NOTES ANNEXED TO AND FORMING PART OF BALANCE SHEET AS AT 31st MARCH, 2015 AND PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED ON THAT DATE :

NOTE - 1.

I. Significant Accounting Policies :

1) Basis of brparation of financial statements :

The financial statements have been brpared in accordance with the applicable mandatory accounting standards dealt with section 211(3C) of the Companies Act, 1956 and as specified by the Institute of Chartered Accountants of India.

2) Basis of Accounting :

The accounts have been brpared using historical cost convention and on the basis of going concern, with revenue recognized and expenses accounted on accrual basis.

3) Revenue Recognition :

Revenue recognized when there is reasonable certainty of its ultimate realization / collection, Sales and Services are stated at net of taxes.

4) Fixed Assets :

Fixed Assets are stated at cost of acquisition and subsequent improvement thereto inclusive of freight and other incidental expenses related to acquisitions, improvements and installations.

5) Debrciation:

Debrciation on fixed assets is provided on Straight Line Method, at the rates and in the manner specified in Schedule II to the Companies Act, 2013.

6) Inventories :

Inventories are valued at cost. Unserviceable / damaged / discarded stocks and shortages are charged to the Profit & Loss Account.

7) Retirement Benefits :

Retirement benefits are provided in the accounts on accrual basis in the following manner:

a) The Company makes contribution to provident fund as and when they become due.

b) Gratuity is accounted for on the basis of actuarial valuation and funded to an approved Gratuity Fund.

c) Leave encashment provided in the books is paid in the subsequent year.

8) Provision, Contingent Liabilities and Contingent Assets:

Provision are recognised for when the company has at brsent, legal or contractual obligation as a result of past events, only if it is probable that an outflow of resources embodying economic outgo or loss will be required and if the amount involved can be measured reliably.

Contingent liabilities being a possible obligation as a result of past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more future events not wholly in control of the company are not recognised in the accounts. The nature of such liabilities and an estimate of its financial effect are disclosed in notes to the Financial Statements.

9) Foreign Currency Transactions :

Foreign currency transactions (realization through credit cards) are recorded on the basis of certificates issued by the concerned banks at the year end.

10) Taxes on Income

Provision for tax for the year comprises current income tax determined to be payable in respect of taxable income as per the provisions of Income Tax Act, 1961 and deferred tax being the tax effect of timing difference rebrsenting the difference 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 on account of timing differences are recognized only to the extent there is reasonable certainty of its realization.

11) Borrowing Cost :

Borrowing cost that is attributable to the acquisition / construction of fixed assets is capitalized as part of the cost of the respective assets. Other borrowing costs are recognized as expenses in the year in which they arise.

12) Earnings Per Share:

The Company reports basic and diluted earnings per share (EPS) in accordance with the Accounting Standard 20 as specified in the Companies (Accounting Standard) Rules 2006 (as amended). The Basic EPS has been computed by dividing the income available to equity shareholders by the weighted average number of equity shares outstanding during the accounting year. The Diluted EPS has been computed using the weighted average number of equity shares and dilutive potential equity shares outstanding at the end of the year.

13) Cash Flow Statement:

(i) Cash & Cash Equivalents (For the purpose of cash flow statement):

Cash comprises cash on hand and demand deposit with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

(ii) Cash Flow Statement:

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and 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. The cash flows from regular revenue generating, financing and investing activities of the company are segregated.

NOTES TO THE ACCOUNTS :

a) Contingent Liability : In respect of Water Charges Rs. 4,00,408/- payable to Matheran Jivan Pradhikaran.

b) Capital Commitment : Estimated amount of contracts remaining to be executed on account of capital account is Rs. 15 Lakh approx. (Net of advances).

c) In the opinion of the management, the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amounts at which they are stated in the Balance Sheet and provisions for all known liabilities have been made as at the year end.

d) Balance of Creditors, Debtors, Unsecured Loans and Advances are subject to confirmation and reconciliation thereof, if any.

e) The Company is not required to give any quantitative and value-wise information in respect of purchase, consumption, turn over, stocks etc. as the same is exempted vide Notification No. S.O. 301 (E) dated 8th February, 2011 issued under Saction 211 (3) of The Companies Act 1956 by the Ministry of Corporate affairs, Govt. of India.

f) Amount payable to the undertakings registered under The Micro, Small and Medium Enterprises Development Act, 2006 as on 31st March, 2015 is NIL (to the extent information available with the Management)..

g) Earning in Foreign Exchange : Rs. 3.18 Lacs through realization under credit cards (Previous year Rs. 1.94 Lacs) Expenditure in foreign currency: Rs. 63,573/-. (Previous year Rs. Nil)

h) The Company is exclusively engaged in the business of hoteliering. This, in the context of Accounting Standard 17 on Segment Reporting is considered to continue one single primary segment and accordingly no segment information as required under Accounting Standard 17 is furnished.

i) Previous year's figures have been re-grouped / re-arranged wherever necessary. Signature to Notes 1 to 20

As per our report of Even Date

For Amar Bafna & Associates

Chartered Accountants

Firm Reg. No. 114854 W

Amar Bafna

Partner

Membership No. 48639

For and on behalf of the Board

Vinaychand Kothari Chairman & Managing Director

Dilip V. Kothari Joint Managing Director

Dr. R. K. Baxi Director

Mangal S. Chheda Director

Manohar Tambat Director

Mumbai, 30th May, 2015