THE YEAR ENDED 31st MARCH, 2007. [Rs. in lacss]
1 [as] Claims against the Company, not
acknowledged as debts. - 20.00
[bs] Disputed service tax claim paid but
not provided for & contested 36.05
[cs] [is] Disputed income tax liabilities
under appeal, not provided for - 55.65
[iis] In respect of assessment years between 1987-88 to 1997-98, the
Department is in appeal before the High Court [against the decision of
the ITAT in favour of Companys] contending that the shop deposits
from allottees / sub-licensees are taxable receipts. The Department has
also gone in appeal in respect of assessment years 1987-88 and
thereafter against the depreciation allowed in respect of commercial
buildings, viz. World Trade Centre & World Trade Tower situated in
the Hotel Complex at New Delhi. The liability, if the decision goes
against the Company, is not presently determinable.
[iiis] Provision for taxation for year has been made after taking
into Acc. the loss incurred by subsidiary Khajuraho Hotels Ltd.
keeping in view the proposed merger of subsidiary with the Company
pending approval before Delhi High Court.
2 [as] The land on which the buildings & other assets are situated at
New Delhi, has been licenced by authorities to the Comp. with
effect from 11/03/1981 & ending on 10/03/2080. The current annual fee
of Rs.145 lacs is subject to revision after every 33 years.
[bs] Under the disinvestment process of ITDC, the Comp. has been
licensed, inter alia, to operate the hotel premises at Bangalore & to
use the business assets on a lease cum management agreement, commencing
from 29/11/2001 upto 31/03/2032. As consideration, the Comp. is
required to pay 16.50% of gross turnover of hotel, subject to a
minimum guaranteed annual payment [MGAPs] of Rs.411.00 lacs . MGAP will
be increased on 1st April, 2007 & every five years thereafter by 25%,
computed on the amount payable at the time of such increase.
[cs] The land on which the buildings & other assets are situated in
Goa have been taken on Licence with effect from 23rd June, 1995 for a
period of 25 years. The current annual fees of Rs.100 lakhs is subject
to revision & there is option for renewal of agreement for a further
period of 25 years by mutual consent.
[ds] The State Government of Gujarat by an Order has alloted land in
Ahmedabad during the year 2005-06 for a consideration of Rs739.11 lacs,
which has been treated as freehold.
3 In the opinion of Board, the value on realisation of current
assets, loans & advances in the ordinary course of business will not
be less than the amount at which they are stated in the balance sheet.
4 Balance confirmations have not been received from many of parties
showing debit / credit balances.
5 As the turnover of Comp. is in respect of food and beverages, it
is not practicable to give quantitative details as required under para
3[is][as] of part II of Schedule VI to the Companies Act, 1956. The
Company has been exempted for three financial years 2004-05 to 2006-07
from giving these particulars by Department of Comp. Affairs,
Government of India, vide their Order no 46/74/2005-CL III Dt.
05.04.2005. Certain specific disclosures, as required by Department
while granting exemption, have been carried out.
6. [is] The subsidiary Jyoti Limited, at Srinagar [Jammu and Kashmirs]
shows an accumulated loss of Rs. 366.02 lacs as on 31st March, 2007.
The Comp. has an outstanding loan recoverable of Rs.380.98 lacs. The
Companys investment of Rs. 3,107.89 lacs in the subsidiary has been
made, considering the value of lease hold rights extending upto 22nd
November, 2096 & the immovable property of subsidiary.The
Company, under an arrangement, is carrying on hotel operation in the
subsidiarys property. Keeping in view the long term nature of the
investment, in the opinion of Board, there is no permanent
diminution in the value of investment & accordingly no provision is
considered necessary at present.
[iis] The financials of subsidiaries, namely Khajuraho Hotels Ltd.
and Udaipur Hotels limited which are wholly owned shows accumulated losses
in excess of their net worth. Keeping in view the long term planning
and prospects & the fact that further loans have been advanced, the
Board is of view that there is no permanent diminution in the value
of Companys investments.
[iiis] The Comp. had acquired 90% of equity capital of Apollo
Zipper India Ltd [AZILs] w.e.f. 30.11.2005 & thus AZIL became a
subsidiary. AZIL has been vested with the assets of Great Eastern
Hotel Kolkata. The Comp. vide non-disposal agreement dated 30.11.2005
entered into with the State Government of West Bengal in respect of
investment in AZIL, can't transfer the legal or beneficial ownership
or any other rights & obligations for a period of three years. For
this purpose, the Comp. has pledged its investments of face value
of Rs. 72.78 lacs in AZIL with the State Government.
[ivs] The shares purchase agreement dated 07.08.2002 for acquiring
[under disinvestment process of ITDCs] equity shares of Khajuraho Hotels
Ltd., interalia, provided for adjustment in the value of net current
assets taken over by Comp. , based on the closing audit as on the
date of acquistion. Such adjustment upon crystalisation of value of
net current assets, would have an effect on the final purchase
consideration. On the basis of closing audit, a sum of Rs. 16,18,453 is
recoverable, which will be adjusted when received.
[vs] Prime Cellular Limited, the subsidiary has taken up equity shares
of Rs.50,000 [50% of paid up capitals] in Kujjal Builders Private
Limited, the Comp. which has aquired land in Chandigarh for
construction of hotel. It is proposed that the Comp. would be given
the right to manage & run the proposed hotel.The Comp. has advanced
Rs.25.37 lacs [interest frees] to the subsidiary to facilitate the
financing of proposed hotel.
7 Voluntary Retirement Settlement cost amounting to Rs.9.11,09,384
incurred during the year 2003-04 in respect of Grand Ashok Bangalore,
is being amortised over a period of five years. An amount of Rs.
1.82,22,147 [Previous year Rs.1,82,21,877s] has been charged to Profit &
Loss Account for this year
8 During the year, the Comp. has changed the method of providing
depreciation on fixed assets in respect of Mumbai & Goa units from
written down value method to straight line method. Depieciation has
been recomputed with retrospective effect from the year 2003-04, the
year in which the Units commenced commercial operation. The change has
resulted in a lower depreciation charge of Rs 10,45,38,746 for year
and a write back of Rs 40,59,58,873 relating to earlier years with a
corresponding increase in the profit of year.
9 Segment Reporting - Accounting Standard-17
Based on the guiding principles given in Accounting Standard 17, the
Companys primary business consists of hoteliering. This business
incorporates related activities such as revenue from rooms, running of
restaurants, health club, beauty parlour etc. which mainly have similar
risks & returns. The commercial space within the hotel complex have
been given to occupants on sublicence, for which deposits have been
taken & the occupants pay maintenance & related charges.
10 Related party disclosures as per Accounting Standard -18
a Related parties & their relationship
[is] Subsidiary Companies Jyoti Limited Udaipur Hotels Limited Khajuraho
Hotels Limited Apollo Zipper India Limited Prime Cellular Limited Prima
Buildwell Private Limited
[iis] Key Management Personnel
- Late Mr. Lalit Suri - Chairmain-cum-Managing Director [till
- Ms. Jyotsna Suri, Joint Managing Director [ CMD since 16.10.2006s] -
- Mr. Ramesh Suri [Directors]
- Ms. Deeksha Suri
- Ms. Divya Suri Singh
- Mr. Keshav Suri
[iiis] Enterprises over which key management personnel exercise
1. Jyotsna Holding Pvt. Ltd.
2. Deeksha Holding Limited
3. Responsible Builders Pvt. Ltd.
4. Special Protection Services Pvt. Ltd.
5. Premium Exports Ltd.
6. Prima Telecom Ltd.
7. Premium Holdings Ltd.
8. Rohan Motors Ltd.
9. Subros Ltd.
10. Hemkunt Service Station Pvt. Ltd.
11. Mercantile Capital and Financial Services Pvt. Ltd.
12. Deeksha Human Resource Initiatives Ltd.
11 Unclaimed dividends of Rs.3.74 lakhs do not include any amount due
and outstanding to be credited to the 'Investor Education and
Protection Fund 'as on 31st March, 2007.
12 A petition filed with the Delhi High Court in September 2006 for
merger of Khajuraho Hotels limited [ a subsidarys] with the Comp. is
pending. If approved,the appointed date for merger will be 01.04.2006
or such other date as may be specified by Court.
13 Figures of previous year have been regrouped wherever necessary
to correspond to current year figures.