Provisions and Contingent Liabilities
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a
past event, it is probable that an outflow of resources will be required to settle the obligation, and the amount
can be reliably estimated. The amount so recognized is the best estimate of the consideration required to settle
the obligation at the reporting date, taking in to account the risks and uncertainties surrounding the obligation.
A disclosure for a contingent liability is made when there is possible obligation or a present obligation that may,
but probably will not require an outflow of resources. Where there is possible obligation or a present obligation
in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
Use of Estimates and Judgements
The key estimates and assumption used in the preparation of financial statements are set out below:
Actuarial Valuation:
The determination of Company’s liability towards defined benefit obligation to employees is made through
independent actuarial valuation including determination of amounts to be recognized in the Statement of Profit
and Loss and in other comprehensive income. Such valuation depends upon assumptions determined after
taking into account inflation, seniority, promotion and other relevant factors such as supply and demand factors
in the employment market. Information about such valuation is provided in notes to the financial statements.
20 ADDITIONAL NOTES TO THE FINANCIAL STATEMENTS
A. The Company was allotted 8200 sq mtrs of land at Vadodara in 1984 and an additional land of 2548 sq mtrs
in 1988 at R C Dutt Road, Alkapuri, Vadodara through GIIC (Gujarat Industrial Investment Corporation) on
sub-lease for a period of 30 years on which the hotel Welcomhotel Vadodara was constructed. Lease term
of land admeasuring 8200 Sq mtrs expired on 30.09.2014 and of land admeasuring 2548 sq mtrs expired
on 30.11.2018.
The High Court of Gujarat In pursuance of Writ petition filed by Company In April 2013, passed an Order on
December 24, 2014 restraining the State Government from disturbing the peaceful and actual possession
of the Company over the hotel property in any manner. The writ petition is pending for hearing.
The Company have made necessary application to State Government for Conversion of land from
Leasehold to Freehold or Extension of Lease, which is in process.
B. There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for
more than 45 days during the year and also as at 31st March 2025. This information as required to be
D. Defined Benefit Plan:
The Company has taken a Policy with Life Insurance Corporation of India (LIC) to cover the gratuity liability
with respect to the employees and the premium paid to LIC is charged to Statement of Profit & Loss. The
difference between the actuarial valuation of the gratuity with respect to employees at the year-end and the
contribution paid to LIC is further adjusted in the books of accounts.
The accounting charge for benefits under the defined benefit obligation is calculated by independent
actuary using the projected unit credit method.
All such Employee Benefit expenditure/provisions are reimbursed by the Licensee as per the Operating
License Agreement, hence no effect on Statement on Profit & Loss and Other Comprehensive Income.
Risk Management
The defined Benefit Plan expose the company to risk of actuarial deficit arising out of investment risk,
interest rate risk and salary cost inflation risk.
Investment Risks: This may arise from volatility in asset values due to market fluctuations and impairment
of assets due to credit losses. These Plans primarily invest in debt instruments such as Government
securities and highly rated corporate bonds - the valuation of which is inversely proportional to the interest
rate movements.
Interest Rate Risk: The present value of Defined Benefit Plans liability is determined using the discount
rate based on the market yields prevailing at the end of reporting period on Government bonds. A decrease
in yields will increase the fund liabilities and vice-versa.
Salary Cost Inflation Risk: The present value of the Defined Benefit Plan liability is calculated with reference
to the future salaries of participants under the Plan. Increase in salary due to adverse inflationary pressures
might lead to higher liabilities.
E. Amount towards Defined Contribution Plans have been recognized under Contribution to Provident and
Other Funds in Note 16: ? 39.34 Lakhs (2024 - ? 41.88 Lakhs).
F. The financial statements were approved for issue by the Board of Directors on 23rd April, 2025. Such
financial statements are required to be placed before the shareholders for adoption in terms of Companies
Act, 2013.
G. Figures for the previous year have been re-arranged, wherever necessary, to confirm to the figures of the
current year. The same does not have any material impact on the financial statements.
H. Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended
31st March 2025, MCA has not notified any new standards or amendments to the existing standards
applicable to the Company.
21 Financial instruments and Related Disclosures
i Capital Management
The Company does not have borrowing and aims at maintaining a strong capital base so as to maintain
adequate supply of funds towards future growth plans as a going concern.
The carrying amounts of trade payables, other financial liabilities, cash and cash equivalents, other bank
balances, trade receivables and other financial assets are considered to be the same as their fair values
due to their short term nature.
Fair value in Mutual fund has been considered as Level 1 as Hierarchy for the same are based on
unadjusted prices in active market
iii Financial risk management objectives
The Company has a system-based approach to risk management, anchored to policies and procedures
and internal financial controls aimed at ensuring early identification, evaluation and management of key
financial risks (such as market risk, credit risk and liquidity risk) that may arise as a consequence of
its business operations as well as its investing activities. Accordingly, the Company’s risk management
framework has the objective of ensuring that such risks are managed within acceptable and approved risk
parameters in a disciplined and consistent manner and in compliance with applicable regulation. It also
seeks to drive accountability in this regard.
Liquidity Risk
The company has current assets aggregate to ? 5014.91 Lakhs (2024 - ? 4513.26 Lakhs) including Current
Investments, Cash and cash equivalents and Other bank balances of ? 4794.42 Lakhs (2024- ? 4344.85
Lakhs) against an aggregate Current liability of ? 78.26 Lakhs (2024- ? 90.57 Lakhs) on the reporting date.
Further, the Company's total equity stands at ? 4848.70 Lakhs (2024- ? 4413.52 Lakhs) and it has no
borrowings. In such circumstances, liquidity risk or the risk that the company may not be able to settle or
meet its obligations as they become due does not exist.
Market Risk
interest Rate Risk - The company invests in mutual fund schemes of leading fund houses. Such
investments are susceptible to market price risk that arise mainly from changes in interest rate which may
impact the return and value of such investments.
Other Price Risk - Given the relatively short tenure of the underlying portfolio of the mutual fund schemes
in which the company has invested, price risk is not significant.
Credit Risk
Company's deployment in financial instruments such as mutual funds and fixed deposit are made in high
quality papers/counterparties.
The company has receivable balances with Lessee under the Operating Service Agreement , which are
generally short term in nature. Accordingly, the Company has concluded that no provision for expected
credit loss is required.
Debt- Equity Ratio, Debt Service Coverage ratio, Inventory Turnover ratio, Trade Payable Turnover Ratio are not applicable to the Company.
In terms of our report of even date
For K C Mehta & Co. LLP On behalf of the Board
Chartered Accountants
Firm's Registration No. 106237W/W100829 Anil Chadha Ashish Thakar
Chairman Director
Chhaya M. Dave Gurugram Gurugram
Partner DIN: 08073567 DIN: 09383474
M.No.100434
Rohit Mallick Rishabh Punjabi Swati
Place : Vadodara Chief Executive Officer Chief Financial Officer Company Secretary
Date : 23rd April 2025 Vadodara Vadodara Gurugram
M. No. A49082
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