dolphin annual report-2011 - moneycontrol.com · september 30, 2011 at 12.00 noon at the registered...

BOARD OF DIRECTORS

RAMOJI RAO CHAIRMAN

A. RAMAMOHANA RAO

CH. VIJAYESWARI MANAGING DIRECTOR

CH. KIRON

C. NAGENDRA PRASAD

P. SATYAPRAKASH REDDY

AUDITORS

M/s. BRAHMAYYA & Co.,

Hyderabad & Visakhapatnam

BANKERS

UNION BANK OF INDIA

REGISTERED OFFICE

“HOTEL SITARA”, RAMOJI FILM CITY,

RANGA REDDY DISTRICT - 501 512.

DOLPHINHOTELS LIMITED

DOLPHIN HOTELS LIMITED

NOTICE TO MEMBERS

Notice is hereby given that the 40th Annual General Meeting of the Company will be held on Friday,

September 30, 2011 at 12.00 Noon at the Registered Office of the Company, at Hotel "Sitara", Ramoji

Film City, Ranga Reddy District – 501 512, to transact the following business:

1. To receive, consider and adopt the audited Balance Sheet as at March 31, 2011 and the Profit and

Loss Account for the year ended on that date together with the Auditors’ Report and Directors’

Report thereon.

2. To appoint a Director in place of Sri Ch. Kiron, who retires by rotation, and being eligible, offers

himself for reappointment.

3. To appoint a Director in place of Sri Sri P. Satyaprakash Reddy, who retires by rotation, and being

eligible, offers himself for reappointment.

4. To appoint Statutory Auditors and fix their remuneration, and in this regard to consider and if

thought fit, to pass, with or without modification(s), the following resolution as an Ordinary

Resolution.

“Resolved that M/s. Brahmayya & Co., Chartered Accountants, (Registration No. 000513S), be

and are hereby appointed as Statutory Auditors of the Company, to hold office from the conclusion

of this annual general Meeting until the conclusion of the next annual general meeting of the

company on such remuneration as may be fixed by the Board of Directors”.

By Order of the Board

Place : Ramoji Film City, RAMOJI RAO

Date : 06.09.2011. Chairman

1


NOTES :

1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THIS MEETING IS ENTITLED TO APPOINT

A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF AND SUCH A PROXY NEED NOT BE

A MEMBER OF THE COMPANY.

2. Proxies must be lodged at the Registered Office not less than 48 hours before the commencement

of the Meeting.

3. The Register of Members and Share Transfer books of the Company will remain closed from

September 23rd to September 30th, 2011 (both dates inclusive).

4. Members are requested to promptly intimate the change in their address, if any.

5. Shareholders are eligible to file their nominations against share holdings to specify nominees, for

smooth transmission process. Nomination forms are available with the Company and those interested

in getting the facility of nomination may write to the Company for a copy of the prescribed form.

2


REPORT OF THE BOARD OF DIRECTORS

Your Directors have pleasure in presenting their 40th Annual Report along with the audited accounts for

the year ended March 31, 2011.

FINANCIAL RESULTS :

2010-2011 2009-2010

(` in lakhs)

Turnover 7930.21 6122.91

-------------- --------------

Operating Profit for the year 1207.87 440.01

Depreciation for the year 287.27 296.05

-------------- --------------

Net Profit for the year before tax 920.60 143.96

Less: Provision for taxation and Income tax of earlier years 170,20 25.99

Deferred tax liability 409.28 -

------------- ------------

Net Profit after Tax 341.12 117.97

Balance of Profit brought 2380.25 2262.28

forward from previous year

------------- ------------

Balance of Profit carried forward 2721.37 2380.25

------------- ------------

BUSINESS REVIEW :

During the year under review, the business turnover increased by about 30% compared to the previous

year. Margins have also improved over the previous year, though lower than potential.

Unstable political environment in Andhra Pradesh, frequent bandhs and strikes in the last one year have

affected hospitality and tourism industry adversely.

Margins are likely to be impacted by continuing inflation, oil price volatility and raising payroll costs.

The Indian economy though inherently stronger than most other countries, continues to face uncertainty

and volatility because of the adverse macro economic scenario in global markets.

However, the long term outlook for the industry appears to be bright despite short term concerns.

DIRECTORS' RESPONSIBILITY STATEMENT :

In accordance with Section 217(2AA) of the Companies Act, 1956, the Directors of the Company

hereby state that:

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● In the preparation of the Annual Accounts, the applicable accounting standards have been followed

and that there are no material departures.

● The Directors had, in consultation with the Statutory Auditors, selected such accounting policies and

applied them consistently and made judgments and estimates that are reasonable and prudent so as

to give a true and fair view of the state of affairs of the Company as at March 31, 2011 and of the

profit of the Company for that year.

● The Directors had taken proper and sufficient care for the maintenance of adequate accounting

records in accordance with the provisions of the Companies Act for safeguarding the assets of the

Company and for preventing and detecting fraud and other irregularities, to the best of knowledge

and ability of the Directors.

● The Directors had prepared the annual accounts on a going concern basis.

ENERGY, TECHNOLOGY AND FOREIGN EXCHANGE EARNINGS AND OUTGO :

Constant efforts are being made to reduce energy consumption through energy saving devices, employee

awareness and effective monitoring.

Disclosure of particulars with respect to conservation of energy, technology absorption is not applicable to

the Company for the time being In compliance with Section 217 (1) (e) of the Companies Act, 1956, and

the Rules framed there under. Details of income and expenditure in foreign currency, during the year are

given in the Notes to Accounts.

DIRECTORS :

Pursuant to the provisions of the Articles of Association of the Company, Sri Ch. Kiron and Sri P. Satyaprakash

Reddy, retire by rotation and being eligible, offer themselves for reappointment.

AUDITORS :

M/s. Brahmayya & Co., Statutory Auditors of your Company, retire at this meeting and are eligible for

reappointment. Regarding the observation about the outstanding Sales Tax and property tax liability,

your Directors wish to state that steps are being taken to pay the amount, after obtaining relevant clarifications.

Regarding non provision of arrears of interest on promoters loans, the Directors wish to clarify that these

loans were brought in as their contribution for financing the Hotel Projects at Ramoji Film City during

1995 to 2001 and no interest was provided or paid to the promoters for the past period, as per the terms

of the loan agreements with the financial institutions and banks since the loans were treated as quasi

equity. However, interest for the current period is being paid to the promoters since FY 2006, after

obtaining relevant approvals.

SECRETARIAL COMPLIANCE CERTIFICATE :

Pursuant to the provisions of Section 383 A of the Companies Act, 1956, and the Rules framed thereunder,

a Compliance Certificate from a Company Secretary in wholetime practice is attached to this report.

4


For and on behalf of the

Board of Directors

Place : Ramoji Film City, RAMOJI RAO

Date : 06.09.2011. Chairman

PERSONNEL :

Your Directors wish to place on record their sincere appreciation to all the employees for their dedication,

teamwork and commitment, during the year under review. There are no employees who are covered by

Section 217(2A) of the Companies Act, 1956.

Your Directors also gratefully acknowledge the continued support and cooperation extended to the

Company by Union Bank of India.

5


SECRETARIAL COMPLIANCE CERTIFICATE

Registration No. of the Company : 01-1390

Authorised Capital : Rs. 8,00,00,000/-

Paid-up Capital : Rs. 69,92,000/-

To

The Members,

M/s. Dolphin Hotels Limited,

Hyderabad.

I have examined the registers, records, books and papers of M/s. Dolphin Hotels Limited, (The

company) as required to be maintained under the Companies Act, 1956, (the Act) and the rules made

there under and also the provisions contained in the Memorandum and Articles of Association of the

Company for the period ended on March 31, 2011 In my opinion and to the best of my information

and according to the examinations carried out by me and explanations furnished to me by the Company,

its officers and agents, I certify that in respect of the aforesaid financial year.

1. The Company has kept and maintained all registers as stated in Annexure 'A' to this certificate, as

per the provisions and the rules made there under and all entries therein have been duly recorded.

2. The Company has duly filed the forms and returns as stated in Annexure 'B' to this certificate, with

the Registrar of Companies, Regional Director, Central Government, Company Law board or

other authorities within the time prescribed under the Act and the rules made there under.

3. The Company being a public limited company, comments are not required.

4. The Board of Directors duly met 4 times on 28.06.2010, 02.09.2010, 22.12.2010 and 29.03.2011

in respect of which meetings proper notices were given and the proceedings were properly recorded

and signed including the circular resolutions passed in the Minutes Book maintained for the purpose.

5. The Company has closed its Register of Members from 23.09.2010 to 30.09.2010 and necessary

compliance of Section 154 of the Act has been made.

6. The 39th Annual General Meeting for the financial year ended on 31st March 2010 was held on

30th September, 2010 after giving due notice to the members of the company and the resolutions

passed there at were duly recorded in the Minutes Book maintained for the purpose.

7. No Extra-Ordinary general meeting was held during the financial year.

8. The Company has not advanced any loans or given any guarantees or provided any securities to

its directors or persons or firms or companies referred to under Section 295 of the Act.

9. The Company has duly complied with the provisions of Section 297 of the Act in respect of the

contracts specified in that section.

6


10. The Company has made necessary entries in the register maintained under section 301 of the Act.

11. As there were no instances falling within the purview of Section 314 of the Act, the Company has

not obtained any approvals from the Board of directors, members or Central Government.

12. The Company has not issued any duplicate share certificates during the financial year.

13. (a) The Company had delivered all Share Certificates lodged for transfer or transmission within

the stipulated period.

(b) The Company has not deposited any amount in a separate Bank Account as no dividend

was declared during the financial year.

(c) The Company was not required to post warrants to any member of the Company as no

dividend was declared during the financial year.

(d) As the Company has not declared any dividend, issued any debentures and has not accepted

deposits, the question of transfer of dividend in the unpaid dividend account, application

money due for refund, matured deposits, matured debentures and the interest accrued

thereon which have remained unclaimed or unpaid for a period of seven years to Investor

Education and Protection Fund does not arise.

(e) The Company has Duly complied with the requirements of Section 217 of the Act.

14. The Board of Directors of the Company is duly constituted and the appointment of directors has

been duly made.

15. The company has not appointed any Managing Director/Whole Time Director during the financial

Year.

16. The Company has not appointed any sole selling agents during the financial year.

17. The Company was not required to obtain any approvals of the Company Law Board, Regional

Director, Registrar and / or such authorities prescribed under the various provisions of the Act

during the financial year. However, the Company has got the approval of exemption under Section

211(4) with regard to the requirements of Schedule VI vide order No. 46/3/2011-CL-111-dated

28.01.2011, valid up to the financial year ending 31st March, 2011, 31st March, 2012 and 31st

March, 2013.

18. The directors have disclosed their interest in other firms / companies to the Board of Directors

pursuant to the provisions of the Act and the rules made there under.

19. The Company has not issued any shares, debentures or other securities during the financial year.

20. The Company has not bought back any shares during the financial year.

21. The Company has not issued any preference shares / debentures and hence the question of

redemption of preference shares / debentures does not arise during the financial year under review.

22. There were no transactions necessitating the Company to keep in abeyance the rights to dividend,

rights shares and bonus shares pending registration of transfer of shares.

7


23. The Company has not invited / accepted any deposits including any unsecured loans falling within

the purview of Section 58A during the financial year.

24. The amount borrowed by the company from Directors / Members / Financial Institutions, Banks

during the financial year ending 31st March, 2011 is within the borrowing limits of the company.

25. The Company has not made any loans and investments or given guarantees or provided securities

to other bodies corporate and consequently no entries have been made in the register kept for

the purpose.

26. The Company has not altered the provisions of the Memorandum with respect to situation of the

Company's registered office from one State to another during the year under scrutiny.

27. The Company has not altered the provisions of the Memorandum with respect to the objects of

the Company during the year under scrutiny.

28. The Company has not altered the provisions of the Memorandum with respect to name of the

Company during the year under scrutiny.

29. The Company has not altered the provisions of the Memorandum with respect to share capital of

the Company during the year under scrutiny.

30. The Company has not altered its Articles of Association during the financial year.

31. There was no prosecution initiated against or show cause notices received by the Company and

no fines or penalties or any other punishment was imposed on the Company during the financial

year, for offences under the Act.

32. The Company has not received any money as security from its employees during the financial

year.

33. The Company has deposited both employee's and employer's contribution to Provident Fund

with prescribed authorities pursuant to Section 418 of the Act.

For G.P. ASSOCIATES

Company Secretaries

(G. MAHESH)

Place : Hyderabad, Partner

Date : 06-09-2011. C.P. No. 7160

8


Sl. Section Name of the Register

No. Number

01. 150 Register of Members

02. 151(1) Index of Members

03. 303 Register of Directors

04. 307(1) Register of Directors’ Shareholding

05. 108 Share Transfer and Transmission Register

06. 297, 301 Register of Contracts

07. 143(1) Register of Charges

08. 372A(5) Register of Investments

09. 193 Minutes Book in loose leaf binder for Board Meetings

10. 193 Minutes Book of AGM / EGM

11. 287 Attendance Register of Directors

12. 174 Shareholders Attendance Register

Annexure "A"

Name of the Company : DOLPHIN HOTELS LIMITED

Registration Number : 01-1390

Authorised Capital : ` 8,00,00,000

Registers as maintained by the Company :

9

For G.P. ASSOCIATES

Company Secretaries

(G. MAHESH)


Date : 06-09-2011. C.P. No. 7160


Annexure "B"

Name of the Company : DOLPHIN HOTELS LIMITED

Registration Number : 01-1390

Authorised Capital : ` 8,00,00,000

Returns / Documents / Forms filed with the Registrar of Companies, Regional Director, Central Government or otherauthorities during the financial year ended 31st March, 2011.

REGISTRAR OF COMPANIES :

Sl. Form Relevant Descritpion Date of

No. No. section Filing

1 Form No. 17 138 Satisfaction of Charge 22.04.2010 Yes NA

2 Form No. 211(4) Application made to Central 02.07.2010 Yes NA23AAA Government for seeking exemptions

from showing the quantitative detailsin Profit & Loss Account for theyears 2010-11, 2011-12, 2012-13

3 Form No. 23 269 Increase of terms of remuneration 28.09.2010 No Yes198, 309 payable to Smt. Ch. Vijayeswari,

& 310 Managing Director.

4 From No. 66 383A Compliance Certificate for the 25.10.2010 Yes NAYear 2010

5 Form 23AC 210 Annual Report for the year 2010 27.10.2010 Yes NA& ACA

6 Form No. 20B 159 Annual return for the year 2010 22.11.2010 Yes NA

Whether

filed within

prescribed

time

Yes/No

If delay in

filing whether

requisite

additional fee

paid

Yes / No

10

For G.P. ASSOCIATES

Company Secretaries

(G. MAHESH)


Date : 06-09-2011. C.P. No. 7160


AUDITORS’ REPORT

To the members of DOLPHIN HOTELS LIMITED, HYDERABAD.

1. We have audited the attached Balance Sheet of DOLPHIN HOTELS LIMITED, HYDERABAD

(A.P) as at 31st March, 2011 and also the Profit and Loss Account and the Cash Flow Statement

for the year ended on that date annexed thereto. These financial statements are the responsibility

of the Company's Management. Our responsibility is to express an opinion on these financial

statements based on our audit.

2. We conducted our audit in accordance with the auditing standards generally accepted in India.

Those Standards require that we plan and perform the audit to obtain reasonable assurance

about whether the financial statements are free of material misstatement. An audit includes

examining, on a test basis, evidence supporting the amounts and disclosures in the financial

statements. An audit also includes assessing the accounting principles used and significant estimates

made by management, as well as evaluating the overall financial statement presentation. We

believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors' Report) Order, 2003 (as amended), issued by the

Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act,

1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of

the said Order.

4. Further to our comments in the Annexure referred to above, we report that:

i) We have obtained all the information and explanations which to the best of our knowledge

and belief were necessary for the purposes of our audit.

ii) In our opinion, proper books of account as required by law have been kept by the Company

so far as appears from our examination of those books.

iii) The Balance Sheet, Profit and Loss Account and Cash Flow statement dealt with by this

report are in agreement with the books of account.

iv) In our opinion, the Balance Sheet, Profit and Loss account and Cash Flow Statement

dealt with by this report comply with the accounting standards referred to in sub-section

(3C) of Section 211 of the Companies Act, 1956.

v) On the basis of written representations received from the Directors, as on 31st March,

2011 and taken on record by the Board of Directors, we report that, none of the Directors

is disqualified as on 31st March, 2011 from being appointed as a Director in terms of

clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956;

vi) In our opinion and to the best of our information and according to the explanations given

to us, the said accounts read in conjunction with the Schedules annexed therewith and

subject to Note No. 1 and 3 of Schedule 19B give the information required by the

11


Companies Act, 1956, in the manner so required and give a true and fair view in conformity

with the accounting principles generally accepted in India:

a) in the case of the balance sheet, of the state of affairs of the Company as at 31st

March, 2011;

b) in the case of the profit and loss account, of the Profit of the Company for the year

ended on that date; and

c) in the case of cash flow statement, of the cash flows for the year ended on that date.

for BRAHMAYYA & CO.,

Chartered Accountants

Firm’s Registration Number : 000513S

(P. CHANDRAMOULI)


Date : 06.09.2011. Membership No. 25211

12


Annexure to the Auditor’s Report Referred to in paragraph 3 of our report of even date.

1. a) The Company has maintained proper records showing full particulars, including quantitative

details and situation of fixed assets.

b) As explained to us, the management has physically verified most of the fixed assets during

the year and there is a regular programme of verification which, in our opinion, is reasonable

having regard to the size of the Company and the nature of the assets. No material

discrepancies were noticed on such verification.

c) During the year the Company has not disposed off any substantial part of fixed assets that

would affect the going concern status of the Company.

2. a) The inventory has been physically verified during the year by the management. In our

opinion, the frequency of verification is reasonable.

b) In our opinion, the procedures of physical verification of inventories followed by the

management are reasonable and adequate in relation to the size of the Company and the

nature of its business.

c) In our opinion and according to the information and explanations given to us, the Company

is maintaining proper records of inventory. The discrepancies noticed on physical verification

between the physical stocks and book records were not material.

3. a) During the year, the Company has neither granted nor taken any loans, secured or

unsecured to/from Companies, firms or other parties covered in the register maintained

under Section 301 of the Companies Act, 1956.

b) In view of our comment in paragraph 3(a) above, (III) (b), (c), (d), (e) and (f) of paragraph

4 of the aforesaid order are not applicable to the Company.

c) However, as the terms of repayment have not been stipulated in respect of loans taken in

earlier years, we are not in a position to make any specific comment regarding the

repayment of principal and also interest.

4. In our opinion and according to the information and explanations given to us, there are adequate

internal control systems commensurate with the size of the Company and the nature of its

business with regard to purchase of inventory and fixed assets and with regard to sale of goods

and services. During the course of our audit, we have not observed any continuing failure to

correct major weaknesses in internal control system.

5. a) In our opinion and according to the information and explanations given to us, we are of

the opinion that the particulars of contracts or arrangements referred to in section 301 of

the Companies Act, 1956 have been entered in the register to be maintained under that

section

b) In respect of transactions made in pursuance of such contracts or arrangements exceeding

value of rupees five lakhs entered in to during the year ,in the absence of any comparable

quotes, we are unable to comment whether the transactions were made at prevailing

market prices at the relevant time.

13


6. The Company has not accepted any deposits from the public. Hence the provisions of Section

58A and 58AA or any other relevant provisions of the Companies Act, 1956, and the Companies

(Acceptance of Deposits) Rules, 1975, do not apply to this Company.

7. In our opinion, the Company has an internal audit system. However the scope in our opinion

needs to be enlarged so as to make it commensurate with the size and nature of the Company's

business.

8. The Central Government has not prescribed the maintenance of cost records under section 209(1)

(d) of the Companies Act, 1956 for the activities of the Company.

9. a) According to the records of the Company, apart from certain instances of delays, the Company

is regular in depositing with appropriate authorities undisputed statutory dues including

Provident Fund, Investor Education and Protection Fund, Employees' State Insurance, Income-

tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material

statutory dues applicable to it.

b) According to the information and explanations given to us, no undisputed amounts payable

in respect of Income Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty and Cess were

in arrears as at March 31, 2011 for a period of more than six months from the date they

became payable except the following.

S.No. Nature of the dues Amount (`) Date of Payment

1. Sales Tax 6,56,015 Not yet paid

2. AP VAT 1,13,380 Not yet paid

3. Fringe Benefit Tax 42,857 Not yet paid

4. Property Tax 9,91,556 Not yet paid

c) According to the records of the Company and the information and explanations given to

us, the dues of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Service Tax, Excise Duty

and Cess, which have not been deposited on account of dispute are as follows:

Sl. Nature of Amount Period to which Forum where dispute

No. the dues ` the amount relates is pending

01 Sales Tax 1,78,248 1990-91 AP STAT, Visakhapatnam



04 Sales Tax 91,204 1999-00 AP STAT, Visakhapatnam


06 AP VAT 13,08,862 2009-10 Commissioner of

Commercial Taxes, A.P.

14


10. The accumulated losses of the Company as at the end of the financial year under reference are

more than fifty percent of net worth of the Company The Company has not incurred any cash

losses during the financial year covered by our audit and in the immediately preceding financial

year.

11. In our opinion and according to the information and explanations given to us, the Company has

not defaulted in repayment of dues to any financial institutions and banks.

12. The Company has not granted any loans and advances on the basis of security by way of pledge

of shares, debentures and other securities.

13. The Company is not a chit fund or a nidhi/mutual benefit fund/society. Therefore, the provisions

of clause 4(xiii) of the Companies (Auditor’s Report) Order, 2003 are not applicable to the

Company.

14. The Company has maintained proper records for transactions and contracts relating to dealing or

trading in other investments. As explained to us timely entries have been made therein and the

other Investments have been held by the Company in its own name to the extent applicable.

15. According to the information and explanations given to us, the Company has not given any

guarantee for loans taken by others from bank or financial institutions.

16. According to the information and explanations given to us the Company has not obtained any

term loans during the year.

17. In our opinion and according to the information and explanations given to us, and on an overall

examination of the Balance Sheet of the Company, we report that no funds raised on short-term

basis have been used for long-term investment.

18. During the year, the Company has not made any preferential allotment of shares to parties and

Companies covered in the Register maintained under Section 301 of the Companies Act, 1956.

19. During the year, the Company has not issued any debentures, therefore the question of creating

security or charge in respect thereof does not arise.

20. During the year, the Company has not made any public issue and therefore the question of

disclosing the end use of money raised by public issue does not arise.

21. Based upon the audit procedures performed and according to the information and explanations

given to us, we report that no fraud on or by the Company has been noticed or reported during

the year.

for BRAHMAYYA & CO.,

Chartered Accountants

Firm’s Registration Number : 000513S

(P. CHANDRAMOULI)


Date : 06.09.2011. Membership No. 25211

15


Per our report of even datefor BRAHMAYYA & CO.,Chartered AccountantsFirm’s Registration No. : 000513S

P. CHANDRAMOULI RAMOJI RAO CH. VIJAYESWARIPartner Chairman Managing DirectorMembership No. : 025211

Ramoji Film City,Date : 06.09.2011.

16

BALANCE SHEET AS AT 31st MARCH, 2011

Sl. Schedule As at As atNo. Particulars Reference 31.03.2011 31.03.2010

` `

I SOURCES OF FUNDS:1. Share Holders Funds

a) Share Capital 1 69,92,000 69,92,000b) Share Application Money 6,00,00,000 6,00,00,000c) Reserves and Surplus 2 27,41,39,944 24,00,27,596

--------------------- ---------------------34,11,31,944 30,70,19,596

--------------------- ---------------------2. Loan funds

a) Secured loans 3 5,94,33,737 8,21,64,109b) Unsecured loans 4 24,00,00,000 24,00,00,000

--------------------- ---------------------29,94,33,737 32,21,64,109

3. Deferred Tax Liability 5 4,09,28,554 ---------------------- ---------------------

TOTAL 68,14,94,235 62,91,83,705--------------------- ---------------------

II APPLICATION OF FUNDS:1) Fixed Assets 6

a) Gross Block 86,53,29,267 84,41,66,844b) Less: Depreciation 37,37,70,358 34,56,25,590

--------------------- ---------------------c) Net Block 49,15,58,909 49,85,41,254d) Capital Work-in-Progress - 1,44,992

--------------------- ---------------------49,15,58,909 49,86,86,246--------------------- ---------------------

2) Investments 7 17,27,16,577 12,08,58,106

3) Current Assets, Loans and Advancesa) Inventories 8 2,69,69,564 2,23,60,553b) Sundry Debtors 9 5,61,83,041 5,82,07,446c) Cash & Bank Balances 10 3,46,60,857 1,87,65,834d) Loans & Advances 11 2,61,86,958 3,17,10,173

--------------------- ---------------------14,40,00,420 13,10,44,006

--------------------- ---------------------Less: Current Liabilities and Provisions 12

a) Liabilities 12,49,28,766 11,05,54,313b) Provisions 18,52,905 1,08,50,340

--------------------- ---------------------12,67,81,671 12,14,04,653

--------------------- ---------------------Net Current Assets 1,72,18,749 96,39,353

--------------------- ---------------------TOTAL 68,14,94,235 62,91,83,705

--------------------- ---------------------Accounting Policies and Notes on Accounts 19


PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2011

Sl. Particulars Schedule Current Year Previous Year

No. Reference ` `

I INCOME :

Guest Accommodation Food and Beverages

and Other Services 13 74,97,54,551 59,43,32,844

Others 14 2,63,32,243 1,79,58,572

Provision for doubtful debts written back 1,69,34,020 -

--------------------- ---------------------

TOTAL 79,30,20,814 61,22,91,416

--------------------- ---------------------

II EXPENDITURE :

Consumption of Provisions and Wines 15 13,69,19,799 11,25,04,379

Staff Cost 16 21,67,06,796 19,39,38,394

Other Operating Expenses 17 21,66,80,772 17,13,81,717

General Expenses 18 5,77,56,567 3,64,16,739

Interest on : Term Loans 4,01,43,813 5,18,35,503

: Others Loans 10,166 7,18,725

Provision for doubtful debts 40,15,867 14,94,548

Depreciation 6 2,87,26,586 2,96,05,169

--------------------- ---------------------

TOTAL 70,09,60,366 59,78,95,174

--------------------- ---------------------

III PROFIT FOR THE YEAR BEFORE TAXATION 9,20,60,448 1,43,96,242

Less : Provision for : Taxation 1,57,73,455 24,50,000

: Deferred Taxation 4,09,28,554 –

Less : Income Tax of earlier years 12 40,804 –

Fringe Benefit Tax of earlier years 5,287 1,49,457

--------------------- ---------------------

IV PROFIT FOR THE YEAR AFTER TAXATION 3,41,12,348 1,17,96,785

Add : Balance brought forward from last year 23,80,25,221 22,62,28,436

--------------------- ---------------------

V SURPLUS CARRIED TO BALANCE SHEET 27,21,37,569 23,80,25,221

--------------------- ---------------------

VI Basic and diluted Earnings per Equity Share of ` 10/- each 48.79 16.87

Accounting Policies and Notes on Accounts 19




17


CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2011

Year ended 31.03.2011 Year ended 31.03.2010

` `

------------------------ ------------------------A. CASH FLOW FROM OPERATING ACTIVITIES

Net Profit before tax 9,20,60,448 1,43,96,242Adjustments for :

Depreciation 2,87,26,586 2,96,05,169Loss on sale of Assets 17,828 2,25,132Profit on sale of Assets (62,141) (6,04,869)Interest (Net) 3,96,41,090 5,03,37,541Profit on Sale of Non Trade Investments (62,20,999) (38,12,713)Income from Non Trade Investments - (6,25,485)Excess provisions written back (2,25,78,665) (17,23,359)Bad Debts and advances written off 1,70,05,433 14,78,893Provision for doubtful debts 40,15,867 14,94,548

--------------------- -----------------------Operating Profit before working capital changes 15,26,05,451 9,07,71,099Adjustments for :

Trade and other receivables (17,13,712) 2,43,59,705Inventories (46,09,011) 8,82,362Trade and Other payables 1,86,01,945 2,606,787

--------------------- -----------------------Cash generated from operations 16,48,84,673 11,86,19,953Direct Taxes Paid (1,15,64,088) 46,49,416

--------------------- -----------------------NET CASH FROM OPERATING ACTIVITIES (A) 15,33,20,985 12,32,69,369

--------------------- -----------------------B. CASH FLOW FROM INVESTING ACTIVITIES

Purchase of Fixed Assets (21,751,336) (8,31,37,114)Sale of Fixed Assets 1,96,400 10,27,273Purchase of Investments (27,30,43,032) (20,07,86,731)Sale of Investments 22,74,05,560 20,67,51,058Income from Non Trade Investments - 6,25,485Interest received 2,21,316 23,74,037

--------------------- -----------------------NET CASH USED IN INVESTING ACTIVITIES (B) (6,69,71,092 (7,31,45,992)

--------------------- -----------------------C. CASH FLOW FROM FINANCING ACTIVITIES

Proceedings from Borrowings – –Repayment of Borrowings (2,27,30,371) (4,41,79,050)Interest paid (4,77,24,099) (1,69,14,228)

--------------------- -----------------------NET CASH GENERATED IN FINANCING ACTIVITIES (C) (7,04,54,470) (6,10,93,278)

--------------------- -----------------------Net increase in cash and cash equivalents (A+B+C) 1,58,95,023 (1,09,69,901)

Cash and Cash equivalents as at beginning of the year 1,87,65,834 2,97,35,735--------------------- -----------------------

Cash and Cash equivalents as at the end of the year** 3,46,60,857 1,87,65,834--------------------- -----------------------

**Includes restricted balance of 36,14,830 36,14,830--------------------- -----------------------




18


SCHEDULES ANNEXED TO AND FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 31ST MARCH, 2011

As at As at

31.3.2011 31.3.2010

` `

I. SHARE CAPITALAuthorised78,00,000 Equity Shares of Rs.10/- each 7,80,00,000 7,80,00,00020,000 - 11% Cumulative Redeemable Preference shares of Rs. 100/- each 20,00,000 20,00,000

---------------------- ----------------------8,00,00,000 8,00,00,000

---------------------- ----------------------Issued and Subscribed7,00,000 Equity shares of Rs.10/- each 70,00,000 70,00,000

---------------------- ----------------------TOTAL 70,00,000 70,00,000

---------------------- ----------------------Paid-up6,99,200 Equity Shares of Rs.10/- eachfully paid-up 69,92,000 69,92,000

---------------------- ----------------------TOTAL 69,92,000 69,92,000

---------------------- ----------------------2. RESERVES AND SURPLUS

as per last balance sheetCapital Reserve : Amount originally paid on

forfeited shares 3,375 3,375Investment Subsidy 15,00,000 15,00,000

Capital Redemption Reserve 4,99,000 4,99,000Surplus of Profit and Loss Account 27,21,37,569 23,80,25,221

---------------------- ----------------------TOTAL 27,41,39,944 24,00,27,596

---------------------- ----------------------3. SECURED LOANS

Term Loans fromUnion Bank of India 5,69,06,893 8,20,78,094

Vehicle Finance fromKotak Mahindra Bank Limited 25,26,844 86,015

---------------------- ----------------------TOTAL 5,94,33,737 8,21,64,109

---------------------- ----------------------4. UNSECURED LOANS

Term loan from a Promoter 24,00,00,000 24,00,00,000---------------------- ----------------------

TOTAL 24,00,00,000 24,00,00,000---------------------- ----------------------

5. DEFERRED TAX LIABILITYDeferred Tax Liability

Difference in depreciation as per books and taxation 52,398,120 -Deffered tax Assets

Provision for doubtful debts (2,918,714) -Others (8,550,852) -

---------------------- ----------------------TOTAL 4,09,28,554 -

---------------------- ----------------------

PARTICULARS

19


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`


PARTICULARSAs at As at

31.3.2011 31.3.2010

` `

8. INVENTORIES (at cost)

(As valued and certified by the Managing Director)

Stock of Provisions 52,46,268 63,44,667

Stock of Wines and Liquor 36,70,734 35,33,266

Crockery, Cutlery, Carpets and Linen 15,85,738 9,97,732

Stock of Capital items 77,881 –

Stock of Maintenance Materials 1,63,88,943 1,14,84,888

------------------- -------------------

TOTAL 2,69,69,564 2,23,60,553

------------------- -------------------

9. SUNDRY DEBTORS (Unsecured)

Debts due over six months:

Considered good 2,26,67,955 1,95,00,493

Considered doubtful 87,86,678 2,17,04,832

Less: Provision for doubtful debts (87,86,678) (2,17,04,832)

Other Debts considered good 3,35,15,086 3,87,06,953

------------------- -------------------

TOTAL 5,61,83,041 5,82,07,446

------------------- -------------------

10. CASH AND BANK BALANCES

Cash in hand including cheques 8,47,966 18,08,265

Cash with Scheduled Banks

: in Current Accounts 75,57,666 64,88,800

: In Cash Credit Account 1,22,25,166 68,53,939

: in Fixed Deposits 1,36,14,830 36,14,830

Cheques and Drafts on hand 415,229 _

-------------------- --------------------

TOTAL 3,46,60,857 1,87,65,834

-------------------- --------------------

11. LOANS AND ADVANCES

(Unsecured, Considered good recoverable in cash or inkind or for value to be received)Advances for : Capital works 12,12,922 20,89,329 : Expenses 23,38,566 21,92,188Other Advances 46,70,769 42,36,705Deposits Recoverable 47,08,640 46,83,878Interest Accrued 4,54,748 1,73,341Prepaid Expenses 49,86,630 50,64,590Income Tax Refund Receivable 6,16,827 6,16,827Advance for Income Tax (Net of Provision) 71,97,856 1,26,48,027Advance for Fringe Benefit Tax (Net of Provision) – 5,287

--------------------- --------------------TOTAL 2,61,86,958 3,17,10,173

--------------------- --------------------

22


As at As at

31.3.2011 31.3.2010

` `

12. CURRENT LIABILITIES AND PROVISIONSa) Current Liabilities

Sundry CreditorsDues to Micro and Small Enterprises – –Dues to other than Micro and Small Enterprises 7,86,48,362 5,53,91,648

Other Liabilities 1,15,74,949 1,14,05,833Advances against Sales and Services 54,00,008 64,72,349Interest accrued but not due 2,80,80,000 3,56,60,286Deposits repayable 12,25,447 16,24,197

--------------------- --------------------TOTAL (a) 12,49,28,766 11,05,54,313

--------------------- --------------------b) Provisions

Provision for : Leave Encashment 18,52,905 25,09,108Gratuity – 83,41,232

--------------------- --------------------TOTAL (b) 18,52,905 1,08,50,340

--------------------- --------------------TOTAL (a+b) 12,67,81,671 12,14,04,653

--------------------- --------------------

13. INCOME FROM GUEST ACCOMMODATION,FOOD AND BEVERAGES AND OTHER SERVICES

Room Earnings 32,31,55,578 26,12,20,296

Food and Beverages 32,20,03,707 25,55,43,244

Wine and Liquor 2,30,19,439 1,94,91,456

Telex and Telephone 5,17,209 7,46,235

Banquets 46,04,667 45,76,082

Other Services 3,35,68,708 2,99,82,112

Special Events 1,34,98,616 66,30,451

Conference Supporting Services 2,93,86,627 1,61,42,968--------------------- ---------------------

TOTAL 74,97,54,551 59,43,32,844

--------------------- ---------------------

PARTICULARS

23

Current Year Previous Year

` `PARTICULARS


14. OTHER INCOME

Interest earned (Gross, Others) 5,02,723 22,16,687

(TDS: Current Year Rs. 45,783/-

Previous year Rs. 1,72,716/-)

Profit on sale of non trade Investments 62,20,999 38,12,713

Income from Non Trade Investments (gross) (TDS Nil) – 6,25,485

Miscellaneous Receipts 1,05,63,698 62,14,389

Rent Receipts 32,54,257 26,94,658

Excess provisions/Credit balances written back 3,76,117 17,23,359

Bad debts written off recovered 65 –

Profit on sale of Fixed Assets 62,141 6,04,869

Foreign exchange fluctuations 83,719 66,412

Excess provision for Gratuity written back 5,268,524 _

--------------------- ---------------------

TOTAL 2,63,32,243 1,79,58,572

--------------------- ---------------------

15. CONSUMPTION OF PROVISIONS AND WINES

Opening Stock of : Provisions, Beverages and Smokes 63,44,667 54,68,632

: Wine and Liquor 35,55,266 26,12,067

Add : Purchases of : Provisions, Beverages and Smokes 13,08,74,661 12,00,06,660

: Wine and Liquor 1,94,27,584 82,07,694

--------------------- ---------------------

16,01,80,178 13,62,95,053

Less: Closing Stock of : Provisions, Beverages and Smokes 52,46,268 63,44,667

: Wine and Liquor 36,70,735 35,33,266

--------------------- --------------------

15,12,63,175 12,64,17,120

Less : Internal Consumption 1,43,43,376 1,39,12,741

--------------------- ---------------------

TOTAL 13,69,19,799 11,25,04,379

--------------------- ---------------------

16. STAFF COST

Salaries, Wages and Bonus 17,03,28,787 14,73,30,064

Staff support by Associates 39,50,290 31,41,777

Welfare Expenses 1,65,30,513 1,56,68,089

Staff Conveyance 54,72,966 45,41,972

Contribution to provident and other funds 2,01,90,552 1,72,27,510

Gratuity 1,85,064 44,63,631

Staff Recruitment and Training 48,624 75,743

---------------------- ---------------------

TOTAL 21,67,06,796 19,24,48,786

---------------------- ---------------------


` `PARTICULARS

24



` `

17. OTHER OPERATING EXPENSES

Power, Fuel and Water 6,42,25,509 5,40,81,085

Rent 1,31,97,928 1,32,78,503

Linen, Room supplies and House Keeping 2,02,03,722 1,29,40,250

Crockery, Cutlery and other catering utilities 54,00,744 31,96,991

Repairs and Maintenance :

Buildings 1,26,12,700 1,33,06,678

Machinery 77,60,780 61,19,463

Other Assets 1,55,52,654 1,79,42,974

Payment to Artists and Other Event Expenses 5,69,32,470 3,11,41,565

Guest Transportation 85,99,445 69,24,048

Travel Agents’ Commission 9,82,110 18,35,736

Taxes and Licenses 60,86,864 58,00,027

Professional Charges 19,16,111 0,80,693

Miscellaneous Expenses 42,09,735 38,16,015

--------------------- ---------------------

TOTAL 21,66,80,772 17,14,64,028

--------------------- ---------------------

18. GENERAL EXPENSES

Rent 6,00,000 6,00,000

Rates and Taxes 36,70,413 20,93,800

Insurance 20,67,097 17,62,046

Printing and Stationery 38,04,900 36,38,842

Communications 16,99,428 17,21,602

Vehicle Maintenance 9,59,746 10,59,267

Travelling, Conveyance and Vehicle hire charges 41,27,068 24,25,850

Directors Sitting Fees 17,000 12,000

Auditors Remuneration :

as Auditors 3,03,325 2,75,750

for Tax audits 78,240 11,030

for Tax Matters – 25,000

for Management Services 16,545 16,545

for Certification 2,206 17,773

Advertisement, Publicity and other selling expenditure 1 01 42,821 93,81,079

Professional charges 24,98,925 21,33,620

Infrastructure Maintenance 59,77,108 57,54,670

General Charges 47,20,558 41,18,699

Bad Debts/Advances Written off 1,70,05,433 14,78,893

Loss on Sale of Assets 17,828 2,25,132

Expenses relating to earlier years 32,926 52,438

Donations 15,000 10,20,000

------------------- -------------------

TOTAL 5,77,56,567 3,78,24,036

-------------------- --------------------

PARTICULARS

25


19. ACCOUNTING POLICIES AND NOTES ON ACCOUNTS

A. Significant Accounting Policies :

a. The financial statements have been prepared to comply in all material respects with the

Notified accounting standards by Companies (Accounting Standards) Rules, 2006 (as

amended) and the relevant provisions of the Companies Act, 1956. The financial statements

have been prepared in accordance with the generally accepted Accounting Principles in

India under the historical cost convention on accrual basis, except in case of assets for which

provision for impairment is made and revaluation is carried out. The accounting policies are

consistent with those used in the previous year.

b. The preparation of financial statements requires the management of the company to make

certain estimates and assumptions that effect the reported balances of assets and liabilities

and disclosures relating to the contingent liabilities as at the date of the financial statements

and the reported amounts of income and expenditure during the year. Any revision to such

estimates is recognised prospectively in the year in which it is revised.

c. Fixed Assets are stated at cost net of accumulated depreciation and impairment losses if any.

Cost comprises the purchase price and all attributable costs to bring the asset to its working

condition for its intended use.

d. Depreciation on the assets is provided on straight line method on all assets, except construction

machinery, vehicles, office furniture and office equipment for which written down value

method is followed in accordance with Schedule XIV to the Companies Act, 1956.

Fixed Assets costing rupees Five thousand or less are fully depreciated in the year of acquisition.

Buildings constructed on lease hold land are depreciated over the Primary lease period.

Intangible assets are written off over their estimated useful life.

e. Current Investments are carried at lower of cost and market value.

f. Stock of Provisions, Stores, Wines, Crockery, Cutlery, Carpets and Linen are valued at direct

cost based on Weighted Average Method.

g. Crockery, Cutlery, Carpets and Linen issued to user departments is taken as consumption.

However, the base stock is capitalised.

h. Sales made in foreign currency are recognised at the prevailing applicable exchange rate.

Gain/Loss arising out of fluctuation in the exchange rate is accounted for on realisation.

i. Borrowing costs that are directly attributable to the acquisition, construction or production of

fixed assets are capitalised as part of the cost of that assets.

j. All contingent liabilities are indicated by way of a note and will be provided/paid on

crystalisation.

k. Employee Benefits are accounted for as follows as per the Accounting Standard 15.

i) Short term employee benefits such as wages, salaries, incentives, bonus and short

term earned leaves are fully provided.

ii) All other long term employee benefits such as earned leave are provided as per actuarial

valuation.

iii) Contributions to provident fund are remitted to Provident Fund Commissioner.

iv) Post employees benefits such as Gratuity is treated as defined benefit plan and accounted

as per actuarial valuation.

26


l. All capital grants / investment subsidies received from Governments are directly credited to

Capital Reserve.

m. All items of income/expenditure pertaining to prior period, which are material, are accounted

through “prior period adjustments” and the others are shown under respective heads of

account in the Profit and Loss Account.

n. Deferred tax asset and liability is calculated by applying the tax rate and tax laws that have

been enacted or substantially enacted by the balance sheet date. Deferred tax assets are

recognised and carried forward only to the extent that there is a reasonable certainty that

sufficient future taxable income will be available against which such deferred tax asset can

be realised.

o. Impairment loss is recognised whenever the carrying amount of an asset is in excess of its recoverableamount and the same is recognised as an expense in the statement of Profit and Loss and thecarrying amount of the asset is reduced to its recoverable amount.

Reversal of impairment losses recognised in prior years is recorded when there is an indication

that the impairment losses recognised for the asset are no longer exist or have decreased.

p. All the lease agreements entered into by the company both as lessee and lessor are only

operating leases. The payments made or the amounts received under such operating leases

are debited or credited as the case may be to profit and loss account on straight-line basis

over the lease period.

q. A provision is recognised when there is a present obligation as a result of past event and it

is probable that an outflow of resources will be required to settle the obligation, in respect

of which a reliable estimate can be made. Provisions are not discounted to its present value

and are determined based on best estimate required to settle the obligation at the balance

sheet date. These are reviewed at each balance sheet date and adjusted to reflect the

current best estimates.

B. Notes on Accounts

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 upto 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)

27


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

` 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. Details of total outstanding dues to Micro and Small Enterprises as per Micro, Small and

Medium Enterprises Act, 2006.

28

The principal amount and the interest due thereon (to be shownseparately) remaining unpaid to any supplier as at the end of eachaccounting year.

The amount of interest paid by the buyer in terms of Section 16,of the Micro, Small and Medium Enterprise Development Act, 2006along with the amounts of the payment made to the supplierbeyond the appointed day each accounting year.

The amount of interest due and payable for the period of delay inmaking payment (which have been paid but beyond the appointedday during the year) but without adding the interest specified underMicro, Small and Medium Enterprise Development Act, 2006.

The Amount of interest accrued and remaining unpaid at the endof each accounting year, and

The amount of further interest remaining due and payable evenin the succeeding years, until such date when the interest dues asabove are actually paid to the small enterprise for the purpose ofdisallowance as a deductible expenditure under Section 23 of theMicro, Small and Medium Enterprise Development Act, 2006.

Particulars Current Year Previous Year

` `

Nil Nil

Nil Nil

Nil Nil

Nil Nil

Nil Nil


12. 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.

13. Sundry debtors include dues from the following Companies which are under the same

management :

(`)

Company Due as on Due as on Maximum amount due

31-03-2011 31-03-2010 Current Year Previous Year

Ushakiron Movies

Limited - 11,37,343 - 78,31,802

Margadarsi MarketingPrivate Limited 13,918 7,475 13,918 7,475

Ushodaya ShippingPrivate Limited - 1,778 - 1,778

Margadarsi Chit Fund

Private Limited 10,642 - 10,642 -

Suman Advertising

Private Limited 2,798 1,576 2,798 1,576

Ramadevi Trust 12,56,677 10,44,835 12,72,993 10,44,835

14. Estimated amount of contracts remaining to be executed on Capital Account and not provided for

` 2,15,012 (Net of advances) (Previous year ` Nil)

15. Remuneration paid to Managing Director included in other heads of account (Minimum remuneration

as per Schedule XIII of the Companies Act, 1956)Current year Previous year

-------------------- --------------------` `

a) Remuneration 26,40,000 22,80,000b) Cost of perquisites and contributions 3,32,748 4,29,297

---------------- ----------------Total 29,72,748 27,09,297

---------------- ----------------

16. Contingent Liabilities not provided for on account of

Current year Previous year-------------------- --------------------

` `

a) Claims against the company not

acknowledged as debts : 5,09,16,395 3,73,75,332out of which the company hascounter 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

29


17. 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 ̀ 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.

18. Calculation of Earning per share Current Year Previous Year

a) Net Profit available to Equity Shareholders (`) 3,41,12,348 117,96,785

b) Weighted average Number of Equity Shares (Nos.) 6,99,200 6,99,200

c) Face value as per share (`) 10 10

d) Earning per share (Basic and diluted) (`) 48.79 16.87

30

19. Disclosure relating to the Gratuity (funded) liability as per Accounting Standard 15 “Employee Benefits”

(Amount in `)

Particulars 2010-11 2009-10

a) The amounts recognised in the Balance Sheet

Present Value of obligation 76,29,034 1,44,42,092

Fair value of plan assets 84,17,858 61,00,860

Net liability recognised in the Balance Sheet** (7,88,824) 83,41,232

**Excess fair value of plan assets not considered in the books

b) Changes in the present value of the defined obligation

Opening defined benefit obligation 1,44,42,092 1,13,55,408

Current service cost 19,78,116 10,50,573

Interest Cost 11,55,367 9,08,432

Benefits Paid (13,48,381) (18,52,968)

Actuarial (gain)/loss on obligation (85,98,160) 29,80,647

Closing defined benefit obligation 76,29,034 1,44,42,092

c) The amounts recognised in the Profit and Loss account

Current Service Cost 19,78,116 10,50,573

Interest Cost 11,55,367 9,08,432

Actuarial (gain)/loss on obligation (85,98,160) 29,80,647

Actual return on plan assets (5,92,671) (5,31,190)

Net benefit Expenditure Income (60,57,348) 44,08,462

d) Change in the Fair value of the plan assets

Plan assets at the beginning of the year 61,00,860 55,11,338

Actual return on plan assets 5,92,671 5,31,190

Benefits Paid (3,22,194) (3,86,499)

Contributions made 20,46,521 4,44,831

Plan assets at the end of the year 84,17,858 61,00,860

e) Principal Actuarial Assumptions

Rate of escalation in Compensation 4% 4%

Discount Rate 8% 8%

Attrition Rate 20% 7%

Retirement Age in years 58 58


31

20. 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” .

21. 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

(Amount in `)

b) Transactions with related parties during the year

2010-11 2009-10

i) Key Management Personnel

Sri Ramoji Rao - Chairman

Interest Paid 3,21,00,000 3,96,00,000

Director sitting fee 4,000 4,000

Smt. Ch. Vijayeswari - Managing Director

Remuneration 29,72,748 27,09,297

ii) Relatives of Key Management Personnel

Sri Ch. Kiron

Director Sitting Fee 1,000 2,000

The rate of escalation in compensation considered in the above valuation is estimated takinginto account inflation, seniority, promotion and other relevant factors and the above informationis certified by an actuary.


iii) Associated Enterprises

Colorama Printers Pvt. Ltd.

Purchase of Goods 6,51,282 5,25,365Services Rendered - 2,517

M S M S Pvt. Ltd.

Services availed 6,84,724 6,24,000

Suman Advertising Pvt. Ltd.

Services Rendered 2,798 1,576

Margadarsi Marketing Pvt. Ltd.

Services Rendered 8,83,009 17,452Royalty Paid 20,549 34,468

Margadarsi Chit Fund Pvt. Ltd.

Purchase of Goods 5,290 5,40,677Services Rendered 33,85,220 11,55,192Sale of Goods 46 1,459Services Availed 19,84,253 7,27,242

Margadarsi Housing Pvt. Ltd.

Rent Paid 3,00,000 3,00,000Services Rendered 1,243 -

Ushakiron Movies Limited

Sale of Goods 94,450 1,75,302Purchase of Goods 1,21,31,185 1,01,00,582Purchase of Fixed Assets 8,931 -Rent Received 22,72,899 24,56,935Rent Paid 70,62,834 69,96,486Services Rendered 1,48,34,396 2,28,36,572Services Availed 10,94,79,107 7,74,04,372Reimbursements received - 2,741

Ushodaya Enterprises Pvt. Ltd.

Purchase of Goods 1,02,85,140 1,54,97,019Rent Received 1,81,995 1,81,995Rent Paid 61,15,038 62,54,013Services Rendered 1,29,81,616 1,61,40,084Services Availed 89,59,221 32,68,387Reimbursements received - 50,504Sale of Goods 2,07,256 2,52,649

Business of Concerns of Ramoji Rao (HUF)

Sale of Goods 9,11,740 5,15,800Purchase of Goods 31,05,594 17,53,028Rent Received - 1,66,829Services Rendered 4,25,405 1,81,527Services Availed 3,81,637 3,93,653

Eenadu Relief Fund

Donation - 10,00,000

Ramadevi Trust

Services availed 2,28,158 -Sale of Goods 29,999 -

32


33

c) Year end Balances {due from / (due to)}

S.No. Particulars 2010-11 2009-10

` `

1. Margadarsi Chit Fund Pvt. Ltd. 10,642 (11,18,221)

2. Margadarsi Housing Private Ltd. (45,000) (2,58,606)

3. Usha Kiron Movies Ltd. (2,36,26,900) 27,17,229

4. Colorama Printers Pvt. Ltd. (3,20,995) (1,87,631)

5. Ushodaya Enterprises Pvt. Ltd. (25,59,451) (1,10,25,628)

6. Margadarsi Marketing Pvt. Ltd. 13,918 7,474

7. Ushodaya Shipping Private Ltd. - 1,778

8. Various Business Concerns of Ramoji Rao (HUF) (1,62,88,747) (1,71,62,241)

9. Suman Advertising Pvt. Ltd. 2,798 1,576

10. Sri Ramoji Rao (26,80,80,000) (27,56,60,286)

11. Ramadevi Trust 12,56,677 10,44,835

22. Details of Operating leases


` In lakhs ` in Lakhs

------------------ -------------------

a) Lease Payments debited to in the Accounts

i. Residential flats/quarters foraccommodation of employees 3.00 3.00

ii. Building for running a hotel 131.98 132.51

iii. Equipment for running a hotel - 3.00

iv. Office accommodation 6.00 6.00

b) Future minimum lease payments under noncancelable operating leases

i. Due not later than one year 135.90 123.99

ii. Due later than one year and not later than five years 128.11 135.90

iii. Due later than five years 3.64 -

23. 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.

24. 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.

25. Additional information as required to be given pursuant to the provisions of Part II of Schedule VI to the

Companies Act, 1956 :


34

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.

Current year Previous year

b) Value of Materials Consumed Percentage Value Percentage Value

% ` % `

Imported 1.60 34,52,902 0.49 7,86,303

Indigenous 98.40 21,25,00,840 99.51 15,99,03,434

TOTAL 100.00 21,59,53,742 100.00 16,06,89,737


` `

------------------ --------------------

c) Value of imports calculated on C.I.F. basis by

the company during the financial year in respect of:i) Capital goods 48,45,185 21,71,887ii) Components and spare parts 35,21,376 -

d) Expenditure in Foreign Currency 2,42,047 48,528on account of travelling other matters

e) Earnings in Foreign Exchange :

Hospitality Services 1,42,72,243 1,34,51,509

26. The other particulars required under part II of Schedule VI to the Companies Act, 1956 are not applicable

to the company.

27. Previous year’s figures have been regrouped and reclassified wherever necessary to make them comparable

with those of current year.

Per our report of even datefor BRAHMAYYA & CO.

Chartered AccountantsFirm’s Registration Number : 000513S

P. CHANDRAMOULI RAMOJI RAO CH. VIJAYESWARI

Partner Chairman Managing DirectorMembership No. 025211



BALANCE SHEET ABSTRACT AND COMPANY'S GENERAL BUSINESSPROFILE AS PER PART IV TO SCHEDULE VI TO THE COMPANIES ACT, 1956.

I. REGISTRATION DETAILS :Registration No. 1390State Code 01Balance Sheet Date 31-03-2011

II. CAPITAL RAISED DURING THE YEAR : (Amount ` in Thousands)Public Issue NilRights Issue NilBonus Issue NilPrivate Placement Nil

III. POSITION OF MOBILISATION ANDDEPLOYMENT OF FUNDS (Amount ` in Thousands)Total Liabilities 681494Total Assets 681494Sources of Funds :Share Capital (including Application Money) 66992Reserves & Surplus 274140Secured Loans 59434Unsecured Loans 240000Deferred Tax Liability 40928Application of Funds :Net Fixed Assets 491559Net Current Assets 17219Investments 172716Miscellaneous Expenditure –Accumulated Losses –

IV. PERFORMANCE OF COMPANY (Amount ` In Thousands)Turnover 749754Other Income 43267Total Expenditure 700960Profit before Tax 92060Profit after Tax 34112Dividend Rate % –Earning per share Rs. 49.79

V. GENERIC NAMES OF THREE PRINCIPALPRODUCTS/SERVICES OF THE COMPANY(AS PER MONETARY TERMS)Item Code No.

Not ApplicableITC CodeProduct Description Hotels and Restaurants

Place : Ramoji Film City, RAMOJI RAO CH. VIJAYESWARI

Date : 06.09.2011. Chairman Managing Director

}

35


NOTES


DOLPHIN HOTELS LIMITED“HOTEL SITARA”, RAMOJI FILM CITY, RANGA REDDY DISTRICT - 501 512.

PROXY

I / We ...............................................................................................................................................

of .....................................................................................................................................................

being a Member / Members of Dolphin Hotels Limited appoint ............................................................

(or failing him ....................................................................................................................................

of .....................................................................................................................................................

or failing him ....................................................................................................................................

of ...................................................................................................................................................

as my / our proxy in my / our obsence to attend and vote for me / us and on my / our behalf

at the 40th Annual General Meeting of the Company to be held on Friday, the 30th

September, 2011 or at any adjournment thereof.

AS WITNESS my hand / our hands this the .........................................................................................

day ............................................................ of 2011.

Signed by the said ........................................ ........................................................

Note : The Proxy must be deposited at the Registered Office of the Company at HOTEL SITARA,

Ramoji Film City, Ranga Reddy District - 501 512, not less than 48 hours before the

commencement of meeting.

PLEASE

AFFIX

REVENUE

STAMP✃

✃