Provisions and contingent liabilities
The Company creates a provision when there is present obligation as a result of a past event that probably requires
an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a
contingent liability is made when there is a possible obligation or a present obligation that may, but probably will
not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which
the likelihood of outflow of resources is remote, no provision or disclosure is made.
Disputed liabilities and claims against the company including claims raised by fiscal authorities (e.g. Sales Tax,
Income Tax, Excise etc.) pending in appeal / court for which no reliable estimate can be made and or involves
uncertainty of the outcome of the amount of the obligation or which are remotely poised for crystallization are not
provided for in accounts but disclosed in notes to accounts
Foreign Currency Translation
i) The financial statements are presented in Indian rupee (INR), which is Company's functional and presentation
currency.
ii) On initial recognition, all foreign currency transactions are recorded at foreign exchange rate on the date of
transaction. Gain / Loss arising on account of rise or fall in foreign currencies vis-a-vis functional currency between
the date of transaction and that of payment is charged to Statement of Profit & Loss.
iii) Monetary Assets in foreign currencies are translated into functional currency at the exchange rate ruling at the
Reporting Date and the resultant gain or loss, is accounted for in the Statement of Profi t & Loss
Dividend to equity holders of the Company
The Company recognises a liability to make cash distributions to equity holders of the Company when the
distribution is authorised and the distribution is no longer at the discretion of the Company. Final dividends on
shares are recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as
a liability on the date of declaration by the Company's Board of Directors.
Revenue Recognition
i) Revenue from Services
Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue
are net of GST, value added taxes, service tax, discounts, rebates and incentives. The Company recognises revenue
when the amount of revenue can be reliably measured and it is probable that future economic benefits will flow to
the Company.
ii) All other other income including interest income are recognised on accrual basis
Employee benefits
I) Short-term employee benefits
All employee benefits payable wholly within twelve months of rendering the service are classified as short term
employee benefits. Short term employee benifits such as salaries, alloawances, performance incentives, etc., are
recognized as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the
employee renders the related service
ii) Post Employment Benefits
Defined contribution plans
Payments made to a defined contribution plan such as Company's contribution to provident fund, employee state
insurance and other funds are determined under the statute and charged to the Statement of Profit and Loss in the
period of incurrence when the services are rendered by the employees.
iii) Defined Benefits Plans
The Company makes annual contributions to gratuity funds administered by the L.I.C.. The Gratuity plan provides
for lump sum payment to vested employees on retirement, death or termination of employment of an amount
based on the respective employee's last drawn salary and tenure of employment. The Company accounts for the
net present value of its obligations for gratuity benefits, based on an independent actuarial valuation, determined
on the basis of the projected unit credit method, carried out as at the Balance Sheet date. The obligation
determined as aforesaid less the fair value of the plan assets is reported as a liability or assets as of the reporting
date. Actuarial gains and losses are recognised immediately in the Other Comprehensive Income and reflected in
retained earnings and will not be reclassified to the Statement of Profit and Loss.
Borrowing Cost
Borrowing cost that are directly attributable to the acquisition, construction, or production of a qualifying asset are
capitalized as a part of the cost of such asset till such time the asset is ready for its intended use or sale
Borrowing cost consist of interest and other costs that an entity incurs in connection with the borrowing of funds.
A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use
or sale. All other borrowing cost are recognized as expense in the period in which they are incurred
Earning Per Share
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period. Earnings considered
in ascertaining the Company's earnings per share is the net profit for the period. The weighted average number of
equity shares outstanding during the period and all periods presented is adjusted for events, such as bonus shares,
other than the conversion of potential equity shares, that have changed the number of equity shares outstanding,
without a corresponding change in resources. For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and the weighted average number of share
outstanding during the period is adjusted for the effects of all dilutive potential equity shares.
Segment reporting
The company is in the business of Hotel, Restaurant & allied activities and all its services fall in the same segment as
nature of the services, its commercial location, the regulatory environment and resulting risks and rewards
associated with these business lines are not materially different and is consequently, not subject to segment
reporting as defined in Ind-AS-108.
Cash and cash equivalents
Cash and cash equivalents are short-term (three months or less from the date of acquisition), highly liquid
investments that are readily convertible into cash and which are subject to an insignificant risk of changes in value.
iii) Fair Value hierarchy
The fair value of financial instruments have been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to
quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements).
The categories used are as follows:
Level 1: Quoted prices for identical instruments in an active market;
Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs; and
Level 3: Inputs which are not based on observable market data.
Note 1: The fair values of investments in mutual fund units is based on the net asset value ('NAV') as stated by the issuers of these mutual fund units in the published statements as
at Balance Sheet date. NAV represents the price at which the issuer will issue further units of mutual fund and the price at which issuers will redeem such units from the investors.
Note: 2 Other financial assets and liabilities - Cash and cash equivalents (except for investments in mutual funds), trade receivables, investments in term deposits, other financial
assets , trade payables, and other financial liabilities have fair values that approximate to their carrying amounts due to their short-term nature.
Note: 3 Loans have fair values that approximate to their carrying amounts as it is based on the net present value of the anticipated future cash flows using rates currently available
for debt on similar terms, credit risk and remaining maturities.
31 Financial risk management objectives and policies
The risk management policies of the Company are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor
risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company's activities.The Management
has overall responsibility for the establishment and oversight of the Company's risk management framework. In performing its operating, investing and financing activities, the
Company is exposed to the Credit risk, Liquidity risk and Market risk.
a) Credit risk
Credit risk is the risk of financial loss to the company if a customer or counter-party fails to meet its contractual obligations.
Trade Payables
Concentration of credit risk with respect to trade receivables are limited, due to the Company's customer base being large and diverse. All trade receivables are reviewed and
assessed for default on a quarterly basis. Our historical experience of collecting receivables is that credit risk is low. Hence, trade receivables are considered to be a single class of
financial assets
Other financial assets
The company maintains exposure to cash equivalents. The company has set counter-parties limits based on multiple factors including financial positions, credit ratings, etc.
The company's maximum exposure to credit risk as at 31 March 2023 and 31 March 2022 is the carrying value of each class of financial assets.
b) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another
financial asset. The Company's approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both
normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.. It maintains adequate sources of financing from related
parties at an optimised cost.
The Company maximum exposure to credit risk for the components of the balance sheet at 31 March 2023 and 31 March 2022 is the carrying amounts. The liquidity risk is
managed on the basis of expected maturity dates of the financial liabilities. The average credit period taken to settle trade payables is about 30 to 90 days. Borrowings from related
parties is considered as payable on demand since there is no fixed repayment schedule although these related parties are always ready to assists to company in any adverse liquidity
situations. The other payables are with short-term durations. The carrying amounts are assumed to be a reasonable approximation of fair value. The following table analysis
financial liabilities by remaining contractual maturities:
c) Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of three types of
risks: interest rate risk, currency rate risk and price risk. Financial instruments affected by market risk includes borrowings, Investment, loans and trade receibles. The Company is
exposed to Interest rate risks and price risks.
i) Interest rate risk
The interest rate risk exposure is mainly from changes in fixed and floating interest rates. The Management is responsible for the monitoring of the Company's interest rate
position. Various variables are considered by the Management in structuring the Company's borrowings to achieve a reasonable, competitive, cost of funding. The following table
analyse the breakdown of the financial assets and liabilities by type of interest rate:
32 Capital management
Equity share capital and other equity are considered for the purpose of Company's capital management
The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders. The capital structure of the company is based
on management's judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market confidence
The management and the board of directors monitors the return on capital . The Company may take appropriate steps in order to maintain, or if necessary adjust, its capital
structure.
38 Balance of receivable and payables, including borrowing taken, Ioanns & advances given, payable to vedors,
security deposit given, other advances given, other liabilities, investments, Stock in trade, CWIP and other
assets additions, advances from customers etc., bank statement and bank reconciliation, service agreement
with customers returns and submissions made with statutory authorities i.e. PF, ESIC, PT, TDS & GST department
are subject to confirmation and consequent reconciliation and adjustments, if any. Hence, the effect thereof
on profit/loss, Assets and Liabilities, if any, which may be significant, is not ascertainble.The Board of Directors
has established a procedure control to review the reconciliation and recoverability of all the assets and payability
of all the liabilities, on regular basis on the formal/informal agreements/ arrangements with the respective
parties involved. As per the opinion of the Board, there will be no substantial impact on their reconcilialtion
with their balance confirmations as on the reporting date.
39 The Compnay had given several of its assets on rent, along with contract for manpower supply to its group
company "Elegance Infratech Private Limited", however the terms are under negotiation and no agreement
has been prepared between the companies for the same.
41 Segment Reporting
The Compnay is in the business of Hotel, Restaturant & Allied activities and all its services fall in the same
segment as nature of the services, its commercial location, the regulatory environment and resulting
risk and rewards associated with these business lines are not materially different, not subject to
segment reporting as defined in lnd-AS-108.
42 Company has 44 non-resident Indian Shareholders (Folios) holding 1001157 equity shares of Rupees 10/-
each (Previous Year 41 non-resikdent shareholders holding 1011929 equity shares)
43 The Compnay has not declard any dividend during the yeqr (Previous yer-Nil)
44 All raw materials, provisions & beverages consumed are indigenous.
45 As the turnover of the company includes sale of Rooms, Foods & Beverages etc., it is not possible to give quantity wise
details of the turnover and of Food & Beverages consumed.
46 With the applicability of Ind AS 109, the recognition and measurement of impairment of financial assets is based on credit
loss assessment by expected credit loss (ECL) model. The ECL assessment involve significant management judgement. The
Company's impairment allowance is derived from estimates including the historical default and loss ratios. Management
exercises judgement in determining the quantum of loss based on a range of factors. The most significant areas are loan
staging criteria, calculation of probability of default / loss and consideration of probability weighted scenarios and forward
looking macroeconomic factors. The board acknowledges and understands that these factors, since there is a large increase
in the data inputs required by the ECL model, which increases the risk of completeness and accuracy of the data that has
been used to create assumptions in the model. Based on the internal management analysis, as per Board Opinion, there is no
requirement of provision for expected credit loss in several financial assets including the loans and advances, Trade and
other receivables of the Company and all are on fair value, based on the assessment and judgement made by the board of
the company.
47 The extended lease term of leasehold land with respect to hotel segment has expired as on July 7, 2022, the building
structure and assets affixed thereon (All Immovable Assets) situated on the said lease land is owned by the company and the
company is under negotiation with the lessor to transfer the said building structure and assets affixed for a consideration.
Since the negotiation is still under process during our limited review, we cannot comment upon the value of the said assets
as reflected in the books as no provision has been provided by the company for any deviation/devaluation in the value of the
said assets, the loss is understated to that extent, which is still to be ascertained. Further, the company has shown Rental
income earned by renting out it's movable assets like vehicles and other Plant & Machinery used in hotel segment for which
no supporting agreement/ documents has been provided to us for verification
48 The company has adopted Ind AS 116, 'Leases', effective 1 April 2019, using modified retrospective approach and there is no
significant impact on the financial statements.
49 The Company has carried out Impairment test on its Fixed Assets as on the date of Balance Sheet and the management is of
the opinion that there is no asset for which provision of impairment is required to be made as per applicable Indian
Accounting Standard.
50 No forward exchange contracts are outstanding on the balance sheet date which is entered to hedge foreign exchange
exposures of the Company.
51 All Property Plant and Equipment were physically verified by the management of the company in accordance with a planned
program of verifying them once in three years, which were due for verification during the year and were physically verified
by the management. As per the opinion of the Board, there will be no substantial impact on their reconciliation with their
physical verification as on the reporting date.
52 In the opinion of the board, the current assets, loans and advances are approximately of the value state, if realized in
ordinary course of business. The provision for depreciation and for all known liabilities is adequate and not in excess of the
amount reasonably necessary.
53 Revaluation/ Fair valuation of PPE / Intangible assets/ Investment property
Since the company has not carried out any revaluation of its Property, Plant and Equipment (including Right-of-Use
Assets) and intangible assets held by the company during the year, the requirement of reporting regarding any
revaluation of the same is not applicable to the company. The company also does not have any Investment property
during the current year as well as previous year.
54 Benami Property held under Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder
The Company do not have any benami property, where any proceeding has been initiated or pending against the
company for holding any Benami property.
55 Wilful Defaulter
The Company is not declared as wilful defaulter by any bank or financial Institution or other lender.
56 Misutilisation of Bank Borrowing
The company has not taken any borrowings from banks and financial institutions during the current year, except for the
pre-existing vehicle loans.
57 Disclosure of transactions with struck off companies
The Company did not have any material transactions with companies struck off under Section 248 of the Companies Act,
2013 or Section 560 of Companies Act, 1956 during the financial year.
58 Compliance with approved Scheme(s) of Arrangements
No Scheme of Arrangements has been approved by/ pending with the Competent Authority in terms of sections 230 to
237 of the Companies Act, 2013 during the year as well as previous year
59 Undisclosed Income
The Company have not 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).
60 Compliance with number of layers of companies
The compliance of number of layers of companies, prescribed under clause (87) of section 2 of the Act read with the
Companies (Restriction on number of Layers) Rules, 2017, are not applicable to the company
61 Details of Crypto Currency or Virtual Currency
The Company has not traded or invested in Crypto currency or Virtual Currency during the current financial year and any
of the previous financial years.
62 Security of current assets against borrowings
The Company has no borrowings from banks or financial institutions on the basis of security of current assets.
63 Utilisation of Borrowed funds and share premium:
(A) During the year, the company has 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:
(i) 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)
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(B) During the year, the Company has 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:
(i) 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)
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
64 Registration of charges or satisfaction of charges with Registrar of Companies (ROC) -
The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period. However, during earlier years, the company has availed credit facilities from Bank of Baroda, Habib Ganj Branch,
Bhopal, MP- 462011, which has been fully repaid in earlier years. However, a charge against Charge ID- 80031838 is still
disclosed as Open Charge in the records of Registrar of Companies (ROC) for an amount of INR 8,65,000/-. The
management of the company is in the process of closure of satisfaction of the same with ROC.
Further regarding the Vehicle Loan obtained from ICICI Bank Limited during Financial Year 2020-2021, for an amount of
INR 74.00 lacs, no charge has been registered with ROC.
67 Title deeds of Immovable Properties not held in name of the Company
The Company do not have any immovable properties where title deeds are not held in the name of the company.
68 Loans and Advances to promoters, directors, KMPs and the related parties (as defined under the Companies Act, 2013)
The company has granted following loans or advances in the nature of loans which are granted to promoters, directors, KMPs and the related parties (as defined
under the Companies Act, 2013), either severally or jointly with any other person that are (a) repayable on demand; or (b) without specifying any terms or period
of repayment.
Note:
1. Total Debt = Long term Borrowings (including current maturities of Long term Borrowings), lease liabilities (current and non¬
current), short term borrowings and Interest accrued on Debts
2. Earning for Debt Service = Net Profit after taxes Non-cash operating expenses like depreciation and other amortizations
Interest other adjustments like loss on sale of Fixed assets etc.
3. Debt service = Interest & Lease Payments Principal Repayments
4. Avg. Shareholder's Equity = Average of Opening Total Equity and Closing Total Equity excluding revaluation reserve
5. Average Inventory = Average of Opening Inventory and Closing Inventory
6. Average Trade Receivable = Average of Opening Trade Receivables and Closing Trade Receivables
7. Average Trade Payables = Average of Opening Trade Payables and Closing Trade Payables
8. Working capital shall be calculated as current assets minus current liabilities
9. EBIT = Earning before interest and taxes
10. Capital Employed = Tangible Net Worth (excluding revaluation reserve) Total Debt Deferred Tax Liability
11. Average Total Assets = Average of Opening Total Assets and Closing Total Assets excluding revaluation impact
71 These financial statements are presented in Indian Rupees (INR), which is also its functional currency and all values are
rounded to the nearest Lakhs, except when otherwise indicated. The amounts which are less than Rs. 0.01 Lakhs are
shown as Rs 0.00 Lakhs.
72 Previous years figures have been re-grouped / re-classified wherever necessary to correspond with the current year's
classification / disclosure.
As per our report of even date attached.
For Parekh Shah & Lodha For and on behalf of the Board of Directors
Chartered Accountants
Firm Registration No. 107487W
Sikandar Hafiz Khan Sanober Bano
Ravindra Chaturvedi (Managing Director) (Director)
Partner DIN- 00016616 DIN- 0007139513
M.NO. 048350
UDIN: EB048350BGWTGI4165
Place : Bhopal Shiv Singh Raghuwanshi
Date: 30-05-2023 (Company Secretary)
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