Balaji Hotels and Enterprises Ltd. के अकाउंट के लिये नोट

Mar 31, 2014

1. OPERATIONS

The commercial complex and hotel projects were sold out under SARFAESI Act during the financial year 2007-08. There have been no operations during the year.

2. GOING CONCERN

The Company is also looking at the option of getting back into liquor trading operations subject to obtaining necessary government approvals. The Company is exploring the possibility of tying up with strategic partners and/or infusion of funds by investors into the Company to take up distillery operations in which it has experience. The Company is also looking at possibilities of merger and restructuring which will result in synergies.

3. a) All the equity shares carry equal rights and obligations including for Dividend and with respect to voting rights.

b) The preference shares are redeemable in four equal installments of Rs. 25 lakhs each at the end of 7th,8th,9th and 10th year from the date of allotment i.e., 07.01.2013.

4. a. Alpic Finance Ltd: The Company has accepted the OTS for the Rs. 350.00 lakhs said amount, which was payable by 30.09.2002. However, the Company has not complied with the terms of OTS.

b. East India Hotels Ltd: This amount is payable on account of termination of technical services agreement with the party, and the said amount is payable by the Company by 31.12.2002 vide agreement dated 04.02.2002. The Company has made default in repaying the amount along with interest.

5. PREFERENCE SHARES:

The Company had issued 1,00,000 12% Cumulative Redeemable Non convertible Preference Shares of Rs. 100/- each to M/s. Lakshmi Utility Finance Pvt Ltd on 07.01.2013. The Dividend is payable at 12% on pro rata basis at the end of February and August each year. The company has not paid any dividend so far and the cumulative dividend payable amounting to Rs. 14,72,877/- has not been provided in the books.

6. CONTINGENT LIABILITIES (Rs. In Lacs)

Claims against the company not acknowledged as Debts: 2013-14 2012-13

For the A.Y from 90-91 to 93-94, in respect of Liabilities pertaining to Wealth Tax issues of BIPL amalgamated with BFI&EL. The company has preferred an Appeal before High Court and the 58.08 58.08 same is pending. As per the expert legal advice rendered, the Company is confident of winning its Appeal and therefore no provision for tax is deemed necessary.

For the A.Y from 95-96 to 01-02, the Income Tax Appeals filed by the Company and the Income Tax Dept have been held in favour of the Company by 3712.76 3712.76 the ITAT, Chennai deleting the entire demand raised on the Company. However, as on date, the Income Tax Dept has appealed to the Hon''ble Madras High Court.

For the A.Y 2008-09, the company has received a demand notice for Rs.1693.44 lakhs. The company has appealed before Commissioner of Income Tax, 1693.44 - Chennai. Based on the strength of the facts of the case and the expert legal opinion rendered to the Company, no provision for tax is deemed necessary.

7. FOREIGN CURRENCY TRANSACTIONS: NIL (P.Y.NIL)

8. In respect of the Equity shares in M/s. Balaji Industrial Corporation Ltd (BICL) acquired from M/s. Tourism Finance Corporation Ltd, the transfer of such shares in Company''s name is pending due to non listing status of the Equity Shares in BICL in stock exchanges.

9. MICRO, SMALL AND MEDIUM ENTERPRISES:

The company has not received any information from the suppliers as regards their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure requirements in this regard as per Schedule-VI of the Companies Act, 1956, could not be provided. However there are no dues during the year to any of the suppliers.

10. Previous year figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2012

OPERATIONS

The commercial complex and hotel projects were sold out under SARFAESI Act during the financial year 2007-08. There have been no operations during the year.

GOING CONCERN

The Company is also looking at the option of getting back into liquor trading operations subject to obtaining necessary government approvals. The Company is exploring the possibility of tying up with strategic partners and / or infusion of funds by investors into the Company to take up distillery operations in which it has experience. The Company is also looking at possibilities of merger and restructuring which will result in synergies.

1. PREFERENCE SHARES:

The Company had issued 12% Redeemable Cumulative Preference shares amounting to Rs.2000 lakhs to M/s.Oriental Bank of Commerce (erstwhile M/s.Global Trust Bank) during Jan 2001. Out of this, a sum of Rs.600 lakhs had to be redeemed during Jan 2004, Rs.600 lakhs during Jan 2005 and the balance Rs.800 lakhs during Jan 2006. As the company had been incurring losses for the past twelve years, the Company could not redeem the amount as stipulated.

Dividend in respect of 12 % Redeemable Cumulative Preference Shares of Rs.2000 lakhs, issued by the company has not been paid as the company has incurred loss for the past twelve years. The cumulative amount of dividend, payable on these preference shares is Rs.2640 Lakhs (Previous Year Rs.2400 lakhs).

2. CONTINGENT LIABILITIES (Rs. In Lacs)



Claims againstthe company not acknowledged as Debts: 2011-12 2010-11

For the A.Y from 90-91 to 93-94, in respect of Liabilities pertaining to Wealth 58.08 58.08 Tax issues of BIPL amalgamated with BH&EL. The company has preferred an Appeal before High Court and the same is pending. As per the expert legal advice rendered, the Company is confident of winning its Appeal and therefore no provision for tax is deemed necessary.

For the A.Y from 95-96 to 01-02, the Income Tax Appeals filed by the 3726.07 3726.07 Company and the Income Tax Dept have been held in favour of the Company by the ITAT, Chennai deleting the entire demand raised on the Company. However, as on date, the Income Tax Dept has appealed to the Hon'ble Madras High Court.

For the A.Y 2005-06, the company has appealed before Commissioner of 13.31 13.31 Income Tax, Chennai. Based on the strength of the facts of the case and the expert legal opinion rendered to the Company, no provision for tax is deemed necessary. However, a sum of Rs.2 lakhs has been paid against the demand of Rs. 13.31 lakhs.



3. EVENTS OCCURINGAFTERTHE BALANCE SHEET DATE /LEGAL CASES:

In respect of invoked Corporate Guarantee which was given by the Company to Oman International Bank on behalf of M/s. Majestic Furnishing Pvt Ltd (Majestic), since M/s. Majestic has cleared the Bank's dues in full, the DRT vide its order DRC No. 41/2010 dated 22.05.2012 has absolved the Company from its obligation and therefore the provision for invoked corporate guarantee of Rs. 17.79 Crores created in the books has been written back.

4. RELATED PARTY DISCLOSURE UNDERACCOUNTING STANDARD-18

(i) List of Related Parties as identified by the Management are as under:

a) Key Management Personnel : Shri.M.SreenivasuluReddy

b) Enterprises owned by / over which key : Balaji Industrial Corporation Limited management personnel is able to exercise

significant influence

(ii) Transactions during the year with Related Parties

Particulars Enterprises over which key management personnel are able to exercise significant influence (inRs)

Outstanding as at year end 2011-12 2010-11

Equity Contribution 19,29,99,958 19,29,99,958

Receivable 19,10,04,047 19,10,04,047





5. MICRO, SMALLAND MEDIUM ENTERPRISES:

The company has not received any information from the suppliers as regards their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure requirements in this regard as per Schedule-VI of the Companies Act, 1956, could not be provided. However there are no dues during the year to any of the suppliers.

6. The Revised Schedule VI has become effective from April 01, 2011 for the preparation of Financial Statements. This has significantly impacted the disclosure and presentation made in the Financial Statements. Previous year figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

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Mar 31, 2011

1. PREFERENCE SHARES:

(i) The Company had issued 12% Redeemable Cumulative Preference shares amounting to Rs.2000 lakhs to M/s. Oriental Bank of Commerce (erstwhile M/s.Global Trust Bank) during Jan 2001. Out of this, a sum of Rs.600 lakhs had to be redeemed during Jan 2004, Rs.600 lakhs during Jan 2005 and the balance Rs.800 lakhs during Jan 2006. As the company had been incurring losses for the past eleven years, the Company could not redeem the amount as stipulated.

(ii) Dividend in respect of 12 % Redeemable Cumulative Preference Shares of Rs.2000 lakhs, issued by the company has not been paid as the company has incurred loss for the past eleven years. The cumulative amount of dividend, payable on these preference shares is Rs.2400 Lakhs (Previous Year Rs.2160 lakhs).

2. CONTINGENT LIABILITIES (In Lacs)

Claims against the company not acknowledged as Debts: 2010-11 2009-10

For the A.Y from 90-91to93-94,inrespect of Liabilities 58.08 58.08 pertaining to Wealth Tax issues of BIPL amalgamated with BH&EL. The company has preferred an Appeal before High Court and the same is pending. As per the expert legal advice rendered, the Company is confident of winning its Appeal and there for end provision for tax is deemed necessary.

For the A.Y from 95-96 to 01-02, the Income Tax Appeals 3726.07 3726.07 filed by the Company and the Income Tax Dept have been held in favor of the Company by the ITAT, Chennai deleting the entire demand raised on the Company. However, as on date, the Income Tax Dept has appealed to the Hon'ble Madras High Court.

For the A.Y 2005-06, the company has appealed before 13.31 13.31 Commissioner of Income Tax, Chennai. Based on the strength of the facts of the case and the expert legal opinion rendered to the Company, no provision for tax is deemed necessary. However, a sum of Rs.2 lakhs has been paid against the demand of Rs.13.31 lakhs.

3. LEGAL CASES

Corporate Guarantee was given by the company to Oman International Bank on behalf of Majestic Furnishing Company. The party had failed to pay the dues. The Bank had served notice and invoked the guarantee and a liability ofRs.17.79 crores had already been provided in the books. The case is pending before DRAT, Mumbai.

4. CAPACITIES,STOCKS,CONSUMPTION,PRODUCTION AND SALES

The IMFL Manufacturing of the company is not considered as Manufacturing Activity under Industries (Development and Regulation) Act, 1951. Hence particulars relating to licensed and installed capacities are not applicable.

5. MICRO, SMALL AND MEDIUM ENTERPRISES:

The company has not received any information from the suppliers as regards their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure requirements in this regard as per Schedule –VI of the Companies Act, 1956, could not be provided. However there are no dues during the year to any of the suppliers.

6. DEFERRED TAX:

The net deferred taxis an asset but the same has not been recognised In the books, as there is no virtual certainty of future profits for set off against brought forward unabsorbed losses.

7. Previous year figures have been regrouped and reclassified wherever necessary to conform to current year's classification.

Notes: Figures in brackets represent cash outflow