fortune park hotels limited

REPORT OF THE DIRECTORS FOR THE FINANCIAL YEAR ENDED

31ST MARCH, 2016
1. Your Board of Directors (‘the Board’) hereby submits their Report for the (b) Retirement by rotation
financial year ended 31st March, 2016.
In accordance with the provisions of Section 152(6) of the Act and
2. PERFORMANCE OF THE COMPANY Articles 143 and 144 of the Articles of Association of the Company,
During the year, your Company recorded an operating income of ` 2668 Mr. Suresh Kumar (DIN 02741371), Director, will retire by rotation at
lakhs (previous year - ` 2524 lakhs) registering a growth of 6%. The other the ensuing AGM of the Company and, being eligible, offers himself for
income of the Company was ` 223 lakhs (previous year – ` 196 lakhs) also re-appointment. Your Board has recommended his re-appointment.
registering a growth of 14%. All investment decisions in deployment of 6. BOARD AND BOARD COMMITTEES
surplus funds continue to be guided by the tenets of Safety, Liquidity and
Return. Pre-tax profit registered a growth of 6% while Post-tax profit at The two Board Committees of the Company and their present composition
` 623 lakhs registered a growth of 8%. is as follows:
The financial results of your Company, summarised, are as under: Corporate Social Responsibility New Alliance Approval
For the year ended For the year ended Committee Committee
31st March, 2016 31st March, 2015 Mr. N.Anand (Chairman) Mr. S. Kumar
(`) (`) Mr. S. Kumar Mr. J. Singh
a. Profit Before Tax 9,22,43,965 8,70,29,889 Mr. J. Singh
b. Tax Expenses 2,99,58,119 2,96,22,024 During the year ended 31st March 2016, the following meetings of the Board
and Board Committees were held:
c. Profit After Tax 6,22,85,846 5,74,07,865
Add : Profit brought forward
d. Board / Board Committee Number of Date of meetings
from previous years 28,45,39,831 23,96,22,535 meetings held
e. Surplus available for during the year
appropriation 34,68,25,677 29,70,30,400 Board 5 13th April, 2015
6th May, 2015
Less:
4th September, 2015
– Transfer to General Reserve – 57,40,787
23rd December, 2015
– Interim Dividend Paid 10,03,51,784 – 21st March, 2016
(recommended as Final
Corporate Social 1 21st March, 2016
Dividend)
Responsibility Committee
Proposed Dividend – 56,25,100
New Alliance Approval 12 27th April, 2015
– Dividend Distribution Tax 2,04,29,265 11,24,682 Committee 16th June, 2015
f. Balance carried forward to 30th July, 2015
the following years 22,60,44,628 28,45,39,831 3rd August, 2015
15th September, 2015
3. DIVIDEND 1st October, 2015
Interim dividend of ` 223 per Equity Share having nominal value of ` 10/- 25th October, 2015
per Share aggregating ` 10,03,51,784/-, was declared by your Directors on 15th December, 2015
23rd December, 2015, in proportion to the amount paid-up on each Equity 22nd December, 2015
Share, out of the profits of the Company for payment to the Members 17th February, 2016
whose names appeared on the Register of Members on the said date; the 22nd March, 2016
said Interim Dividend has been recommended by your Directors as Final 30th March, 2016
Dividend for the financial year ended 31st March, 2016. The attendance of the Directors of the Company at the Board and Board
4. OPERATIONAL PERFORMANCE Committee meetings held during the year is given below:
The Company’s Fortune hotel chain that caters to the ‘upscale to mid- SI. Name of the Number of meetings attended
market’ segment now has 75 hotels with an aggregate inventory of nearly No. Director /
6000 rooms in its fold. The `Fortune’ brand including “My Fortune” now Board Corporate Social New Alliance
Committee Responsibility Approval
has 48 operating hotels and another 5 hotels are slated to be commissioned Member
in 2016-17. The remaining 22 hotel projects are under various stages of Committee Committee
development. The brand remains a front runner in its operating segment 1. Mr. N. Anand 5 1 N.A.
and is well positioned to sustain its leadership position in the industry. 2. Mr. A. Pathak* 5 N.A. 10
Your Company is well known for providing quality products and services 3. Mr. S. Kumar 5 1 12
which have helped position `Fortune’ as the premier `value’ brand in the 4. Mr. J. Singh** 1 1 2
Indian hospitality sector.
During the year, the company bagged the PATWA International Award for * Ceased to be a Director w.e.f. 22nd March, 2016
the ‘Best First Class Full Service Business Hotel Chain in India’, 2016, Today's ** Appointed as an Additional Director w.e.f. 21st March, 2016
Traveller Award 2015 for the 'Best First Class Business Hotel Chain', Safari 7. DIRECTORS’ RESPONSIBILITY STATEMENT
India Award for the 'Best First Class Business Hotel Chain 2015', Hospitality As required under Section 134(5) of the Act, your Directors confirm having:
India Award 2015 for the 'Best First Class Business Hotel Chain’and ‘Best
Hospitality Group’ at the 9th edition of the CNBC – Awaaz Travel Awards i) followed in the preparation of the Annual Accounts, the applicable
2015. Accounting Standards with proper explanation relating to material
departures, if any;
5. DIRECTORS AND KEY MANAGERIAL PERSONNEL
(a) Changes in Directors ii) selected such accounting policies and applied them consistently and
made judgements and estimates that are reasonable and prudent so
During the year under review, Mr. Arun Pathak (DIN 00502850)
as to give a true and fair view of the state of affairs of the Company at
had resigned as the director of the Company effective 22nd March,
the end of the financial year and of the profit of the Company for that
2016. The Board would like to place on record its appreciation for the
period;
services rendered by him as the director of the Company.
Mr. Jagdish Singh (DIN 00042258) was appointed as an additional iii) taken proper and sufficient care for the maintenance of adequate
director of the Company effective 21st March, 2016. By virtue of the accounting records in accordance with the provisions of the Act for
provisions of Article 130 of the Articles of Association of your Company safeguarding the assets of your Company and for preventing and
and Section 161 of the Companies Act, 2013 (‘the Act’), Mr. Singh will detecting fraud and other irregularities;
vacate office at the ensuing Annual General Meeting (AGM) of your iv) prepared the annual accounts on a going concern basis; and
Company. Notice under Section 160 of the Act has been received for
v) devised proper systems to ensure compliance with the provisions of
the appointment of Mr. Singh who has filed his consent to act as a
Director of the Company, if appointed. all applicable laws and that such systems are adequate and operating
effectively.
Your Board at its meeting held on 16th April, 2016 has recommended
for the approval of the Members, appointment of Mr. Singh as a Non 8. SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES
– Executive Director of the Company liable to retire by rotation. The Company does not have any subsidiary, associate or joint venture.
Appropriate resolution seeking your approval to the aforesaid 9. PARTICULARS OF EMPLOYEE
appointment is appearing in the Notice of the ensuing AGM.
The particulars of employee in terms of Rule 5(2) of the Companies

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(Appointment and Remuneration of Managerial Personnel) Rules, 2014,
are as detailed below:
Name Age Designation Gross Qualification Experience
Remuneration (Years)
(`)
Suresh Kumar 58 Managing 64,33,114/- B.Sc. 37
Director
Your Company continues to attract and retain talent of the highest quality.
Your Directors place on record their sincere appreciation of the efforts
made and the support rendered by the employees of the Company. The
Company provides a gender friendly workplace and no case of sexual
harassment was reported during the year.
10. RISK MANAGEMENT
The Company’s risk management framework, designed to bring robustness
to the risk management processes in the Company, addresses risks intrinsic
to operations, financials and compliances arising out of the overall strategy
of the Company.
Management of risks vests with the executive management which is
responsible for the day-to-day conduct of the affairs of the Company. The
Internal Audit Department of ITC Limited periodically carries out, at the
request of the Company, risk focused audits with the objective of identifying
areas where risk management processes could be strengthened. As required
under the Risk Management Policy of the Company, a Risk Mitigation
Report back was prepared on half-yearly basis and reviewed by the Fortune
Management Committee. Further, an annual update was provided to the
Board on the effectiveness of the Company’s risk management systems and
policies. The Board expressed satisfaction with the implementation of the
risk mitigation strategies adopted by the Company against various risks.
11. INTERNAL FINANCIAL CONTROLS
There are adequate internal financial controls in your Company with
respect to the financial statements, commensurate with the size and scale
of the operations of the Company. The Board which provides guidance on
internal controls, also reviews internal audit findings and implementation
of internal audit recommendations.
During the year, the internal financial controls in the Company with
respect to the financial statements were tested and no material weakness
in the design or operation of such controls was observed. Nonetheless
your Company recognises that any internal financial control framework,
no matter how well designed, has inherent limitations and accordingly,
regular audit and review processes ensure that such systems are reinforced
on an ongoing basis.
12. PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS
During the year ended 31st March, 2016, the Company has neither given
any loan or guarantee nor has made any investment under Section 186 of
the Act.
13. RELATED PARTY TRANSACTIONS
During the year ended 31st March, 2016, the Company has not entered
into any contract or arrangement with its related parties which is not on
arm’s length basis.
Date of Previous
14. CORPORATE SOCIAL RESPONSIBILITY (CSR)
Joining Employment / The Annual Report on CSR activities of the Company in terms of Section
Position held 135 of the Act read with the Companies (Corporate Social Responsibility
02/02/2015 – Policy) Rules, 2014 is enclosed as Annexure 1 to this Report.
15. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS /
COURTS / TRIBUNALS
During the year under review, no significant or material orders were passed
by the Regulators / Courts / Tribunals impacting the going concern status
of the Company and its future operations.
16. EXTRACT OF ANNUAL RETURN
The extract of Annual Return in the prescribed Form No. MGT-9 is enclosed
as Annexure 2 to this Report.
17. AUDITORS
The Company’s Statutory Auditors, Messrs Price Waterhouse Chartered
Accountants LLP (PWCA), Chartered Accountants were appointed with
your approval at the Nineteenth AGM to hold such office till the conclusion
of the Twenty Fourth AGM. Your Board, in terms of Section 139 of the Act,
has recommended for the ratification of the Members the appointment of
PWCA from the conclusion of the ensuing AGM till the conclusion of the
Twenty-Second AGM. The Board, in terms of Section 142 of the Act, has
also recommended for the approval of the Members the remuneration of
PWCA for the financial year 2016-17. Appropriate resolution in respect of
the above is appearing in the Notice convening the ensuing AGM of the
Company.
18. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN
EXCHANGE EARNINGS AND OUTGO
Conservation of Energy:
Steps taken on conservation of energy and impact thereof: NIL
Steps taken by the Company for utilizing alternate sources of energy: NIL
Capital investment on energy conservation equipment: NIL
Technology Absorption:
Efforts, in brief, made towards technology absorption and benefits derived
as a result of the above efforts, e.g. product improvement, cost reduction,
product development, import substitution, etc : NIL
The Company neither imported any technology during the year nor
incurred any expenditure on research and development.
Foreign Exchange Earnings and Outgo:
During the year there were no foreign exchange earnings (previous year –
Nil) but there was a foreign exchange outflow of `18 lakhs (previous year `
27 lakhs).
On behalf of the Board
Dated : 16th April, 2016 Jagdish Singh Director
Place : New Delhi Suresh Kumar Managing Director

Annexure 1 to the Report of the Board of Directors

Annual Report on CSR Activities of the Company for the financial year ended 31st March, 2016
[Section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014]
1. A brief outline of the Company’s CSR Policy including overview of projects or The Company, a wholly owned subsidiary of ITC Limited (ITC), discharges its corporate
programs proposed to be undertaken social responsibilities (CSR) by aligning itself with the CSR Policy of ITC.
The Company undertakes its CSR activities:
l as listed in Schedule VII to the Companies Act, 2013, in line with the CSR initiatives of
ITC and as approved by the CSR Committee of the Company.
l directly or through a registered trust or a registered society or a company established
under Section 8 of the Companies Act, 2013.
The Company may collaborate with ITC or other companies for undertaking CSR activities.
Composition of CSR Committee Mr. Nakul Anand (Chairman)
2. Mr. Suresh Kumar
Mr. Jagdish Singh
3. Average net profit of the Company for last three financial years ` 8,73,68,150/-
4. Prescribed CSR expenditure (two percent of the amount stated under 3 above) ` 17,47,363/-
5. Details of CSR spent during a) Total amount to be spent for the financial year ` 17,48,000/-
the financial year:
b) Amount unspent, if any Nil

c) Manner in which the amount spent during the financial year is detailed below:

Sl. CSR Project or Sector in which the project is Projects or programs Amount outlay Amount spent on the projects Cumulative expenditure Amount spent:
No. activity identified covered (1) Local area or other (Budget) project or or programs upto the reporting Direct or through implementing
(2) Specify the State and district program wise Sub heads: period agency
where projects or programs 1. Direct expenditure on
were undertaken projects or programs
2. Overheads
1. Contribution to ITC Undertaking rural development N.A. `17,48,000 `17,48,000 `17,48,000 Implementing Agency - ITC
Rural Development projects [covered under Clause Rural Development Trust,
Trust (x) of Schedule VII to the Kolkata
Companies Act, 2013]

The CSR Committee of the Board has confirmed that the implementation and monitoring of the CSR Policy is in compliance with the CSR objectives and Policy of the Company.
Dated : 16th April, 2016 Nakul Anand Suresh Kumar Jagdish Singh
Place : New Delhi Chairman - CSR Committee Managing Director Director

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Annexure 2 to the Report of the Board of Directors

FORM NO. MGT-9
EXTRACT OF ANNUAL RETURN
as on the financial year ended on 31st March, 2016
[Pursuant to Section 92(3) of the Companies Act, 2013 and Rule 12(1) of the Companies (Management and Administration) Rules, 2014]

I. REGISTRATION AND OTHER DETAILS

i) CIN : U55101HR1995PLC052281
ii) Registration Date : 26th July 1995
iii) Name of the Company : Fortune Park Hotels Limited
iv) Category / Sub-Category of the Company : Unlisted Public Company limited by shares
v) Address of the Registered office and contact details : ITC Green Centre
10, Institutional Area
Sector 32,
Gurgaon -122001
Phone: 0124 4171717
Fax: 01244051734
e-mail ID : fphl@fortunehotels.in
vi) Whether listed company (Yes / No) : No
vii) Name, Address and Contact details of Registrar and Transfer Agent, if any : N.A.
II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
All the business activities contributing 10% or more of the total turnover of the Company shall be stated:-
Sl. Name and Description of main products / services NIC Code of the Product/ service % to total turnover of the Company
No.
1. Hotel services 55101 92%
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

Sl. Name and Address of the CIN/GLN Holding/ Subsidiary/ Associate % of shares held in the Company Applicable Section
No. Company
1. ITC Limited L16005WB1910PLC001985 Holding company 100.00% 2(46)
Virginia House
37 Jawaharlal Nehru Road
Kolkata – 700 071
IV. SHAREHOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
(i) Category-wise Shareholding:
% Change
No. of Shares held at the beginning of the year No. of Shares held at the end of the year during the
Category of Shareholders year
Demat Physical Total % of Total Demat Physical Total % of Total
Shares Shares
A. Promoters
(1) Indian
a) Individual/HUF – – – – – – – – N.A.
b) Central Govt. – – – – – – – – N.A.
c) State Govt.(s) – – – – – – – – N.A.
d) Bodies Corp. – 4,50,008 4,50,008 100.00 – 4,50,008 4,50,008 100.00 Nil
e) Banks / FI – – – – – – – – N.A.
f) Any Other – – – – – – – – N.A.
Sub-total (A)(1) – 4,50,008 4,50,008 100.00 – 4,50,008 4,50,008 100.00 Nil
(2) Foreign
a) NRIs - Individuals – – – – – – – – N.A.
b) Other – Individuals – – – – – – – – N.A.
c) Bodies Corp. – – – – – – – – N.A.
d) Banks / FI – – – – – – – – N.A.
e) Any Other – – – – – – – – N.A.
Sub-total (A)(2) – – – – – – – – N.A.
Total shareholding of Promoter (A) = (A)(1)+(A)(2) – 4,50,008 4,50,008 100.00 – 4,50,008 4,50,008 100.00 Nil
B. Public Shareholding
1. Institutions
a) Mutual Funds – – – – – – – – N.A.
b) Banks / FI – – – – – – – – N.A.
c) Central Govt. – – – – – – – – N.A.
d) State Govt.(s) – – – – – – – – N.A.
e) Venture Capital Funds – – – – – – – – N.A.
f) Insurance Companies – – – – – – – – N.A.
g) FIIs – – – – – – – – N.A.
h) Foreign Venture Capital Funds – – – – – – – – N.A.
i) Others (specify) – – – – – – – – N.A.
Sub-total (B)(1): – – – – – – – – N.A.
2. Non-Institutions –
a) Bodies Corp.
i) Indian – – – – – – – – N.A.
ii) Overseas – – – – – – – – N.A.
b) Individuals – – – – – – – – N.A.
i) Individual shareholders holding nominal N.A.
share capital upto ` 1 lakh
ii) Individual shareholders holding nominal
share capital in excess of ` 1 lakh
c) Others (specify) – – – – – – – –
Sub-total (B)(2) – – – – – – – – N.A.
Total Public Shareholding (B)=(B)(1)+ (B)(2) – – – – – – – – N.A.
C. Shares held by Custodian for GDRs & ADRs – – – – – – – – N.A.
Grand Total (A+B+C) – 4,50,008 4,50,008 100.00 – 4,50,008 4,50,008 100.00 Nil

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(ii) Shareholding of Promoters:

Shareholding at the beginning of the year Shareholding at the end of the year

% of Shares % of Shares % change in

Sl. Shareholder’s
% of total Shares of pledged / % of total Shares pledged / shareholding
No. Name No. of Shares No. of Shares
the Company encumbered to of the Company encumbered to during the year
total Shares total Shares

1. ITC Limited 4,50,008 100.00 Nil 4,50,008 100.00 Nil Nil

(iii) Change in Promoters’ Shareholding (please specify, if there is no change):

Sl. Shareholding at the beginning of the year Cumulative Shareholding during the year
No.
No. of Shares % of total Shares of the No. of Shares % of total Shares of the
Company Company

At the beginning of the year

Date wise Increase / Decrease in Promoters Shareholding

No change during the year
during the year

At the end of the year

(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs): NOT APPLICABLE
(v) Shareholding of Directors and Key Managerial Personnel: None of the Directors and Key Managerial Personnel hold any share in the Company in their individual capacity.
V. INDEBTEDNESS
Indebtedness of the Company including interest outstanding / accrued but not due for payment : NIL
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
A. Remuneration to Managing Director, Whole-time Directors and/or Manager: (Amount in `)

Sl. Suresh Kumar

No. Particulars of Remuneration (Managing Director)
(refer Note 1)

1. Gross salary

(a) Salary as per provisions contained in Section 17(1) of the Income-tax Act, 1961 51,89,362

(b) Value of perquisites under Section 17(2) of the Income-tax Act, 1961 9,06,924

(c) Profits in lieu of salary under Section 17(3) of the Income-tax Act, 1961 –

2. Stock Option –

3. Sweat Equity –

4. Commission –
- as % of profit
- others, specify

5. Others, please specify –

Total Amount (A) 60,96,286

Ceiling as per the Companies Act, 2013 84,00,000 per annum

(refer Note 2)

Note 1 : Mr. Suresh Kumar is on deputation from ITC Limited (ITC). Mr. Kumar has been granted Stock Options by ITC at ‘market price’ [within the meaning of the SEBI (Share
Based Employee Benefits) Regulations, 2014] under the ITC Employee Stock Option Schemes.
Note 2 : Ceiling as per Part II of Schedule V to the Companies Act, 2013 has been disclosed, considering that the profits of the Company for the financial year ended 31st March,
2016 are inadequate.
B. Remuneration to other Directors: (Amount in `)

Particulars of Remuneration Total Amount

Sl.
Name of Directors Fee for attending Board and Board Commission
No.
Committee meetings

1. Other Non - Executive Directors

N. Anand Nil Nil Nil

J. Singh

Total Amount (B) Nil

Total Managerial Remuneration (A+B) 60,96,286

Overall ceiling as per the Companies Act, 2013 84,00,000

per annum
(refer Note)

Note: Ceiling as per Part II of Schedule V to the Companies Act, 2013 has been disclosed, considering that the profits of the Company for the financial year ended 31st March,
2016 are inadequate.

C. Remuneration to Key Managerial Personnel other than MD/Manager/WTD: NOT APPLICABLE

VI. PENALTIES / PUNISHMENT / COMPOUNDING OF OFFENCES against the Company, Directors and other Officers in Default under the Companies Act, 2013: None

On behalf of the Board

Dated : 16th April, 2016 Jagdish Singh Director
Place : New Delhi Suresh Kumar Managing Director

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INDEPENDENT AUDITORS’ REPORT
TO THE MEMBERS OF FORTUNE PARK HOTELS LIMITED
Report on the Financial Statements
1. We have audited the accompanying financial statements of Fortune
Park Hotels Limited (“the Company”), which comprise the Balance
Sheet as at March 31, 2016, the Statement of Profit and Loss, 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 Company’s Board of Directors 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 to give
a true and fair view of the financial position, financial performance
and cash flows of the Company 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. This responsibility also
includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding of the assets of
the Company and for 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.
Auditors’ 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 and the Rules
made thereunder including the accounting standards and matters
which are required to be included in the audit report.
5. We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act and other applicable
authoritative pronouncements issued by the Institute of Chartered
Accountants of India. Those Standards and pronouncements 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 auditors’ 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 control
relevant to the Company’s preparation of the financial statements
that give a true and fair view, in order to design audit procedures
that are appropriate in the circumstances. An audit also includes
evaluating the appropriateness of the accounting policies used
and the reasonableness of the accounting estimates made by the
Company’s Directors, 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
Annexure A to Independent Auditors’ Report
Referred to in paragraph 10(f) of the Independent Auditors’ Report of
even date to the members of Fortune Park Hotels Limited on the financial
statements for the year ended March 31, 2016
Report on the Internal Financial Controls under Clause (i) of Sub-
section 3 of Section 143 of the Act
1. We have audited the internal financial controls over financial
reporting of Fortune Park Hotels Limited (“the Company”) as
of March 31, 2016 in conjunction with our audit of the financial
statements of the Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls
2. The Company’s management is responsible for establishing and
maintaining internal financial controls based on the internal control
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fortune park hotels limited
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
Company as at March 31, 2016, and its profit and its cash flows for
the year ended on that date.
Report on Other Legal and Regulatory Requirements
9. As required by ‘the Companies (Auditors’ Report) Order, 2016’,
issued by the Central Government of India in terms of sub-section
(11) of section 143 of the Act (hereinafter referred to as the
“Order”), and on the basis of such checks of the books and records
of the Company as we considered appropriate and according to the
information and explanations given to us, we give in the Annexure
B a statement on the matters specified in paragraphs 3 and 4 of the
Order.
10 As required by Section 143 (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 purposes of our audit.
(b) In our opinion, proper books of account as required by law
have been kept by the Company so far as it appears from our
examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the
Cash Flow Statement 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.
(e) On the basis of the written representations received from the
directors as on March 31, 2016 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31,
2016 from being appointed as a director in terms of Section 164
(2) of the Act.
(f) With respect to the adequacy of the internal financial controls
over financial reporting of the Company and the operating
effectiveness of such controls, refer to our separate Report in
Annexure A.
(g) With respect to the other matters to be included in the Auditors’
Report in accordance with Rule 11 of the Companies (Audit and
Auditors) Rules, 2014, in our opinion and to the best of our
knowledge and belief and according to the information and
explanations given to us:
i. The Company has disclosed the impact of pending
litigations as at March 31, 2016 on its financial position in
its financial statements – Refer Note 19;
ii. The Company has long-term contracts but no derivative
contracts as at March 31, 2016 for which there were no
material foreseeable losses.
iii. There were no amounts which were required to be
transferred to the Investor Education and Protection Fund
by the Company during the year ended March 31, 2016.
For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: 012754N/N500016
Chartered Accountants
Ashok Narayanaswamy
Place : Gurgaon Partner
Date : April 16, 2016 Membership Number : 095665
over financial reporting criteria established by the Company
considering the essential components of internal control stated in the
Guidance Note on Audit of Internal Financial Controls over Financial
Reporting issued by the Institute of Chartered Accountants of India
(ICAI). These responsibilities include the design, implementation
and maintenance of adequate internal financial controls that were
operating effectively for ensuring the orderly and efficient conduct
of its business, including adherence to Company’s policies, the
safeguarding of its assets, the prevention and detection of frauds
and errors, the accuracy and completeness of the accounting
records, and the timely preparation of reliable financial information,
as required under the Act.
Auditors’ Responsibility
3. Our responsibility is to express an opinion on the Company’s
 fortune park hotels limited

internal financial controls over financial reporting based on our
audit. We conducted our audit in accordance with the Guidance
Note on Audit of Internal Financial Controls Over Financial Reporting
(the“Guidance Note”) and the Standards on Auditing deemed
to be prescribed under section 143(10) of the Act to the extent
applicable to an audit of internal financial controls, both applicable
to an audit of internal financial controls and both issued by the ICAI.
Those Standards and the Guidance Note require that we comply
with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether adequate internal financial
controls over financial reporting was established and maintained
and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence
about the adequacy of the internal financial controls system over
financial reporting and their operating effectiveness. Our audit
of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over
financial reporting, assessing the risk that a material weakness exists,
and testing and evaluating the design and operating effectiveness of
internal control based on the assessed risk. The procedures selected
depend on the auditor’s judgement, including the assessment of the
risks of material misstatement of the financial statements, whether
due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
Company’s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
6. A company’s internal financial control over financial reporting is a
process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally
accepted accounting principles. A company’s internal financial
control over financial reporting includes those policies and
procedures that (1) pertain to the maintenance of records that, in
reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally
accepted accounting principles, and that receipts and expenditures
of the company are being made only in accordance with
authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely
detection of unauthorised acquisition, use, or disposition of the
company’s assets that could have a material effect on the financial
statements.
Inherent Limitations of Internal Financial Controls Over Financial
Reporting
7. Because of the inherent limitations of internal financial controls over
financial reporting, including the possibility of collusion or improper
management override of controls, material misstatements due to
error or fraud may occur and not be detected. Also, projections
of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal
financial control over financial reporting may become inadequate
because of changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate.
Opinion
8. In our opinion, the Company has, in all material respects, an
adequate internal financial controls system over financial reporting
and such internal financial controls over financial reporting were
operating effectively as at March 31, 2016, based on the internal
control over financial reporting criteria established by the Company
considering the essential components of internal control stated in
the Guidance Note on Audit of Internal Financial Controls Over
Financial Reporting issued by the Institute of Chartered Accountants
of India.
For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: 012754N/N500016
Chartered Accountants
Ashok Narayanaswamy
Place: Gurgaon Partner
Date: April 16, 2016 Membership Number 095665

Annexure B to Independent Auditors’ Report

Referred to in paragraph 9 of the Independent Auditors’ Report of even added tax and other material statutory dues, as applicable, with
date to the members of Fortune Park Hotels Limited on the financial the appropriate authorities.
statements as of and for the year ended March 31, 2016. (b) According to the information and explanations given to us and
i. (a) The Company is maintaining proper records showing full the records of the Company examined by us, there are no dues
particulars, including quantitative details and situation, of fixed of sales-tax, duty of customs, duty of excise or value added tax
assets. which have not been deposited on account of any dispute. The
(b) The fixed assets of the Company have been physically verified by particulars of dues of income tax and service tax as at March 31,
the Management during the year and no material discrepancies 2016 which have not been deposited on account of a dispute, are
have been noticed on such verification. In our opinion, the as follows:
frequency of verification is reasonable.
Name Nature of Amount Period to Forum where the
(c) The Company does not own any immovable properties as of the dues (`) which the dispute is pending
disclosed in Note 9 to the financial statements. Therefore, the statute amount
provisions of Clause 3(i)(c) of the said Order are not applicable to relates
the Company.
Finance Demand 4,570,992 2003-04 to Customs, Excise
ii. The Company is in the business of rendering services, and Act, 1994 under section 18-04-2006 and Service Tax
consequently, does not hold any inventory. Therefore, the 73(1)(a) of Appellate Tribunal
provisions of Clause 3(ii) of the said Order are not applicable to The Finance
the Company. Act, 1994
iii. The Company has not granted any loans, secured or unsecured,
Income Demand 1,729,041 Assessment Income Tax
to companies, firms, Limited Liability Partnerships or other parties
Tax Act, u/s 156 of Year Appellate Tribunal
covered in the register maintained under Section 189 of the Act.
1961 Income Tax 2001-02
Therefore, the provisions of Clause 3(iii), (iii)(a), (iii)(b) and (iii)(c)
Act, 1961
of the said Order are not applicable to the Company.
iv. The Company has not granted any loans or made any investments, Income Demand u/s 6,757,173 Assessment Commissioner
or provided any guarantees or security to the parties covered Tax Act, 143(3) of Year of Income Tax
under Section 185 and 186. Therefore, the provisions of Clause 1961 Income Tax 2012-13 (Appeals)
3(iv) of the said Order are not applicable to the Company. Act, 1961
v. The Company has not accepted any deposits from the public viii. As the Company does not have any loans or borrowings from any
within the meaning of Sections 73, 74, 75 and 76 of the Act and financial institution or bank or Government, nor has it issued any
the rules framed there under to the extent notified. debentures as at the balance sheet date, the provisions of Clause
vi. The Central Government of India has not specified the 3(viii) of the Order are not applicable to the Company.
maintenance of cost records under sub-section (1) of Section 148 ix. The Company has not raised any moneys by way of initial public
of the Act for any of the products of the Company. offer, further public offer (including debt instruments) and term
vii. (a) According to the information and explanations given to us and loans. Accordingly, the provisions of Clause 3(ix) of the Order are
the records of the Company examined by us, in our opinion, the not applicable to the Company.
Company is regular in depositing the undisputed statutory dues, x. During the course of our examination of the books and records
including provident fund, employees’ state insurance, income of the Company, carried out in accordance with the generally
tax, sales tax, service tax, duty of customs, duty of excise, value accepted auditing practices in India, and according to the

109
 fortune park hotels limited

information and explanations given to us, we have neither come
across any instance of material fraud by the Company or on the
Company by its officers or employees, noticed or reported during
the year, nor have we been informed of any such case by the
Management.
xi. Except for managerial remuneration aggregating to ` 375,846,
the managerial remuneration paid for by the Company is in
accordance with the requisite approvals as mandated by the
provisions of Section 197 read with Schedule V to the Act. The
Company intends to obtain approval from the shareholders by
special resolution in the ensuing Annual General Meeting of the
Company for the excess remuneration paid.
xii. As the Company is not a Nidhi Company and the Nidhi Rules,
2014 are not applicable to it, the provisions of Clause 3(xii) of the
Order are not applicable to the Company.
xiii. The Company has entered into transactions with related parties
in compliance with the provisions of Section 188 of the Act. The
details of such related party transactions have been disclosed in
the financial statements as required under Accounting Standard
(AS) 18, Related Party Disclosures specified under Section 133
of the Act, read with Rule 7 of the Companies (Accounts) Rules,
2014. Further, the Company is not required to constitute an
Audit Committee under Section 177 of the Act, and accordingly,
to this extent, the provisions of Clause 3(xiii) of the Order are not
applicable to the Company.
xiv. The Company has not made any preferential allotment or private
placement of shares or fully or partly convertible debentures
during the year under audit. Accordingly, the provisions of Clause
3(xiv) of the Order are not applicable to the Company.
xv. The Company has not entered into any non-cash transactions
with its directors or persons connected with him. Accordingly,
the provisions of Clause 3(xv) of the Order are not applicable to
the Company.
xvi. The Company is not required to be registered under Section
45-IA of the Reserve Bank of India Act, 1934. Accordingly, the
provisions of Clause 3(xvi) of the Order are not applicable to the
Company.
For Price Waterhouse Chartered Accountants LLP
Firm Registration Number: 012754N/N500016
Chartered Accountants
Ashok Narayanaswamy
Place: Gurgaon Partner
Date: April 16, 2016 Membership Number 095665

BALANCE SHEET
(all amounts in rupees unless otherwise stated) As at As at
Note March 31, 2016 March 31, 2015
(`) (`) (`) (`)
Equity and Liabilities
Shareholders’ funds
Share capital 2 4,500,080 4,500,080
Reserves and surplus 3 262,792,627 267,292,707 321,287,830 325,787,910
Non - current liabilities
Other long - term liabilities 4 21,186,886 16,816,886
Long - term provisions 5 17,834,368 39,021,254 31,244,097 48,060,983
Current liabilities
Trade payables
A) Total outstanding dues of micro enterprises and
small scale enterprises 6 – –
B) Total outstanding dues of creditors other than
micro enterprises and small scale enterprises 6 11,654,985 7,538,138
Other current liabilities 7 33,993,005 19,638,537
Short - term provisions 8 7,313,431 52,961,421 17,325,698 44,502,373
Total 359,275,382 418,351,266
Assets
Non - current assets
Fixed assets
Tangible assets 9 3,460,878 2,987,239
Intangible assets 10 – 3,460,878 – 2,987,239
Deferred tax assets (net) 11 20,931,177 19,681,612
Long - term loans and advances 12 25,460,485 22,885,527
Other non - current assets 13 – 40,078,904
Current assets
Current investments 14 91,914,032 155,952,200
Trade receivables 15 112,313,082 102,619,990
Cash and bank balances 16 72,158,581 39,260,471
Short - term loans and advances 17 1,777,225 1,150,570
Other current assets 18 31,259,922 309,422,842 33,734,753 332,717,984
Total 359,275,382 418,351,266
Significant accounting policies 1
The accompanying notes are an integral part of these financial statements.
This is the Balance Sheet referred to in our report of even date.
For Price Waterhouse Chartered Accountants LLP On behalf of the Board of Directors
Registration No. : 012754N/N500016
Ashok Narayanaswamy Suresh Kumar Jagdish Singh
Partner Managing Director Director
Membership Number : 095665 DIN No. 02741371 DIN No. 0042258
Place : Gurgaon Place : New Delhi Place : New Delhi
Date : April 16, 2016 Date : April 16, 2016 Date : April 16, 2016

110
 fortune park hotels limited

STATEMENT OF PROFIT AND LOSS

(all amounts in rupees unless otherwise stated) Note Year ended Year ended
March 31, 2016 March 31, 2015
(`) (`)
Revenue from operations (net) 22 266,814,273 247,233,526
Other operating income 23 – 5,137,837
Other income 24 22,299,527 19,566,024
Total revenue 289,113,800 271,937,387
Expenses :
Employee benefits expense 25 115,668,614 128,590,576
Depreciation and amortisation expense 26 1,383,016 2,083,501
Other expenses 27 79,818,205 54,233,421
Total expenses 196,869,835 184,907,498
Profit before tax 92,243,965 87,029,889
Tax expense:
Current tax 28 31,207,684 35,340,000
Deferred tax 11 (1,249,565) 29,958,119 (5,717,976) 29,622,024
Profit for the year 62,285,846 57,407,865
Earnings per equity share [Nominal value per share:
` 10 (2015 : ` 10)] 30
Basic 138.41 127.57
Diluted 138.41 127.57
Significant accounting policies 1
The accompanying notes are an integral part of these financial statements.
This is the Statement of Profit and Loss referred to in our report of even date.
For Price Waterhouse Chartered Accountants LLP On behalf of the Board of Directors
Registration No. : 012754N/N500016
Ashok Narayanaswamy Suresh Kumar Jagdish Singh
Partner Managing Director Director
Membership Number : 095665 DIN No. 02741371 DIN No. 0042258
Place : Gurgaon Place : New Delhi Place : New Delhi
Date : April 16, 2016 Date : April 16, 2016 Date : April 16, 2016

CASH FLOW STATEMENT

(all amounts in rupees unless otherwise stated) Year ended Year ended
March 31, 2016 March 31, 2015
(`) (`)
A. Cash flow from operating activities
Profit before tax 92,243,965 87,029,889
Adjustments for:
Depreciation and amortisation expense 1,383,016 2,083,501
Bad debts written off 813,194 –
Provision for doubtful debts 18,714,255 1,350,000
Loss on sale of fixed assets 27,228 2,098
Profit on sale / redemption of current investment (13,558,432) (18,154,179)
Dividend distribution tax paid 20,681 –
Interest income (7,101,612) (384,397)
Operating profit before working capital changes 92,542,295 71,926,912
Changes in working capital :
Increase / (decrease) in trade payables 4,116,847 1,506,047
Increase / (decrease) in long - term provisions (13,409,729) 4,912,127
Increase / (decrease) in short - term provisions (3,262,485) 2,347,087
Increase / (decrease) in other current liabilities 14,354,468 5,980,230
Increase / (decrease) in other long - term liabilities 4,370,000 (10,653,821)
(Increase) / decrease in trade receivables (25,447,369) (16,197,653)
(Increase) / decrease in short - term loans and advances (626,655) 284,939
(Increase) / decrease in other current assets 1,838,137 (5,933,055)
Cash generated from operations 74,475,509 54,172,813
Taxes paid (net of refunds) (33,144,161) (37,735,328)
Net cash generated from operating activities 41,331,348 16,437,485
B. Cash flow from investing activities
Purchase of fixed assets (1,883,883) (1,153,682)
Sale of fixed assets – 10,500
Purchases of current investments (357,219,404) (169,700,000)
Sale / Redemption of current investments 434,816,005 227,176,961
Interest Received 3,405,556 4,342
Proceeds from / (Investment in) bank deposits 26,500,000 (66,500,000)
Net cash used in investing activities 105,618,274 (10,161,879)
C. Cash flow from financing activities
Dividend paid (105,976,884) (5,625,100)
Dividend distribution tax paid (21,574,628) (955,986)
Net cash used in financing activities (127,551,512) (6,581,086)
Net Increase /(decrease) in cash and cash equivalents (A+B+C) 19,398,110 (305,480)
Cash and cash equivalents at the beginning of the year 12,760,471 13,065,951
Cash and cash equivalents at the end of the year 32,158,581 12,760,471
Notes:
1 Cash and cash equivalents comprise of:
Cash on hand 29,622 138,025
Balances with banks 32,128,959 12,622,446
Total 32,158,581 12,760,471
2 The above Cash Flow Statement has been prepared under the indirect method set out in Accounting Standard-3 on ‘Cash Flow Statements’ prescribed by The
Companies (Accounting Standard) Rules, 2006.
3 Previous year figures have been reclassified / regrouped, wherever necessary to conform to the current year classification.
This is the Cash Flow Statement referred to in our report of even date.
For Price Waterhouse Chartered Accountants LLP On behalf of the Board of Directors
Registration No. : 012754N/N500016
Ashok Narayanaswamy Suresh Kumar Jagdish Singh
Partner Managing Director Director
Membership Number : 095665 DIN No. 02741371 DIN No. 0042258
Place : Gurgaon Place : New Delhi Place : New Delhi
Date : April 16, 2016 Date : April 16, 2016 Date : April 16, 2016

111

Notes forming part of the financial statements for the year ended March 31, 2016
1. SIGNIFICANT ACCOUNTING POLICIES
i) BASIS OF PREPARATION
These financial statements have been prepared in accordance
with the generally accepted accounting principles in India
under the historical cost convention on accrual basis. Pursuant
to Section 133 of the Companies Act, 2013 read with Rule 7
of the Companies (Accounts) Rules, 2014, till the standards of
accounting or any addendum there to are prescribed by Central
Government in consultation and recommendation of the National
Financial Reporting Authority, the existing Accounting Standards
notified under the Companies Act, 1956 shall continue to apply.
Consequently, these financial statements have been prepared
to comply in all material aspects with the accounting standards
notified under Section 211(3C) of the Companies Act, 1956
[Companies (Accounting Standards) Rules, 2006, as amended]
and other relevant provisions of the Companies Act, 2013.
All assets and liabilities have been classified as current or
non – current as per the Company’s normal operating cycle
and other criteria set out in the Schedule III to the Companies
Act, 2013. Based on the nature of services, the Company has
ascertained its operating cycle as 12 months for the purpose of
current and non – current classification of assets and liabilities.
ii) REVENUE
To recognise revenue from operations, which has reasonable
certainty of collection, at the time of rendering of services after
deducting service tax from invoiced value.
iii) FIXED ASSETS
To state fixed assets at cost of acquisition inclusive of inward
freight, duties and taxes and incidental expenses related to
acquisition, net of accumulated depreciation/amortisation and
accumulated impairment losses, if any.
To capitalise software where it is expected to provide future
enduring economic benefits. The costs are capitalised in the year
in which the relevant software is implemented for use.
To charge off as a revenue expenditure all upgradation/
enhancements unless they bring similar significant additional
benefits.
Losses arising from the retirement of, and gains or losses arising
from disposal of fixed assets are recognised in the Statement of
Profit and Loss.
iv) DEPRECIATION / AMORTISATION
To calculate depreciation / amortisation on fixed assets, tangible
and intangible in a manner that amortises the cost of the assets
after commissioning, over their estimated useful lives as specified
in Schedule II of the Companies Act, 2013, by equal annual
instalments as summarized below:
Category of Tangible Assets Useful life
Office equipment 5 Years
Computers end users devices 3 Years
Computer, network and servers 6 Years
Furniture and fixtures 10 Years
Vehicle 8 Years
To amortise capitalised computer software cost over a period of 5
years.
v) INVESTMENT
Investments that are readily realisable and are intended to be
held for not more than one year from the date on which such
investments are made, are classified as current investments.
All other investments are classified as long term investments.
Current investments at lower of cost and fair value; and long-
term investments at cost. Where applicable, provision is made to
recognise a decline, other than temporary, in valuation of long
term investments, such reduction being determined and made
for each investment individually.
vi) OTHER INCOME
To account for income from investments and bank deposits on
an accrual basis, inclusive of related tax deducted at source. To
account for income from dividends when the right to receive such
dividends is established.
vii) EMPLOYEE BENEFITS
To make regular contributions to the State administered provident
fund which are charged against revenue. To provide for all long
term defined benefit schemes including gratuity, compensated
absences and loyalty on the basis of actuarial valuation on the
balance sheet date based on the projected unit credit method.
In respect of gratuity, the Company funds the benefits through
annual contributions to Life Insurance Corporation of India (LIC)
under its Group Gratuity Scheme. The actuarial valuation of the
112
fortune park hotels limited
liability towards the gratuity retirement benefits of the employees
is made on the basis of certain assumptions with respect to the
variable elements affecting the computations including estimation
of interest rate of earnings on contributions to LIC.
The actuarial valuation of the liability towards the loyalty plan
for the employees is made on the basis of certain assumptions
with respect to the variable elements affecting the computations
including performance ratings in the subsequent appraisal cycle.
To recognise the actuarial gains or losses in the Statement of Profit
and Loss as income or expense in the period in which they occur.
viii) PROPOSED DIVIDEND
To provide for dividend (including income tax thereon) in the
books of account as proposed by the directors, pending approval
at the annual general meeting.
ix) FOREIGN CURRENCY TRANSLATIONS
To account for transactions in foreign currency at the exchange
rate prevailing on the date of the transactions. Gains/Losses
arising out of fluctuations in the exchange rates are recognised in
Statement of Profit and Loss in the period in which they arise.
To account for gains / losses in the Statement of Profit and Loss
on foreign exchange rate fluctuations relating to monetary items
at the year end.
x) TAXES ON INCOME
To provide current tax as the amount of tax payable in respect
of taxable income for the period, measured using applicable tax
rates and tax laws.
To provide deferred tax on timing differences between taxable
income and accounting income subject to consideration of
prudence, measured using the tax rates and tax laws that have
been enacted or substantively enacted tax rates by the balance
sheet date.
Not to recognise deferred tax assets on unabsorbed depreciation
and carry forward of losses unless there is virtual certainty that
there will be sufficient future taxable income available to realise
such assets.
xi) IMPAIRMENT OF ASSETS
To provide for impairment loss, if any, to the extent, the carrying
amount of assets exceed their recoverable amount. Recoverable
amount is higher of an asset’s net selling price and its value in use.
Value in use is the present value of estimated future cash flows
expected to arise from the continuing use of an asset and from its
disposal at the end of its useful life.
Impairment losses recognised in prior years are reversed when
there is an indication that the impairment losses recognised no
longer exist or have decreased. Such reversals are recognised
as an increase in carrying amounts of assets to the extent that
it does not exceed the carrying amounts that would have
been determined (net of amortisation or depreciation) had no
impairment loss been recognised in previous years.
xii) CLAIMS
To disclose claims against the Company not acknowledged as
debts after a careful evaluation of facts and legal aspects of the
matter involved.
xiii) LEASES
Leases in which a significant portion of the risks and rewards of
ownership are retained by the lessor are classified as operating
lease. Operating lease charges are recognized as an expense in
the Statement of Profit and Loss on a straight line basis over the
lease term.
xiv) FINANCIAL AND MANAGEMENT INFORMATION SYSTEMS
To practice an accounting system which unifies financial records
and is designed to comply with the relevant provisions of the
Companies Act, 1956 and Companies Act, 2013 and provide
financial information appropriate to the business and facilitate
Internal Control.
xv) CASH AND CASH EQUIVALENTS
To disclose in the cash flow statement, cash and cash equivalents
which includes cash in hand, demand deposits with banks, other
short-term highly liquid investments with original maturities of
three months or less.
xvi) EARNINGS PER SHARE
To disclose basic earnings per share computed by dividing the
net profit or loss for the period attributable to equity shareholders
by the weighted average number of equity shares outstanding
during the period.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders
and the weighted average number of shares outstanding during
the period is adjusted for the effects of all dilutive potential equity
shares.
 fortune park hotels limited

Notes forming part of the financial statements for the year ended March 31, 2016
(all amounts in rupees unless otherwise stated)
As at As at As at As at
March 31, 2016 March 31, 2015 March 31, 2016 March 31, 2015
(`) (`) (`) (`)
2 Share capital 4 Other long - term liabilities
Authorised
2,000,000 (March 31, 2015: 2,000,000) Advance from customers 12,729,855 11,079,855
equity shares of ` 10 each 20,000,000 20,000,000 Income received in advance 8,457,031 5,737,031
Issued, subscribed and paid up
450,008 (March 31, 2015: 450,008) 21,186,886 16,816,886
equity shares of ` 10 each 4,500,080 4,500,080
4,500,080 4,500,080 As at As at
March 31, 2016 March 31, 2015
(a) Reconciliation of number of equity shares (`) (`)
As at As at
March 31, 2016 March 31, 2015 5 Long - term provisions
(`) (`)
Provisions for employee benefits:
No of Amount in No of Amount in
Shares ` Shares ` Provision for leave encashment
Balance as at the (Refer note 25) 7,961,444 19,865,397
beginning of the year 450,008 4,500,080 450,008 4,500,080
Add: Shares issued Provision for loyalty bonus
during the year – – – – (Refer note 25) 9,872,924 11,378,700
Less: Shares bought back
during the year – – – – 17,834,368 31,244,097
Balance as at the end of the year 450,008 4,500,080 450,008 4,500,080
(b) Rights, preferences and restrictions attached to shares As at As at
The company has one class of equity shares having a par value of ` 10 March 31, 2016 March 31, 2015
per share. Each shareholder is eligible for one vote per share held. The (`) (`)
dividend proposed by the Board of Directors is subject to the approval of 6 Trade payables
the shareholders in the ensuing Annual General Meeting. In the event of
liquidation, the equity shareholders are eligible to receive the remaining Total outstanding dues of micro
assets of the Company after distribution of all preferential amounts, in
and small enterprises # – –
proportion to their shareholding.
(c) Shares held by holding company Total outstanding dues of trade
As at As at payables other than micro and
March 31, 2016 March 31, 2015
(`) (`) small enterprises 11,654,985 7,538,138
Equity Shares of ` 10 each 11,654,985 7,538,138
fully paid up held by:
ITC Limited, the holding company 450,002 450,002
Held by management personnel # The Company, based on the information available on the status of
as nominees of ITC Limited 6 6 the suppliers, does not have any dues to enterprises covered under
(d) Details of shares held by shareholders holding more than 5% of the Micro, Small and Medium Enterprises Development Act, 2006.
the aggregate shares in the Company
As at As at As at As at
March 31, 2016 March 31, 2015
(`) (`) March 31, 2016 March 31, 2015
(`) (`)
ITC Limited, the holding
company 450,002 99.98% 450,002 99.98% 7 Other current liabilities
Held by management Advance from customers 5,312,680 6,862,680
personnel as nominees
of ITC Limited 6 0.02% 6 0.02% Statutory dues including provident
3 Reserves and surplus fund and tax deducted at source 4,567,178 3,910,150
As at As at
March 31, 2016 March 31, 2015 Employee benefits payable 22,903,147 5,130,707
(`) (`) Income received in advance 1,210,000 3,735,000
Capital reserve
At the beginning and at 33,993,005 19,638,537
the end of the year 3,000,000 3,000,000
General reserve As at As at
Balance as at beginning of the year 33,747,999 28,273,021
Add : transferred from surplus in the March 31, 2016 March 31, 2015
Statement of Profit and Loss during the year – 5,740,787 (`) (`)
Less : adjustment made towards
revision in useful life of fixed assets 8 Short - term provisions
as per Schedule II of the Companies Provision for employee benefits:
Act, 2013 (net of tax) – 265,809
Balance as at end of the year 33,747,999 33,747,999 Provisions for leave encashment
Surplus in Statement of Profit and Loss (Refer note 25) 3,471,745 6,535,316
Balance as at beginning of the year 284,539,831 239,622,535
Profit for the year 62,285,846 57,407,865 Provision for loyalty bonus
Less : Appropriations
Interim dividend on equity (Refer note 25) 3,064,586 4,040,600
shares for the year* (100,351,784) – Provisions for short term
Proposed dividend on equity shares
for the year (Refer note 21) – (5,625,100) compensated absences 777,100 –
Dividend distribution tax on Interim Other provisions:
dividend on equity shares (20,429,265) –
Dividend distribution tax on Proposed Provision for proposed dividend
dividend on equity shares – (1,124,682)
Transfer to general reserve – (5,740,787) on equity shares – 5,625,100
Balance as at end of the year 226,044,628 284,539,831 Provision for dividend distribution
262,792,627 321,287,830 tax on proposed dividend on
* The Company has paid an Interim Dividend of ` 223 per share (on equity shares – 1,124,682
equity shares of `10 each) aggregating ` 100,351,784 during the year. 7,313,431 17,325,698
No interim dividend was paid during the year ended March 31, 2015.

113
 fortune park hotels limited

Notes forming part of the financial statements for the year ended March 31, 2016
(all amounts in rupees unless otherwise stated)
9. Tangible assets (Own Assets)

Gross Block Accumulated Depreciation Net Block

Particulars As at Additions Disposal/ As at As at For the Disposal/ As at As at

April 1, 2015 Adjustments March 31, April 1, 2015 year Adjustments March 31, March 31, 2016
2016 2016
Office Equipment 758,038 101,249 (95,060) 764,227 420,945 67,567 (95,060) 393,452 370,775
Computers end users devices 7,729,536 1,782,634 (571,425) 8,940,745 6,054,997 1,032,020 (544,197) 6,542,820 2,397,925
Computer, network and servers 1,301,307 – – 1,301,307 744,459 113,072 – 857,531 443,776
Furniture and fixtures 1,523,379 – – 1,523,379 1,150,689 164,342 – 1,315,031 208,348
Vehicle 50,650 – – 50,650 4,581 6,015 – 10,596 40,054
Total 11,362,910 1,883,883 (666,485) 12,580,308 8,375,671 1,383,016 (639,257) 9,119,430 3,460,878

Gross Block Accumulated Depreciation Net Block
As at Additions Disposal/ As at As at For the year Adjustment of Disposal/ As at As at
Particulars April 1, 2014 Adjust- March 31, April 1, 2014 fixed assets as per Adjustments March 31, March 31,
ments 2015 schedule II of the 2015 2015
Companies Act,
2013 *
Office Equipment 758,038 – – 758,038 379,202 36,041 5,702 – 420,945 337,093
Computers end users devices 6,927,972 801,564 – 7,729,536 4,304,150 1,353,870 396,977 – 6,054,997 1,674,539
Computer, network and servers 1,301,307 – – 1,301,307 622,158 122,301 – – 744,459 556,848
Furniture and fixtures 1,325,244 198,135 – 1,523,379 815,267 335,422 – – 1,150,689 372,690
Vehicle 41,150 50,650 (41,150) 50,650 27,856 5,277 – (28,552) 4,581 46,069

Total 10,353,711 1,050,349 (41,150) 11,362,910 6,148,633 1,852,911 402,679 (28,552) 8,375,671 2,987,239

10. Intangible assets (Own Assets - Acquired)
Gross Block Amortisation Net Block

Particulars As at Additions Disposal/ As at As at For the Disposal/ As at As at

April 1, Adjustments March 31, April 1, 2015 year Adjustments March 31, 2016 March 31, 2016
2015 2016
Computer software 2,625,404 – – 2,625,404 2,625,404 – – 2,625,404 –
Total 2,625,404 – – 2,625,404 2,625,404 – – 2,625,404 –

Particulars Gross Block Amortisation Net Block
As at Addi- Disposal/ As at As at For the Adjustment of Disposal/ As at As at
April 1, tions Adjust- March 31, April 1, year fixed assets as Adjust- March 31, March 31,
2014 ments 2015 2014 per schedule II ments 2015 2015
of the Compa-
nies Act, 2013 *
Computer software 2,625,404 – – 2,625,404 2,394,814 230,590 – – 2,625,404 –
Total 2,625,404 – – 2,625,404 2,394,814 230,590 – – 2,625,404 –

* The estimated useful lives of certain fixed assets had been revised in accordance with Schedule II to the Companies Act 2013, with effect from 1st April 2014. Pursuant
to the above mentioned changes in useful life of assets, with respect to assets whose remaining useful life was NIL as at April 01, 2014, the net book value of ` 265,809
(net of deferred tax of ` 136,870)  had been adjusted with the opening General Reserve.

As at As at As at As at
March 31, 2016 March 31, 2015 March 31, 2016 March 31, 2015
(`) (`) (`) (`)
11 Deferred tax assets (net) (ii) Tax impact of expenses charged in the financial
Deferred tax asset : statements but allowable as deduction in future
On provision for doubtful debts 11,339,373 4,775,909 years under income tax. 1,287,019 5,533,071
On provision for employees benefits 9,674,664 14,271,733 Net deferred tax asset (i+ii) (Refer note below)
1,249,565 5,854,846
On other timing differences 242,667 922,043
Note : Includes ` Nil adjusted directly to opening General Reserve considering
21,256,704 19,969,685 transitional provision stated in Schedule II to the Companies Act, 2013. (Previous
Deferred tax liabilities : year : `136,870)
Depreciation / amortisation (325,527) (288,073) III. Closing deferred tax asset (I + II)
20,931,177 19,681,612
20,931,177 19,681,612 12 Long - term loans and advances
Break-up of deferred tax assets and liabilities into major components Unsecured, considered good
of the respective balances is as under : Advance income tax (net of provisions
` 113,862,229 ) (Previous year
I. Balance brought forward -
` 110,233,229) 25,460,485 22,885,527
deferred tax asset 19,681,612 13,826,766
25,460,485 22,885,527
II. For the year :
13 Other non - current assets
(i) Tax impact of difference between
Long term deposits with bank with
depreciation / amortisation of fixed maturity period more than 12 months – 40,000,000
assets in the financial statements Interest accrued on deposits – 78,904
and the income tax return (37,454) 321,775
– 40,078,904

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 fortune park hotels limited

Notes forming part of the financial statements for the year ended March 31, 2016
(all amounts in rupees unless otherwise stated)
As at As at As at As at
March 31, 2016 March 31, 2015 March 31, 2016 March 31, 2015
(`) (`) (`) (`)
14 Current investments 18 Other current assets
Unsecured, considered good :
At Cost or fair value whichever is less: Interest accrued on deposits 3,437,629 301,151
Mutual funds (quoted) Contractual reimbursable expenses 27,822,293 33,433,602
DHFL Pramerica Fixed Maturity Plan 31,259,922 33,734,753
Series 62 - Direct Plan - Growth (PY : Unsecured, considered doubtful :
DWS FMP Series 62 Direct Plan - Growth) Contractual reimbursable expenses 6,139,658 2,366,486
Less: provision for doubtful receivables (6,139,658) (2,366,486)
[916.15 units: Previous year (916.15 units)] 9,161 9,161 – –
Mutual funds (unquoted) 31,259,922 33,734,753
19 Contingent liabilities
ICICI Prudential Short Term - Claims against the Company
Direct Plan - Growth Option not acknowledged as debts
Service tax matter 4,570,992 4,570,992
[0 units: Previous year (349,296.17 units)] – 10,000,000 Income tax matters 9,382,331 9,382,331
ICICI Prudential Ultra Short Term -
Direct Plan - Growth a The Company has received demand for service tax amounting to ` 4,570,992
(inclusive of cess and penalty) dated March 10, 2010 from Additional
[0 units: Previous year (3,152,131.39 units)] – 45,000,000 Commissioner, Service Tax pertaining to service tax on reimbursement of
HDFC High Interest Fund - Direct Plan - salary received by the Company during the period from 2003 to 2006.
Short Term Plan - Growth Option The Company has filed its appeal before the Central Excise and Service Tax
Appellate Tribunal for the same.
[0 units: Previous year (363,553.08 units)] – 10,000,000 b Demands from income tax authorities under appeal:
Franklin India Ultra Short Bond Fund Super - ` 6,757,173 for assessment year 2012-13 ( March 31, 2015 : ` 6,757,173)
Institutional Plan - Direct - Growth Plan - ` 2,625,158 for assessment year 2011-12 (March 31, 2015 : `2,625,158)
[0 units: Previous year (810,223.95 units)] – 15,000,000 c It is not practicable for the company to estimate the timings or amount
of cash outflows, if any, in respect of the above pending resolution of the
HDFC Liquid Fund - Direct Plan - Growth Option respective proceedings.
[0 units: Previous year (1,088,005.11 units)] – 30,000,000 As at As at
TATA Money Market Fund Direct Plan - Growth March 31, 2016 March 31, 2015
[0 units: Previous year (13,616.13 units)] – 30,000,000 (`) (`)
20 Capital Commitments
IDFC Cash Fund - Growth - (Direct Plan) Estimated value of contracts in
[0 units: Previous year (4,530.84 units)] – 7,700,000 capital account remaining to be executed – 477,222
Kotak Floater Short Term - Direct Plan - Growth
21 Proposed dividend
[0 units: Previous year (4,302.619 units)] – 8,243,039 The dividend proposed for the year is as follows:
ICICI Prudential Money - Market Fund - On equity shares of `10 each:
Direct Plan - Growth Amount of dividend proposed – 5,625,100
[15645.896 units: Previous year (0 units)] 3,250,000 – Dividend per equity share – ` 12.50
UTI-Money Market Fund-Institutional 22 Revenue from operations (net)
Management consultancy and other services 266,814,273 247,233,526
Plan-Direct Plan-Growth
266,814,273 247,233,526
[22,804.416 units: Previous year (0 units)] 38,154,871 –
Reliance Liquid Fund - Treasury Plan - Details of management consultancy and other services :
Direct Growth Plan - Growth Option Operating and marketing fees 259,543,456 233,056,060
[8,132.163 units: Previous year (0 units)] 30,000,000 – Other fees 7,270,817 14,177,466
Reliance Liquidity Fund - Direct Growth 266,814,273 247,233,526
Plan - Growth Option 23 Other operating income
[8,985.95 units: Previous year (0 units)] 20,500,000 – Income on closure of alliances – 5,137,837
– 5,137,837
91,914,032 155,952,200 24 Other Income
Interest Income on bank deposits 6,043,799 384,397
Aggregate amount of quoted investments 9,161 9,161 Interest Income on income tax refund 1,057,813 –
Market value of quoted investments 10,866 9,998 Profit on sale / redemption of current investment 13,558,432 18,154,179
Aggregate amount of unquoted investments 91,904,871 155,943,039 Miscellaneous income 1,639,483 1,027,448
15 Trade receivables 22,299,527 19,566,024
25 Employee benefits expense
Unsecured, considered good Salaries, wages and bonus * 204,147,525 208,831,978
Outstanding for a period exceeding six months Reimbursement of remuneration
from the date they are due for payment 21,024,259 21,240,931 of deputed managers 31,120,751 29,466,287
Gratuity [Refer note (a) below] **
Others 91,288,823 81,379,059 (after adjusting for movement in value
112,313,082 102,619,990 of assets not recognised) 100,000 5,088,724
Contribution to provident and other funds
Unsecured, considered doubtful [Refer note (b) below] 9,315,654 9,003,696
Outstanding for a period exceeding six months Staff welfare expenses 12,564,289 13,090,961
from the date they are due for payment 22,142,307 11,684,437 257,248,219 265,481,646
Others 4,483,213 – Less : Recoveries *** (141,579,605) (136,891,070)
Less: provision for doubtful debts (26,625,520) (11,684,437) 115,668,614 128,590,576
– – * Net of ` 20,685,075 (P.Y. : ` Nil) being provision for leave encashment written
112,313,082 102,619,990 back during the year due to change in Company’s leave encashment policy.
16 Cash and bank balances ** Includes ` Nil (P. Y.: ` 5,309,184) being excess of fair value of plan assets as
Cash and cash equivalents compared to present value of defined benefit of obligation as at March 31, 2016
which has been charged off as the Company does have any control over future
Cash on hand 29,622 138,025 economic benefits.
Bank balances *** Recoveries of salary cost of deputed personnel from alliances.
- In current accounts 32,128,959 12,622,446 The Company has accounted for the defined benefit plan / other long term
32,158,581 12,760,471 employee benefit and contribution scheme as under:
(a) Defined benefit plan / other long term employee benefits:
Other Bank Balances Gratuity : The employees are entitled to gratuity that is computed as half-month’s
Term Deposits with maturity more salary, for every completed year of service and is payable on retirement/termination.
than 3 months but less than 12 months 40,000,000 26,500,000 The Company makes provision of such gratuity liability in the books of accounts on
72,158,581 39,260,471 the basis of actuarial valuation. The Company pays contribution to Life Insurance
Corporation to fund its plan through a trust.
17 Short - term loans and advances Other long term employee benefits:
Unsecured, considered good : i) The employees are entitled for leave for each year of service and part thereof and subject
Other loans and advances : to the limits specified, the unavailed portion of such leaves can be accumulated or
Prepaid expenses 545,322 488,441 encashed during/at the end of the service period. The plan is unfunded.
Balance with Government Authorities 612,384 14,982 ii) Loyalty Bonus Plan : This plan applies to those employees who have participated
Security deposits 401,100 603,000 in the appraisal process for a minimum of three years after confirmation. The
employees would be eligible to receive the amount as a lumpsum at the end of a
Advances to employees, vendors etc. 218,419 44,147 cycle of three successive years of being rated for his / her performance. An amount
1,777,225 1,150,570 of ` 2,805,410 (Previous year: ` 4,441,700) has been charged to the Statement of
Profit and Loss during the year.

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 fortune park hotels limited

Notes forming part of the financial statements for the year ended March 31, 2016
(all amounts in rupees unless otherwise stated)
The reconciliation of opening and closing balances of the present value of defined benefit obligations are as under:
(i) Present value of defined benefit obligation Gratuity Leave Encashment
As at As at As at As at
March 31, 2016 March 31, 2015 March 31, 2016 March 31, 2015
` ` ` `
Balance at the beginning of the year 8,569,001 7,175,338 26,400,713 19,960,999
Current service cost 3,065,992 2,799,480 1,273,939 3,537,821
Interest cost 621,361 528,585 1,908,938 1,349,747
Actuarial (gains) / losses (427,777) (1,224,625) 4,431,089 6,641,976
Benefits paid (568,364) (709,777) (1,896,415) (5,089,830)
Past service costs – – (20,685,075) –
Balance at the end of the year 11,260,213 8,569,001 11,433,189 26,400,713
(ii) Fair value of plan assets
Balance at the beginning of the year 13,878,185 10,813,425 – –
Expected return on plan assets 1,210,065 1,111,122 – –
Actuarial gains/ (losses) (1,607,734) 1,323,427 – –
Contribution by the company 100,000 1,339,988 – –
Benefits paid (568,364) (709,777) – –
Settlements – – – –
Balance at the end of the year 13,012,152 13,878,185 – –
Actual return on plan assets 397,669 2,434,550 – –
(iii) Assets and liabilities as at balance sheet date
(Refer Note 5 and 8)
Present value of defined benefit obligation 11,260,213 8,569,001 11,433,189 26,400,713
Less: fair value of plan assets (13,012,152) (13,878,185) – –
Less: unrecognised past service costs – – –
Liability / (Assets) as at balance sheet date *(1,751,939) *(5,309,184) 11,433,189 26,400,713
* Not recognised

(iv) Expense recognised in the Statement of Profit and Loss Gratuity Leave Encashment
As at As at As at As at
March 31, 2016 March 31, 2015 March 31, 2016 March 31, 2015
` ` ` `

Current service cost 3,065,992 2,799,480 1,273,939 3,537,821

Interest cost 621,361 528,585 1,908,938 1,349,747
Expected return on Plan Assets (1,210,065) (1,111,122) – –
Actuarial (gains) / losses 1,179,957 (2,548,052) 4,431,089 6,641,976
Past service costs – – (20,685,075) –
Settlements – – – –
Curtailments – – – –
Total expense 3,657,245 (331,109) (13,071,109) 11,529,544
(v) Major category of plan assets as a % of total plan assets
Life Insurance Corporation of India (100%) 13,012,152 13,878,185 – –
(vi) Actuarial assumptions
Discount rate 7.50% p.a. 7.75% p.a. 7.50% p.a. 7.75% p.a.
Expected return on plan assets 9.00% p.a. 9.00% p.a. N/A N/A
Salary Growth Rate 6.00% p.a. 6.00% p.a. 6.00% p.a. 6.00% p.a.
Attrition Rate 25.00% p.a. 25.00% p.a. 25.00% p.a. 25.00% p.a.
The estimates of future salary increases, considered in actuarial valuation, takes into account, inflation, seniority, promotions and other relevant factors, such as demand and
supply factors in the employment market.
Year ended Year ended Year ended Year ended Year ended
March 31, 2016 March 31, 2015 March 31, 2014 March 31, 2013 March 31, 2012
` ` ` ` `
(vii) Amounts recognised in current year and previous four years
Gratuity
Defined benefit obligation 11,260,213 8,569,001 7,175,338 5,960,887 4,152,362
Plan asset 13,012,152 13,878,185 10,813,425 8,771,860 6,863,747
Surplus / (deficit) 1,751,939 5,309,184 3,638,087 2,810,973 2,711,385
Experience adjustments in plan liabilities [(gain) / loss] (511,427) (1,363,585) (1,157,808) (667,282) (1,113,179)
Experience adjustments in plan Assets [gain / (loss)] 1,607,734 (1,292,563) 15,842 260,652 (24,348)
Leave encashment
Defined benefit obligation 11,433,189 26,400,713 19,960,999 17,433,307 14,207,739
Plan asset – – – – –
Surplus / (deficit) (11,433,189) (26,400,713) (19,960,999) (17,433,307) (14,207,739)
Experience adjustments in plan liabilities [(gain) / loss] 1,779,159 5,229,015 3,527,807 2,717,431 2,172,406
Experience adjustments in plan assets [gain / (loss)] – – – – –
(viii) Expected contribution to the funds in the next year
Gratuity – – – – –

(b) State plans (contribution scheme): Year ended Year ended

The Company deposits an amount determined at a fixed percentage of basic pay every
month to the State administered Provident Fund for the benefit of the employees.
Accordingly, the Company’s contribution during the year that has been charged to
revenue amounts to `8,892,169/- (Previous year ` 8,644,526/-).
March 31, 2016 March 31, 2015
(`) (`)
26 Depreciation and amortisation expense [refer note 9 & 10]
Depreciation on tangible assets 1,383,016 1,852,911
Amortisation on intangible assets – 230,590
1,383,016 2,083,501

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 fortune park hotels limited

Notes forming part of the financial statements for the year ended March 31, 2016
(all amounts in rupees unless otherwise stated)
Year ended Year ended Year ended Year ended
March 31, 2016 March 31, 2015 March 31, 2016 March 31, 2015
(`) (`) (`) (`)
27 Other expenses 28 Current tax
Power and fuel 596,839 378,862 Income tax for the year 31,150,000 35,340,000
Adjustments / (credits) related to
Rent [refer note 32] 6,687,622 5,447,206 previous years (Net) 57,684 –
Repairs - others 2,641,808 1,855,126
31,207,684 35,340,000
Insurance 219,502 169,409 29 Expenditure in foreign currency
Rates and taxes 28,641 35,580 Advertisement / sales promotion 1,758,804 2,695,864
Travelling and conveyance 14,920,079 15,081,939 1,758,804 2,695,864
Expenditure towards Corporate Social 30 Earnings per equity share
Responsibilty (CSR) activities 1,748,000 1,618,000 Profit after tax 62,285,846 57,407,865
Legal Consultancy / professional fees 6,668,863 5,380,109 Weighted average number of
Printing and stationery 492,250 455,142 shares outstanding 450,008 450,008
Basic and diluted earnings per share (in ` ) 138.41 127.57
Communication expenses 3,270,010 3,040,289 (Face value - ` 10/- per share)
Advertising / sales promotion 14,225,954 13,774,549
31 Related party disclosures under Accounting Standard 18
Provision for doubtful debts 18,714,255 1,350,000
Bad debts written off 813,194 – a) Names of related parties and nature of relationship:
i) Where control exists:
Information technology expenses 5,565,419 3,419,059 Holding Company ITC Limited
Bank charges 14,604 16,090 ii) Key Management Personnel: Nakul Anand (Director)
Loss on sale / write-off of fixed assets (net) 27,228 2,098 Suresh Kumar (Managing Director)
Payment to auditors (excluding service tax) Jagdish Singh (Additional
As auditor: Director w.e.f. March 21, 2016)
- Audit fee 350,000 250,000 Arun Pathak (Director) (Ceased to
- Tax audit fee 50,000 50,000 be Director w.e.f. March 21, 2016)
iii) Other related parties with whom
- Other services 875,000 200,000 transactions have taken place
- Reimbursement of expenses 68,006 161,263 during the year :
Miscellaneous expenses 1,840,931 1,548,700 Associate of Holding Company International Travel House Limited
79,818,205 54,233,421 Entity under control of the ITC Group ITC Rural Development Trust
ITC Sangeet Research Academy

b) Summary of transactions / balances (`) :

Holding Company Other Related Parties Key Management Personnel
Transactions / balances March 31, March 31, March March 31, March 31, March 31,
2016 2015 31, 2016 2015 2016 2015
1 Operating and marketing fees 19,613,742 14,471,817
[Inclusive of service tax -`24,10,788/- (Previous year - `15,92,060/-)]
2 Purchase of services
- ITC Limited 413,488 471,526
- International Travel House Limited 3,216,891 3,562,452
3 Rent 1,694,802 1,671,372
[Inclusive of service tax - ` 1,99,368/- (Previous year - `1,83,857/-)]
4 Remuneration of managers / staff on deputation recovered
- ITC Limited 13,537,501 13,356,095
[Inclusive of service tax - ` 16,59,780/- (Previous year - ` 14,75,808/-)]
5 Remuneration of managers on deputation reimbursed (including remuneration of Suresh 31,120,751 29,466,287
Kumar - Managing Director) ` 5,059,362/- (Previous year - ` 7,54,585/-) as disclosed below)
6 Dividend payments 105,976,884 5,625,100
7 Expense recovered during the year (amount due on account of payments made on behalf of
related parties)
- ITC Limited 813,747 3,373,662
8 Expense reimbursed during the year (amount due to related parties on account of payments
made by them on behalf of the Company)
- ITC Limited 11,045,716 12,525,596
(including remuneration of Suresh Kumar - Managing Director ` 600,000/- (Previous year -
` 98,214/-))
- International Travel House Limited 67,580 288,668
9 Remuneration to Key Management Personnel
- Suresh Kumar 7,016,637 992,282
10 Expenditure towards Corporate Social Responsibilty (CSR) activities
- ITC Rural Development Trust 1,748,000
- ITC Sangeet Research Academy 1,618,000
11 Closing Balances:
(i) Trade receivables
- ITC Limited 2,361,080 1,061,729
(ii) Other current assets
- ITC Limited 1,713,382 1,080,803
(iii) Trade payables
- ITC Limited 3,114,563 2,295,113
- International Travel House Limited 534,502 115,466
(iv) Other current liabilities
- Suresh Kumar (Refer note below) – 98,462
Note : The Remuneration paid to the Managing Director due to the inadequacy of profits, is subject to the approval of shareholders by special resolution in the ensuing Annual General Meeting
of the Company.
32 Lease arrangements
The Company’s significant leasing arrangements are in respect of operating leases for premises (residential, office etc.). These leasing arrangements which are cancellable range between 11
months and 2 years generally, or longer, and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as rent under Note 27.
33 Segment reporting
The Company operates in a single operating segment i.e. Hoteliering and within one geographical segment i.e. India and accordingly, in accordance with Accounting Standard 17 - “Seg-
ment Reporting”, no segment disclosures have been made.
34 Previous year figures
Previous year figures have been reclassified / regrouped to conform to current year’s classification.
For Price Waterhouse Chartered Accountants LLP On behalf of the Board of Directors
Registration No. : 012754N/N500016
Ashok Narayanaswamy Suresh Kumar Jagdish Singh
Partner Managing Director Director
Membership Number : 095665 DIN No. 02741371 DIN No. 0042258
Place : Gurgaon Place : New Delhi Place : New Delhi
Date : April 16, 2016 Date : April 16, 2016 Date : April 16, 2016

117