NOTES TO FINANCIAL STATEMENT FOR THE YEAR ENDED MARCH 31, 2015

1. Significant Accounting Policies

i. Basis of brparation of Financial Statements:

These financial statements have been brpared to comply with the Generally Accepted Accounting Principles in India, including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013. The financial statements are brpared on accrual basis under the historical cost convention.

ii. Use of Estimates:

The brparation of financial statements requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of the financial statements and the reported amounts of incomes and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known or materialise

Fixed Assets :

a ) Fixed Assets are stated at cost of construction or acquisition less accumulated debrciation.

b) All other expenses including taxes, duties, freight incurred to bring the fixed assets to working condition is also treated as the cost of the fixed assets. However, cenvat availed in respect of the fixed assets is deducted from the cost of the fixed asset.

c) Debrciation is provided on straight line method over the estimated useful lives of the assets as brscribed under Schedule II of the Companies Act, 2013.

iv. Investments:

a ) Current investments are carried at lower of cost and market value.

b) Long term investments are stated at cost. Provisions for diminution in value of long term investments are made, if the diminution is other than temporary.

v. Impairment of Assets:

At each balance sheet date, the company consider whether there is any indication that an asset may be impaired. If any indication exits the recoverable amount of the assets is estimated. An impairment loss is recognized immediately whenever the carrying amount of an asset exceeds its recoverable amount.

vi. Valuation of Inventories:

a ) Inventory comprises stock of food and beverages and stores and spares and is carried at lower of cost and net realizable value. Cost includes all expenses incurred in bringing the goods to their brsent location and condition. Net realizable value is the estimated selling price in the ordinary course of business, less estimated cost of completion and to make the sale.

b) Inventory of Cutlery, crockery, linen & uniform are amortised over the period of forty eighth months.

vii. Deferred Revenue Expenditure:

a ) Deferred Revenue Expenditure related to windmill has been amortized over a period of twenty years. b) Deferred Revenue Expenditure other than above (i) is amortized over a period of five years.

viii. Revenue Recognition:

a ) Incom e from Room s, Banquets, and Restaurant and Other Services rebrsents invoice value of goods sold and services rendered exclusive of all applicable taxes. b) Revenue from windmill energy generation is accounted for on the basis of units generated against consumption at the Hotel, taking into consideration the energy charges and fuel charges charged by Torrent Power Ltd according to PPA agreement with them.

ix . Foreign Currency Transactions:

Transactions in Foreign Currencies are recorded at the exchange rate brvailing on the date of transaction.

x. Borrowing Cost:

a ) Borrowing cost is recognized as expense in the period in which these are incurred.

b) Interest and other borrowing cost on specific borrowings, attributable to qualifying assets are capitalized.

c) Foreign Exchange difference arising on repayment of foreign exchange term loan has been adjusted to interest cost.

xi. Provision for Taxation and Deferred Tax:

a ) Provision for Income tax for the current year is based on the estimated taxable income for the period in accordance with the provisions of the Income Tax Act, 1961. b) Deferred Tax resulting from "timing difference" between book and taxable profit is accounted for using tax rates & tax laws that have been enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset is recognized only to the extent that there is a reasonable certainty that the future taxable profit will be available against which the deferred tax assets can be realized.

xii. Employee Benefits:

a ) Gratuity liability is a defined benefit obligation and is recorded based on actuarial valuation on projected unit credit method made at the end of the financial year. The gratuity liability and the net periodic gratuity cost is actuarially determined after considering discount rates, expected long term return on plan assets and increase in compensation levels.

b) Company's contribution to Provident Fund and Employees State Insurance is charged to the statement of profit and loss for the year.

c) Provision for leave salary has been made as determined by the management.

I) Since the business of the Company is by way of Food and Beverages, the quantity wise details of purchase, consumption, turnover, stock etc. are not furnished as the items are so large in number that it is not practicable to brsent.

J) The company had not received any intimation from suppliers regarding their status under the Micro, Small & Medium Enterprise Act, 2006, and hence disclosures, if any, relating to amounts unpaid as the year end together with interest paid or payable as required under said Act, have not been given.

K) In the opinion of the Board, the Current Assets, Loans and Advances are approximately of the value stated, if realized, in the ordinary course of business. Provision for all known liabilities is adequate and not in excess of the amount reasonably necessary.

L) Previous years figures have been reworked, regrouped and reclassified wherever necessary.

As per our Report of even date

For, O. P. Bhandari & Co.Board

Chartered Accountants

Firm Regn. No.: 112633W

O.P. Bhandari

Partner

Membership No.: 34409

For and on behalf of the Board

Narendra G. Somani Devanand G. Chairman & Managing Director

Somani Hemant G. Somani Whole-time Director Whole-time

Kalpesh Mehta Director Company Secretary

Place : Ahmedabad

Date : May 27, 2015