(k) Provisions, Contingent Liabilities and Contingent Assets:
The Company recognizes a provision when there is a present obligation (legal or constructive) as a result of
a past event and it is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation and a reliable estimate can be made of the amount of the obligation.
Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is
no longer probable that the outflow of resources would be required to settle the obligation, the provision is
reversed.
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the
existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the Company or a present obligation that arises from past
events where it is either not probable that an outflow of resources will be required to settle the obligation or
a reliable estimate of the amount cannot be made.
Contingent assets are not disclosed in the Financial Statements unless an inflow of economic benefits is
probable.
(l) Earnings per share:
Basic earnings per share is calculated by dividing the net profit / (loss) for the year attributable to the equity
shareholders by weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net profit / (loss) for the period attributable to
equity shareholders and the weighted average number of shares outstanding during the period are adjusted
for the effects of all dilutive potential equity shares.
NOTE 3: APPLICATION OF NEW AND AMENDED STANDARDS
(A) Amendments to existing Standards (w.e.f. 1st April, 2025)
Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. The Company has reviewed the new
pronouncements and based on its evaluation has determined that it does not have any significant impact in its
financial statements. On 07 May 2025, the Ministry of Corporate Affairs (MCA) notified amendments to Ind AS 21
- The Effects of Changes in Foreign Exchange Rates, applicable w.e.f. April 1,2025. The Company has reviewed
the amendment and based on its evaluation has determined that it does not have any significant impact in its
financial statements On 13 August 2025, the Ministry of Corporate Affairs (MCA) notified Companies (Indian
Accounting Standards) Amendment Rules, 2025 which amends certain accounting standards, and are effective 1
April 2025. The key amendments are as follow:
1. Ind AS 1, Presentation of Financial Statements, applicable w.e.f. 01 April 2025 - The amendment relates to
classification of liabilities as current or non-current and non-current liabilities with covenants. In the context
of classifying a liability as current, it removes the requirement of existence of a right to defer settlement for
at least 12 months after the reporting date and instead requires that the said right should exist on the
reporting date and have substance. The amendment also introduces guidance on classification of liabilities
with covenants. The Company has no impact of these amendments in its classification criteria of current
and non-current liabilities.
2. Ind AS 7- Statement of Cash Flows and Ind AS 107- Financial Instruments: Disclosures, applicable w.e.f. 01
April 2025 - The amendment in Ind AS 7 requires to inform users of financial statements of the existence of
supplier finance arrangements and explain the nature of the arrangements, the carrying amount of liabilities
and the range of payment due dates. Ind AS 107 has been amended to add supplier finance arrangements
as a factor that may cause concentration of liquidity risk. The Company has reviewed the amendment and
based on its evaluation has determined that it does not have any significant impact in its financial
statements.
3. Ind AS 12, International Tax Reform - Pillar Two Model Rules applicable immediately - The amendments
provide a temporary mandatory relief from deferred tax accounting for top-up tax and disclose that they
have applied the relief. This relief is immediate and applies retrospectively.
(B) Standards notified but not yet effective
Ind AS 1 - Presentation of Financial Statements: If a covenant breach occurs on or before the reporting date and
the liability becomes payable on demand, it must be classified as current, even if the lender subsequently agrees
not to demand repayment. It is classified as current because, at the reporting date, the entity does not have the
right to defer settlement for at least 12 months. However, if the lender has already provided - by the reporting date
- a grace period extending at least 12 months beyond that date, during which the breach can be rectified and
repayment cannot be demanded, the liability is classified as non-current. This amendment is to be applied
retrospectively for annual reporting periods beginning on or after 01 April 2026, in accordance with Ind AS 8,
Accounting Policies, Changes in Accounting Estimates and Errors.
1. NON CURRENT BORROWING
A) Note on Preference Share Capital :
The Company had issued total of 12,00,000 10% Cumulative, Non-Convertible, Redeemable Preference Shares of
Rs.10/- each which are to be redeemed at par on or before June 26, 2039.
2. CURRENT BORROWINGSNote on Secured Loan Repayable on Demand :
The Secured Overdraft facility from the bank is secured by equitable mortgage of immovable property owned by the
Company situated at Matheran and secured by personal guarantee furnished by two directors of the Company.
The Rate of Interest is linked with EBLR of respective bank with spread of 2.00%, hence ROI varies from 8.50% to
10.50% p.a. depending upon movement in EBLR.
3. Net Borrowings Reconciliation
This section sets out an analysis of net borrowings and the movements in net borrowings for each of the periods
presented:
* On November 21, 2025, the Government of India notified the four Labour Codes - the Code on Wages, 2019, the
Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and working
Conditions Code, 2020 - consolidating 29 existing labour laws. The Ministry of Labour & Employment published draft
Central Rules and FAQs to enable assessment of the financial impact due to changes in regulations. The Codes have
been made effective from November 21, 2025. The Company has evaluated the potential impact of the New Labour
Codes based on the provisions enacted to date. Based on management’s assessment, no significant financial impact is
expected and, accordingly, no material adjustment has been recognised in the financial statements. The impact of the
related rules will be assessed and accounted for, if required.
(e) Terms and conditions of transactions with related parties
The transactions with related parties are made on terms equivalent to those that prevail in arm’s length
transactions. Outstanding balances at the year end are unsecured and interest free and settlement occurs in cash.
There have been no guarantees provided or received for any related party receivables and payables. For the year
ended March 31, 2026, the company has not recorded any impairment of receivables relating to amount owed by
related parties (March 31,2025: Rs. NIL). This assessment is undertaken each financial year through examining the
financial position of the related party and market in which the related party operates.
29. EMPLOYEE BENEFITS PLAN
As per Ind AS 19 “Employee Benefits”, the disclosures of Employee benefits as defined in the Accounting Standard
are given below :
a) Other long-term benefits - Compensated absences
The Company permits encashment of compensated absence accumulated by their employees on retirement,
separation and during the course of service. The liability in respect of the Company, for outstanding balance of leave
at the balance sheet date is determined and provided on the basis of actuarial valuation as at the balance sheet
date performed by an independent actuary.
The Company doesn’t maintain any plan assets to fund its obligation towards compensated absences.
b) Defined benefits plans - Gratuity
The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service
gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The plan is
funded with an insurance company in the form of a qualifying insurance policy.
The following tables summarise the components of net employee benefit expense recognised in the Statement of
Profit and Loss and the funded status and amounts recognised in the balance sheet for the respective plans.
c) Defined contribution plan
Company’s employees are covered by Provident Fund to which the Company makes a defined contribution
measured as a fixed percentage of salary. The contributions are made to registered provident fund administered by
Government. During the year, amount of Rs. 18.15 lakhs (Previous Year: Rs. 15.83 lakhs) has been charged to the
Statement of Profit and Loss towards employer’s contribution to the funds.
30. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Company’s principal financial liabilities include borrowings, trade payables and other financial liabilities. The
Company’s principal financial assets include loans, trade receivable, cash and cash equivalents and others. The
Company is exposed to credit risk, liquidity risk and market risk. The Company’s senior management oversees the
management of these risks. The Company’s senior management provides assurance that the Company’s financial
risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured
and managed in accordance with the Company’s policies and risk objectives. The Company has exposure to the
following risks arising from the financial instruments:
The Company’s principal financial liabilities, comprise of borrowings, security deposits, trade and other payables.
The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal
financial assets include loans, trade receivables, cash and cah equivalents and other bank balances that are derived
directly from its operations.
The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The
Company is exposed to market risk, credit risk and liquidity risk.
The Company’s senior management oversees the management of these risks. The senior professionals working to
manage the financial risks and the appropriate financial risk governance framework for the Company are
accountable to the Board of Directors and Audit Committee.
This process provides assurance to Company’s senior management that the Company’s financial risk-taking
activities are governed by appropriate policies and procedures and that financial risk are identified, measured and
managed in accordance with Company policies and Company risk objective.
(i) Market Risk
(ii) Credit Risk
(iii) Liquidity Risk
The management reviews and agrees policies for managing each of these risks which are summarized as below:
(i) Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market prices comprises three types of risk: currency rate risk, interest rate risk and
other price risks, such as equity price risk and commodity price risk. Financial instruments affected by market
risks include borrowings, security deposits, investments and foreign currency receivables and payables.
(a) Foreign Currency risk
Currency risk is not material, as the Company’s primary business activities are within India and does not
have any exposure in foreign currency.
(b) Interest rate risk:
Interest rate is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. Company’s financial liabilities comprises of interest bearing
loans, vehicle loans and advances and security deposits; however these are not exposed to risk of
fluctuation in market interest rate as the rates are fixed at the time of contract/agreement and do not
change for any market fluctuation.
(ii) Credit Risk
Credit risk has always been managed by the company through credit approvals, establishing credit limits and
continuously monitoring the creditworthiness of customers to which the company grants any credit terms in the
normal course of business.
The company considers the probability of default upon initial recognition of asset and whether there has been
a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether
there is a significant increase in credit risk the Company compares the risk of a default occurring on the asset
as at the reporting date with the risk of default as at the date of initial recognition. It considers available
reasonable and supportive forwarding-looking information.
In general, it is presumed that credit risk has significantly increased since initial recognition if the payments are
more than 60 days past due.
A default on a financial asset is when the counterparty fails to make contractual payments of when they fall
due. This definition of default is determined by considering the business environment in which entity operates
and other macro-economic factors.
Trade receivables : They consist of few number of customers, spread across diverse industries and
geographical areas. In order to mitigate the risk of financial loss from defaulters, the Company has an ongoing
credit evaluation process in respect of customers who are allowed credit period. In respect of walk-in
customers the Company does not allow any credit period and therefore, is not exposed to any credit risk.
The Company does not have any derivative transactions and therefore is not exposed to any credit risk on
account of derivatives. The Company does not have any long-term contracts for which there are any material
foreseeable losses.
Financial Instruments and cash deposits : The Company considers factors such as track record, size of the
instutition, market reputation, financial strength/rating and service standards to select the banks with which
balances and deposits are maintained. Generally the balances are maintained with the institutions with which
the Company has also availed borrowings.
The Company’s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated
from operations. The Company believes that the working capital is sufficient to meet its current requirements.
Further, the Company’s approach is to ensure, as far as possible, that it will have sufficient liquidity to meet its
liabilities when due and Company monitors rolling forecasts of its liquidity requirements.
31. CAPITAL MANAGEMENT
The Company manages its capital to ensure that it will be able to continue as going concern while maximising the return
to stakeholders through the optimisation of the debt and equity balance. The capital structure of the Company consists
of net debt and the total equity of the Company. For this purpose, net debt is defined as total borrowings less cash and
cash equivalents.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. The funding requirements are met through short-term/long-term borrowings.
The Company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall
debt portfolio of the Company.
33. FAIR VALUE MEASUREMENTS
i. Financial Instruments by Category
This section explains the judgements and estimates made in determining the fair values of the financial
instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for
which fair values are disclosed in the financial statements. To provide an indication about the reliability of the
inputs used in determining fair value, the company has classified its financial instruments into the three levels
prescribed under the accounting standard. An explanation of each level follows underneath the table.
*The carrying amounts of trade receivables, cash and cash equivalents, current loans, other current financial assets,
borrowings, trade payables and other financial liabilities are considered to be approximately equal to the fair value.
The fair values of non current borrowings are based on discounted cash flows using a current borrowing rate. They are
classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs.
ii. Fair value hierarchy
The fair values of the financial assets and liabilities are included at the amount that would be received to sell an
asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
date.
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed
equity instruments that have quoted price. The fair value of all equity instruments which are traded in the stock
exchanges is valued using the closing price as at the reporting period.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using
valuation techniques which maximise the use of observable market data and rely as little as possible on entity-
specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is
included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3.
During the years mentioned above, there have been no transfers amongst the levels of hierarchy. The fair values
of unquoted equity instruments are not significantly different from their carrying value and hence the
management has considered their carrying amount as fair value.
iii. Valuation processes
The finance department of the company includes a team that performs the valuations of financial assets and
liabilities required for financial reporting purposes, including level 3 fair values. This team reports directly to the
chief financial officer (CFO) and the audit committee (AC). Discussions of valuation processes and results are
held between the CFO, AC and the valuation team at least once every three months, in line with the company's
quarterly reporting periods.
Definitions:
(a) Earning for available for debt service = Net Profit after taxes Non-cash operating expenses like depreciation
and other amortisations Interest other adjustments like loss on sale of Fixed assets etc.
(b) Debt service = Interest & Lease Payments Principal Repayments
(c) Average inventory = (Opening inventory balance Closing inventory balance) / 2
(d) Net credit sales = Net credit sales consist of gross credit sales minus sales return
(e) Average trade receivables = (Opening trade receivables balance Closing trade receivables balance) / 2
(f) Net credit purchases = Net credit purchases consist of gross credit purchases minus purchase return
(g) Average trade payables = (Opening trade payables balance Closing trade payables balance) / 2
(h) Working capital = Current assets - Current liabilities.
(i) Earning before interest and taxes = Profit before exeptional items and tax Finance costs - Other Income
(j) Capital Employed = Tangible Net Worth Total Debt Deferred Tax Liability
35. REVENUE FROM CONTRACTS WITH CUSTOMERS
i) Details of revenue from contracts with customers recognised by the Company with type of revenue stream, net of
indirect taxes in its Statement of Profit and Loss:
ii) Contract Balances
The contract liabilities primarily relate to the advance consideration received from customers for which revenue is
recognised when the performance obligation is over/ services delivered.
a) Advance Collections is recognised when payment is received before the related performance obligation is satisfied.
This includes advances received from the customer towards rooms/restaurants/banquets. Revenue is recognised
37. Segment Reporting
The Company is primarily engaged in the business of hospitality and managing the resort. Since the inherent nature of
activities as a whole is governed by the same set of risks and returns, these have been regrouped as a single segment.
No Assets of the Company is located outside India. The said treatment is in accordance with the Indian Accounting
Standard on “Operating Segments” (Ind AS-108) as issued by the Institute of Chartered Accountants of India.The
Company is not reliant on revenues from transactions with any single external customer and does not receive 10% or
more of its revenues from transactions with any single external customer.
38. Registration of charges or satisfaction with Registrar of Companies (ROC)
During the year, there are no instances of any registration, modification or satisfaction of charges which are pending for
registration with Registrar of Companies (ROC) beyond the statutory period.
39. Compliance with number of layers of companies
The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017.
40. Compliance with approved Scheme(s) of Arrangements
The Company has no scheme of arrangements which have been approved by the competent Authority in terms of Sec
230 to 237 of the Companies Act, 2013 during the reporting period.
41. Utilisation of borrowed funds and share premium
A. The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
B. The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
42. Undisclosed income
The Company does not have any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as,
search or survey or any other relevant provisions of the Income Tax Act, 1961)
43. Title deeds of Immovable properties are held in name of the Company
The Company possess immovable property (other than properties where the Company is the lessee and the lease
agreements are duly executed in favour of the lessee) whose title deeds are held in the name of the Company.
44. Details of crypto currency or virtual currency
The Company has not traded or invested in Crypto currency or Virtual currency.
45. Details of Benami Held
No proceedings have been initiated or pending against the Company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
46. Wilful Defaulter
The Company has not been declared as a wilful defaulter by any bank or financial institution or other lender.
47. Relationship with Struck off Companies
Details of transactions with struck off companies during the year is as below
48. Audit Trail
The software used by the company includes an audit trail feature, which is enabled from 18th January, 2024. The audit
trail has feature of recording each and every transactional changes made in the books of account along with the date
when such changes were made.
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