Annual Report Cover Page - Fhrai India · PDF file · 2017-11-14notes: 1. a member entitled to attend and vote at the annual general meeting is entitled to appoint a proxy to attend

The Federation of Hotel & Restaurant Associations of India President : K. Syama Raju CIN-U55100DL1955NPL002587 Member of Honour : Dr. Ajit B. Kerkar Hony. Secretary : Vivek Nair Hony. Treasurer : K. Murali Rao Vice President : Garish Oberoi Jt. Hony. Secretary : Ashoke Singh Vice President : T. S. Walia Jt. Hony. Secretary : Surendra K. Jaiswal Vice President : Dilip C. Datwani Secretary General : Amitabh Devendra

Regd. Office: B-82, 8th Floor, Himalaya House, 23 Kasturba Gandhi Marg, New Delhi - 110 001 Phones: (011) 40780780 Fax: (011) 40780777 E-Mail: [email protected] Website: www.fhrai.com

NOTICE OF 61st ANNUAL GENERAL MEETING

Dear Members,

NOTICE is hereby given that the 61st Annual General Meeting of the members of The Federation of

Hotel and Restaurant Associations of India will be held at 2.30 p.m. on Saturday, 23rd day of

September, 2017 at Le Meridien Hotel, Windsor Place, New Delhi–110001, Tel.: 011-23710101

Fax: 011-23715454 to transact the following businesses:

ORDINARY BUSINESS

ITEM NO.1: ADOPTION OF FINANCIAL STATEMENTS

To receive, consider and adopt the audited financial statements of the Federation for the financial year

ended on 31st March, 2017, including audited balance sheet and Statement of Income and Expenditure

for the year ended on 31st March 2017 together with the report of the Executive Committee and

Auditors thereon.

ITEM NO.2: RATIFICATION FOR APPOINTMENT OF AUDITORS

To consider & if thought fit to ratify the appointment of M/s. Walker Chandiok & Co., LLP,

Chartered Accountants as the statutory auditor of the Federation and to fix their remuneration.

“RESOLVED THAT, pursuant to the provisions of Section 139 & Section 141 and other applicable

provision of Companies Act, 2013 and rules framed thereunder, the Federation hereby rectify

appointment of M/s Walker Chandiok & Co. LLP, Chartered Accountant, New Delhi having firm

Registration No. 001076N/N500013”.

FURTHER RESOLVED THAT, the Executive Committee of the Federation be and is hereby

authorised to take such steps as may be necessary in this regard”.

ITEM NO.3: ELECTION OF MEMBERS OF THE EXECUTIVE COMMITTEE IN

PLACE OF RETIRING MEMBERS

SPECIAL BUSINESS

ITEM NO.4: TO APPROVE ALTERATION IN ARTICLES OF ASSOCIATION

OF COMPANY (FHRAI)

To consider and if thought fit, to pass with or without modification(s) the following resolution as a

Special Resolution

“RESOLVED that pursuant to the provisions of Section 14, and other applicable provisions, if any,

of the Companies Act, 2013 (“Act”) and Rules framed thereunder subject to the provisions of

Memorandum and Article of Association (“MOA & AOA”) of the Federation, the consent of the

Members be and is hereby accorded to amend Point IV of Appendix A, as annexed with the AOA of

the Federation in the following manner:

The sub clauses ( b) & ( c ) of point IV of the Appendix A and proviso to said sub clause (c) shall be

deleted as there is no change in Point IV (a) & shall be remain as given below:

Point IV (a)

At least 14 days before each annual general meeting the Secretary shall invite nominations to the

Committee from the organisation Members. The nominations shall be sent to the Secretary by such

date and time and at such address as may be specified by him. Point IV (a) shall be substituted as

point IV.

RESOLVED FURTHER THAT, amended copy of FHRAI Memorandum & Articles of

Association as placed before the meeting be and is hereby approved and adopted;

RESOLVED FURTHER THAT, President/Hony. Secretary be and is hereby authorized to sign

and file all the relevant forms, documents, returns with appropriate authority as may be required to

give effect the aforesaid resolution of the Company and to make such alteration, amendment or

changes in the Articles of Associations of FHRAI as may be directed by the statutory authority”.

By order of the Executive Committee

Amitabh Devendra Secretary General Place: New Delhi Date: 29thAugust, 2017

Regd. Office: B-82, 8th Floor, Himalaya House, 23 Kasturba Gandhi Marg, New Delhi - 110 001 Phones: (011) 40780780 Fax: (011) 40780777 E-Mail: [email protected] Website: www.fhrai.com

EXPLANATORY STATEMENT PURSUANT TO SECTION 102 OF COMPANIES ACT

2013

Clause (b) & (c) of Item No. IV of the Appendix A annexed to the AOA of the Federation provides

as under:

b) The retiring members of the Executive Committee shall be eligible for re-nomination to the Committee by the

Regional Organisation Member for more than 11 (Eleven) terms making a total of 12 terms in his lifetime.

c) An Executive Committee Member who has a member of the Committee for a period of 8 terms continuously

shall automatically cease to be member and shall not be eligible for re-nomination to the Executive committee

for a period of 2 terms thereafter

Provided that upon the expiry of the said period of 2 terms a person may once again be re-nominated to the executive

Committee for an additional maximum period of 4 terms only.

As per above provisions maximum tenure of an Executive Committee Member can be of 12 terms

with a mandatory cooling off period of 2 years after completion of Eight consecutive Terms.

The Federation inserted existing clauses (b) & (c) in the year 2010 by altering its Article of

Association, with a view to avail the services and advice of other members which may put the

Federation on the path of growth and a prosperous organization. However, with the passage of time it

has been felt that continuous association of some Executive Committee Members is necessary for the

prosperity and growth of the Federation but existence of the provisions in appendix put a restriction

on re-nomination of the Executive Committee Members who have completed their respective terms

as specified therein. This may adversely affect the organizational and managerial structure of the

Federation as their presence in the management has contributed towards the growth and prosperity of

the Federation. And in the view of all the members of the Executive Committee, the Federation still

needs the guidance & supports of exiting managerial personnel who may get disqualified due to above

said clauses.

In the view of the above reason, it has been decided to amend the Appendix A annexed to AOA in

order to delete the clause (b) & (c ) of IV of Appendix A. As per Section 14 of the Companies Act

2013 read with Rules made thereunder the said amendment in articles require approval of the

members of Federation by way of Special Resolution. Therefore, the resolution stated in the Item 1 of

the Notice of Extra Ordinary General Meeting is recommended for your kind consideration and

approval.

None of the member or any key managerial personnel of the Federation or their relatives have any

interest in above resolution.

NOTES:

1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE ANNUAL GENERAL MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE ON A POLL INSTEAD OF HIMSELF AND THE PROXY NEED TO BE A MEMBER OF THE FEDERATION. PROXY FORM ATTACHED. THE INSTRUMENT APPOINTING THE PROXY SHOULD, HOWEVER, BE DEPOSITED AT THE REGISTERED OFFICE OF THE FEDERATION NOT LESS THAN FORTY-EIGHT HOURS BEFORE THE COMMENCEMENT OF THE MEETING.

2. Organizational members are requested to send to the Federation, a duly certified copy of nomination of delegates, authorizing him to attend and vote at the Annual General Meeting.

3. As a measure of economy and a step toward green initiative, Members are requested to bring their copy of Annual Report to the meeting. Members/ Proxies should bring the attendance slip duly filled in and signed for attending the meeting.

4. The Notice of AGM, Annual Report and Attendance Slip are being sent in electronic mode to Members whose e-mail IDs are registered with the Federation. Physical copy of the Notice of AGM, Annual Report and Attendance Slip are being sent to those Members who have not registered their e-mail IDs with the Federation. Members who have received the Notice of AGM, Annual Report and Attendance Slip in electronic mode are requested to print the Attendance Slip and submit a duly filled in Attendance Slip at the registration counter to attend the AGM.

5. All 24 Members of the Executive Committee (6 Members from each of the four Regional Associations) are elected every year on the basis of nominations received from each regional associations Viz. Eastern Region, Northern Region, Western Region and Southern Region. Members are hereby informed that Federation has received nominations from Eastern and Northern Region only and Nominations from other regions has not been received till the date of issue of notice as these regions are yet to hold their Annual General Meeting. Therefore, only the nominations as received by the Federation till the date of notice from the Eastern Region and Northern Region is being enclosed herewith and other nominations shall be available for inspection at the registered office of the federation as and when received and shall also be hosted at the website of the Federation.

6. Nominations and Election of the Executive Committee Members shall be in accordance with the provision contained in Para II & III of Appendix ‘A’ of the Articles of Association of the Federation.

7. Pursuant to Section 108 of the Companies Act, 2013, read with the relevant Rules of the Act, the Federation is pleased to provide the facility to Members to exercise their right to vote by electronic means. The e-voting period will commence at 09.00 A.M. on Wednesday, 20th day of September, 2017 and will end at 5.00 P.M. on Friday, 22nd day of September, 2017. The Federation has appointed Mr. Yashlok Dubey a Practicing Company Secretary to act as the Scrutinizer, for conducting the scrutiny of the votes cast.

8. The facility for voting through ballot will also be made available at the AGM, and members attending the AGM who have not already casted their vote by remote e-voting will be able to exercise their right at the AGM. Members who have not cast their vote electronically, by remote e-voting shall only cast their vote at the AGM through ballot paper.

9. All documents referred to in the Notice are open for inspection at the Registered Office of the Federation and copies thereof shall also be made available for inspection in physical or

electronic form at the Registered Office of the Federation during office hours on all working days, Monday to Saturday between 10.00 A.M. to 6.00 P.M. and inclusive of the date of the Annual General Meeting.

The instructions for members for remote e-voting are as under:-

1. The Notice of the 61st Annual General Meeting (AGM) of the Federation inter-alia indicating the process and manner of e-Voting is being sent to all the Members.

2. NSDL shall be sending the User ID and Password to those Members whose e-Mail addresses are registered with the Federation. For Members who have not registered their e-Mail address, can write to the Federation at [email protected] for getting User ID and Password.

3. Open email and open PDF file viz; “The Federation of Hotel & Restaurant Association of India e-voting.pdf” with your Membership Code as password. The said PDF file contains your user ID and password /PIN for e-voting. Please note that the password is an initial password.

4. Launch internet browser by typing the following URL:https://www.evoting.nsdl.com

5. Click on Shareholder – Login

6. Put User ID and Password as provided in this document and click Login. If you are already registered with NSDL for e-Voting then you can use your existing User ID and Password for the Login.

7. If you are logging in for the first time, the Password change menu will appears. Change the password/PIN with new password of your choice with minimum 8 digits/ characters or combination thereof. Note new password. It is strongly recommended not to share your password with any other person and take utmost care to keep your password confidential.

8. Once the home page of e-voting opens. Click on e-voting: Active Voting Cycles.

9. Select “EVEN (Electronic Voting Event Number)” of The Federation of Hotel & Restaurant Associations of India (FHRAI).

10. Now you are ready for remote e-voting.

11. Cast your Vote by selecting appropriate option and click on “Submit” and also “Confirm” when prompted.

12. Upon confirmation, the message “Vote cast successfully” will be displayed.

13. Once you have voted on the resolution, you will not be allowed to modify your vote.

General Instructions:

1. In case of any queries, you may refer the Frequently Asked Question (FAQs) for Members and e-voting user manual for Members available to the Downloads section of https://www.evoting.nsdl.com

2. You can also update your mobile number and e-mail id in the profile details of the folio which may be used for sending future communication (s).

3. The e-voting period commences on Wednesday, 20th day of September, 2017 (09:00 A.M.) and ends on Friday, 22nd day of September, 2017 (05:00 P.M.). During this period Members of the Federation, as on the cut-off date i.e. Saturday, 16th day of September, 2017, may cast their vote

electronically. The e-voting module shall be disabled by NSDL for voting thereafter. Once the vote on a resolution is cast by the Members, the Members shall not be allowed to change it subsequently.

4. Since the Federation is required to provide members facility to exercise their right to vote by electronic means, Members of the Federation, as on the cut-off date of Saturday, 16th day of September, 2017 and not casting their vote electronically, may only cast their vote at the 61st Annual General Meeting.

5. Mr. Yashlok Dubey, a Practicing Company Secretary having certificate of practice number 14742 has been appointed as the Scrutinizer to scrutinize the e-voting process in a fair and transparent manner.

6. The Scrutinizer shall immediately after the conclusion of voting at the AGM, first count the voting cast at the meeting, thereafter unblock the votes cast through remote e-voting in the presence of at least two (2) witnesses not in the employment of the Federation and make a Consolidated Scrutinizer’s Report of the votes cast in favour or against, if any, and to submit the same to the Chairman of the AGM not later than three working days from the conclusion of the AGM.

7. The Results shall be declared forthwith after the submission of Consolidated Scrutinizer’s Report either by President of the Federation or by any person authorized by him in writing and the resolutions shall be deemed to be passed on the AGM date subject to receipt of the requisite number of votes in favour of the Resolutions.

8. The Results declared along with the Scrutinizer’s Report(s) will be available on the website of the Federation www.fhrai.com and on the website of NSDL immediately after the declaration of the results by the Chairman.

By order of the Executive Committee

Amitabh Devendra Secretary General Place: New Delhi Date: 29th August, 2017

Enclosures:

1. Audited Annual Accounts for the year ended 31st March, 2017 together with the reports of the Executive Committee and the Auditors thereon.

2. List of retiring Executive Committee Members

3. List of Nominations received from Eastern, Northern and Western Region for the FHRAI Executive Committee in place of the retiring members.

MEMBERS OF THE EXECUTIVE COMMITTEE

RETIRING AT THE ENSUING ANNUAL GENERAL MEETING

Eastern India Region Mr. Tejinder Singh Walia Mr. Vinaay Malhotra Mr. Ashoke Singh Mr. Sudesh Kumar Poddar Mr. Pranav Singh Mr. Souvagya Kumar Mohapatra

Western India Region Mr. Bharat H. Malkani Mr. Dilip C. Datwani Mr. Vivek Nair Mr. Gurbaxish Singh Kohli Mr. Pradeep Shetty Mr. Nirav V. Gandhi

South India Region Mr. M.P. Purushothaman Mr. K. Syama Raju Mr. K. Murali Rao Mr. T. Nataraajan Mr. K. Nagaraju Mr. DVS Somaraju

Northern India Region Mr. Sanjay Sood Mr. Luv Malhotra Mr. S. M. Shervani Mr. Rajindera Kumar Mr. Garish Oberoi Mr. Surendra Kumar Jaiswal

NOMINATIONS RECEIVED FROM THE REGIONS FOR THE FEDERATION OF HOTEL & RESTAURANT ASSOCIATIONS OF INDIA (FHRAI) EXECUTIVE COMMITTEE IN PLACE OF THE RETIRING MEMEBRS AT THE ENSUING ANNUAL GENERAL MEETING

Northern India Region Mr. Sanjay Sood Mr. Surendra Kumar Jaiswal Mr. Garish Oberoi Mr. Rajindera Kumar Mr. Amarvir Singh Maharaj Kumar Lakshyaraj Singh Mewar Eastern India Region Mr. Tejinder Singh Walia Mr. Ashoke Singh Mr. Sudesh Kumar Poddar Mr. Vijay Dewan Mr. Pranav Singh Mr. Souvagya Kumar Mohapatra Western India Region Mr. Bharat H. Malkani Mr. Dilip C. Datwani Mr. Vivek Nair Mr. Gurbaxish Singh Kohli Mr. Nirav V. Gandhi Mr. Sherry K. Bhatia

The Federation of Hotel & Restaurant Associations of India CIN-U55100DL1955NPL002587

Regd. Office: B-82, 8th Floor, Himalaya House, 23 Kasturba Gandhi Marg, New Delhi - 110 001 Phones : (011) 40780780, Fax : (011) 40780777, E-Mail : [email protected], Website : www.fhrai.com

Form No. MGT-11

Proxy form [Pursuant to section 105(6) of the Companies Act, 2013 and rule 19(3) of the Companies

(Management and Administration) Rules, 2014)

We, being the member of the above named company, hereby appoint:-

Or failing him/her

Or failing him/her

3. Name

Address:

E-mail Id:

Signature …………………………………..

CIN CIN-U55100DL1955NPL002587

Name of the company The Federation of Hotel & Restaurant Associations of India

Registered office

Regd. Office: B-82, 8th Floor, Himalaya House, 23 Kasturba Gandhi Marg,

New Delhi - 110 001

Phones : (011) 40780780, Fax : (011) 40780777

1. Name

Address:

E-mail Id:

2. Name

Address:

E-mail Id:

Signature …………………………………..

our proxy to attend and vote (on a poll) for us and on our behalf at the 61st Annual General Meeting

of the Federation, to be held at 2.30 P.M. on Saturday, 23rd September, 2017 at Le Meridien Hotel,

Windsor Palace, New Delhi –110001 vote on our behalf and at any adjournment thereof in respect of

such resolutions as are indicated below:

Resolution No. 1

Resolution No. 2

Resolution No. 3

Resolution No. 4

Membership No._________ Signature of Member

Signed this ……… day of September, 2017

Signature of Proxy holder(s)

Note: This form of proxy in order to be effective should be duly completed and deposited at the

Registered Office of the Company, not less than 48 hours before the commencement of the Meeting.

ADOPTION OF FINANCIAL STATEMENTS

RATIFICATION FOR APPOINTMENT OF AUDITORS

ELECTION OF MEMBERS OF THE EXECUTIVE COMMITTEE IN PLACE OF RETIRING MEMBERS

TO APPROVE ALTERATION IN ARTICLES OF ASSOCIATION OF COMPANY (FHRAI)

The Federation of Hotel & Restaurant Associations of India CIN-U55100DL1955NPL002587

Regd. Office: B-82, 8th Floor, Himalaya House, 23 Kasturba Gandhi Marg, New Delhi - 110 001 Phones : (011) 40780780, Fax : (011) 40780777, E-Mail : [email protected], Website : www.fhrai.com

ATTENDANCE SLIP (To be presented at the entrance)

Folio No._____________

DP ID ______________________________

Client ID ____________________________

I/We hereby record my/our presence at the 61st ANNUAL GENERAL MEETING of

FHRAI at Le Meridien Hotel, Windsor Place, New Delhi–110001 at 02.30 p.m. on Saturday,

23rd September, 2017.

PLEASE COMPLETE THIS ATTENDANCE SLIP AND HAND IT OVER AT THE

ENTRANCE OF THE MEETING HALL. JOINT SHAREHOLDER(S) MAY OBTAIN

ADDITIONAL SLIP AT THE VENUE OF THE MEETING.

__________________________________

Signature of the Member/ Proxy

The Federation of Hotel & Restaurant Associations of India

61st

Annual Report

2016-17

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REPORT OF THE EXECUTIVE COMMITTEE for the year ended 31st March, 2017

Dear Members

The Members of the Executive Committee of FHRAI have great pleasure in presenting the 61st Annual Report together with the Audited Accounts for the year ended 31st March, 2017.

Executive Committee of the Federation

In terms of the provisions in the Articles of Association of FHRAI, its Executive Committee consists of total 24 Members; out of which 6 nominated members represent each Region. Accordingly, the present Executive Committee of FHRAI was constituted for the financial year 2016-17, at its first Meeting held on 30th September, 2016 at The Royal Plaza Hotel, New Delhi; i.e. immediately after their election at the last Annual General Meeting. The said Executive Committee elected Mr. K. Syama Raju of Southern Region to be the President of FHRAI for 2016-17. The President then nominated Mr. Vivek Nair of Western Region to be the Hony. Secretary. The Committee also elected Mr. K. Murali Rao of Southern Region as Hony. Treasurer, Mr. Surendra Kumar Jaiswal and Mr. Ashoke Singh of Northern Region and Eastern Region respectively as Joint Hony. Secretaries. Mr. Garish Oberoi, Mr. Tejinder Singh Walia, Mr. Dilip C. Datwani were elected as Vice Presidents of FHRAI from Northern, Eastern and Western Region respectively. The list of Members retiring at the ensuing Annual General Meeting is annexed hereto.

Financial Highlights

The gross income of FHRAI for the year under report amounts to Rs.371.77Lacs whereas total expenditure incurred stands at Rs.393.04 Lacs, having a deficit of income of Rs.21.27Lacs over the expenditure. Moreover, the financial highlights are as under:

As on date the year ended 31 March, 2017, FHRAI has invested a total sum of Rs.106.52Lacs in various assets like office flat, furniture & fixtures, plant, machinery & equipment’s and computers etc. FHRAI has also made investment in FDRs with HDFC Bank Ltd. and Indian Overseas Bank to the extent of Rs.634.37Lacs.

Auditors

M/s Walker Chandiok & Co. LLP Chartered Accountant, having firm Registration No. 001076N/N500013 New Delhi, the retiring Statutory Auditors until the conclusion of the ensuing Annual General Meeting, being eligible have offered for re-appointment. The Executive Committee recommends their reappointment.

Directors’ Responsibility Statement

Pursuant to Section 134 of the Companies Act, 2013 with respect to Directors’ responsibility Statement it is hereby confirmed:

i) That in the preparation of the annual accounts the applicable accounting standards has been followed along with proper explanation relating to material departures.

ii) That the Directors have adopted 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 at the end of the financial year as on March 31, 2017

iii) That Proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities.

iv) That annual accounts have been prepared on a going concern basis.

(Rs. In Lacs)

As at 31 March, 2017 As at 31 March, 2016

Surplus/ (Deficit) for the year before prior period items 97.04 277.12

Prior period expenses 1.40 17.50

Extra ordinary items 116.91 0.00

Balance at the beginning of the year 1837.19 1577.57

Balance at the end of the year 1815.92 1837.19

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Conservation of Energy, technology, Absorption and Foreign Exchange Earning/ outgo statement pursuant to section 134 (3)(m) of the Indian Companies Act 2013

The Company is not registered under schedule industries. The Foreign exchange earnings and outgo during the year stand at Rs. 0.07 lacs and Nil respectively.

Meetings of Executive Committee:

The Executive Committee met 8 times during the year under report i.e. on 4th June, 2016, 6th August, 2016, 6th September, 2016, 22nd September, 2016, 30th September, 2016, 25th November, 2016, 13th January, 2017 and 11th February, 2017.

FHRAI Membership Strength

The growth in membership of the Federation has been encouraging during the year under report. The number of members as on 31st March 2016 were 3781 and 3754 as on 31st March, 2017 (242 members joined FHRAI and 269 ceased/terminated during the year). It has increased to 3876 as on 26th August, 2017. The region-wise and category-wise details of the members of FHRAI are as under:

Good & Services Tax (GST)

As members are aware, Goods and Services Tax (GST) has been implemented from 1st July, 2017.

With the best lobbying efforts of FHRAI, Goods and Services Tax (GST) of 18 per cent on hotel room tariff with threshold limit of Rs. 5000/- (per day) has been increased to Rs. 7500/- (per day). Hotels having declared tariff of a unit less than Rs. 7500/- per day attract the GST @ 18 per cent. The GST 28 per cent on air-conditioned restaurants in 5-star hotels has been reduced to 18 per cent across the board, be treated at par with stand-alone air-conditioned restaurants.

FHRAI has been vigorously representing the various concerns of the industry with the Authorities and at various forums and will appraise our esteemed members about the outcome.

FHRAI Members Break-up as on 26th August, 2017

North East West South Total

Category of Hotels Nos. Rooms Nos. Rooms Nos. Rooms Nos. Rooms Nos. Rooms

5 Star Deluxe 39 8737 8 1276 27 7033 26 5718 100 22764

5 Star With Alcohol 22 3403 5 840 32 3555 34 4202 93 12000

5 Star Without Alcohol 0 0 0 0 2 283 3 233 5 516

4 Star With Alcohol 9 707 5 453 19 2214 48 2846 81 6220

4 Star Without Alcohol 0 0 0 0 0 0 4 224 4 224

Heritage Classic 0 0 0 0 1 21 1 50 2 71

Heritage Grand 2 101 0 0 0 0 1 40 3 141

Heritage 12 523 0 0 0 0 1 22 13 545

3 Star 18 1103 9 345 34 1993 44 2898 105 6339

2 Star 2 58 1 24 0 0 3 63 6 145

1 Star 0 0 0 0 2 109 1 27 3 136

Unclassified 714 36538 291 12119 598 33732 593 38616 2196 121005

Category of Membership

Hotels 818 51170 319 15057 715 48940 759 54939 2611 170106

Restaurants 544 45652 177 15163 237 25359 219 21149 1177 107323

Associates 28 0 19 0 19 0 22 0 88 0

Organisation 1 0 1 0 1 0 1 0 4 0

Grand Total 1390 0 515 0 971 0 1000 0 3876 0

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As of now the GST rates applicable to the Hotel Industry are as follows:

Hotels

Restaurants

Service Accounting Code (SAC)

Hotel industry comes under services category. Hotels/Restaurants mention Service Accounting Code (SAC) in the bills as it is mandatory under GST regime.

FHRAI Institute of Hospitality Management (FIHM)

Members may please recall that FHRAI has set up its Institute “FHRAI Institute of Hospitality Management” in 2005 which has evolved into a unique center of excellence in hospitality education. With its state-of-the-art campus in Greater Noida, world-class academic infrastructure and portfolio of industry-oriented academic programs, the institute has made a seminal contribution in nurturing high-caliber managerial and professional talent.

It may please be noted an Expression of Interest (EOI) was invited on 4th May, 2017 through an advertisement on all India basis in “Times of India” for award of management contract to a reputed agency in the field of Education and particularly those educational institutes that offer courses relating to the Hospitality Industry.

Discussions are on going with interested parties for awarding of Management Contract.

Hotels having Declared tariff lower than Rs.1000/- Nil

Hotels having Declared Tariff from Rs.1000 to Rs.2500/- 12%

Hotels having Declared Tariff from Rs.2500 to Rs.7500/- 18%

Hotels having Declared Tariff of Rs.7500/- and above 28%

Non-A/c Restaurants without liquor license 12 %

A/c Restaurants (heating) with liquor licence 18%

A/c Restaurants located inside 5 Star & above hotels 18%

Small restaurants with a turnover of Rs.75 lacs can avail of the composite scheme—with no in-put tax 5%

Banquets (meetings/social functions- where substantial food is served/ Conventions) 18%

Laundry /Telephone/Spa etc. 18%

S.No. Name of Services Service

Accounting Code

1 Room charges - Room or unit accommodation services provided by Hotels, INN, Guest House, Club etc.

SAC 996311

2 Restaurants - Services provided by Restaurants, Cafes and similar eating facilities including takeaway services, Room services and door delivery of food. (excluding old bak.)

SAC 996321

3 Hotels - Services provided by Hotels, INN, Guest House, Club etc including Room services, takeaway services and door delivery of food.

SAC 996332

4 Laundry SAC 999711

5 Dry-cleaning SAC 999712

6 Hair Saloon/barbar shop SAC 999721

7 Beauty Parlour SAC 999729

8 Health Club/Fitness centre SAC 999723

9 Banquet Services: Catering Services in Exhibition halls, Events, Marriage Halls and other outdoor/indoor functions

SAC 996334

10 Telephone -in rooms - Telephone based support services SAC 998593

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52nd FHRAI Annual Convention

Over the decades, the FHRAI Annual Convention has established itself as being the most eagerly anticipated and widely attended event in our industry's calendar. Every year, the Convention draws together a broad cross-section of influential voices, iconic thought leaders, distinguished dignitaries from the highest echelons of Government and luminaries of the tourism industry, for enriching deliberations on myriad strategic, competitive and policy issues which are currently shaping our sector's landscape. Our delegates from across the country enjoy an exclusive opportunity to engage with top policymakers, doyens of industry, accomplished entrepreneurs, global experts and eminent representatives from civil society.

The 52nd FHRAI Annual Convention is slated to be held from 14th to 16th September, 2017 at Shangri - La Hotel, Bengaluru. The theme chosen for the Convention is “Hospitality 2025 – The Future is Now”.

Dignitaries invited for the function are:

• Gurudev Sri Sri Ravi Shankar

• Shri Siddaramaiah, Hon’ble Chief Minister of Karnataka

• Shri Ananth Kumar, Hon’ble Union Minister for Parliamentary Affairs, Chemicals and Fertilizers

• Dr. Mahesh Sharma, Hon’ble Minister of State for Tourism & Culture (I/C)

• Shri Priyank M. Kharge, Hon’ble Minister of Tourism, IT & BT, Government of Karnataka

Professional sessions are planned and being designed for the delegates.

The post-convention tours are available for all delegates to experience different parts of the enthralling State of Karnataka and Southern Region.

FHRAI Awards

FHRAI had instituted its Annual Awards in 2000. There are total 18 prestigious Awards in three categories to encourage and recognize entrepreneurial leadership, individual professional excellence and exemplary initiatives to promote environmental sustainability in the hospitality industry.

We have received 180 Award applications for 18 awards. M/s Howath HTL (independent Hospitality Industry) has been entrusted to evaluate the Award applications.

The Award Ceremony is part of the 52nd FHRAI Annual Convention and will be held on 16th September, 2017 at Shangri-La Hotel, Bengaluru.

Hospitality Exhibition

An exhibition featuring the latest products and technologies in hospitality viz. building and interior; engineering, IT; Housekeeping & Service; F&B, Consumables, Kitchen/Bakery equipment’s etc. is being organized along with the Convention at Shangri-La Hotel, Bengaluru. It will provide an opportunity to all delegates to stay abreast of new hospitality solution, source them, as well as build vendor database.

FHRAI Indian Hotel Industry Survey

The FHRAI Indian Hotel Industry Survey 2015-16 is published in co-operation with HVS Hospitality Services.

The Indian Hotel Industry Survey analyses the performance of the Indian hospitality industry across parameters such as facilities, manpower, operational performance and marketing trends. The information is based on data received from FHRAI hotel members and the authenticity of this data helps us in providing a clear picture of the operating statistics of India’s hospitality sector. Data collected from our member hotels, our extensive historic database and the creditability of our research have helped to make this report a preferred tool for hotel professionals, consultants, investors, bankers, researchers, government officials in the tourism department, media persons, and all those interested in studying the Indian hotel industry.

FHRAI Sub-committees formed for 2016-17

On assuming charge as President FHRAI, Mr. K. Syama Raju emphasized the need for a few core Sub-Committees to coordinate various new and ongoing initiatives by involving FHRAI EC members as Chairmen of these sub-committees. These have been delegated a well-defined mandate to facilitate operational and organizational support to achieve our desired goals.

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In view of above, the following seven sub-committees were formed.

FHRAI Guide 2017

On the repeated requests from our esteemed Members, FHRAI has published the Hotel & Restaurant Guide India 2017, a copy of the same has been circulated among FHRAI Fraternity. Online data of all FHRAI Member is available under the Heading “Membership”.

FHRAI Guide has been recognised as an authentic and indispensable resource for travel industry professionals, trade media, professional organisations, suppliers as well as individual and corporate travellers.

FHRAI Magazine

FHRAI Magazine is a highly acclaimed premium publication for the hospitality industry. It provides vital updates on policy issues, legal matters, government notifications and also features incisive articles on emerging trends and innovations in the Indian and global hospitality industry. We are pleased to note that Members / readers of the FHRAI Magazine are appreciating the modern layout and expanded editorial contents of this prestigious publication.

FHRAI Website

FHRAI has introduced personalized online log-in facility on its website www.fhrai.com for easy communication between FHRAI and its members. The members can update their information, FHRAI Membership Cards etc. including online payment for renewal of their membership and subscription of FHRAI publications and magazines.

FHRAI Website www.fhrai.com is a comprehensive portal which gives new facilities such as Member Login, Membership Management, Mobile App, Conference Management, industry news, event updates, and electronic copies of the FHRAI Magazine since its inception. FHRAI website is available in Hindi also.

51st FHRAI Annual Convention, Indore

The 51st FHRAI Annual Convention was held in Indore from 22nd to 24th September, 2016. The theme chosen for the event was “Brand India”. Smt. Malini Laxman Singh Gaur, Mayor of Indore welcomed all the delegates.

The FHRAI Convention in Indore elicited an overwhelming response from delegates and sponsors, and has added yet another chapter in this event’s illustrious history.

We had conceptualized a multifaceted agenda for the Convention, with the aim of facilitating greater convergence and synergy between various stakeholders in Government , business and civil society , towards achieving the shared goal of catapulting India to its rightful position of being a world leader in tourism. Through meticulously structured business sessions, featuring presentations, keynote speeches and interactive panel discussions, we explored the indispensable role which Tourism is poised to play in revitalizing “Brand India” on the global canvas and driving our country’s transformational future growth.

16th FHRAI Awards function was presided by Shri Vinod Zutshi, Secretary, Ministry of Tourism, Government of India at the closing ceremony of the 51st FHRAI Annual Convention in Indore.

Best Eco Practices for Sustainable Hospitality

FHRAI has engaged Smarter Dharma Sustainable Solution to prepare the guidelines on Best Eco Practices for Sustainable Hospitality. They will develope Guidelines for Restaurants and Hotels Star Category wise, a copy of the same would be circulated among members.

S. No. Name of the Sub-Committee EC Member /Chairman

1 Legal Sub-Committee Mr. K. Syama Raju

2 FIHM Mr. Bharat H. Malkani

3 FAITH Sub Committee Mr. K. Syama Raju and Mr. S.M. Shervani

4 Secretariat & Membership Affairs- Sub -Committee Mr. Garish Oberoi and Mr. Tejinder Singh Walia

5 Constitution Sub-Committee Mr. Sudesh Kumar Poddar

6 Classification Sub-Committee Mr. Nirav V. Gandhi

7 Goods & Services Tax(GST)- Sub Committee Mr. Luv Malhotra

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Government Matters and policy issues pertaining to the Hospitality and Tourism Sector

The enactment of the Food Safety & Standards Act is had a far-reaching impact on every segment of the hospitality industry. In principle, FHRAI has welcomed the legislation as a progressive initiative aimed at safeguarding public health and safety and is extending full support and constructive cooperation to the Food Safety & Standards Authority of India (FSSAI). However, we have also vigorously represented to the Union Government, the hospitality industry's serious concerns and well-founded apprehensions on certain technical, procedural and regulatory aspects of the new food safety law. FHRAI requested the Government to take into due consideration, the prevailing ground realities as well as the practical constraints being encountered by our industry.

FSSAI have considered the recommendations of FHRAI in Schedule IV of the FSSAI Act mainly with regard to the licence conditions which are not practical. These recommendations have been forwarded to the concerned Ministry.

FHRAI is also playing key role in drafting science based inspection check list which will ease understanding between the Enforcement Authority and Industry.

FHRAI and its Regional Associations have been recognized as Training Partners for imparting the Food Safety Training and Certification Programme (FOSTAC). This qualification is expected to be mandatory and will replace the complicated original requirement laid down under Schedule IV of the Act.

FHRAI’s “Food Safety Hand Book” details procedures to be followed by Hotels/Restaurants for implementing the Guidelines of FSSAI. It has been considered as valuable resource document by the entire food industry.

Hunar Se Rozgar Tak Programme

The Ministry of Skill Development & Entrepreneurship has revised and notified the Guidelines on Hunar Se Rozgar Tak Programme for Tourism and Hospitality Sector for implementation under the scheme of Capacity Building for services. These Guidelines have come into force since 27th December, 2016.

Hunar Se Rozgar Tak Programme is one of the essential requirement for all-star category Hotels under Guidelines for Classifications/ Reclassification of Hotels set up by the Ministry of Tourism.

Incredible India Bed & Breakfast/Homestay Scheme

Members may please recall that Ministry of Tourism has been promoting Incredible Bed & Breakfast/Homestay to fill the gap of demand and supply of rooms throughout India. Although, in some States, this scheme is very popular viz. Maharashtra, Himachal Pradesh, Kerala, Rajasthan and Delhi. FHRAI has represented to the Ministry of Tourism for formulation of common national standards for accreditation of B&B / Homestay Establishments. IIBB/Homestay should adhere to the guidelines set up by FSSAI and NGT and basic hygiene standard in Housekeeping.

It has also been represented that guidelines for accreditation of Online Travel Agents (OTA’s be formulated by MOT.

National Medical & Wellness Tourism Board

The Ministry of Tourism, Government of India has set up a National Medical and Wellness Tourism Board under the chairmanship of Hon’ble Minister of State for Tourism and Culture (I/C) to attract patients to India and provide them best medical services/treatment during their visit.

It is evident that Medical Tourism is growing in India and to promote further Ministry is compiling the guidelines for Medical and Wellness Tourism. A copy will be circulated once they are formulated.

Federation of Association of Indian Tourism and Hospitality (FAITH)

Mr. S.M. Shervani, Executive Committee Member FHRAI was elected as Hony. Secretary, FAITH for the year 2015-17. FAITH represented the travel trade and hospitality industry to the Government and works as an umbrella of all Associations in travel tourism and hospitality.

Union Budget

Like in previous years, we had submitted FHRAI’s Proposals for Union Budget 2017-18 to the Ministry of Finance and Ministry of Tourism, Government of India. Although, The Union Budget 2017-18 had not acknowledged the contribution of hospitality/ tourism industry and no concessions were given which impact the industry directly.

E-Tourist Visa (E-TV) facility has been extended to 161 Countries.

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Foreign Trade Policy 2015-2020

i) Service Exports from India Scheme (SEIS)

As members are aware, the Foreign Trade Policy has been announced on 1st April, 2015. The rate of reward under SEIS would be based on net foreign exchange earned.

The rate of reward applicable to the Hotels & Restaurants is 3%. The reward issued as duty credit scrip

SEIS is applicable for units in Special Economic Zone.

ii) Export Promotion Capital Goods (EPCG) Specific Export Obligation under EPCG, in case capital goods are procured from indigenous manufacturers has been reduced to 75% ( from 90%) of the normal export obligation – 6n times the duty saved amount. Second hand capital goods not permitted to import under EPCG Scheme.

We are aware that our esteemed Members are not able to avail the benefit under the EPCG Scheme due to non-fulfilment of their earlier Export Obligation because of Terrorist attack on two Mumbai Hotels and down turn in foreign tourist arrivals.

FHRAI is pursuing vigorously with Director General of Foreign Trade (DGFT) and Service Export Promotion Council (SEPC) for Withdrawal of Annual Maintenance of the past years and to increase the reward from 3% to 5%

Legal Matters

The Federation continued to provide support to our members in resolving some legal issues with Government Ministries and other agencies. Some new developments, progress and status of various issues are as below:

Commissioner Commercial Tax, Dehradun, Uttarakhand Versus Union of India & Ors. SLP(C)No.5590 of 2015 before Supreme Court of India M/s Parekh & Co.

Dismissed 13.07.2017

The above Special Leave Petition has been filed by the Petitioner (Commissioner of Commercial Tax) challenging the judgment dated 10.4.2014 of the Hon’ble High Court of Uttarakhand wherein the percentage of element of service in a transaction involving a restaurant and its customer declared and brought under the Service Tax vide Government of India notification dated 6.6.2012 (i.e. 40% of bill amount to the customers having food or beverage in the restaurant has been made liable to service tax), no value added tax can be imposed to that extent (i.e. to the extent of 40%).

FHRAI has filed an Intervention Application before Hon’ble Supreme Court of India, as the question of law involved in the present matter affects the rights of all the members of FHRAI. The matter was dismissed on 13th July, 2017due to the implementation of GST

Summary

The period prior to implementation of GST that is 1st July, 2017, VAT cannot be imposed on the service part of any hotel bill. Thus, in all states where this issue is pending, the matter will be covered by this judgment. Service charge is to be paid on 40% of the bill and VAT on the balance 60%. In all pending assessments and court proceedings, this judgment can be used.

Supreme Court Judgement dated 31st March, 2017 with regard to ban on sale of liquor within 500 meters of the State and National Highway

Supreme Court of India had pronounced its judgement on 15th December, 2016 restricting the sale of liquor within 500 meters of the State and National Highways across the country and made it clear that licenses of existing shops will not be renewed after 31st March, 2017.

FHRAI has filed an interlocutory Application before Hon’ble Supreme Court of India, to protect /safeguard our esteemed members.

On 11th July, 2017, after hearing the counsel the Court made the following Order:

“All the interlocutory applications are dismissed as not maintainable except those filed by the State Governments/Union Territories.

All the interlocutory applications filed by the State Governments/Union Territories be posted for hearing on 12 th July, 2017, at 3.00 P.M., unless otherwise notified.”

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On 12th July, 2017, after hearing the counsels the Court exempted the State of Arunachal Pradesh and Andaman and Nicobar Island from the judgement dated 31st March, 2017 and directed the counsel for State of Uttarakhand to submit the details of revenue loss. The exempted states/UTs are: Sikkim, Meghalaya, Arunachal Pradesh, Himachal Pradesh and Andaman and Nicobar Island and 9 districts of Uttarakhand.

On 11th July, 2017 The Hon’ble Supreme Court in Arrive Safe Society of Chandigarh Versus Union Territory of Chandigarh & Anr. clarified that the purpose of the directions contained in the order dated 15 December, 2016 is to deal with the sale of liquor along and in proximity of highways properly understood, which provide connectivity between cities, towns and villages. The order does not prohibit licensed establishments within municipal areas. This clarification shall govern other municipal areas as well. We have considered it appropriate to issue this clarification to set at rest any ambiguity and to obviate repeated recourse to IAs, before the Court. This judgement will enable hoteliers to secure license to operate from the Excise Commissioners in the various states where highways are crisscrossing municipal areas. This has been achieved from consistence persuasive efforts of FHRAI.

Civil Appeal 8316/2016) FHRAI & Ors. vs. Union of India & Ors. before Hon’ble Supreme Court of India – M/s Parekh & Co.

FHRAI has filed SLP against the DHC’ Judgement dated 23rd March, 2016 (in the matter of TDS, Section 194-1 of the IT Act WP (C) 2130/1999.

The Hon'ble Court allowed the prayer for interim relief and granted leave in the matter.

On 9th December, 2016, upon the hearing the submissions, the court directed that counter affidavit may be filed by the respondents. The matter will come up for hearing according to its seniority.

(Background: Members may please recall that FHRAI had obtained a stay on TDS to be deducted by tour operators, travel agents, airlines and other companies in their payment to hotels under section 194-I of the Income Tax Act. The Hon’ble High Court of Delhi dismissed the same vide its judgment dated 23.3.2016 on two grounds firstly, any part of payment received by the hoteliers, who are members of FHRAI, from persons other than individuals or HUFs, can be construed as ’rent’ within the meaning of Section 194-I of the Income tax Act and Secondly, any payment’ appearing in the Explanation to Section 194-I of the Act must be read consistent with the word ‘rent’ in the main body of Section 194-I of the Act.)

Phonographic Performance Limited (PPL) Versus Amitabh Devendra & Anr. Suit/TM No. 292/2015 and Contempt Application No. 57269/2016 before Patiala House Court

PPL has filed Suit /TM No. 292/2015 against Amitabh Devendra & Another (with FHRAI as Defendant) in December 2015 seeking permanent injunction restraining Defendant (FHRAI) from injurious falsehood and slander of title by advising any person or propagating that the Plaintiff (PPL) is not entitled to issue licence for communication to the public for repertoire of sound recordings.

PPL has filed the suit before Patiala House Court to obtain a Permanent Injunction against FHRAI. PPL sought an ex-parte injunction against FHRAI which was rejected by the Ld. Judge on 23.12.2015. The matter is listed for next hearing on 22nd November, 2017.

Event and Entertainment Management Association (EEMA) Vs. Union of India & Ors. (PPL/IPRS/Novex Communications /FHRAI) CM No.48304/2016 & W.P. (C) 12076/2016 and before Delhi High Court

EEMA has filed the above captioned writ petition against Union of India in which PPL/IPRS/Novex Communications/FHRAI are parties to it. EEMA has challenged the applicability of music licence being issued by PPL/IPRS/Novex Communications. The notice was served to FHRAI. The matter was heard on 29th December, 2016, the court passed the following order:

i) “By 31.12.2016, the respondents will, in deference to the confidential information as may be, upload on their respective websites the assignment deeds along with the list of songs pertaining to such assignment deed;

ii) Within four weeks from today the respondents (PPL/IPRA/Novex Communications) will put in place a search option on their websites so that the owner of the copyright can be identified through the search engine.

iii) The respondents will also try to explore the possibility of accepting payments through Internet Payment Gateways and endeavour to put in place the requisite systems in this regard within four weeks.

iv) Upon the petitioners’ intimating the respondents that they propose to hold an event in which copyrighted works will be used, the respondents will issue an invoice for the royalty of the copyrighted works alongwith a letter or document confirming that they are the owners/assignees/authorised agents of the copyrighted works; monies shall

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be paid by the petitioner or the holder of the event i.e. user of the copyright work to the respondent in terms of the invoice prior to holding of the event or as per such arrangements as may be agreed between the parties. Should the petitioners seek copies of claimed assignment deeds or authorisation in favour of the respondents apropos the copyrighted works, such information/documents shall be supplied to the petitioner within a week from such request. Furthermore, should the petitioner have any dispute apropos monies paid to the respondents apropos the copyrighted works, the monies shall not be deemed to be appropriated by the respondents and the petitioner shall have the right to take recourse to legal remedies.

The Counsel of EEMA submitted that the directions of the Court has not been complied by PPL/IPRS. The Counsel for PPL/IPRS submitted that the directions of the Court be complied. Thereafter, Hon’ble Court indicated that the matter would be heard on merits later and directed Respondents 1 to 5 (Union of India, PPL/IPRS/Novex Communications and FHRAI) to file their reply to the writ petition.

The Counsel of EEMA requested the Court to make a direction to UOI (Respondent 1) to file details relating to enquiry against IPRS/PPL before the Court. He further requested for constitution of Copyright Board for faster redressal of issues. After hearing the parties the matter was adjourned to 12th October, 2017.

Pratima Pandey Versus Union of India & Ors. W.P.(C) No. 22274 of 2016 before Allahabad High Court- Mr. Kumar Ayush Parekh & Co.

Pratima Pandey filed the PIL against Union of India and FHRAI/HRANI on the grounds that registration of all hotels, lodge and permitting the keepers of SARAI to fix 12 P.M.as check out time and to direct hotels to regulate the tariff of the hotels, direct them to charge differential tariff from the travellers staying for different period of the day.

The above-mentioned matter was listed for hearing 9th November, 2016 before the Lucknow High Court. Mr. Kumar Ayush appeared on behalf of FHRAI and HRANI. The Hon’ble High Court directed all the Respondents to file their reply before the next date of hearing. The matter has been adjourned for further hearing after Diwali. No specific date has been given by the Hon’ble Court.

The matter will come up for hearing according to its seniority.

Multi-Screen Media Pvt. Ltd.(MSM)and Indian Broadcaster Foundation (IBF) Ors. Vs. Telecom Regulatory Authority of India (TRAI) and Ors. - Appeal Nos. 4 (C)/2015 and 5 (C)/2015 before TDSAT

Multi-Screen Media Pvt. Ltd. (MSM) and Indian Broadcaster Foundation (IBF) has challenged both the Amendment Orders dated 8th September, 2015 issued by Telecom Regulatory Authority of India (TRAI) for analog cable services and Digital Addressable System respectively, by which the maximum tariff for TV signal payable by all subscribers (including Hotel/Restaurants) will be the same. Hotels/Restaurants who do not charge separately for TV signals shall be treated as ordinary subscribers and those who charge separately for TV signals from their guest shall be treated as Commercial Subscribers. (Commercial Subscribers- Means a subscriber who cause the signal of TV channel to be heard or seen by any person for specific sum of money to be paid by such persons).

Hotel & Restaurants are allowed to take signals from a Distributor Platform Operator (DPO) or Local Cable Operator or DTH operator and not from the Broadcasters.

Commercial subscribers have to negotiate the rate with DPO/Broadcasters and take the signal from DPOs only. Broadcasters have also been allowed to enter into Tripartite Agreement with Hotels and DPOs and the said Agreement will have to be filed with 30 days before the TRAI.

FHRAI had filed impleadment in the above matter to protect the interest of the Hotel/Restaurants. The mater did not come up for hearing since 25th May, 2016.

FHRAI Vs. Indian Broadcasting Foundation &Ors. (IBF) Civil Appeal 3728/2015 before Supreme Court of India

FHRAI filed the Civil Appeal against the order dated 9th March, 2015 of Hon’ble TDSAT in which the TDSAT allowed the appeal filed by IBF and upheld that the Tariff will be fixed on the basis of usage and there can be no parity in the Tariff applicable to commercial and domestic subscriber.

The Civil Appeals also filed by TRAI, HAI, AHPI and RAI. All the Appeals have been admitted by Hon’ble Supreme Court. The Court indicated that the orders of the TRAI are already subject to the final outcome of the appeals and accordingly did not pass any further interim order. The matter will be listed in due course.

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Star India Pvt. Ltd. Vs. TRAI &Ors. W.P.(C) No. 506/2016 before High Court of Delhi & W.P.(C) No. 5161/2014 & CM No. 10283/2014 (for stay) before High Court of Delhi

Star India filed a W.P.(C) No. 5161/2014 against the TRAI’s Order (Regulation) dated 18th July, 2014 by which Hotels/Restaurants were allowed to take signals from DPO/Cable Operator/DTH Operator and CM 10283/2014 (for stay) was filed on the ground that Hon’ble TDSAT on 9.3.2015 has set aside the TRAI Orders. FHRAI had filed impleadment in the above matter.

Star India filed fresh WP (C) 506/2015 against TRAI’s Order dated 14th September, 2015 (Regulation) by which Hotels/Restaurants were allowed to take signals from DPO/Cable Operator/DTH Operator. On 2.5.2016, FHRAI requested the Hon'ble Court to allow the application of impleadment and the Hon'ble Court was pleased to allow the same. Both the petitions have been tagged in the court. The matter will come up for hearing in the Regular list.

FHRAI Vs. Union of India &Ors. SLP(C) No. 28685/2015 and 27629/2015 before Supreme Court of India - Maximum Retail Price (MRP)

FHRAI has filed SLP against the judgment of the Division Bench of the Hon’ble High Court of Delhi wherein the Division bench upheld that the Judgment of the Single Bench will not be a precedent in any such adjudication even if the concerned provisions of the old and the new law are identical / similar.

The matter will come up for haring to its seniority.

FHRAI Vs. Municipal Corporation of Delhi & Ors. WP (C) 14853-55/2004 before High Court of Delhi

FHRAI filled above said petition in the High Court of Delhi for quashing The Unit Area Method for assessing property tax as introduced by the MCD through Municipal Corporation (Amendment) Act, 2003 and in particular the 10-multiplier factor imposed upon the Hotels. There was a stay and continued till 23.05.2014.

On 23.05.2014 The Court passed order and operational para. reads as follows:

It is, therefore directed that the petitioners would now pay tax as computed by multiplying user factor of 4, and the rate of tax at 10% of the annual value, including all arrears, till the final adjudication of the matter. Obviously, the corporation would adjust all such amounts already paid by the petitioners as tax, with the amounts which are not due to be payable.

FHRAI filed an application for amendment in the cause title and Writ Petition on 27th March, 2017, in view of the amendment in Delhi Municipal Corporation Act trifurcating Municipal Corporation of Delhi into North Delhi Municipal Corporation, South Delhi Municipal Corporation and East Delhi Municipal Corporation.

The matter came up hearing on 30th March, 2017. FHRAI Application was allowed as there was no objection to the prayer made in the application. The Counsel for MCD(Respondent) submitted that there is no need to file a separate counter affidavit as there is no change in the substantive petition. The counsels for Petitioners in the connected matter, submitted that a copy of the report of MVC had been received from FHRAI Counsel (Mr. Lalit Bhasin). The Court directed to list the matter on 29th November, 2017.

FHRAI Vs. Union of India & Ors. - C.A. No. 4932-34/2001 CA No. 4700-4702 of 1999 (for Intervenor- FHRAI) Before Supreme Court of India - Expenditure Tax

The captioned Civil Appeal was filed by FHRAI impugning the final judgement and Order dated 28.12.1998 of the High Court of Himachal Pradesh at Shimla in the matter of Himachal Pradesh Tourism Development Corporation Vs. Union of India in W.P. No. 221/93 , 310/97 and 242/98 and praying inter alia to grant ad-interim ex-parte stay to the effect and operation of the final judgment and Order dated 28.12.1998 in W.P. No. 221/93 , 310/97 and 242/98 by the High Court of Himachal Pradesh and all such proceedings which are relatable to the impugned Judgment in so far as the interpretation of Section 3 (1) of the Expenditure Tax Act is concerned.

Since 16.09.2010, the matter came up for hearing before the Bench of three Judges on 14.7.2017, Mr. P.S. Patwalia, ASG appearing for Union of India mentioned the matter at 2 pm for adjourning the matter for 2 weeks as he was in some difficulty when we appeared on behalf of FHRAI. On his request Hon’ble Court adjourned the matter for 1.8.2016. The matter did not come up for hearing till date.

We continue to pursue these matters and will take up any new legal issues faced by our members.

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Acknowledgments

During the year under review, the Executive Committee made its sincere efforts to represent the concerns of the hotel and restaurant industry at various forums viz. Central/State Government/Government Agencies with a thrust to achieve the aim and objectives for the promotion of the industry.

FHRAI has been working very closely with the Ministries, Departments and Agencies of the Government of India on various issues related to the Hospitality industry. In particular, we wish to express our sincere gratitude to the Hon'ble Ministers of the Union Government and senior officials in the Ministry of Finance, Ministry of Tourism, Ministry of Home Affairs, Ministry of Commerce & Industry and Ministry of Urban Development, for their valuable guidance and support.

Ministry of Tourism: Dr. Mahesh Sharma, Union Minister of State (Independent Charge) for Tourism, Shri Vinod Zutshi, Secretary, Ministry of Tourism (Retired on 28th February, 2017) Smt. Rashmi Verma (took charge on 11th May, 2017) Shri Suman Billa, Joint Secretary and Smt. Meenakshi Sharma, Additional Director General, Ministry of Tourism and We have also been receiving valuable support from Shri M.M. Sadana, Deputy Director General (H&R) (12th August, 2016) Smt. Roma Singh, Deputy Director General (H&R)(retired on 10th April , 2017 ) Smt. Annabella Arya (took charge on 24th April, 2017) Shri. S.S. Verma, Under Secretary (H&R) (23rd May, 2016) Shri Sagnik Chowdhury, Assistant Director General (H&R) (took charge on 9th June, 2017)and their colleagues in the Ministry of Tourism.

Ministry of Commerce and Industry: Smt. Nirmala Sitharaman, Hon’ble Union Minister of State for Commerce and Industry (Independent Charge) Smt. Rita A Teaotia, Secretary, Department of Commerce, Shri Alok Chaturvedi, Director General of Foreign Trade and all his colleagues in the DGFT.

Ministry of Finance: Shri Arun Jaitley, Hon’ble Union Minister of Finance, Shri Ashok Lavasa Secretary Finance and Department of Expenditure, Shri Subhash Chandra Garg, Secretary, Department of Economic Affairs, Smt. Anjuly Chib Duggal, Secretary, Department of Financial Services, Dr. Hasmukh Adhia, Secretary, Department of Revenue.

We are grateful to the Hon’ble Prime Minister, Shri Narendra Modi for articulating a visionary roadmap for Make in India/Brand India.

The Executive Committee also wishes to place it on record its appreciation for the valuable guidance given by the Office Bearers of the Federation and the hard work put in by the Federation Secretariat under the guidance of Mr. Amitabh Devendra Secretary General during the period under review.

For & on Behalf of the Executive Committee

The Federation of Hotel & Restaurant Associations of India Sd/- Sd/- Vivek K Nair K. Syama Raju DIN-00005870 DIN -00314921

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Name Designation No. of Meetings attended out of 9

meetings held during the year

Mr. Ajit B. Kerkar Member of Honour, FHRAI 0

Mr. Syamaraju Kosur -DIN-00314921 President, FHRAI 9

Mr. Garish Oberoi -DIN- 01142920 Vice President, FHRAI 7

Mr. Tejinder Singh Walia -DIN-01299186 Vice President, FHRAI 8

Mr. Dilip Chandiram Datwani- DIN- 00975332 Vice President, FHRAI 7

Mr. Vivek K Nair -DIN-00005870 Hony. Secretary, FHRAI 2

Mr. K. Murali Rao -DIN- 00534805 Hony. Treasurer, FHRAI 5

Mr. Surendra Kumar Jaiswal -DIN-01886871 Jt. Hony. Secretary, FHRAI 7

Mr. Ashoke Singh -DIN- 00774973 Jt. Hony. Secretary, FHRAI 7

Mr. Nirav Vinod Gandhi -DIN-0064623 E.C. Member, FHRAI 5

Mr. Gurbaxish Singh Kulwant Singh Kohli - DIN-00482552

EC Member, FHRAI 4

Mr. Rajindera Kumar -DIN-00053878 E.C. Member, FHRAI 9

Mr. Bharat Harkishan Malkani -DIN-00486775 E.C. Member FHRAI 5

Mr. Luv Malhotra -DIN-00030477 E.C. Member, FHRAI 7

Mr. Vinaay Malhotra-DIN-00192152 E.C. Member, FHRAI 9

Mr. Souvagya Kumar Mohapatra- DIN-03197487 E.C. Member, FHRAI 7

Mr. Thiagarajan Nataraajan -DIN-00478495 E.C. Member, FHRAI 4

Mr. Kupparaju Nagaraju -DIN -00592259 E.C. Member, FHRAI 5

Mr. Sudesh Kumar Poddar -DIN-00560120 E.C. Member, FHRAI 6

Mr. Purushothaman Mooliyil Payyan-DIN-00088631 E.C. Member, FHRAI 1

Mr. Venkata Satya Somaraju Dandu -DIN-02249145 E.C. Member, FHRAI 5

Mr. Saeed Mustafa Shervani-DIN-00024390 E.C. Member, FHRAI 6

Mr. Pradeep K Shetty-DIN-02986930 E.C. Member, FHRAI 5

Mr. Pranav Singh -DIN- 01896933 E.C. Member, FHRAI 7

Mr. Sanjay Sood-DIN -00449219 E.C. Member, FHRAI 9

Mr. Vijay Dewan -DIN-00051164 Co-opted E.C. Member, FHRAI 3

Mr. Sureshchand Premchand Jain - DIN - 00004402 Co-opted E.C. Member, FHRAI 4

Mr. Suresh Kumar -DIN-02741371 Co-opted E.C. Member, FHRAI 4

Attendance of members in the Executive Committee Meetings

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EXTRACT OF ANNUAL RETURN

FORM MGT-9 (Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies

(Management and Administration) Rules, 2014)

II. Principle Business Activities of the Company

III. Particulars of Holding, Subsidiary and Associates Not Applicable

IV. Share holding pattern Not Applicable

V. Indebtedness:

Indebtedness at the beginning of the Financial Year NIL

Indebtedness at the end of the Financial Year NIL

VI. Remuneration of Directors and Key Managerial Personnel Not Applicable

VII. Penalties/Punishment/Compounding of offences NIL

I. REGISTRATION & OTHER DETAILS:

1 CIN U55100DL1955NPL002587

2 Registration Date 7th December, 1955

3 Name of the Company The Federation of Hotel & Restaurant Associations of India

4 Category/Sub-category of the Company Company Limited By Guarantee

Indian Non- Government company

5 Address of the Registered office & contact details

B-82, 8th Floor, Himalaya House, 23 Kasturba Gandhi Marg, New Delhi – 110001 Tel: 011- 40780780 Fax: 011-40780777 Email: [email protected] Website: www.fhrai.com

6 Whether listed company NO

7 Name, Address & contact details of the Registrar & Transfer Agent, if any. Not Applicable

S. No.

Name and description of main products /services NIC Code of the product/Service

% to the total turnover of the Company

1 Promote, encourage and protect the interests of proprietors and

other persons interested or concerned in hotels, restaurants,

board houses and to take such steps including provision of legal

and other professional advice and assistance

9411 100%

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Independent Auditor’s Report

To the Members of The Federation of Hotel and Restaurant Associations of India

Report on the Financial Statements

1. We have audited the accompanying financial statements of The Federation of Hotel and Restaurant Associations of India (“the Federation”), which comprise the Balance Sheet as at 31 March 2017, the Statement of Income and Expenditure and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

2. The Federation’s management is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of these financial statements, that give a true and fair view of the financial position, financial performance and cash flows of the Federation in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended). This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act; safeguarding the assets of the Federation; preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

3. Our responsibility is to express an opinion on these financial statements based on our audit.

4. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.

5. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial controls relevant to the Federation’s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstance, but not for the purpose of expressing an opinion on whether the Federation has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Federation’s management, as well as evaluating the overall presentation of the financial statements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

Opinion

8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Federation as at 31 March 2017, its deficit and its cash flows for the year ended on that date.

-15-

Report on Other Legal and Regulatory Requirements

9. This report does not include a statement on the matters specified in paragraph 3 of the Companies (Auditor’s Report) Order 2016 (“the Order”), issued by the Central Government of India in terms of Section 143(11) of the Act, since in our opinion and according to the information and explanations given to us, the Order is not applicable.

10. As required by Section143(3) of the Act, we report that:

a. we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b. in our opinion, proper books of account as required by law have been kept by the Federation so far as it appears from our examination of those books;

c. the financial statements dealt with by this report are in agreement with the books of account;

d. in our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended);

e. on the basis of the written representations received from the members and taken on record by the members, none of the members is disqualified as on 31 March 2017 from being appointed as a member in terms of Section164(2) of the Act;

f. in our opinion and to the best of our information and according to the explanations given to us, the provisions of Section 143(3)(i) for reporting on the adequacy of internal financial controls over financial reporting and the operating effectiveness of such controls of the Federation, are not applicable;

g. with respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i. the Federation, as detailed in Note 20 to the financial statements, has disclosed the impact of pending litigations on its financial position;

ii. the Federation did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;

iii. there were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Federation; and

iv. the Federation, as detailed in Note 25 to the financial statements, has made requisite disclosures in these financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8 November 2016 to 30 December 2016. Based on the audit procedures performed and taking into consideration the information and explanations given to us, in our opinion, these are in accordance with the books of account maintained by the Federation.

For Walker Chandiok & Co LLP Chartered Accountants Firm’s Registration No.: 001076N/N500013 -Sd/- per Manish Agrawal Partner Membership No.: 507000 Place: New Delhi Date: 29 August, 2017

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The Federation of Hotel and Restaurant Associations of India

Balance sheet as at 31 March 2017

(in INR thousands) Notes 31 March 2017 31 March 2016

EQUITY AND LIABILITIES

Shareholders' funds

Reserves and surplus 2 1,83,232 1,87,662

1,83,232 1,87,662

Non-current liabilities

Long-term provisions 3 5,241 4,407

5,241 4,407

Current liabilities

Trade payables

Payable to micro enterprises and small enterprises - -

Other payables 3,842 1,139

Other current liabilities 5 7,131 22,703

Short-term provisions 3 641 669

11,614 24,511

Total 2,00,087 2,16,580

ASSETS

Non-current assets

Property, plant and equipment 6 1,12,549 1,09,138

Intangible assets 6 585 -

Long-term loans and advances 7 6,416 6,018

Other non-current assets 8 18 439

1,19,568 1,15,595

Current assets

Trade receivables 9 3,940 796

Cash and bank balances 10 71,550 92,616

Short-term loans and advances 11 3,304 3,560

Other current assets 12 1,725 4,013

80,519 1,00,985

Total 2,00,087 2,16,580

Summary of significant accounting policies and other explanatory information. 1-26

This is the balance sheet referred to in our report of even date.

For Walker Chandiok & Co LLP For and on behalf of the Executive Committee of Chartered Accountants The Federation of Hotel and Restaurant Associations of India -Sd/- -Sd/- -Sd/- per Manish Agrawal K Syama Raju K Murali Rao Partner President Hony. Treasurer (DIN-00314921) (DIN-00534805) -Sd/- Vivek K Nair Hony. Secretary (DIN-00005870) Place: New Delhi Place: Kolkata Date: 29 August, 2017 Date: 29 August, 2017

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Statement of Income and Expenditure for the year ended 31 March 2017

(in INR thousands)

Notes 31 March 2017 31 March 2016

INCOME

Fees and subscription 13 30,148 39,435

Other income 14 7,029 6,885

37,177 46,320

EXPENDITURE

Employee benefits expense 15 11,408 8,115

Depreciation and amortisation expense 6 6,119 5,459

Other expenses 16 9,946 5,034

27,473 18,608

Surplus before extraordinary items and prior period items 9,704 27,712

Prior period items 17 (140) (1,750)

Extraordinary items 18 (11,691) -

(Deficit)/ Surplus carried over (2,127) 25,962

Summary of significant accounting policies and other explanatory information.

1-26

This is the Statement of Income and Expenditure referred to in our report of even date.


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Cash flow statement for the year ended 31 March 2017 (in INR thousands)

31 March 2017 31 March 2016

Cash flows from operating activities

Surplus before tax and prior period items 9,704 27,712

Adjustment for :

Extraordinary items (11,691) -

Prior period items (140) (1,750)

Depreciation and amortisation expense 6,119 5,459

Interest income (6,301) (5,818)

Loss/(Profit) on sale of fixed assets 342 (115)

Provision for bad and doubtful debts - 72

Liabilities written back (135) (522)

Operating (deficit)/ surplus before working capital changes (2,102) 25,038

Adjustments for changes in working capital Changes in trade receivables (3,144) 183

Changes in loans and advances 256 (1,571)

Changes in long-term liabilities - (3,000)

Changes in provisions 806 (810)

Changes in other current liabilities (15,437) 20,801

Changes in trade payables 2,703 1,168

Cash flow (used in)/ from operating activities (16,918) 41,809 Taxes paid (net of refunds) (355) (910)

Net cash (used in)/ from operating activities - (A) (17,273) 40,899

Cash flows from investing activities

Purchase of fixed assets (10,695) (1,606)

Redemption of/ (Investments) in fixed deposits (with 22,197 (50,242)

original maturity of more than three months)

Proceeds from sale of fixed assets 195 -

Interest received 8,633 3,914

Net cash flow from/(used in) investing activities - (B) 20,330 (47,934)

Cash flows from financing activities

Net utilisation of legal fund reserve (2,303) (4,501)

Net cash used in financing activities - (C) (2,303) (4,501)

Net increase/ (decrease) in cash and cash equivalents (A+B+C) 754 (11,536)

Cash and cash equivalent as at beginning of the period 7,374 18,910

Cash and cash equivalent as at end of the period (refer note 10) 8,128 7,374

754 (11,536) Summary of significant accounting policies and other explanatory information. 1-26

This is the cash flow statement referred to in our report of even date.


-19-

1. Significant accounting policies

i) Corporate information

The Federation of Hotel and Restaurant Associations of India (FHRAI) was founded in 1955 with initiative of the four regional associations. These regional associations are the organizations members and the arms of the Federation in the four regions. It also has direct membership of hotels and restaurants who are called individual members, and all other entities associated with the hotel and restaurant Industry in India. These are called Associate Members and include state/ city hotel and restaurant associations, corporate hotel companies, travel agents, tour operators, hospitality education institutions, suppliers to the industry, consultants and others. The Federation was founded for encouraging, promoting and protecting, by lawful means, the interests of hotel and restaurant industry in India, and for raising the standards and reputation of the industry both at home and abroad. It was also enjoined to consider all questions of interest to the hotel and restaurant industry, recommend policies and implement projects to achieve these objectives.

ii) Basis of preparation

The financial statements are prepared under historical cost convention, on accrual basis, in accordance with the generally accepted accounting principles in India and to comply with the Accounting Standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules 2014 (as amended). The accounting policies have been consistently applied by the Federation and are consistent with those used in the previous year.

All assets and liabilities have been classified as current or non-current, wherever applicable, as per the operating cycle of the Federation as per the guidance as set out in the Schedule III to the Companies Act, 2013 (the “Act”).

The Federation is a Small and Medium Sized Company (SMC) as defined in the general instructions in respect of Accounting Standards notified under the Companies Act, 2013. Accordingly, the Federation has complied with the Accounting Standards as applicable to a SMC.

iii) Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in the current and future periods.

iv) Fixed assets, depreciation and amortisation

Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

Intangible assets are stated at cost less accumulated amortization and impairment loss, if any.

Depreciation on property, plant and equipment is provided under written down value method based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

Amortisation is charged over a period depending upon the expected useful life of an asset which is estimated at 3 years in case of Software’s.

The Federation of Hotel and Restaurant Associations of India Summary of significant accounting policies and other explanatory information for the year ended 31 March 2017

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v) Revenue recognition

Annual subscription, entrance and listing fee from members are recognised as income on accrual basis. Royalty fee from operator/ conductor is recognised as income on accrual basis.

Income from advertisement and guide subscription is recognised on accrual basis.

Income from interest is accounted for on time proportion basis taking into account the amount outstanding and the applicable rate of interest.

Royalty fee for publication is recognised in the year of publication.

Convention and seminar income is recognised in the year in which the event takes place.

vi) Restricted funds

a) Legal fee collected from members is directly credited to the legal fund. The amount in the legal fund is utilised for the legal cases represented by the Federation on behalf of its members.

b) Specific contributions received for the purpose of providing scholarship to the students pursuing educational courses from the Institute are credited to the scholarship fund. The amount in the fund is utilised for the purposes of giving scholarships to the students of the Institute on merit basis.

vii) Employee benefits

Expenses and liabilities in respect of employee benefits are recorded in accordance with Accounting Standard 15 (Revised 2005).

Provident fund

The Federation makes contribution to statutory provident fund in accordance with the Employees Provident Fund and Miscellaneous Provisions Act, 1952 being a defined contribution plan. Contributions paid or payable are recognised as expense during the period in which services are rendered by employee.

Gratuity

Gratuity is a post employment defined benefit plan. The liability recognised in respect of gratuity is the present value of the defined benefit obligation at the balance sheet date, together with adjustments for unrecognised actuarial gains or losses and past service costs. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recorded as income or expense in the Statement of income and expenditure in the period in which such gains or losses arise.

Compensated absences

Liability in respect of compensated absences becoming due or expected to be availed within one year from the balance sheet date is recognised on the basis of undiscounted value of estimated amount required to be paid or estimated value of benefit expected to be availed by the employees. Liability in respect of compensated absences becoming due or expected to be availed more than one year after the balance sheet date is estimated on the basis of actuarial valuation performed by an independent actuary using the projected unit credit method. Actuarial gains or losses are recognised in the statement of income and expenditure in the period they arise.


Significant accounting policies (Cont’d)

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viii) Foreign currency transactions

a. Initial recognition Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount, the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

b. Subsequent recognition Foreign currency monetary assets and liabilities are reported using the closing rate as at the reporting date. Non-monetary items, which are carried in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of the transaction.

c. Exchange differences Exchange differences arising on the settlement of monetary items at rates different from those at which they were initially recorded during the year or reported in previous financial statements, are recognised as income or expense in the year in which they arise, except for exchange differences arising on foreign currency monetary items.

(ix) Contingent liabilities and provisions

The Federation makes a provision when there is a present obligation as a result of a past event where the outflow of economic resources is probable and a reliable estimate of the amount of the obligation can be made. A disclosure is made for a contingent liability when there is a

• possible obligation, the existence of which will be confirmed by the occurrence/non-occurrence of one or more uncertain events, not fully with in the control of the Federation; or

• present obligation, where it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or

• present obligation, where a reliable estimate cannot be made.

(x) Impairment

The Federation assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Federation estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount and the reduction is treated as an impairment loss and is recognised in the statement of income and expenditure. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.

(xi) Cash and cash equivalents

Cash and cash equivalents comprise cash at bank, cash on hand and short-term investments with an original maturity of three months or less.


Significant accounting policies (Cont’d)

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Summary of significant accounting policies and other explanatory information for the year ended 31 March 2017

(in INR thousands)

31 March 2017 31 March 2016

2 Reserves and surplus

General reserve

Balance at the beginning of the year 1,83,719 1,57,757

Add : Transfer from statement of income and expenditure (2,127) 25,962

Balance at the end of the year 1,81,592 1,83,719

Surplus in the statement of income and expenditure

Balance at the beginning of the year - -

Add : Transfer from statement of income and expenditure (2,127) 25,962

Less : Transfer to general reserve (2,127) 25,962

Balance at the end of the year - -

Legal fund reserve

Balance at the beginning of the year 2,801 7,302

Add : Additions made during the year 8,349 8,363

Less : Utilised during the year (10,652) (12,864)

Balance at the end of the year 498 2,801

Scholarship fund

Balance at the beginning and at the end of the year 1,142 1,142

1,83,232 1,87,662

31 March 2017 31 March 2016 31 March 2017 31 March 2016

Long-term Short-term

3 Provisions

Provisions for gratuity (Also refer note 4 below) 3,761 3,216 416 369

Provisions for compensated absences (Also refer note 4 below) 1,480 1,191 225 300

5,241 4,407 641 669

4 Employee benefits

For determination of the liability in respect of gratuity and compensated absences, the Federation has used following actuarial assumptions:

Discount rate 7.00% 7.80%

Long-term rate of compensation increase 10% 10%

Withdrawal rate 10% 10%

Mortality rate

Indian Assured

Lives Indian Assured Lives

Mortality (2006-08)

Ultimate Mortality (2006-08) Ultimate

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The Federation assesses these assumptions with the projected long-term plans of growth and prevalent industry standards. The estimates of future salary increases, considered in actuarial valuation, take into account inflation, promotion and other relevant factors, such as supply and demand in the employment market. The discount rate has been chosen by reference to market yields on government bonds as at the date of the valuation.

The Federation makes contribution to statutory provident fund in accordance with The Employees Provident Fund and Miscellaneous Provision Act, 1952. This is in the nature of defined contribution plan. Contribution made by the Federation during the year ended 31 March 2017 is INR 325 thousand (previous year INR 256 thousand).

(in INR thousands)

31 March 2017 31 March 2016

5 Other current liabilities

Payable to students 363 537

Statutory dues 993 374

Payable to ITM Edutech India Private Limited (Refer note 18(a)) - 18,317

Employee related payables 654 354

Capital creditors 656 -

Amount payable to Hotel and Restaurant Association of Eastern India - 2,792

Amount payable to Hotel and Restaurant Association of Western India 3,750 -

Advances received on account of:

-Membership subscription 312 311

-Advertisement 385 -

Other payables 18 18

7,131 22,703

(This space has been intentionally left blank)

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(in INR thousands)

31 March 2017 31 March 2016

7 Long-term loans and advances

(Unsecured, considered good)

Security deposits 1,973 1,973

Capital advance 43 -

Tax deducted at source receivable 4,400 4,045

6,416 6,018

8 Other non-current assets

15 392 Fixed deposits with maturity of more than 12 months (Refer note 10)

Interest accrued but not due 3 47

18 439

9 Trade receivables

Outstanding for a period exceeding six months

from the date they are due for payment

Unsecured, considered good 725 586

Doubtful 1,362 1,367

2,087 1,953

Less : Allowances for bad and doubtful debts -1,362 -1,367

725 586

Other debts

Unsecured, considered good 3,215 210

3,940 796

10 Cash and bank balances

Cash and cash equivalents

Cash on hand 27 1

Cheques on hand - 337

Balances with banks

- in saving accounts 8,101 7,036

Other bank balances

Fixed deposits with maturity more than 3 months but 63,422 85,242

less than 12 months*

Fixed deposits with maturity of more than 12 months** 15 392

71,565 93,008

Less: Amount disclosed as non-current assets (Refer note: 8)

15 392

71,550 92,616

* The deposits amounting to 376 thousand are restricted as they are under lien/pledged.

**The deposits are restricted as they are under lien/pledged.

-26-



(in INR thousands)

31 March 2017 31 March 2016

11 Short-term loans and advances

(Unsecured, considered good)

Amount recoverable in cash or kind 493 465

Prepaid expenses 82 63

Balances recoverable from government authorities 2,649 2,958

Security deposits - 37

Staff advances 75 36

Employee imprest 5 1

3,304 3,560

12 Other current assets

Interest accrued but not due 1,725 4,013

1,725 4,013

13 Fees and subscription

Sale of services

Annual subscription from members 25,217 25,562

Entrance fee 1,475 1,572

26,692 27,134

Other operating income

Guide subscription 7 226

Royalty 2,200 9,283

Convention and seminars 1,249 2,792

3,456 12,301

30,148 39,435

14 Other income

Interest income

- on fixed deposits 5,649 5,786

- on income tax refund 126 184

- on others 526 35

Subscription 342 -

Profit on sale of fixed assets (net) - 115

Liabilities written back 135 522

Miscellaneous 251 243

7,029 6,885

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(in INR thousands)

31 March 2017 31 March 2016

15 Employee benefits expense

Salaries, wages and bonus 9,994 7,181

Contribution to gratuity (Refer note 4) 592 405

Contribution to compensated absences (Refer note 4) 394 214

Contribution to provident and other defined contribution funds 343 276

Staff welfare expenses 85 39

11,408 8,115

16 Other expenses

Repairs and maintenance

- Buildings 270 251

- Plant and equipment 229 202

Insurance 76 13

Rates and taxes 253 185

Payment to auditors (Refer note 16.1) 196 129

Communication, postage and courier 1,083 457

Travel and conveyance 399 456

Printing and stationery 1,540 643

Legal and professional 468 393

Security 817 -

Housekeeping 557 -

Gardening and landscaping 401 -

Provision for bad and doubtful debts - 72

Membership subscription 478 419

Car running and maintenance 194 137

Public relation, meetings and conferences 1,087 966

Lease rent - 151

Loss on sale of fixed assets 342 -

Power and fuel 1,222 325

Miscellaneous 334 235

9,946 5,034

16.1 Payment to auditors:-

Audit fee 180 120

Out of pocket expenses 16 9

196 129

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(in INR thousands)

31 March 2017 31 March 2016

17 Prior period expense

Employee benefits expense (Refer note below) 140 -

Water charges - 833

Interest on lease rent - 917

140 1,750

Note:

During the year, the Federation has received a judgement in the case of Mrs. Malini Rajendran (the 'former employee') vs FHRAI, that the former employee is entitled for an amount of INR 140 thousand along with interest @ 7% per annum from the date of filing of the suit till realization alongwith proportionate costs of the suit. An amount of INR 217 thousand has been provided in the books towards payment of basic salary of three months along with interest @7% p.a. from 29 May 2009 to 31 March 2017. The decree sheet towards proportionate costs of the suit has not been received and therefore not provided in the books.

18 Extraordinary items

Settlement expenses (refer note (a) below) 3,500 -

Rates and taxes (refer note (b) below) 8,191 -

11,691 -

a) With effect from 1 March 2013, the Federation entered into an agreement with ITM-Edutech (India) Limited

(operator/conductor) for operating the FHRAI Institute of Hospitality and Management (‘the Institute’) for a period of fifteen years for offering required and desirable courses, training leading to award of degree, diploma and certificate. All the operations of the Institute are conducted, managed and operated by the operator/conductor. Further, Federation will receive a proportionate amount of the revenue proceeds from ITM-Edutech (India) Limited every year. During the previous year, the Federation had encashed a bank guarantee given by ITM-Edutech (India) Limited amounting to INR 21,000 thousand on account of recoverability of royalty amount and other miscellaneous expenses. During the current year, the agreement has been terminated with the mutual agreement and consent of the Federation and ITM-Edutech (India) Limited. The disengagement agreement came into force with effect from 22 June 2016 and the Federation has returned a sum of INR 21,080 thousand on 22 June 2016 after adjustment of revenues and expenditures receivable from ITM-Edutech (India) Limited up to 10 May 2016, the final date of settlement. The Federation has paid a sum of INR 3,500 thousand as a settlement cost to ITM-Edutech (India) Limited in addition to returning the balance amount of bank guarantee encashed by the Federation during the previous financial year.

b) During the previous year, the Federation was verbally informed that it has to pay a penalty for running the Institute without obtaining a certificate of completion and a certification of occupation from Greater Noida Industrial and Development Authority (“GNIDA”). During the current year, Federation has received a letter no. Gr.No./Institute/ INS0224077/2016/3148 dated 21 November 2016 from GNIDA demanding a sum of INR 8,191 thousand towards late payment charges to obtain time extension certificate upto 29 July 2010 to get the completion certificate from the Authority. Federation has deposited the same on 5 January 2017 with the Greater Noida Authority. This was disclosed as a contingent laibility in the previous year ended 31 March 2016.

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19. The Federation is registered under section 12A of the Income-tax Act, 1961 vide letter dated 30 September 1988.

20. Contingent liability and commitments

i) Contingent liabilities not provided for in respect of:

In prior years, the Service tax department issued four show cause notices (SCN) covering the period 16 June 2005 to 31 March 2011 amounting to INR 18,668 thousand on the premise that the Federation is engaged in providing “Club of Association Services” which was brought into the service tax net with effect from 16 June 2005 vide Section 65 (25a) of the Finance Act, 1994 as amended, but is neither registered nor is paying service tax on such services rendered by them.

During the financial year 2012-13, the Commissioner, Panchkula ordered the Federation to deposit the service tax for the period 16 June 2005 to 31 March 2011 amounting to INR 10,475 thousands plus penalty (u/s 77) of INR 20 thousand plus penalty (u/s 78 and 76) not exceeding the tax amount plus interest (u/s 75) at applicable rates after considering the exemption as per Section 96J in respect of membership fee collected from 16 June 2005 to 31 March 2008.

The Federation filed an appeal with the Central Excise and Service Tax Appellate Tribunal (CESTAT), Delhi on 3 May 2013 and stay order was granted by the CESAT for further proceedings and also granted waiver of pre-deposit of the service tax. From 1 April 2011, the Federation got itself registered with the Service tax department and has been paying service tax on such services accordingly.

The Federation had filed appeal on 27 November 2014 for early hearing of the case and the next hearing of the case took place on 10 August 2015 on the basis of which FHRAI has been granted an extension of stay on the matter.

The Federation has received an order setting aside the aforesaid impugned order and allowed the appeal. The Department has taken up such issues of other parties before the Hon’ble Supreme Court and matter is still pending. The department may raise fresh demand depending on the decision of the Court on such issues. The Federation has not provided any liability in the books as the matter is sub-judice.

21. In the opinion of Executive Committee, current assets, loans and advances have a value on realisation in the ordinary course at least equal to the amounts stated in the balance sheet and provision for all known liabilities has been made in the account.

22. Disclosure under Micro, small and medium enterprises development act, 2006

Based on the information available with the Federation there are no dues outstanding to Micro, Small, and Medium Enterprises as at 31 March 2017 under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006). Further, no interest during the year has been paid or was payable under the terms of the MSMED Act, 2006.


Summary of significant accounting policies and other explanatory information Statements for the year ended 31 March 2017

(INR. in thousands)

31 March 2017 31 March 2016

Service tax [refer note below] Nil 20,970

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23. Related party disclosure

a) Names of related parties In accordance with the requirements of Accounting Standard - 18 'Related Party Disclosures' the names of the related party where control/ability to exercise significant influence exists, along with the aggregate amount of transactions and year end balances with them as identified and certified by the management are given below:

S.No. Relationship Names

1 Key Management Personnel (KMP)

• Mr. K. Syama Raju

• Mr. Garish Oberoi

• Mr. T. S. Walia

• Mr. Dilip C. Datwani

• Mr. Vivek Nair

• Mr. K. Murali Rao

• Mr. Surendra Kumar Jaiswal

• Mr. Ashoke Singh

• Mr. M.P. Purushothaman

• Mr. T Nataraajan

• Mr. DVS Somaraju

• Mr. K. Nagaraju

• Mr. S.M. Shervani

• Mr. Luv Malhotra

• Mr. Rajindera Kumar

• Mr. Sanjay Sood

• Mr. Vinaay Malhotra

• Mr. Pranav Singh

• Mr. Sudesh Kumar Poddar

• Mr. Souvagya Kumar Mohapatra

• Mr. Gurbaxish Singh Kohli

• Mr. Pradeep Shetty

• Mr. Bharat H. Malkani

• Mr. Nirav Gandhi

• Mr. Anil Chadha

• Mr. Suresh Kumar

• Mr. Vijay Dewan

• Mr. S.P. Jain

Companies in which members of the Federation are able to exercise control or have significant influence

• Hotel Leela Ventures Ltd. 2

• The Suryaa New Delhi

• Walson Retails Pvt. Ltd.

• Satya Hotels Pvt. Ltd.

• Apeejay Surendra Park Hotels Ltd.

• Mayfair Hotels & Resorts Ltd.

• GRT Temple Bay

• The Pride Hotel



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b) Summary of transactions with the related parties

(in INR thousands)

31 March 2017 31 March 2016

Hotel room rent, meeting & convention expenses

Hotel Leela Ventures Ltd. - 47

The Suryaa New Delhi - 50

Walson Retails Pvt. Ltd. - 33

Satya Hotels Pvt. Ltd. - 63

Apeejay Surendra Park Hotels Ltd. - 238

Mayfair Hotels & Resorts Ltd. - 6,264

GRT Temple Bay 85 -

The Pride Hotel 194 -

Mr. Sanjay Sood 5 -

Mr. K. Syama Raju 1,100 -

Expenses incurred on behalf of:-

Mr. Pranav Singh - 11



(This space has been intentionally left blank)

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The Federation of Hotel and Restaurant Associations of India Summary of significant accounting policies and other explanatory information Statements for the year ended 31 March 2017

c) Membership Subscription

(Amount in INR)

S No. Name of related party Name of Hotel City 31 March 2017 31 March 2016

1 Mr. K. Syama Raju Hotel Maurya Bengaluru 14,308 14,045

2 Mr. T. S. Walia Hotel Walson Kolkata 8,212 8,026

3 Mr. Bharat Malkani Hotel Transit Pvt. Ltd. Mumbai 11,371 11,161

4 Mr. Luv Malhotra Hotel The Suryaa New Delhi 21,412 21,021

5 Mr. Luv Malhotra Ssence Restaurant New Delhi 9,446 9,270

6 Mr. Luv Malhotra Sampan Restaurant New Delhi 8,061 7,910

7 Mr. Vivek Nair The Leela Ambience Gurgaon Gurgaon 21,719 21,318

8 Mr. Vivek Nair The Leela Goa Salcette 21,813 21,318

9 Mr. Vivek Nair The Leela Kovalam Thiruvananthapuram 21,719 21,318

10 Mr. Vivek Nair The Leela Mumbai Mumbai 21,812 21,318

11 Mr. Vivek Nair The Leela Palace New Delhi New Delhi 22,182 21,318

12 Mr. Vivek Nair The Leela Palace, Bangalore Bengaluru 21,812 21,318

13 Mr. Vivek Nair The Leela Palace, Udaipur Udaipur 11,371 11,161

14 Mr. Sudesh Kumar Poddar Manthan Restaurant Kolkata 8,212 8,026

15 Mr. Sudesh Kumar Poddar Hotel Natraj Dibrugarh 11,420 11,161

16 Mr. Garish Oberoi Hotel Uberoi Anand Bareilly 14,370 14,045

17 Mr. Garish Oberoi Uberoi Anand & Associate Bareilly 8,212 8,026

18 Mr. Garish Oberoi Amber Restaurant Bareilly 8,212 8,026

19 Mr. K. Murali Rao New Woodlands Hotel Pvt. Ltd. Chennai 21,719 21,318

20 Mr. Vinaay Malhotra Viramma Resort Siliguri 8,212 8,026

21 Mr. Vinaay Malhotra Viramma Villa Darjeeling 8,212 8,026

22 Mr. Vinaay Malhotra Sikkim Viramma Retreat Pakyong 14,996

23 Mr. Pranav Singh Opium Restaurant Cum Bar Kolkata 9,581 10,737

24 Mr. Ashoke Singh A.V. Hotel Kolkata 11,259 11,000

25 Mr. Ashoke Singh Ashoka Hotel Kolkata 8,096 7,910

26 Mr. D.S. Advani * The Shalimar Hotel Mumbai - 11,000

27 Mr. Pradeep Shetty Maharaja Restaurant & Bar, Andheri Kurla Road Mumbai 8,212 8,026

28 Mr. Pradeep Shetty Maharaja Restaurant & Bar, Chakale Mumbai 8,212 8,026

29 Mr. Pradeep Shetty Maharaja Restaurant & Bar, Sakinaka Mumbai 8,212 8,026

30 Mr. Nirav Gandhi Hotel Express Towers Vadodara 11,371 11,161

31 Mr. Nirav Gandhi Hotel Express Residency Vadodara 11,371 11,161

32 Mr. Nirav Gandhi Hotel Express Residency Jamnagar 14,308 14,045

33 Mr. M.P. Purushothaman Hilton - Chennai Chennai 21,505 21,318

34 Mr. M.P. Purushothaman Hotel Victoria Chennai 11,420 11,161

35 Mr. T Nataraajan GRT Grand Chennai 14,370 14,045

36 Mr. T Nataraajan GRT Nature Trails Sky Rocca Yercaud 11,420 11,161

37 Mr. T Nataraajan GRT Regency Madurai 11,420 11,161

38 Mr. T Nataraajan GRT Regency Kanchipuram Dist. 8,212 8,026

39 Mr. T Nataraajan GRT Regency Sameera Vellore 11,420 11,161

40 Mr. T Nataraajan GRT Regency Tiruttani Tiruttani 8,212 8,026

41 Mr. T Nataraajan GRT Regency Tuticorin Tuticorin 11,420 11,161

42 Mr. T Nataraajan Radisson Blu Hotel GRT Chennai Chennai 14,370 14,045

43 Mr. Subir Bhowmick * Hotel Taj Krishna, Hyderabad Hyderabad - 21,318

44 Mr. K. Nagaraju The Atria Hotel Bengaluru 21,812 21,318

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45 Mr. S.M. Shervani Shervani Hilltop, Nainital Nainital 11,371 11,161

46 Mr. S.M. Shervani Shervani Nehru Place New Delhi 8,177 8,026

47 Mr. S.M. Shervani Shervani New Delhi New Delhi 8,177 8,026

48 Mr. S.M. Shervani Rodeo Restaurant - Cp New Delhi 8,177 8,026

49 Mr. Rajindera Kumar Vivanta By Taj Ambassador New Delhi 14,308 14,015

50 Mr. Rajindera Kumar Larrys China Restaurant Delhi 8,177 8,026

51 Mr. Surendra Jaiswal Hotel Deep Lucknow 11,420 11,161

52 Mr. Surendra Jaiswal Hotel Deep Avadh Lucknow 14,308 14,045

53 Mr. Surendra Jaiswal Hotel Deep Palace Lucknow 11,420 11,161

54 Mr. Suresh Kumar Fortune Resort Bay Island Port Blair 11,420 11,161

55 Mr. Param Kannampilly * The Fern Residency Mumbai - 11,161

56 Mr. Dilip Ray * Aquarium - Mayfair Puri Puri - 8,026

57 Mr. Dilip Ray * Mayfair Convention Bhubaneswar - 8,026

58 Mr. Dilip Ray * Mayfair Darjeeling Darjeeling - 11,161

59 Mr. Dilip Ray * Mayfair Heritage Puri Puri - 8,026

62 Mr. Dilip Ray * Mayfair Pahadi Bar & Restaurant Rourkela - 8,026

63 Mr. Dilip Ray * Mayfair Palm Beach Resort Gopalpur - 11,161

64 Mr. Dilip Ray * Mayfair Rourkela Rourkela - 11,161

66 Mr. Dilip Ray * Mayfair Waves Puri - 14,866

67 Mr. Dilip Ray * Super Snax - Mayfair Lagoon Bhubaneswar - 8,026

68 Mr. Dilip Ray * Super Snax - Mayfair Rourkela Rourkela - 8,026

60 Mr. Dilip Ray */ Mr. Souvagya Mohapatra Mayfair Hideaway Spa Resort Goa 8,212 8,026

61 Mr. Dilip Ray */ Mr. Souvagya Mohapatra Mayfair Lagoon Bhubaneswar 14,370 14,045

65 Mr. Dilip Ray */ Mr. Souvagya Mohapatra Mayfair Spa Resort & Casino Gangtok 11,420 11,161

69 Mr. Bharat Aggarwal* Hotel Mansingh Jaipur - 13,843

70 Mr. Bharat Aggarwal* Mansingh Palace Agra - 13,843

71 Mr. Bharat Aggarwal* Mansingh Palace Ajmer - 11,000

72 Mr. Bharat Aggarwal* Mansingh Tower Jaipur - 11,000

73 Mr. Vijay Diwan The Park Kolkata 14,370 14,045

74 Mr. Vijay Diwan The Park New Delhi 21,812 21,318

75 Mr. Vijay Diwan The Park Visakhapatnam 11,259 11,210

76 Mr. Dilip C Datwani Hotel Jayshree Mumbai 8,212 8,026

77 Mr. Gurbaxish Singh Kohli Hotel Midtown Pritam Mumbai 11,420 -

78 Mr. Gurbaxish Singh Kohli Pritam Hotel & Restaurant Mumbai 9,623 -

79 Mr. Sanjay Sood The Devicos Restaurant Shimla 9,623 -

80 Mr. Sanjay Sood Hotel Marc Shimla 8,212 -

81 Mr. D.V.S. Soma Raju Katriya Hotel And Towers Hyderabad 21,812 -

82 Mr. Anil Chadha ITC Grand Chola - A Luxury Collection Hotel Chennai 21,505 -

83 Mr. S.P. Jain The Pride Hotel, Bengaluru Bengaluru 14,370 -

84 Mr. S.P. Jain The Pride Hotel, Chennai Chennai 14,370 -

85 Mr. S.P. Jain The Pride Hotel, Nagpur Nagpur 14,370 -

86 Mr. S.P. Jain The Pride Hotel, Pune Pune 14,370 -

87 Mr. S.P. Jain Pride Plaza Hotel Kolkata 21,812 -

88 Mr. S.P. Jain Pride Plaza Hotel, Ahmedabad Ahmedabad 21,812 -

* Not a related party in the current year, hence membership subscription fee received in current year has not been disclosed. Membership subscription fee received from related parties has been shown in the concerned year only.

The Federation of Hotel and Restaurant Associations of India Summary of significant accounting policies and other explanatory information Statements for the year ended 31 March 2017

c) Membership Subscription (Cont.’d)

(Amount in INR)

S No. Name of related party Name of Hotel City 31 March 2017 31 March 2016

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24. Capital Commitments

i) Capital commitments remaining to be executed and not provided for, net of capital advances -

25. Details of specified bank notes (SBN) held and transacted during the period 8 November 2016 to 30 December 2016 is as under:-

The Company does not maintain independent records of denomination of currency in its books of accounts.

26. Previous year figures have been regrouped wherever considered necessary to make them comparable with the current year.



( in INR thousands)

31 March 2017 31 March 2016

Capital Commitment 172 -

Particulars SBNs Other denomination

notes

Total

Closing cash in hand on 8 November 2016 8 11 19

Add: Permitted Receipts - 40 40

Less: Permitted Payments 3 36 39

Less: Amount deposited in the Banks 5 - 5

Closing cash in hand on 30 December 2016 - 15 15


Documents

Annual Report Cover Page - Fhrai India · PDF file · 2017-11-14notes: 1. a member entitled to attend and vote at the annual general meeting is entitled to appoint a proxy to attend