Indage Restaurants and Leisure Ltd. के अकाउंट के लिये नोट

Mar 31, 2011

1.1. Extra Ordinary Items :

During the year, due to a dimunition in value of its investment in its subsidiary, Nando’s Indage Restaurant Pvt. Ltd., the Company has written off the entire share application money pending for allotment amounting to Rs 65,000,000, and the share value of its investment amounting to Rs 9,217,758.

1.2. Segment Reporting

In terms of the Accounting Standard 17 (AS - 17) “Segment Reporting” issued by the Institute of Chartered Accountants of India the company has only one Segment i.e. “Management and operations of restaurants & hotels”, and accordingly no separate disclosure is made. There is no geographical segment to be reported since all the operations are undertaken in India.

1.3. Outstanding of Micro, Small and Medium Enterprises

The Company has not received any information from suppliers regarding their Status under the Micro, Small & Medium Enterprises Development Act, 2006 & hence disclosures regarding amount due and outstanding to suppliers as at the end of the Accounting Year have not been given. The Company is making efforts to get the confirmations from the suppliers as regards their status under the Act.

1.4. Related Party Disclosure (As identified and certified by the Management)Disclosure requirements are as per Accounting Standard 18 (AS-18) Related Party Disclosure” issued by the Institute of Chartered Accountants of India are given below:

1.5. Investments in Partnership Firm - Indage Aries Restaurant- Partnership FirmCompany has entered into a partnership - Indage Aries Restaurant on 1st April, 2010- in which it has a 50% share for a consideration of Rs 17,500,000. The Company has transferred all its existing assets of Athena Bangalore as the consideration.

1.6. Deferred Tax

In accordance with the Accounting Standard 22 (AS-22) Accounting for Taxes on Income” issued by the Institute of Chartered Accountants of India there is a Deferred Tax Asset (DTA). As a matter of prudence the DTA arising has not been accounted for in the books. Hence, the existing Deferred Tax Liability of Rs.1,028,829/- has been carried forward.

1.7. Earnings Per Share:

Earnings per Share is calculated in accordance with Accounting Standard 20 - Earnings per Share’ (AS - 20) issued by the ICAI.

a. The above claim has been filed by a party in respect of a cheque bouncing case.

b. The Company has not provided for disputed income tax liability of Rs. 8,529,928 (Previous year - Rs. 8,529,928) arising from disallowances made for A.Y. 2006-07 which is pending with ITAT for its decision.

Previous year figures have been regrouped and recast wherever necessary to confirm to the current years presentation.

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Mar 31, 2010

1.1. Extra Ordinary Items :

During the year as a matter of prudence an amount of Rs. 41,42,315 pertaining to overheads incurred in respect of development of various new projects/outlets has been written-off and classified under extra-ordinary item as certain projects are being deferred / discontinued due to the overall sudden slow-down in the economic growth and development decreasing the overall demand and spending power of the final consumer.

During the year stock of wine lying at units being not usable, amounting to Rs 2,34,73,382 has been written off.

1.2. Segment Reporting

In terms of the Accounting Standard 17 (AS -17) "Segment Reporting" issued by the Institute of Chartered Accountants of India the company has only one Segment i.e. "Management and operations of restaurants & hotels", accordingly no separate disclosure is made. There is no geographical segment to be reported since all the operations are undertaken in India.

1.3. Outstanding of Micro. Small and Medium Enterprises

According to the information available with the Company, there are no Micro, Small and Medium Enterprises, to whom the Company owes dues which are outstanding for more than 45 days as at 31s1 March 2010. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

1.4. Related Party Disclosure

Disclosure requirements as per Accounting Standard 18 (AS-18) "Related Party Disclosure" issued by the Institute of Chartered Accountants of India as certified by the management.

Subsidiary companies Nandos Indage Restaurants Pvt. Ltd.

Amazon Food & Beverages Pvt. Ltd. Associate Concerns Indage Vintners Ltd.

Indage Hotels Ltd.

Indage Development Construction Pvt. Ltd.

Marlborough Finance Pvt. Ltd.

Indage Wines - (Partnership Firm)

Industrial Agencies Corporation (New Bombay) ¦

(Partnership Firm)

Industrial Agencies Corporation - (Partnership Firm)

Indage Engineering Pvt. Ltd.

Indage Investments Pvt. Ltd.

Prime Securities Ltd.

Indage Vineyards Pvt. Ltd.

PSKC Clothing Company Pvt. Ltd.

Seabuckthorn Indage Ltd. Key Personnel & Relatives Mr. S. G. Chougule-Chairman

Mr. A. B. Shah -Vice Chairman

Mr. V. S. Chougule- Managing Director

Mr. R. S. Chougule-Director

Mrs. Kavita V. Chougule

1.5. Deferred Tax

In accordance with the Accounting Standard 22 (AS-22) "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India and based on further clarifications and an interpretation, timing difference on account of depreciation between the books of account and as per the Income Tax Act, results into a Deferred Tax Asset (DTA). As a matter of prudence the DTA arising has not been accounted for in the books. Hence, the existing Deferred Tax Liability of Rs.1,028,829/- has been carried forward.

1.6. Impairment of Asset

The company has carried all its fixed assets at its carrying amount. As per its economic perfor- mance and internal projections the management contends that there is no potential impairment loss on the existing fixed assets of the company. No Impairment loss is provided as stated under AS-28 "Impairment of Assets" issued by the Institute of Chartered Accountants of India.

1.7. Subsequent to the date of the Balance Sheet, the Company has received a possession notice under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 from the banks for taking over certain Fixed Assets of the Company, which have been mortgaged to the banks on account of non-payment of outstanding secured loans.

1.8. Sundry Debtors, Creditors and Loans and Advances are subject to Confirmations. The Company is in process of reconciling its outstanding balances of receivables and payables.

1.9. Contingent Liabilities

Bank Guarantee Rs.NIL (Previous Year Rs.2,000,000/-) outstanding as on 31st March 2010. Overdue ICDs interest - Rs 12,642,613 and Overdue Hundis Discounting Charges - Rs 2,229,503 outstanding as on 31st March 2010 are under legal disputes.

Name of the Nature of dues Amount (Rs.) Period for which Forum where the Statute the amount relates dispute is pending

Income Tax Income Tax 8,529,928 A.Y. 2006-07 ITAT Act, 1961

1.10. FixedAssets and Stocks aggregating to Rs. 19,963,939 and Rs. 1,786,626 respectively are not in possession of the Company on account of dispute for operating and ownership rights for two restaurants buildings constructed by Company in the past. The Company has taken suitable legal action for gaining the possession and operating rights.

2.0 Earnings in Foreign Exchange:

The company has earnings in foreign exchange in the current year amounting to Rs. 10,079,517/ - (Previous year - Rs. 9,504,721/-).

2.1 Previous year figures have been regrouped and recast wherever necessary to confirm to the cur- rent years presentation.