| 1. The Company has not complied with the guidelines those are made
applicable to the listed Companies by Securities and Exchange Board of
India, as the Company has opted for delisting from Stock exchanges and
also not paid the Listing Fees.
2. a) Term Loans from Union Bank of India are secured by equitable
mortgage of the
Land and Buildings of the Company and further secured by hypothecation
of all the fixed assets of the Company both existing and future on
pari-passu basis and also guaranteed by two of the Directors of the
Company.
b) Working Capital Loan from Union Bank of India is secured by
hypothecation of Stock of Provisions, Wines, Consumable Stores and Book
Debts of Dolphin Hotel at Visakhapatnam and guaranteed by three of the
Directors of the Company in their personal capacity to the extent of ?
25.00 Lakhs.
3. Interest on Unsecured Term Loan from a Director amounting to ?
36,35,47,043 up to 31st March, 2006 is not provided in the books of
accounts. Consequent to that unsecured loans are under stated and
Reserves and Surplus are over stated by that amount.
4. Donations shown under the head "General expenses" include the
amounts given to the following political parties.
i) Communist Party of India Marxist Leninist ? 15,000 (Previous year ?
10,000)
ii) Communist Party of India (Marxist) ? Nil (Previous Year ? 10,000)
5. a) Depreciation on the assets of the company is provided on
Straight line basis/written down value method as per Schedule XIV to
the Companies Act 1956. However fixed Assets costing rupees Five
thousand or less are fully depreciated in the year of acquisition.
b) Buildings constructed on lease hold land are depreciated over the
Primary Lease period which is 15 years.
c) Costs incurred towards purchase of Computer Software being in the
nature of intangible assets are amortised over its estimated life of
five years.
6. Buildings costing ` 1,76,39,622 (previous year ` 1,76,39,622) are
on leasehold land.
7. Fixed Deposits shown under the head Cash and Bank balances include
deposits of Rs 36,14,830/- (previous year ` 36,14,830/-) the receipts
in respect of which are in lien with bankers towards margin for
guarantees issued by them.
8. Deposits recoverable include ` 15,79,886/- (previous ` 15,79,886/-)
paid to Ushakiron Movies Limited, a Company which is under the same
management towards Security Deposits. Maximum amount due at any time
during the year is ` 15,79,886 /- (previous year ` 15,79,886/-).
9. The Company is in the process of obtaining confirmations from the
debtors.
10. Disclosure of Sundry Creditors under current liabilities is based
on the information available with the Company regarding the status of
the suppliers as defined under the "Micro, Small and Medium Enterprises
Development Act, 2006" and relied upon by the Auditors.
11. In the opinion of the management, the current assets, loans and
advances are expected to realise at least the amount at which they are
stated, if realised in the ordinary course of business and provision
for all known liabilities have been adequately made in the accounts.
12. Estimated amount of contracts remaining to be executed on Capital
Account and not provided for Rs 2,15,012 (Net of advances) (Previous
year Rs Nil)
13. Remuneration paid to Managing Director included in other heads of
account (Minimum remuneration as per Schedule XIII of the Companies
Act, 1956)
14. Contingent Liabilities not provided for on account of
Current year Previous year
Rs Rs
a) Claims against the company not
acknowledged as debts : 5,09,16,395 3,73,75,332
out of which the company has
counter claim to the extent of (3,89,09,346) (3,47,70,371)
b) Guarantees given by the bankers 3,27,64,830 3,28,64,830
c) Guarantees given by the company 38,82,216 38,82,216
15. The Company has imported certain goods under the Export Promotion
Capital Goods scheme of the Government of India at concessional rates
of duty on an undertaking to fulfill ` 1,41,16,680 (Previous Year Rs
3,83,87,858) which is to be fulfilled within next 5 years. Non
fulfillment of the balance obligation within the said period render the
company liable to pay the balance duty of ` 17,64,585 (Previous Year `
48,54,438) and other penalties under the above referred scheme.
16. Disclosure relating to the Gratuity (funded) liability as per
Accounting Standard 15 "Employee Benefits"
The rate of escalation in compensation considered in the above
valuation is estimated taking into account inflation, seniority,
promotion and other relevant factors and the above information is
certified by an actuary.
17. As the Company's main business is limited to only Hospitality
services, there is no separate reportable segment as per the Accounting
Standard (AS-17) on "Segment Reporting" .
18. The details of the transactions with related parties to be
disclosed as required by Accounting Standard- 18 are as follows:
a) Names of Related parties and description of relationship
1. Key Management Personnel
: 1. Sri Ramoji Rao, Chairman
2. Smt. Ch. Vijayeswari, Managing Director
2. Relatives of Key Management Personnel
: 1. Smt. Ch. Rama Devi (Wife of Chairman)
2. Sri Ch. Kiron (Son of Chairman)
3. Sri Ch. Suman (Husband of M D)
4. Smt.Ch. Sailaja (Wife of Ch. Kiron)
3. Associates
: 1. Margadarsi Chit Fund Pvt. Ltd.
2. Ushodaya Enterprises Pvt. Ltd.
3. Ushakiron Movies Ltd.
4. Colorama Printers Pvt. Ltd.
5. Margadarsi Marketing Pvt. Ltd.
6. Margadarsi Housing Pvt. Ltd.
7. Margadarsi Financial Services Pvt. Ltd.
8. Various business concerns of Ramoji Rao (HUF)
9. Ushodaya Shipping Pvt. Ltd.
10. Variety Entertainment Pvt. Ltd.
11. Suman Advertising Pvt. Ltd.
12. Eenadu Relief Fund
13. M S M S Pvt. Ltd.
14. Ramadevi Trust
19. As required by Accounting Standards (AS 28) on "Impairment of
Assets" as notified by Companies (Accounting Standards) Rules 2006, (as
amended), the management has carried out the assessment of Impairment
of assets and no impairment loss has been recognized during the year.
20. In the absence of convincing evidence that the Company will pay
normal Income Tax within the specified period, the Minimum Alternative
Tax (MAT) credit is not recognized during the year as an asset and the
situation shall be reviewed at each Balance Sheet date.
21. Additional information as required to be given pursuant to the
provisions of Part II of Schedule VI to the Companies Act, 1956 :
a) Since it is not practicable to give quantity wise details in respect
of purchase, consumption, turnover, stock, etc, the Department of
Corporate Affairs in exercise of its power conferred by sub-section (4)
of section 211 of the Companies Act, 1956 by its order No.
46/3/2011-CL-III, dated 28th January, 2011 has exempted the company
from giving such details for the year. However, the said order requires
the company to disclose certain additional particulars, which are duly
disclosed in financial statements.
22. The other particulars required under part II of Schedule VI to the
Companies Act, 1956 are not applicable to the company.
23. Previous year's figures have been regrouped and reclassified
wherever necessary to make them comparable with those of current
year.
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