credit losses are measured at an amount equal to the

12-months expected credit losses or at an amount equal to the lifetime expected credit losses if the credit risk on the
financial asset has increased significantly since initial recognition.

De-recognition of financial assets

The company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or
when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another
party. If the company neither transfers nor retains substantially all the risks and rewards of ownership and continues
to control the transferred asset, the company recognises its retained interest in the asset and an associated liability for
amounts it may have to pay. On de-recognition of a financial asset in its entirety, the difference between the asset’s
carrying amount and the sum of the consideration received and receivable is recognised in the Statement of profit
and loss.

Financial liabilities and equity instruments
Classification as debt or equity

Debt and equity instruments issued by the company are classified as either financial liabilities or as equity in
accordance with the substance of the contractual arrangements and the definitions of a financial liability and an
equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of
its liabilities. Equity instruments issued by a company entity are recognised at the proceeds received, net of direct
issue costs.

Financial liabilities

All financial liabilities are subsequently measured at amortised cost using the effective interest method. The carrying
amounts of financial liabilities that are subsequently measured at amortised cost are determined based on the effective
interest method. Interest expense that is not capitalized as a part of cost of an asset is included in the “Finance Costs”.

The carrying amounts of the borrowings that are not measured at fair value are reasonable approximation of fair
value, as they are floating rate instruments that are re-priced to market interest rates on or near the end of the
reporting period. The interest expense recognized in Profit & Loss account will be based on the current market rate.

De-recognition of financial liabilities

The Company derecognises financial liabilities when, and only when, the Company’s obligations are discharged,
cancelled, or have expired. An exchange with a lender of debt instruments with substantially different terms is
accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability.
Similarly, a substantial modification of the terms of an existing financial liability is accounted for as an extinguishment
of the original financial liability and the recognition of a new financial liability. The difference between the carrying
amount of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss.

2.9 Inventories

Stock of food and beverages and stores and operating supplies are carried at the lower of cost (computed on a
Weighted Average basis) or net realisable value. Net realisable value is the estimated selling price in the ordinary
course of business less the estimated costs of completion and selling expenses. Cost includes the fair value of
consideration paid including duties and taxes (other than those refundable), inward freight, and other expenditure
directly attributable to the purchase. Trade discounts and rebates are deducted in determining the cost of purchase.

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Mar 31, 2014

I. Basis of Accounting

The financial statement of the company have been prepared in accordance with Generally Accepted Accounting Principle in India (Indian GAAP). The company has prepared these financial statement to comply in all material aspects with the accounting standards notified under the Companies (Accounting Standards), Rules 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention

ii. Presentation and Disclosure of Financial Statements

The Company has reclassified the previous year figures in accordance with the requirements applicable for the current year.

iii. Revenue Recognition

Revenues and expenses are recognized on the accrual basis with the exception insurance claims, interest on calls in arrears and interest on overdue receivables which are accounted on cash basis sales are net of taxes and duties, trade discounts and rebates.

iv. Fixed Assets

Fixed Assets are stated at cost (Net of Cenvat, wherever applicable) less depreciation. Cost includes freight, duties and taxes and other expenses related to acquisitions and installation. Depreciation on Fixed Assets has been provided on the Straight Line Method and at rates and in the manner specified in Schedule XIV to the companies Act, 1956. Intangible Asset constitutes Brand Name acquired for valuable consideration. It is being amortized over a period of 10 years.

v. Borrowing Cost

Borrowing costs are directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are Capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.

vi. Inventory

Raw materials and stores and spares have been valued at weighted average price. Cost includes Taxes and duties, freight and other direct expenses

vii. Investments

LongTerm Investments are stated at cost, and Short Term Investments are valued at cost or Net Realizable Value whichever is less.

viii. Taxation

There is no need to make provision for income tax, since the company has incurred a Loss during the current financial year. In our opinion the deferred (Asset) appearing in the Balance sheet is adequate. As such no further provision has been made towards deferred tax.

ix. Employee Benefits

Shortterm Employee benefits, in respect of leave salary and reimburse of medical expenses, the liability has been fully provided on undiscounted basis, in accordance with the schemes in force. The contribution to Provident Fund (defined contribution plan), as per the provisions of the Employee's provident Fund and Miscellaneous Provision Act, 1952, is recognized as expense and remitted to the Provident Fund Commissioner. Expense and income of this year include amounts below Rs. 1000/- in relation to earlier years, which are accounted on cash basis.

x. Foreign Exchange Transaction

Transactions in foreign exchange are accounts at the exchange rates prevailing at the time of Real ization/ payment of bills.

xi. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized when the company has a legal and constructive obligation as a result of a past event, for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of the obligation. Contingent Liabilities are disclosed when the company has possible obligation or a present obligation and it is probable that a cash outflow will not be required to settle the obligation.

xii. Confirmation of a balances has not been received from creditors and debtors as on 31 /03/2014

xiii. In the absence of adequate profits the remuneration paid to Managing Director is within the limits prescribed as minimum remuneration in Schedule XIII of the Companies Act, 1956.

xiv. The company has made a Circular Resolution in February 2012 in which the company has arrived the amount due to Mr. Kamal Babbar was Rs. 1243.72 Lakhs. Which includes the interest, managerial remuneration & advances received from his group company.

There is no amount due to SSI units pending more than 30 days and above Rs. 1 Lakh.

xv. The company has revalued the Land, Buildings during the year based on valuation made by the approved valuer D Parthasarathy Associates as on 22/02/2011. The company has taken the estimates and taken in to account the valuation provided by them of land and hotel building. Resultant Appreciation aggregating to Rs.8748.66Lakhs has been added to the gross block of fixed assets and credited to Revaluation reserve. There is an additional charge of depreciation of Rs.39. 18 Lakhs on revaluation of hotel building and an equivalent amount has withdrawn from revaluation reserve created.

xvi. The term loan from Punjab National Bank availed for refurbishing of the hotel, etc. has been secured by first charge and Mortgage on all immovable and movable properties of the company both present and future, and guaranteed by the Managing Direcior, Joint Managing Director and Executive Director.

xvii. The Board of directors of the company in their meeting resolved to write off the advances and debtors which are not realizable. Therefore the amount of Rs.857.63Lakhs is not recoverable treated as Bad hence written off during the year under consideration and show under other expenses.

xviii. The company is in the process of appointing a full time company secretary by the provision of section 383 A of the companies Act 1956. In the absence of the company secretary, these financial statements have not been authenticated by a whole time company secretary under section 215 of the companies Act 1956.

xix. The minority shareholders have field a petition vide C.P No. 15 of 2014 & C.P No. 11 of 2014 under section 235.237( b). 397. 398.402. and 403 under the companies act 1956 with company Law Board Chennai. Further, the Minority share holders have filed memorandum of compromise vide C P nol 6 of 2014 with honorable company law board Chennai. The decision of the above said petitions are awaited. This may materially impact the affairs of the company.

xx. The Company and Present Management has filed vide C S No.751/2013 before the. Honorable high court, Chennai, challenging the notices issued by Mr. Kamal Babbar for convening the Extraordinary General Meeting of the members of the company and in O.A.No.870/2013 the Hon'ble High court, by order dated 8.11.2013, directed Mr. Kamal Babbar and other shareholders not to implement the resolution of the meting dated 09.11.2013 until further orders. The said suit is still pending for adjudication before the Hon'ble High Court of Chennai.

xxi. Interest provided:

During the year the management has measured the liabilities, which includes unsecured loans, advance share capital & short term borrowings. The total interest provision has been made on the above mentioned borrowings at the rates prescribed in the agreements made with parties. This includes both the interest for current year &Earlier years from when the amount is received by the company.

The liability of interest for earlier years has been accounted to the tune of Rs. 1282.67 Lakhs as at date of Balance sheet.

xxii. Segment Reporting:

The company has business in two segments and the revenue from both is taken on consolidated basis in the financials, the bifurcations are show on individual segment as below:

Hotel & Restaurant Business : 784,66 Lakhs

Rental Income : 142.21 Lakhs

xxiii. The company has provided interest on various liabilities (which includes - Unsecured Loans, liabilities arise due to supplies or commitments of managements as per the agreements & understanding entered with the lenders & investors. The company has provided interest on share application monies pending allotment due to long pendency of allotment as per the agreement, Memorandum of Understanding & Circular resolution passed between the companies & investors.

xxiv. The company's hotel operations are discontinues from 31.03.2014 & advance booking monies are payable.

xxvi. Preference shares, which have fallen due for redemption long ago could not be redeemed due to inadequate profits and non issuance of additional share and not created preference share redemption reserve due to inadequate profits.

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Mar 31, 2013

I. Basis of Accounting

The financial statement of the company have been prepared in accordance with Generally Accepted Accounting Principle in India (Indian GAAP), The company has prepared these financial statement to comply in all material aspects with the accounting standards notified under the Companies (Accounting Standards), Rules 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention

ii. Presentation and Disclosure of Financial Statements

During the year ended 31 March 2013. the revised schedule IV notified under the company act 1956 has become applicable to the company for preparation and presentation of the financial statements. The adoption of the revised schedule VI does not impact recognition and measurement principle followed for preparation of financial statement, However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable for the current year.

iii. Revenue Recognition

Revenues and expenses are recognized on the accrual basis with the exception insurance claims, interest on calls in arrears and interest on overdue receivables which are accounted on cash basis sales are net of taxes and duties, trade discounts and rebates.

iv. Fixed Assets

Fixed Assets are stated at cost (Net of Cenvat, wherever applicable) less depreciation. Cost includes freight. duties and taxes and other expenses related to acquisitions and installation. Depreciation on Fixed Assets has been provide on the Straight Line Method and at rates and in the manner specified in Schedule XIV to the companies Act, 1956. Intangible Asset constitutes Brand Name acquired for valuable consideration. It is being amortized over aperiod of 10 years.

v. Borrowing Cost

Borrowing costs are directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are Capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.

vi. Current Assets

Raw materials and stores and spares have been valued at weighted average price. Cost includes Taxes and duties, freight and other direct expenses

vii. Investments

Investments are stated at cost

viii. Taxation

There is no need to make provision for income tax, since the company has incurred a Loss during the current financial year. In our opinion the deferred (Asset) appearing in the Balance sheet is adequate. As such no further provision has been made towards deferred tax.

ix. Employee Benefits

Short term Employee benefits, in respect of leave salary and reimbursement of medical expenses, the liability has been fully provided on undiscounted basis, in accordance with the schemes in force. The contribution to Provident Fund (defined contribution plan), as per the provisions of the Employee's provident Fund and Miscellaneous Provision Act, 1952, is recognides as expenses and remitted to the Provident Fund Commissioner.

Expenses and income of this year include amounts below Rs. 1000/- in relation to earlier year, which are accounted on cash basis.

x. Foreign Exchange Transaction

Transactions in foreign exchange are accounts at the exchange rates prevailing at the time of Realization/payment of bills,

xi. Provisions, Contingent Liabilities and Contingent Assets

Provision are recognized when the company has a legal and constructive obligation as a result of a past event, for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of the obligation. Contingent Liabilities are disclosed when the company has possible obligation or a present obligation and it is probable that a cash outflow will not be required to settle the obligation.

xii. Confirmation of balance has not been received from creditors and debtors.

xiii. In the absence of adequate profits the remuneration paid to Managing director in within the limits Prescribed as minimum remuneration in schedule XIII of the companies Act.

xiv. There has been adequate amount of write off of various loans given which are irrecoverable now & that constitutes to Rs.353.76 Lakhs included in office & miscellaneous Expenses.

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Mar 31, 2011

1. Accounting Concepts:

a) Financial statements are based on historical cost and on the basis of going concern. Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis.

2. Revenue Recognition:

Sales are net of taxes and duties, trade discounts and rebates.

3. Fixed Assets.

All fixed assets are valued at cost less depreciation. Depreciation has been provided as per schedule XIV of the Companies Act, 1956.

i) In respect of Hotel Division, on Straight Line method on all assets.

ii) On other assets on straight-line method on Plant & Machinery and Buildings andon written down value method on other assets.

b) Intangible asset constitute Brand Name acquired for valuable consideration. It will be Amortized over a period of ten years

4. Current Assets.

i) Raw materials and stores and spares (other than bonded materials) have been valued at weighted average price. Cost includes taxes and duties (but does not include excise duty / , freight and other direct expenses.

ii) Valuation of stock in trade is at cost or net realisable value whichever is less. Stockin process is valued at cost. Cost includes material, direct labour, overheads and exciseduty where applicable, other than selling and administrative overheads.

5. Investments.

Investments are stated at cost

6. Taxation:

There is no need to make any provision for income tax, since the Company has incurred a Loss during the current financial year. In our opinion the deferred tax (Asset) appearing in the balance sheet is adequate. As such no further provision has been made towards deferred tax.

7. Employee Benefits:

Short term employee benefits, in respect of leave salary and reimbursement of medical expenses, the liability has been fully provided on undiscounted basis, in accordance with the Schemes in force.

The contribution to Provident Fund (defined contribution plan), as per the provisions of the Employee''s Provident Fund and Miscellaneous Provisions Act, 1952, is recognised as expense and remitted to the Provident Fund Commissioner.

The Company''s liability towards retirement benefits, in the form of gratuity (defined contribution plan) is recognised as expense and funded with Life Insurance Corporation of India.

8. Expenses and income of this year include amounts below Rs.1, 000/- in relation to earlier years, which are accounted on cash basis.

9. Foreign Exchange Transaction: Transactions in foreign exchange are accounted at the exchange rates prevailing at the time of realization / payment of bills.

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Mar 31, 2009

1, Accounting Concepts:

a) Financial statements are based on historical cost and.on the basis of going concern. Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis.

2. Revenue Recognition:

Sales are net of taxes and duties, trade discounts and rebates.

3.Fixed Assets.

All fixed assets are valued at cost less depreciation. Depreciation has been provided as per schedule XIV of the Companies Act, 1956.

i) In respect of Hotel Division, on Straight Line method on all assets. ii) On other assets on straight-line method on Plant & Machinery and Buildings and on written down value method on other assets.

b)lntangible Assets Intangible asset constitute Brand Name acquired for valuable consideration. It will be Amortized over a period of ten years

4. Current Assets.

i) Raw materials and stores and spares (other than bonded materials) have been valued at weighted average price. Cost includes taxes and duties (but does not include excise duty /, freight and other direct expenses.

ii) Valuation of stock in trade is at cost or net realisable value whichever is less. Stock in process is valued at cost. Cost includes material, direct labour, overheads and excise duty where applicable, other than selling and administrative overheads.

5. Investments.

Investments are stated at cost,

6. Taxation:

There is no need to make any provision for income tax, since the Company has incurred a Loss during the current financial year. In year opinion the deferred tax (Asset) . appearing in the balance sheet is adequate. As such no further provision has been made towards deferred tax.

7. Employee Benefits:

Short term employee benefits, in respect of leave salary and reimbursement of medical expenses, the liability has been fully provided on undiscounted basis, in accordance with the Schemes in force.

The contribution to Provident Fund (defined contribution plan), as per the provisions of the Employees Provident Fund and Miscellaneous Provisions Act, 1952, is recognised as expense and remitted to the Provident Fund Commissioner.

The Companys liability towards retirement benefits, in the form of gratuity (defined contribution plan) is recognised as expense and funded with Life Insurance Corporation of India.

8. Expenses and income of this year include amounts below Rs.1, 000/- in relation to. earlier years, which are accounted on. cash basis.

9. Foreign Exchange Transaction: Transactions in foreign exchange are accounted at the exchange rates prevailing at the time of realization / payment of bills..