1. CORPORATE INFORMATION
CHL Limited (‘the Company”) is a public limited company domiciled in India and is listed on Bombay Stock Exchange (BSE). The Company is operating a Five Star Deluxe Hotel since 1982, presently named as “The Suryaa” in New Delhi.
2. BASIS OF PREPARATION
Ministry of Corporate Affairs notified roadmap to implement Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standard) Rules, 2016 as amended by the Companies (Indian Accounting Standard) (Amendment) Rule 2016. As per said roadmap, the company is required to apply Ind AS starting from the financial year beginning on or after 1st April 2016.
For the period up to and including the year ended 31st March 2017, the company prepared its financial statements in accordance with the Accounting Standard notified under section 133 of the Companies Act 2013 read together with Companies (Accounts) Rules 2014. These financial statements for the year ended 31st March 2018 are the first, the company has prepared in accordance with Ind AS.
(a) The financial statements are prepared on a historical cost basis except certain financial assets and liabilities which have been measured at fair value, defined benefit plans and contingent consideration. Historical cost is generally based on the fair value of consideration in exchange of goods and services.
(b) The preparation of these financial statements in conformity with the recognition and measurement principle of Ind AS requires management to make judgement, estimates and assumption that affect the reported balances of assets and liabilities as at the date of financial statement.
(c) The financial statements comprise a profit and loss account (income statement), statement of comprehensive income, balance sheet (statement of financial position), statement of changes in equity, statement of cash flows, and notes. Income and expenses, excluding the components of other comprehensive income, are recognised in the profit and loss account. Other comprehensive income is recognised in the statement of comprehensive income and comprises items of income and expense, that are not recognised in the profit and loss account as required or permitted by Ind AS.
(d) The preparation of financial statements in conformity with Indian Accounting Standards requires the use of estimates and assumptions. It also requires management to exercise its judgement in the process of applying the accounting policies adopted by the company. Although such estimates and assumptions are based on the directors' best knowledge of the information available, actual results may differ from those estimates. The judgements and estimates are reviewed at the end of each reporting period, and any revisions to such estimates are recognised in the year in which the revision is made.
- Term Loan of Rs. 1500.00 lacs from Andhra Bank is repayable in equal installment within 7 years period and carry interest of 11.80% pa. Term Loan from Andhra Bank is secured by paripassu charge over entire fixed assets and exclusive charge on current assets.
- Foreign Currency Term Loan from Bank of Baroda (USD 5.00 million) is repayable in equal installment within 5 year period from 25-08-2016 and carry interest of LIBOR 3.25% p.a. Term Loan from Bank of Baroda is secured by paripassu charge over entire fixed assets.
- Loan against velicle obligations are secured by hypothecation of vehicles taken under hire purchare Lease. The loan is payable in equated monthly installments within 5 years period from the date of respective loan. The Finance Lease obligation includes amount financed by an NBFC for purchase of computers and repayable in 3 year form the date of respective loan in equated monthly statement.
**The Exim Bank had initiated the proceedings under IBC and filed a petition bearing no. CP IB - 392 (PB) / 2017 before Hon'ble National Company Law Tribunal (NCLT) against CHL Limited, being the Corporate Guarantor of the Loan. Though there was a dispute pending between CHL International before the Economic Court of Dushanbe. Vide order dated 11.01.2018 the NCLT dismissed the case filed by Exim Bank. Pursuant to the dismissal, the Exim Bank filed an appeal bearing No. Company Appeal (AT) (Insolvency) No. 51 of 2018 before Hon'ble Company Law Appellate Tribunal (NCLAT) and the same is pending adjudication
3. (i) Other advances are for business purposes and do-not carry interest.
(ii) Legal & Professional charges includes payment of auditors.
4. The Fixed Deposits are pledged with:
(i) Statutory Authorities - Rs.1.02 lacs (Rs. 1.02 lacs);
(ii) Against overdraft facilities - Rs 505.63 lacs (Rs. 475.00 lacs).
5. No depreciation has been provided on building, plant and machinery in NSEZ Noida as the same has not been put to use.
6. Lease rental on NSEZ Noida land has been paid. No Lease rental has been provided in financial statement in respect of Jaipur Land in the absence of any claim from the concerned authority.
7. Estimated amount of contracts remaining to be executed on capital account, net of advances:
In respect of the Company Rs.80 Lacs (previous year Rs. 1.07 lacs)
8. Debts due to or by the company, are generally unconfirmed by the parties and/or under reconciliation. In the opinion of the management the impact of adjustment on reconciliation is not likely to be significant.
9. In the opinion of the management, the assets of the company have a value on realization, in the normal course of business, at least equal to the amounts stated in the balance sheet.
10. MICRO AND SMALL ENTERPRISES
The company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act 2006 and hence disclosure relating to the amounts unpaid at the year end with interest paid/payable under this Act has not been given.
11. EMPLOYEES BENEFITS
Defined Contribution Plans
Retirement benefit in the form of provident fund, family pension fund and ESI is a defined contribution scheme.
Defined Benefit Plans
In accordance with Ind AS 19, actuarial valuation was done in respect of Gratuity and Compensated absence-Earned Leave.
12. Details of Consumption & Purchase
The company is not required to give quantitative and value wise information in respect of, consumption; turnover, stock etc. as the same is exempted vide circular No. SO301(E) dated 08-02-2011 issued by Ministry of Corporate Affairs, Government of India.
13. Amount transferred to Investor Education and Protection Fund as required under section 125 of the Companies Act 2013 - Rs 3.11 lacs (Previous Year Rs.2.95 lacs)
14. FINANCIAL RISK MANAGEMENT
The Company's financial risk management is an integral part of how to plan and execute the business strategies. The Company's financial risk management policy is set by the Managing Board.
i. Credit Risk
(a) Credit risk on trade receivables is managed by ensuring that credit is extended to customers with an established credit history. To manage this, the Company periodically assess the financial reliability of customer taking into account the credit history, past experience and other relevant factors. Individual risk limits are set accordingly. In respect of walk-in customers, the Company does not allow any credit period and therefore is not exposed to any credit risk.
(b) Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor falling to engage in a repayment plant with the Company and the debt is greater than 2 years past due. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable dues. When recoveries are made, these are recognize in profit or loss.
The Company believes that no impairment allowance is necessary in respect of above mentioned financial assets, considering the marketable value of debtors.
Balance with banks are subject to very low credit risk due to good credit rating assigned to these banks.
ii. Liquidity risk
Liquidity risk is the risk that the company will encounter difficulty in meeting obligations associated with financial liabilities.
The board has developed a risk management framework for the management of the company's short, medium and longterm liquidity requirements thereby ensuring that all financial liabilities are settled as they fall due. The company manages liquidity risk by continuously reviewing forecasts and actual cash flows, and maintaining banking facilities to cover any shortfalls.
iii. Capital Management
iv. For the purpose of the Company's capital management, capital includes issued capital and all other equity reserves. The primary objective of the Company's Capital Management is to maximize shareholder value. The Company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirement of the financial covenants.
The company monitors capital using gearing ratio, which is total debt divided by total capital plus debt.
15. FIRST TIME ADOPTION OF IND AS
These are the Company's first financial statement prepared in accordance with Ind AS.
Accounting policies set out in note 2 have been applied in preparing the financial statement for the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS balance sheet as at April 1, 2016 (date of transition to Ind AS). In preparing its opening Ind AS balance sheet, the company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standard) Rules, 2006 (as amended) and other relevant provisions of the Act.
Set out below the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind As.
A. Exemptions and exceptions availed A.1 Ind AS Optional exemptions
(a) Deemed Cost
Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all of the property, plant and equipment as recognised in the financial statements as at the date of transition to Ind As, measured as per Indian GAAP and use that as its deemed cost as at the date of transition. This exemption can also be used for intangible assets covered under Ind AS 38 Intangible Assets.
(b) Investment in subsidiary, joint venture and associates
Ind AS 101 permits a first time adopter to measure its investment in subsidiary at deemed cost, which should be either:
(i) Fair value at the entity's date of transition to Ind AS in its separate financial statement, or
(ii) Previous GAAP carrying amount at that date.
The Company has elected to measure in its separate financial statements all of its investment in subsidiary, joint venture and associates at their previous GAAP carrying amount on the date of transition.
(c) Classification and measurement of Lease Land
Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. This assessment has to be carried out at the inception of the contract or arrangement. Ind AS 101 provides an option to make this assessment on the basis of facts and circumstances existing at the time of transition to Ind AS, except where the effect is expected to be not material. The company has elected to apply this exemption for such contracts/arrangements.
A.2 Ind AS - mandatory exceptions
(a) Estimates
Estimates made under Ind AS as at April 1, 2016 are consistent with the estimates under previous GAAP.
(b) Classification and measurement of financial assets:
Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transaction to Ind AS
The company has classified all the financial assets on the basis of facts and circumstances that existed on the date of transition, i.e. April 1, 2016.
16. Segment Reporting:
The Company operates only in one reportable segment, i.e. Hospitality/Hotel Business.
17. Previous year's figures have been regrouped and rearranged wherever necessary to make it comparable with the Current Years figures. All figures have been rounded off to nearest lac rupee.
|