(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, 2023)
The Company has adopted, with effect from 01 April 2023, the following new and revised standards and interpretations.
Their adoption has not had any significant impact on the amounts reported in the financial statements.
1. Ind AS 1- Presentation of Financials Statements - modification relating to disclosure of ‘material accounting
policy information’ in place of ‘significant accounting policies.
2. Ind AS 8 - Accounting Policies, Change in Accounting Estimates and Errors - modification of definition of
‘accounting estimate’ and application of changes in accounting estimates.
3. Ind AS 12 - Income Taxes - The amendment clarifies application of initial recognition exemption to transactions
such as leases and decommissioning obligations.
(B) Standards notified but not yet effective
No new standards have been notified during the year ended March 31,2024.
A) Note on Secured Term Loan:
The Term Loans 1 & 2 are sanctioned and disbursed by Union bank under ECLGS scheme announced by the
government to meet with liquidity crunch on account of outbreak of COVID-19 pandemic.
Both the Term Loan are secured by equitable mortgage of immovable property owned by the Company situated at
Matheran.
The Term Loan-1 is repayable in 36 monthly instalments after a moratorium period of 12 months.
The Term Loan-2 is repayable in 48 monthly instalments after a moratorium period of 24 months.
The Term Loan-1 carries rate of interest of 7.50% p.a. & Term Loan-2 carries rate of interest of EBLR 1% subject to
maximum of 9.25% p.a.
The Company has used the borrowings from the bank for the specific purpose for which it was taken.
B) 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.
In previous FY 2022-23 , The dividends in the arrears on preference shares (it pertains to on or before financial
year 2021-22) together with dividend due for the financial year 2022-23 which have been proposed and paid out of
the profits for the financial year 2022-23.
A) Note on Secured Loan Repayable on Demand :
The Secured Overdraft 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.
(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, 2024, the company has not recorded any impairment of receivables relating to amount owed by
related parties (March 31, 2023: INR 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.
The Company’s principal financial liabilities include borrowing, trade and other payables. 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:
(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 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 consist of large 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.
b) Expected credit loss:
The company follows ‘simplified approach’ for recognition of loss allowance.
As a practical expedient, the Company uses a provision matrix to determine impairment loss allowance on
portfolio of its trade receivables. The provision matrix is based on its historically observed default rates
over the expected life of the trade receivables and is adjusted for forward-looking estimates. At every
reporting date, the historical observed default rates are updated and changes in the forward-looking
estimates are analyzed.
c) 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.
(iii) Liquidity Risk
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.
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.
Loan Covenants
Bank loans contain certain debt covenants relating to limitation on Current Ratio i.e. 1.15:1.In any case margin on
primary security should not be diluted below 13%.
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,
current 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.
* Interest due on the outstanding amount will be considered on actual basis i.e. payment basis
This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has
been determined to the extent such parties have been identified on the basis of information available with the Company.
This has been relied upon by the auditors.
Note 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.
Note 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.
Note 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.
Note 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.
Note 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.
Note 42 : 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)
Note 43 : Title deeds of Immovable properties not held in name of the Company
The Company does not possess any 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 not held in the name of the
Company.
Note 44 : Details of crypto currency or virtual currency
The Company has not traded or invested in Crypto currency or Virtual currency.
Note 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.
Note 46 : Wilful Defaulter
The Company has not been declared as a wilful defaulter by any bank or financial institution or other lender.
For GMJ & Co Vinaychand Kothari Dilip V Kothari
Chartered Accountants Chairman & Managing Director Joint Managing Director &
Firm’s Registration No: 103429W Chief Financial Officer
DIN :00010974 DIN :00011043
CA Amit Maheshwari Ramnik K Baxi Rajesh Kedia
Partner Independent Director Company Secretary
Membership No: 428706 DIN : 00011048 M. No: A11282
UDIN: 244287 06BKFN KQ4523
Place: Mumbai
Date: May 29, 2024
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