The financial statement of the company have been prepared in accordance with Generally Accepted Accounting Principle in India (Indian GAAP). The company has prepared these financial statement to comply in all material aspects with the accounting standards notified under the Companies (Accounting Standards), Rules 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention

ii. Presentation and Disclosure of Financial Statements

The Company has reclassified the previous year figures in accordance with the requirements applicable for the current year.

iii. Revenue Recognition

Revenues and expenses are recognized on the accrual basis with the exception insurance claims, interest on calls in arrears and interest on overdue receivables which are accounted on cash basis sales are net of taxes and duties, trade discounts and rebates.

iv. Fixed Assets

Fixed Assets are stated at cost (Net of Cenvat, wherever applicable) less depreciation. Cost includes freight, duties and taxes and other expenses related to acquisitions and installation. Depreciation on Fixed Assets has been provided on the Straight Line Method and at rates and in the manner specified in Schedule XIV to the companies Act, 1956. Intangible Asset constitutes Brand Name acquired for valuable consideration. It is being amortized over a period of 10 years.

v. Borrowing Cost

Borrowing costs are directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are Capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.

vi. Inventory

Raw materials and stores and spares have been valued at weighted average price. Cost includes Taxes and duties, freight and other direct expenses

vii. Investments

LongTerm Investments are stated at cost, and Short Term Investments are valued at cost or Net Realizable Value whichever is less.

viii. Taxation

There is no need to make provision for income tax, since the company has incurred a Loss during the current financial year. In our opinion the deferred (Asset) appearing in the Balance sheet is adequate. As such no further provision has been made towards deferred tax.

ix. Employee Benefits

Shortterm Employee benefits, in respect of leave salary and reimburse of medical expenses, the liability has been fully provided on undiscounted basis, in accordance with the schemes in force. The contribution to Provident Fund (defined contribution plan), as per the provisions of the Employee's provident Fund and Miscellaneous Provision Act, 1952, is recognized as expense and remitted to the Provident Fund Commissioner. Expense and income of this year include amounts below Rs. 1000/- in relation to earlier years, which are accounted on cash basis.

x. Foreign Exchange Transaction

Transactions in foreign exchange are accounts at the exchange rates prevailing at the time of Real ization/ payment of bills.

xi. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized when the company has a legal and constructive obligation as a result of a past event, for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of the obligation. Contingent Liabilities are disclosed when the company has possible obligation or a present obligation and it is probable that a cash outflow will not be required to settle the obligation.

xii. Confirmation of a balances has not been received from creditors and debtors as on 31 /03/2014

xiii. In the absence of adequate profits the remuneration paid to Managing Director is within the limits prescribed as minimum remuneration in Schedule XIII of the Companies Act, 1956.

xiv. The company has made a Circular Resolution in February 2012 in which the company has arrived the amount due to Mr. Kamal Babbar was Rs. 1243.72 Lakhs. Which includes the interest, managerial remuneration & advances received from his group company.

There is no amount due to SSI units pending more than 30 days and above Rs. 1 Lakh.

xv. The company has revalued the Land, Buildings during the year based on valuation made by the approved valuer D Parthasarathy Associates as on 22/02/2011. The company has taken the estimates and taken in to account the valuation provided by them of land and hotel building. Resultant Appreciation aggregating to Rs.8748.66Lakhs has been added to the gross block of fixed assets and credited to Revaluation reserve. There is an additional charge of depreciation of Rs.39. 18 Lakhs on revaluation of hotel building and an equivalent amount has withdrawn from revaluation reserve created.

xvi. The term loan from Punjab National Bank availed for refurbishing of the hotel, etc. has been secured by first charge and Mortgage on all immovable and movable properties of the company both present and future, and guaranteed by the Managing Direcior, Joint Managing Director and Executive Director.

xvii. The Board of directors of the company in their meeting resolved to write off the advances and debtors which are not realizable. Therefore the amount of Rs.857.63Lakhs is not recoverable treated as Bad hence written off during the year under consideration and show under other expenses.

xviii. The company is in the process of appointing a full time company secretary by the provision of section 383 A of the companies Act 1956. In the absence of the company secretary, these financial statements have not been authenticated by a whole time company secretary under section 215 of the companies Act 1956.

xix. The minority shareholders have field a petition vide C.P No. 15 of 2014 & C.P No. 11 of 2014 under section 235.237( b). 397. 398.402. and 403 under the companies act 1956 with company Law Board Chennai. Further, the Minority share holders have filed memorandum of compromise vide C P nol 6 of 2014 with honorable company law board Chennai. The decision of the above said petitions are awaited. This may materially impact the affairs of the company.

xx. The Company and Present Management has filed vide C S No.751/2013 before the. Honorable high court, Chennai, challenging the notices issued by Mr. Kamal Babbar for convening the Extraordinary General Meeting of the members of the company and in O.A.No.870/2013 the Hon'ble High court, by order dated 8.11.2013, directed Mr. Kamal Babbar and other shareholders not to implement the resolution of the meting dated 09.11.2013 until further orders. The said suit is still pending for adjudication before the Hon'ble High Court of Chennai.

xxi. Interest provided:

During the year the management has measured the liabilities, which includes unsecured loans, advance share capital & short term borrowings. The total interest provision has been made on the above mentioned borrowings at the rates prescribed in the agreements made with parties. This includes both the interest for current year &Earlier years from when the amount is received by the company.

The liability of interest for earlier years has been accounted to the tune of Rs. 1282.67 Lakhs as at date of Balance sheet.

xxii. Segment Reporting:

The company has business in two segments and the revenue from both is taken on consolidated basis in the financials, the bifurcations are show on individual segment as below:

Hotel & Restaurant Business : 784,66 Lakhs

Rental Income                     : 142.21 Lakhs

xxiv. The company's hotel operations are discontinues from 31.03.2014 & advance booking monies are payable.

xxvi. Preference shares, which have fallen due for redemption long ago could not be redeemed due to inadequate profits and non issuance of additional share and not created preference share redemption reserve due to inadequate profits.