J Provisions, Contingent Liabilities and Contingent assets
a) Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event, 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. The expenses
relating to a provision are recognised in the Statement of Profit & Loss net of any reimbursement.
b) If the effect of time value of money is material, provisions are shown at present value of expenditure expected to be required to settle the obligation, by
discounting using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognized as a finance cost.
c) Contingent liabilities are possible obligations arising from past events and whose existence will only be confirmed by occurrence or non-occurrence of one
or more uncertain future events not wholly within the control of the Company, or present obligations where it is not probable that an outflow of resources
will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability. Contingent liabilities are not recognized
in the financial statements but are disclosed unless the possibility of an outflow of economic resources is considered remote.
d) Contingent Assets are not recognised but reviewed at each balance sheet date and disclosure is made in the Notes in respect of possible effects that
arise from past events and whose existence is confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within
the control of the Company and where inflow of economic benefit is probable.
K Fair Value measurement
a) The Company measures financial instruments at fair value at each balance sheet date.
b) Fair value is the price that would be received on selling an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date in the principal or, in its absence, the most advantageous market to which the Company has access at that date.
c) While measuring the fair value of an asset or liability, the Company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure the fair value using observable market data as far as possible and minimising the use of unobservable inputs. Fair
values are categorised into 3 levels as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices that are observable for the assets or liability, either directly (i.e. as prices for similar item) or indirectly (i.e. derived
from prices)
Level 3: inputs that are not based on observable market data (unobservable inputs)
L Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Financial assets
Initial recognition and measurement
All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction
costs that are attributable to the acquisition of the financial asset.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in the following categories
Financial Assets at amortised cost
Financial assets at fair value through profit or loss (FVTPL)
Financial Assets at amortised cost
A financial assets is measured at the amortised cost if both the following conditions are met:
a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows,
and
b) Contractual terms of the asset give rise on specified dates to cash flows, if any, that are solely payments of principal and interest, if applicable
(SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised
cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR
amortisation is included in finance income in the profit or loss. The losses arising from impairment are recognised in the profit or loss. This category
generally applies to trade and other receivables.
Financial assets which are considered as receivable on demand at any time, are not discounted on initial recognition and on subsequent measurement.
Financial assets at FVTPL
Any financial asset, which does not meet the criteria for categorization as at amortized cost is classified as at FVTPL.
Equity investments in subsidiaries
Investment in subsidiaries are accounted for at cost in standalone financial statements.
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e. removed from
the balance sheet) when:
a) rights to receive cash flows from the asset have expired, or
b) The company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full
without material delay to a third party under a 'pass-through' arrangement? and either (a) the company has transferred substantially all the risks
and rewards of the asset, or (b) the company has neither transferred nor retained substantially all the risks and rewards of the asset, but has
transferred control of the asset.
When the company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to
what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of
the asset, nor transferred control of the asset, the company continues to recognise the transferred asset to the extent of the company's continuing
involvement. In that case, the company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis
that reflects the rights and obligations that the company has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset
and the maximum amount of consideration that the company could be required to repay.
Financial liabilities
Initial recognition and measurement.
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, as
appropriate. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable
transaction costs. The Company's financial liabilities include trade and other payables, loans and borrowings.
Subsequent measurement
Financial liabilities are measured subsequently at fair value through profit or loss.
Loans and borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method.
Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR
amortisation is included as finance costs in the statement of profit and loss.
This category generally applies to borrowings.
Financial liabilities which are considered as repayable on demand at any time, are not discounted on initial recognition and on subsequent measurement.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is
replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange
or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying
amounts is recognised in the statement of profit or loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to
offset the recognised amounts and there is an intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously.
M Classification of Assets and Liabilities as Current and Non-Current:
All assets and liabilities are classified as current if they are expected to be realised / settled within twelve months after the reporting period. All other
assets and liabilities are considered as non-current.
N Impairment
Financial Assets
Loss allowance for expected credit losses is recognised for financial assets. The Company recognises life time expected credit losses for all trade
receivables that do not constitute a financing transaction. For financial assets whose credit risk has not significantly increased since initial recognition, loss
allowance equal to twelve months expected credit losses is recognised. Loss allowance equal to the lifetime expected credit losses is recognised if the
credit risk on the financial instruments has significantly increased since initial recognition.
Non-financial Assets
At each Balance Sheet date, an assessment is made of whether there is any indication of impairment. If any indication exists, or when annual impairment
testing for an asset is required, the Company estimates the asset's recoverable amount. An asset's recoverable amount is the higher of the asset's or
Cash-Generating Unit's (CGU) fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual asset, unless the
asset does not generate cash inflows that are largely independent of those from other assets or groups of assets.
When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable
amount.
O Taxes on Income
Current Tax
Income-tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws
used to compute the amount are those that are enacted or substantively enacted, by the end of reporting period.
Deferred tax
Deferred tax (both assets and liabilities) is calculated using the balance sheet method on temporary differences between the tax bases of assets and
liabilities and their carrying amounts for financial reporting purposes at the reporting date.
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred
tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the
carry forward of unused tax credits and unused tax losses can be utilised. The amount of deferred tax assets is reviewed at each reporting date.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled,
based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and
the deferred taxes relate to the same taxable entity and the same taxation authority.
Current tax and Deferred Tax items are recognised in correlation to the underlying transaction either in the Statement of Profit & Loss, other comprehensive
income or directly in equity.
P Earnings per share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number
of equity shares outstanding during the period.
Diluted earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders and the weighted average
number of shares outstanding during the period, adjusted for the effect of all dilutive potential equity shares.
Q Cash and Cash equivalents
Cash and cash equivalents include cash at bank, cash, cheques and draft on hand. The Company considers all highly liquid investments with a remaining
maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.
R Cash Flows
Cash flows are reported using the indirect method, where by net profit before tax is adjusted for the effects of transactions of a non-cash nature, any
deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash
flows. The cash flows from operating, investing and financing activities are segregated.
S Government Grants
Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied with.
When the grant relates to an expense item, it is recognised as income on a systematic basis over the periods that the related costs, for which it is
intended to compensate, are expensed. When the grant relates to an asset, it is treated as deferred income and released to the statement of profit and
loss over the expected useful lives of the assets concerned.
NOTE ‘37' - A. CONTINGENT LIABILITIES:
i Bank Guarantees given to the extent of Rs. 7 lacs (previous year Rs. 7 lacs).
ii In the matter of VAT demand, interest and penalty aggregating to Rs. 48.69 lacs for the year 2010-11, the Company is hopeful of getting the orders in its
favour and hence has not made provision for the same in the financial statements.
Note: Commitments which are material and which will result in a penalty disproportionate to the benefits involved, based on the judgment of the management
are only disclosed.
NOTE ‘38' - RETIREMENT BENEFIT:
Disclosure pursuant to Indian Accounting Standard -19 (Revised) “Employee Benefits”:
The Company has classified the various benefits provided to employees as under:
a Defined Contribution Plans:
The company has recognized contribution to Provident & other funds of Rs.51.97 lacs in the Profit & Loss Account for F.Y.2024.25 (Rs.43.89 lacs for
F.Y.2023-24).
46. Amounts if any due to Micro, Small and Medium Enterprises under Micro, Small and Medium Enterprises Development Act, 2006 could not be
disclosed as such parties could not be identified from the records of the Company.
47. The Company does not have any asset whose useful life if different from the significant part of that asset.
48. (i) Due to brought forward losses of earlier years, no provision for current tax has been made.
(ii) Excess provision for tax of earlier years has been reversed based on the assessment / appellate orders received.
49. Current and non-current classification of assets and liabilities in the balance sheet has been made based on the professional judgment of the
management.
50. Hospitality business is the Company's only business segment and hence disclosure of segment-wise information is not applicable under Ind AS 108
- Operating Segments.
51. The Company has an investment in the equity shares of Graviss Catering Private Limited, a subsidiary, with a share capital of Rs.7.65 lacs and has
also granted interest free loans to the said subsidiary of Rs.360.62 lacs. The accumulated losses of the said subsidiary exceed its net worth. In the
opinion of the management, having regard to the long term interest of the Company in the said subsidiary and considering that the subsidiary will be
able to get regular orders of decoration and earn sufficient margin to meet the fixed costs, there is no diminution in the value of investments and the
Company is also hopeful of recovering the loan.
52. The Company has an investment in the equity shares of Graviss Hotels and Resorts Limited, a subsidiary, with a share capital of Rs.5.00 lacs and
also has granted interest free loan to the said subsidiary of Rs.2,894.24 lacs. The accumulated losses of the said subsidiary exceed its net worth. The
said subsidiary had purchased lands at various places for developing hotels. Due to change in the business plans, the subsidiary is exploring to sell
these lands. In the assessment of the management, the market value of the lands acquired would be more than the original cost and hence there is
no diminution in the value of investment and company is also hopeful of recovering the loan.
53. During the year under consideration, the company has acquired 100% equity shares of Graviss Restaurants Private Limited (GRPL), which is into the
business of managing and running restaurants, cafes clubs etc. The Company has an investment in the equity shares of GRPL with a share capital
of Rs.1.00 lacs and also has granted interest free loan to the said subsidiary of Rs.209.50 lacs. The accumulated losses of the said subsidiary
The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits to
control / monitor risks and adherence to limit. Risk management policies and systems are reviewed regularly to reflect changes in market conditions
and the Company's activities.
The Audit Committee overseas how management monitors compliance with the company's risk management policies and procedures, and reviews
the adequacy of the risk management framework in relation to risks faced by the Company. The Audit Committee is assisted by internal audit.
Internal audit undertakes reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.
The Company's financial risk management is an integral part of how to plan and execute its business strategies. The Company's financial risk
management policy is approved by the Board of Directors.
Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations,
and arises principally from the Company's receivables.
Trade receivables: 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.
The following table provides information about the exposure to credit risk and measurement of loss allowance using Life time expected credit loss for
trade receivables:
Cash and cash equivalents:
The Company held cash and cash equivalents of Rs 129.90 lacs as at 31 March 2025 (31 March 2024 - Rs.137.78 lacs). The cash and cash
equivalents are held with reputed banks.
Liquidity Risk:
Liquidity risk refers to the risk that the Company cannot meet its financial obligations on time. The objective of liquidity risk management is to
maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Management is responsible for liquidity funding as
well as settlement management. In addition, processes and policies related to such risks are overseen by management.
The following table shows a maturity analysis of the anticipated cash flows for the Company's non-derivative financial liabilities on an undiscounted
basis, which therefore differ from both carrying value and fair value.
Market Risk:
Market risk is the risk that changes in market price such as foreign exchange rates, interest rates and commodity prices, will affect the Company's
income or value of its financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency
receivables and payables, long term debt and commodity prices. The Company is exposed to market risk primarily related to foreign exchange rate
risk, interest rate risk and commodity price risk.
Interest rate risk:
Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair
values of fixed interest bearing investments because of fluctuations in the interest rates, in cases where the borrowings are measured at fair value
through the Statement of profit and loss. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will
fluctuate because of fluctuations in the interest rates.
Sensitivity analysis:
A reasonably possible strengthening of the Indian Rupees against USD at March, 31 by Rs. NIL would have positive impact (before tax) by Rs
NIL and Rs NIL for the net outstanding balance as on 31-03-2025 and 31-03-2024 respectively. Similarly a reasonably possible weakening of the
Indian Rupee against USD would have a negative impact (before tax) by same amounts.
Capital Management
For the purpose of the Company's capital management, capital includes issued capital, convertible instruments and reserves. The primary
objective of the Company's Capital Management is to maximise shareholder value. The company manages its capital structure and makes
adjustments, if any, required in the light of the current economic environment and other business requirements.
NOTE ‘59' - LEASES:
(a) Right of Use Assets
The Company has leases for Building. With the exception of short-term leases and leases of low-value underlying assets, each lease is reflected on
the balance sheet as a right-of-use asset and a lease liability. The Company classifies its right-of-use assets in a consistent manner to its Property,
plant and equipment.
Each lease generally imposes a restriction that, unless there is a contractual right for the Company to sublease the asset to another party, the right-
of-use asset can only be used by the Company.
61. The date of implementation of the Code on Social Security, 2020 ('the Code') relating to employee benefits is yet to be notified by the Government
and when implemented will impact the contributions by the Company towards benefits such as Provident Fund, Gratuity etc. The Company will assess
the impact of the Code and give effect in the financial statements when the Code and Rules thereunder are notified.
62. Recent accounting pronouncements:
Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards)
Rules as issued from time to time. During the year ended March 31, 2025, MCA has notified Ind AS 117 - Insurance Contracts and amendments to
Ind AS 116 - Leases , relating to sale and lease back transactions, applicable from April 1, 2024. The Company has assessed that there is no
significant impact on its financial statements.
On May 9, 2025, MCA notifies the amendments to Ind AS 21 - Effects of Changes in Foreign Exchange Rates. These amendments aim to provide
clearer guidance on assessing currency exchangeability and estimating exchange rates when currencies are not readily exchangeable. The amendments
are effective for annual periods beginning on or after April 1, 2025. The Company is currently assessing the probable impact of these amendments on
its financial statements.
63. Additional disclosure under the regulatory requirements:
(a) Title deeds of immovable properties not held in the name of the Company:
The title deeds, comprising all the immovable properties of land and buildings, are held in the name of the Company as at the balance sheet
date.
(b) Reconciliation of quarterly returns / statements submitted to the banks with the books of accounts:
The company has obtained Overdraft facility from bank against security of current assets. However, as per the terms of the sanction of facility,
no quarterly return or statement of current assets is required to be filed by the company with banks.
(c) The Company has used funds borrowed for the specific purposes only for the purposes which it has been borrowed.
(d) With reference to Borrowings as per financial statements for the year ended March 31, 2025, we confirm that all material charges created/
satisfied during FY 2024-25 have been registered with the Ministry of Corporate Affairs.
(e) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with
the understanding (whether recorded in writing or otherwise) that the Intermediary shall:
i. 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
ii. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(f) The Company has 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:
i. 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
ii. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
(g) There is no proceeding which has 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.
(h) The Company is not declared wilful defaulter by any bank or financial institution or other lender.
(i) The Company has not applied for any scheme of arrangement u/s 230 to 237 of Companies Act, 2013.
(j) The Company does not have any transaction not recorded in the books of accounts that has been surrendered or disclosed as income during
the year in the tax assessment under the Income Tax Act, 1961.
(k) The Company have not traded or invested in Crypto currency or Virtual Currency during the year.
(l) The company has not granted any loans or advances in the nature of loan to promoter, director, KMP
65. Previous year figures:
Previous year's figures have been reclassified / regrouped wherever necessary to conform to current year's classification / grouping. Figures in
brackets are in respect of the previous year.
Signature to Notes 1 to 65
As per our separate report of even date For and on behalf of the Board of Directors of
For A.T. Jain & Co. Graviss Hospitality Limited
Chartered Accountants
Firm Registration No. 103886W Sd/- Sd/-
ROMIL RATRA GAURAV GHAI
Sd/- Whole Time Director Managing Director
MAHESH RAJORA (DIN:06948396) (DIN:00074857)
Partner (Membership No. 132052)
Sd/- Sd/-
Place: Mumbai F.L. GOYAL JALPA H. SALVI
Dated: May 22, 2025 Chief Financial Officer Company Secretary
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