Aruna Hotels Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

(a) Rights, preferences and restrictions attached to shares

The company has only one class of shares referred to as Equity Shares having a par value of Rs. 10/-.

Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company in proportion to the number of equity shares held by the shareholders, after distribution of all preferential amounts.

For the year immediately preceding the balance sheet date:

i. Nil shares were reserved for issuance towards outstanding employee stock options granted / available for grant, towards outstanding share warrants and towards convertible securities.

ii. Aggregate number and class of shares allotted as fully paid up pursuant to contract(s) without payment being received in cash, bonus shares and shares bought back for the year immediately preceding the Balance Sheet date is Nil.

iii. Forfeited share is Nil.

#This Secured Borrowings consists of Secondary Mortgage on Building owned by the Company.The Primary Mortgage is held by HDFC Bank Ltd.

* The interest portion with respect to the term loan pertaining to March’20 and June’20 i.e. Bank Moratorium during Covid-19 pandemic was converted into loan repayable upto Feb’2026 to HDFC Bank

** The company had issued preference shares in earlier years and the shares were not redeemed in the year in which it has to been redeemed, because the Company had no profits, nor could it make any fresh issue of shares. The Company has sent out confirmations to preference shareholders & received responses from a few parties. The Company has transferred a sum of Rs.6 Lakhs to IEPF account during the FY 22-23, Rs.5 Lakhs during FY 23-24 and Rs. 16 Lakhs during FY 24-25. In the FY 24-25, the Company will be redeeming the Share capital to the persons from whom it had received confirmation. The Redemption amount of preference shares remaining unpaid or unclaimed from parties will be transferred to Investor Education and Protection Fund under Section 205C of Companies Act.

Revenue Recognition Revenue from operations

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

Effective 1 April 2018, the company adopted Ind AS 115 ‘Revenue from Contracts with customers’ using the modified retrospective method. Under the modified retrospective method, an entity applies Ind AS 115 only for contracts that are not completed on or before 30 June 2018.

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

Under Ind AS 115, the Company must evaluate the separability of the promised goods or services based on whether they are ‘distinct’. A promised good or service is ‘distinct’ if both: The customer benefits from item either on its own or together with other readily available resources, and It is ‘separately identifiable’ (i.e. the Company does not provide a significant service integrating, modifying or customizing it)

3. Determining the transaction price

Under Ind AS 115, the Company shall consider the terms of the contract and its customary business practices to determine the transaction price. The transaction price excludes amounts collected on the behalf of the third parties. The consideration promised include fixed amounts, variable amounts or both. Where the Company has a right to consideration from a customer in an amount that corresponds directly with the value of the customer of the performance completed to date, the Company recognizes revenue in the amount to which it has right to invoice.

4. Allocating the transaction price to performance obligations

The transaction price is allocated to the separately identifiable performance obligations on the basis of their standalone selling price (in case of room rent where the customer pays a fixed rate per room for all the services provided ). For services that are not provided separately, the standalone selling price is estimated using the adjusted market assessment approach.

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

“Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made.Revenue is recognized either at a point in time or over time, when (or as ) the Company satisfies performance obligations by transferring the promised goods or services to its customers. The company presents revenue net of indirect taxes in its statement of profit and loss.”

### The company has borrowed both secured and unsecured loans from related parties, with interest payable on these loans. However, due to ongoing financial losses, the company is not in a position to make interest payments. Consequently, the related parties have waived the interest payable. As a result, the company has recognized the interest expense and simultaneously written off the interest payable as income

Note 24

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 non-occurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that arise 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. As on 31, March 2025, there were following contingent liabilities of the company.

Note 26

Financial Risk Management Objectives and Policies:

The Company’s activities exposes it to various risk including market risk, liquidity risk and credit risk. Company’s overall risk management focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the company.

(a) Credit Risk

“Credit risk arises from the possibility that customers or counterparty to financial instruments may not be able to meet their obligations. To manage this, the Group periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, analysis of historical bad debts and ageing of accounts receivable.

Credit risks arises from cash and cash equivalents, deposits with banks, financial institutions and others, as well as credit exposures to customers, including outstanding receivables.

The Company has established a credit policy under which each new customer is analysed individually for creditworthiness before entering into contract. Sale limits are established for each customer, reviewed regularly and any sales exceeding those limits require approval from the appropriate authority. There are no significant concentrations of credit risk within the Group.”

(b) Liquidity Risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows to ensure it has sufficient cash to meet operational needs and borrowings.

(c ) Market Risk

Market risk is the risk that the changes in market prices such as foreign exchange rates, interest rates and equity prices will affect the Company’s financial performance. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return

(i) The Company has not disclosed the fair value of financial instruments such as trade receivables, trade payables, deposits etc. because their carrying amounts are a reasonable approximation of fair value.

(ii) 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.

1. The changes in Net profitability ratios, Interest Coverage Ratio and Operating Profit Margin are attributed to the fact that operations began in the middle of FY 2022-23. In the previous year, the company operated for the entire year, which significantly reduced losses compared to other years. Additionally, factors such as the waiver of interest contributed to this improvement.

2. The changes in the Trade Receivables and Trade Payables ratios are primarily due to the fact that operations commenced in the middle of FY 2022-23. In the previous year, the company had a full year of operations, which has impacted the comparative ratios.

3. The change in the inventory ratio is due to the fact that the average inventory for the last two years was used, and there was no inventory for FY 2021-22 since we had no operations. This resulted in a significant impact on the ratio.

---

Mar 31, 2024

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

2.12Statement 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.

For the year immediately preceding the balance sheet date:

i. Nil shares were reserved for issuance towards outstanding employee stock options granted / available for grant,
towards outstanding share warrants and towards convertible securities.

ii. Aggregate number and class of shares allotted as fully paid up pursuant to contract(s) without payment being
received in cash, bonus shares and shares bought back for the year immediately preceding the Balance Sheet date is
Nil.

iii. Forfeited share is Nil.

#This Secured Borrowings consists of Secondary Mortgage on Building owned by the Company.The Primary Mort¬
gage is held by HDFC Bank Ltd.

* The interest portion with respect to the term loan pertaining to March’20 and June’20 i.e. Bank Moratorium during
Covid-19 pandemic was converted into loan repayable upto Feb’2026 to HDFC Bank

The company had issued preference shares in earlier years and the shares were not redeemed in the year in which it
has to been redeemed, because the Company had no profits, nor could it make any fresh issue of shares. The Compa-

Revenue Recognition
Revenue from operations

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

Effective 1 April 2018, the company adopted Ind AS 115 ‘Revenue from Contracts with customers’ using the modi¬
fied retrospective method. Under the modified retrospective method, an entity applies Ind AS 115 only for contracts
that are not completed on or before 30 June 2018.

To determine whether to recognize revenue, the Company follows a 5-step process:
identifying the contract with a customer
2.Identifying the performance obligations

Under Ind AS 115, the Company must evaluate the separability of the promised goods or services based on whether
they are ‘distinct’. A promised good or service is ‘distinct’ if both: The customer benefits from item either on its
own or together with other readily available resources, and It is ‘separately identifiable’ (i.e. the Company does not
provide a significant service integrating, modifying or customizing it)

3. Determining the transaction price

Under Ind AS 115, the Company shall consider the terms of the contract and its customary business practices to
determine the transaction price. The transaction price excludes amounts collected on the behalf of the third parties.
The consideration promised include fixed amounts, variable amounts or both. Where the Company has a right to con¬
sideration from a customer in an amount that corresponds directly with the value of the customer of the performance
completed to date, the Company recognizes revenue in the amount to which it has right to invoice.

4. Allocating the transaction price to performance obligations

The transaction price is allocated to the separately identifiable performance obligations on the basis of their stand¬
alone selling price (in case of room rent where the customer pays a fixed rate per room for all the services provided).
For services that are not provided separately, the standalone selling price is estimated using the adjusted market
assessment approach.

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

“Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and
the revenue can be reliably measured, regardless of when the payment is being made.Revenue is recognized either
at a point in time or over time, when (or as) the Company satisfies performance obligations by transferring the
promised goods or services to its customers.

The company presents revenue net of indirect taxes in its statement of profit and loss.”

Other Income

Other income is comprised primarily of interest income, dividend income, write back of creditors and interest on
loans borrowed by the Company waived off.

Note 26

Financial Risk Management Objectives and Policies:

The Company’s activities exposes it to various risk including market risk, liquidity risk and credit risk. Company’s
overall risk management focuses on the unpredictability of financial markets and seeks to minimise potential adverse
effects on the financial performance of the company.

(a) Credit Risk

“Credit risk arises from the possibility that customers or counterparty to financial instruments may not be able to meet
their obligations. To manage this, the Group periodically assesses the financial reliability of customers, taking into ac¬
count the financial condition, current economic trends, analysis ofhistorical bad debts and ageing of accounts receivable.
Credit risks arises from cash and cash equivalents, deposits with banks, financial institutions and others, as well as
credit exposures to customers, including outstanding receivables.

The Company has established a credit policy under which each new customer is analysed individually for creditwor¬
thiness before entering into contract. Sale limits are established for each customer, reviewed regularly and any sales
exceeding those limits require approval from the appropriate authority. There are no significant concentrations of
credit risk within the Group.”

(b) Liquidity Risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its finan¬
cial liabilities that are settled by delivering cash or another financial asset. Management monitors rolling forecasts of
the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows to ensure it has
sufficient cash to meet operational needs and borrowings.

(c ) Market Risk

Market risk is the risk that the changes in market prices such as foreign exchange rates, interest rates and equity
prices will affect the Company’s financial performance. The objective of market risk management is to manage and
control market risk exposures within acceptable parameters, while optimising the return

1. The changes in Net profitability ratios, Interest Coverage Ratio and Operating Profit Margin are attributed to the
fact that operations began in the middle of FY 2022-23. In the previous year, the company operated for the entire
year, which significantly reduced losses compared to other years. Additionally, factors such as the waiver of interest
contributed to this improvement.

2. The changes in the Trade Receivables and Trade Payables ratios are primarily due to the fact that operations
commenced in the middle of FY 2022-23. In the previous year, the company had a full year of operations, which has
impacted the comparative ratios.

3. The change in the inventory ratio is due to the fact that the average inventory for the last two years was used, and
there was no inventory for FY 2021-22 since we had no operations. This resulted in a significant impact on the ratio.
As per our report of even date attached

For Bala & Co., For and on behalf of the Board of Directors of

Chartered Accountants Aruna Hotels Limited

Firm Registration No: 000318S

Sriram Visvanathan Radhaswamy Venkateswaran Suyambu Narayanan

Partner Managing Director Director

Membership No: 216203 DIN: 09532159 DIN: 07718798

Place: Chennai Nagarajan P Lakshmi K

Date: 24.05.2024 Chief Financial Officer Company Secretary

UDIN: 24216203BKAGBN9459 M.No.: A46692

---

Mar 31, 2011

1. Contingent Liabilities

a. Estimated amount of contracts remaining to be executed on capital account not provided for (Net of Advance) is Rs.192.06 (Rs in Lacs)

2. Terms of Redemption.

a. The 14% Redeemable cumulative taxable Preference Shares are redeemable at par at any time after the date of issue but before the expiry of ten years from the date of issue. Earliest redemption month February 99.

b.The 17.5% Redeemable cumulative taxable Preference Shares are redeemable at par at any time after the date of issue but before the expiry of ten years from the date of issue. Earliest redemption month July 2003.

c. The 16.5% Redeemable cumulative taxable Preference Shares are redeemable at par at any time after the date of their issue date but before the expiry of 15 months from the date of issue. Earliest redemption month March 97.

d.Preference shares, which have fallen due for redemption long ago, could not be redeemed due to inadequate Profits and non issuance of additional shares.

e. Preference Share Redemption Reserve has not been created for the last 10 accounting periods due to inadequate Profits.

3. Reserves on account of Share premium of Rs.1652.16 Does not include arrears in share premium amounting to Rs.6.58 Lacs due from Shareholders other than directors.

4. Details of Secured Loans & Security

a) Term Loan from Punjab National Bank for Refurnishing of hotel& Acquiring of Annexure building . Secured by first mortgage and charge on all immovable and movable properties of the Company both present and future and guaranteed by Managing Director, Joint Managing Director and Executive Director.

5. 7 Year National Saving Certificate 1995 has been lodged with the Sales Tax Authorities, Kerala as Sales Tax Deposit.

6. Confirmation of balances has not been received from Creditors and Debtors.

7 . Other advances / Deposits include Rs.25 Lacs paid as Lease Deposit for purchase of land and building for the Hotel Division.

8. 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.

9. There is no amount due to SSI Units, pending for more than 30 days and above Rs.1.00 Lac.

10. Previous year figures have been regrouped and rearranged wherever necessary, to confirm to current period''s figures.

---

Mar 31, 2009

1. Contingent Liabilities

a. Estimated amount of contracts remaining to be executed on capital account not provided for (Net of Advance) is Rs.192.06(Rs in Lacs)

2. Terms of Redemption.

a. The 14% Redeemable cumulative taxable

Preference Shares are redeemable at par at any time after the date of issue but before the expiry of ten years from the date of issue.

b. The 17.5% Redeemable cumulative taxable Preference Shares are redeemable at par at any time after the date of issue but before the expiry of ten years from the date of issue.

c. The 16.5% Redeemable cumulative taxable Preference Shares are redeemable at par at any time after the date of their issue date but before the expiry of 15 months from the date of issue.

d. Preference shares, which have fallen due for redemption, could not be redeemed due to inadequate Profits.

e. Preference Share Redemption Reserve has not been created for the last 10 accounting periods due to inadequate

Profits.

3. Reserves on account of Share premium of Rs.1652.16 Does not include arrears in share premium amounting to Rs.6.58 Lacs due from Shareholders other than directors.

4. Details of Secured Loans & Security

a) Cash Credit Loan Secured by hypothecation of Raw Materials, work-in-progress, and finished goods and guaranteed by Managing Director. Total cash credit loan Sold term loan is fully repaid during year.

b) Term Loan from Punjab National Bank for Refurnishing of hotel& Acquiring of Annexure building . Secured by first mortgage and charge on all immovable and movable properties of the Company both present and future and guaranteed by Managing Director.

5. Unsecured Loan: Out of Rs.465 lakhs availed from a Director, it has been agreed to issue equity shares for a value of Rs.200 lakhs. For the balance amount, the company has undertaken to create a second charge on the property of the company subject to various approvals. This will be done in due course.

6. 7 Year National Saving Certificate 1995 has been lodged with the Sales Tax Authorities, Kerala as Sales Tax Deposit.

7. Confirmation of balances has not been received for Creditors and Debtors.

8. Other advances / Deposits include Rs.25 Lacs paid as Lease Deposit for purchase of land and building for the Hotel Division.

9. In the absence of adequate profits the remuneration paid to Managing Director & Executive Director are within the limits prescribed as minimum remuneration in Schedule XIII of.the Companies Act. The amount paid includes arrears relating to earlier years.

10. There is no amount due to SSI Units, pending for more than 30 days and above Rs. 1.00 Lac.

11. The net gain in foreign exchange credited to Profit and Loss account is negligible amount so not mentioned (Previous year Rs.0.02 Lac)

12. Previous year figures have been regrouped and rearranged wherever necessary, to confirm to current periods figures.