I. SIGNIFICANT ACCOUNTING POLICIES

A. Basis of brparation of financial statement :

The financial statements have been brpared under the historical cost convention, in accordance with the generally accepted accounting principles(GAAP) and provisions of The Companies Act, 2013 read with the Companies ( Accounts) Rules, 2014 as adopted consistently by the company, except where a newly issued Accounting Standards initially adopted or a revision in to an existing accounting standard requires a change in the accounting policy hitherto in use.

B. Basis of Accounting:

a. The company follows the mercantile system of accounting.

b. All income and expenditure items having material bearing on financial statement are recognized on accrual basis, except Dividend income and insurance claim, if any.

C. Use of Estimates

The brparation of financial statements in conformity with Indian GAAP requires judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known / materialised.

D. Fixed Assets:

a. All fixed assets are valued at cost of acquisition/ construction. The cost of fixed assets comprises of its purchase price and attributable costs including finance cost, of bringing the assets to its working condition for its intended use.

b. Capital Work in Progress is stated at the amount expended up to the date of Balance Sheet.

c. The expenditure incurred during construction period incidental to the expansion / new project including attributable finance cost, incurred on the project under implementation are treated as Capital Expenditure pending allocation to Fixed Assets. These expenses are apportioned to Fixed Assets on commencement of Commercial Activity

E. Debrciation and Amortisation:

a. Debrciation has been provided on "Straight Line Method" over Use full life of respective Fixed Assets as provided in Part C of Schedule II of the Companies Act,2013.

b. Debrciation on Fixed Assets Purchased / Sold during the period is proportionately charged.

c. Premium paid on Lease hold land is amortized over a period of Lease.

F. Investments:

Investments in shares and securities are long term investments and are stated at cost. Gains / Losses on disposal of such investments are recognized as income / expenditure. When there is a decline in the value of any investment which is not considered to be temporary, then same is provided for by reducing the value of investment and charging the same to the statement of Profit & Loss.

G. Inventories:

a. Company follows the practice of charging to revenue, the cost of various inventories, on actual consumption basis.

b. Inventories are valued at lower of cost or net realizable value. Cost is arrived at on First In First Out basis.

H. Cash & Cash Equivalent :

Cash and Cash equivalent for purpose of cash flow statement comprise cash at bank and in hand and short term investment with an original maturity of 3 months or less.

I. Provision for Taxation

The amount of Income Tax is provided in accordance with the provisions of Income Tax Act, 1961. Deferred tax is recognized, subject to the consideration of prudence, on timing differences being differences between taxable income and accounting income, that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets are not recognized on unabsorbed debrciation and carry forward of losses unless there is a virtual certainty that sufficient taxable profits will be available against which such deferred tax assets can be realized.

J. Benefits to Employees:

The Company's contributions to the Provident Fund are charged to the Profit and Loss Account. The Gratuity payable at the time of retirement are charged to the Profit and Loss Account on basis of independent external actuarial valuation determined and basis of Projected Unit Credit method carried out annually. Actuarial gains and losses are immediately recognized in the Profit and Loss Account.

The employees of the Company are entitled to leave/leave encashment as per the Leave Policy of the Company. The provision for Leave Encashment is made on the basis of independent external actuarial valuation carried out at the end of the year/ period to which it pertains.

K. Revenue from Operation:

Revenue from Operation comprise of sale of Guest Rooms, Food and Beverages, Wine Sales but exclusive of Luxury Tax, VAT, Service Tax and other Taxes.

Other Operating Income includes Income from Hall Hire, Equipment Hire, Miscellaneous Banquet Services, Telecommunication, Laundry Services, Sale of Scraps, Travel Desk, Educational Division, Tips from guest, flower decoration and other miscellaneous services.

L. Other Income:

Other Income comprises of gain or loss in Foreign exchange earnings, Interest Received, Dividend Received and Other Miscellaneous Income.

M. Events after the date of Balance Sheet:

Wherever material, events occurring after the date of Balance Sheet are considered up to the date of adoption of the accounts.

N. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a brsent obligation as a result of past event and it is probable that there will be an outflow of resources to settle the obligation. Provision is not discounted to its brsent value and is determined based on the best estimate required to settle an obligation at the year end. These are reviewed every year end adjusted to reflect the best current estimate. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the Financial Statements.

O. Foreign Currencies:

Transactions in Foreign Currencies are generally recorded by applying to the Foreign Currency amount, the exchange rate existing at the time of transaction.

At year / period end monetary items denominated in foreign currency remaining unsettled are converted in to Indian Rupee equivalents at the year / period end exchange rates.

Gains or Losses on settlement, in a subsequent period of the transactions entered into in an earlier period, are credited or charged to the statement of Profit & Loss.

P. Claims:

Claims against the company not acknowledged as debts are disclosed after a careful evolution of the facts and legal aspects of the matter involved.

Q. Prior Period & Extra Ordinary Items:

Prior Period adjustment, extra ordinary items and changes in the accounting policies having material impact on the financial affairs of the Company are disclosed.

R Assets Impairment:

An assets is treated as impaired when the carrying cost of the assets exceeds its recoverable value. An impairment loss is charged to the profit and loss account in the year in which the assets are identified as impaired. The impairment loss recognized in the prior periods is reversed if there has been a change in the estimate of recoverable amount.

S. The Borrowing Cost:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial periods of time to get ready for intended use. All other borrowing costs are charged to the revenue.

II. NOTES TO FINANCIAL STATEMENT

A) Amount of Income Tax has been provided as per provision of Section 115 JB of the Income Tax Act, 1961.

B) The Board of Directors are of the opinion that discounted net future generation from the Assets in use and shown in the schedule of fixed assets, is more than the carrying amount of fixed assets in Balance Sheet, as such, no provision for Impairment of Assets is required to be made in terms of the requirement of accounting standard (AS - 28) "Impairment of Assets" issued by the Institute of Chartered Accountants of India for the year ended 31.03.2015.

C) Segment Reporting

The Company operates in one reportable operating segment i.e. Hoteliering

D) The Investment made by the company is held in its own name

L) Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II, as disclosed in Accounting Policy on Debrciation and Amortisation. Accordingly the un amortised carrying value is being debrciated / amortised over the revised / remaining useful lives. The written down value of Fixed Assets whose lives have expired as at 1st April 2014 have been adjusted, net of tax, in the opening balance of Surplus in Profit and Loss Account, amounting to Rs.1,38,37,117/-. Change in use full life of the Fixed Assets has increased the amount of debrciation charge for the year under review by Rs.85,36,611/ - on Fixed assets installed up to 31.03.2014,as compared to the provision of erstwhile Schedule XIV of the Companies act,1956 During the year under review, there is a change in method of charging to the revenue, the cost of various operating inventories from " Purchase Cost Basis" to "Actual Consumption Basis". Due to this change, there is a Net Decrease in expense of Operating Inventories by Rs. 347,694/- in the Statement of Profit & Loss of the year under review.

The Company has defended a Civil Suit filed by M/s. Phonographic Performance Ltd. (PPL) in the Court of Law. PPL claims to have Copy Rights of public performance of sound recordings of about 250 Music Companies in India. All those who use these sound recording in public place or commercial establishment, in any form or technology, they must obtain prior license from PPL at certain amount of fees. The company has not obtained such license from them, hence, PPL has filed a Civil Suit. The company claims that it is not required to avail license from PPL on certain legal grounds. Board is of opinion that Company has valid defense in this case and has a fair chance to succeed in the said Civil Suit. In any case , the said license fee if required to be paid will be not more than INR 1,00,000/-. In the opinion of the Board, the assets other than Fixed Assets have value on realization in the Ordinary course of Business at least equal to the amount at which they are stated in Balance Sheet. The adequate provision of all known liabilities have been made in the accounts. Previous year figure have been reclassified, regrouped, wherever necessary and recast to make comparable with those of year under review.

As per our report of even date

For V Shah & Associates

Chartered Accountants

V. R.Shah

Proprietor

Place : Baroda Date : 26.05.2015

On behalf of Board of Directors

For Jindal Hotels Limited

A.C.Patel

Chairman

Karuna Advani

Company Secretary

P.D.Shah

Managing Director

Palak Gandhi

Chief Financial Officer

Place : Baroda

Date : 26.05.2015