59th Annual Report 2014-15

The Federation of Hotel & Restaurant Associations of India
President : T. S. Walia CIN-U55100DL1955NPL002587 Member of Honour : Dr Ajit B Kerkar

Hony. Secretary : Vivek Nair Hony. Treasurer : Sudesh Kumar Poddar
Vice President : Bharat Malkani Jt. Hony. Secretary : Garish Oberoi
Vice President : K. Syama Raju Jt. Hony. Secretary : K. Murali Rao
Vice President : Luv Malhotra Secretary General: Amitabh Devendra
NOTICE OF ANNUAL GENERAL MEETING
Dear Members,
NOTICE is hereby given that the 59th Annual General Meeting of The Federation of Hotel &
Restaurant Associations of India will be held on Wednesday, 30th September, 2015 at 11.00 a.m.
at The Suryaa Hotel, New Friends Colony, New Delhi – 110025 Tel: 011-26835070/4167222 Fax:
011- 26837758 to transact the following business:
ORDINARY BUSINESS:
ITEM NO. 1 – ADOPTION OF FINANCIAL STATEMENTS
To receive, consider and adopt the audited annual accounts of the Federation for the financial
year ended on 31st March 2015, including audited Balance sheet as at 31st March, 2015 and
Statement of Income and Expenditure for the year ended on that date, together with the report
of the Executive Committee and Auditors thereon.
ITEM NO. 2 – APPOINTMENT OF AUDITORS
To appoint and fix the remuneration of M/s. Walker Chandiok & Co. Chartered Accountants,
having Firm Registration No. 001076N/N500013, the existing Statutory Auditors and to pass the
following resolution:
“RESOLVED THAT, pursuant to the provisions of section 139 and other applicable provisions
if any of Companies Act and Rules made there under, M/s Walker Chandiok & Co. Chartered
Accountants, New Delhi having Firm Registration No. 001076N/N500013 be and is hereby
appointed as the Auditors of the Federation to hold the office from the conclusion of 59th
Annual General Meeting till the conclusion of 64th Annual General Meeting of the Federation
subject to the ratification of their reappointment by members at every annual general meeting,
at such remuneration as may be decided by the Executive Committee”.
RESOLVED FURTHER THAT, the executive committee of the federation be and is hereby
authorized 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
By Order of the Executive Committee
Date: New Delhi Amitabh Devendra

Place: 12th September, 2015 Secretary General
Regd. Office: B-82, 8th Floor, Himalaya House, 23 Kasturba Gandhi Marg, New Delhi - 110 001
Phones : (011) 40780780  Fax : (011) 40780777  E-Mail : fhrai@vsnl.com  Website : www.fhrai.com
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 27th September, 2015
and will end at 5.00 p.m. on 29th September, 2015. The Federation has appointed Mr. Yashlok
Dubey 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 cast 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 Friday between 10.00 a.m. to 6.00 p.m. and Saturday 10.00 a.m. to 2.00 p.m.
up to 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 59th 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 fhrai@vsnl.com 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 27th September, 2015 (09:00 a.m.) and ends on 29th
September, 2015 (05:00 p.m.). During this period Members of the Federation, as on the cut-off
date (record date) of 23rd September, 2015 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 23rd September, 2015
and not casting their vote electronically, may only cast their vote at the 59th Annual General
Meeting.
5. Mr. Yashlok Dubey, Company Secretary 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 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
Date: 12th September, 2015 Amitabh Devendra

Place: New Delhi Secretary General
Enclosures:
1. Audited Annual Accounts for the year ended 31st March, 2015 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 and Northern 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. T S Walia
Mr. Sudesh Poddar
Mr. Ravindra Kumar Kashuka
Mr. Ashok Singh
Mr. Pranav Singh
Mr. Vinaay Malhotra
Western India Region
Mr. Bharat Malkani

Mr. Vivek Nair
Mr. Dinesh Advani
Mr. Pradeep Shetty
Mr. Nirav Gandhi
Mr. Gurbaxish Singh Kohli
South India Region
Mr. K. Syama Raju

Mr. K. Murali Rao
Mr. M.P. Purushothaman
Mr. T. Nataraajan
Mr. K. Nagaraju
Mr. Subir Bhowmick
Northern India Region
Mr. Luv Malhotra

Mr. S. M. Shervani
Mr. Rajindera Kumar
Mr. Garish Oberoi
Mr. Sanjay Sood
Mr. Surendra Kumar Jaiswal
NOMINATIONS RECIVED FROM EASTERN INDIA REGION AND
NORTHERN INDIAN REGION FOR THE FEDERATION OF HOTEL
& RESTAURANT ASSOCIATIONS OF INDIA (FHRAI) EXECUTIVE
COMMITTEE IN PLACE OF THE RETIRING MEMBERS AT THE
ENSUING ANNUAL GENERAL MEETING
Eastern India Region
Mr. Sudesh Poddar

Mr. T S Walia
Mr. Ashok Singh
Mr. Pranav Singh
Mr. Vinaay Malhotra
Mr. Dilip Ray
Mr. Vijay Dewan - Co-opted Member
Northern India Region
Mr. Luv Malhotra

Mr. Garish Oberoi
Mr. S. M. Shervani
Mr. Rajindera Kumar
Mr. Bharat Aggarwal
Mr. Surendra Kumar Jaiswal
Mr. Suresh Kumar - Co-opted Member

Regd. Office: B-82, 8th Floor, Himalaya House, 23 Kasturba Gandhi Marg, New Delhi - 110 001
Phones : (011) 40780780, Fax : (011) 40780777, E-Mail : fhrai@vsnl.com, Website : www.fhrai.com
CIN-U55100DL1955NPL002587
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)
CIN CIN-U55100DL1955NPL002587

Name of the company
Registered office Regd. Office: B-82, 8th Floor, Himalaya House, 23 Kasturba Gandhi Marg,
New Delhi - 110 001
Phones : (011) 40780780, Fax : (011) 40780777
E-Mail : fhrai@vsnl.com, Website : www.fhrai.com
We, being the member of the above named company, hereby appoint:-
1. Name
Address:
E-mail Id:
Signature …………………………………..
Or failing him
2. Name
Address:
E-mail Id:
Signature …………………………………..
Or failing him
3. Name
Address:
E-mail Id:
Signature …………………………………..
our proxy to attend and vote (on a poll) for us and on our behalf at the 59th Annual General Meeting
of the Association, to be held on Wednesday, 30th September, 2015 at 11.00 a.m. at The Suryaa Hotel,
New Friends Colony, New Delhi – 110025 and vote on our behalf and at any adjournment thereof in
respect of such resolutions as are indicated below:
Resolution No. 1
ADOPTION OF FINANCIAL STATEMENTS

To receive, consider and adopt the audited annual accounts of the Federation for the financial year
ended on 31st March 2015, including audited Balance sheet as at 31st March, 2015 and Statement of
Income and Expenditure for the year ended on that date, together with the report of the Executive
Committee and Auditors thereon.
Resolution No. 2
APPOINTMENT OF AUDITORS
To appoint and fix the remuneration of M/s. Walker Chandiok & Co. Chartered
Accountants, having Firm Registration No. 001076N/N500013, the existing Statutory
Auditors and to pass the following resolution.
Resolution No. 3
Election of Members of the Executive Committee in place of retiring Members
Signature of Member
Signed this…… day of September, 2015 Membership No._________
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.
______________________________________________________________________
REPORT OF THE EXECUTIVE COMMITTEE

for the year ended 31st March, 2015
Dear Members
The Members of the Executive Committee of FHRAI have great pleasure in presenting the 59th
Annual Report together with the Audited Accounts for the year ended 31st March, 2015.
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 2014-15, at its first Meeting
held on 18th October, 2014 at J W Marriott Hotel, New Delhi; i.e. immediately after their election at
the last Annual General Meeting. The said Executive Committee had elected Mr. T S. Walia of
Eastern Region to be the President of FHRAI for 2014-15. The President then nominated Mr. Vivek
Nair of Western Region to be the Hony. Secretary. The Committee also elected Mr. Sudesh Poddar of
Eastern Region as Hony. Treasurer, Mr. K Murali Rao and Mr. Garish Oberoi of Southern Region and
Northern Region respectively as Joint Hony. Secretaries. 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.447.52 Lacs whereas total
expenditure incurred stands at Rs.235.40 Lacs, having a surplus of income of Rs.212.12 Lacs over the
expenditure. Moreover, the financial highlights are as under:
(Rs. In Lacs)
As at 31 March, 2015 As at 31 March, 2014
Surplus/ (Deficit) for the year before
212.12 174.58
prior period items
Prior period expenses - 2.25
Balance at the beginning of the year 1,365.45 1,193.12
Balance at the end of the year 1,577.57 1,365.45
As on date the year ended 31 March, 2015, FHRAI has invested a total sum of Rs.0.90 Lacs in
various assets like plant, machinery & equipments etc. FHRAI has also made investment in FDRs
with HDFC Bank Ltd. and Indian Overseas Bank to the extent of Rs.350.39 Lacs.
Auditors
M/s Walker Chandiok & Co.LLP, Chartered Accountant, New Delhi, the retiring Statutory Auditors,
being eligible have offered for re-appointment. To appoint and fix the remuneration of M/s. Walker
Chandiok & Co. Chartered Accountants, having Firm Registration No. 001076N/N500013, the existing
Statutory Auditors.
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
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of the state of affairs of the Company at the end of the financial year as on March 31, 2015.
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.
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. 0.03 lacs and Nil respectively.
Meetings of Executive Committee:
The Executive Committee met 4 times during the year under report i.e. on 3rd July, 2014, 12th
September, 2014, 18th October, 2014 and 10th January, 2015.
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 2014 were 3681 and increased to 3938 as on 31st March, 2015
(299 members joined FHRAI and 42 ceased/terminated during the year). It has increased to 3990 as on
22nd August, 2015. The region-wise and category-wise details of the members of FHRAI are as under:
FHRAI Members Break –up as on 22nd August, 2015

Category East North South West Total
Nos Rooms Nos Rooms Nos Rooms Nos Rooms Nos Rooms
5 Star
10 1562 54 11767 39 7860 50 11807 153 32996
Deluxe
5 Star 7 1099 52 7645 48 6157 49 5839 156 20740
4 Star 9 732 50 4467 63 5945 45 4153 167 15297
Heritage 2 53 36 1348 10 338 10 362 58 2101
3 Star 20 1041 74 3530 153 8585 88 5480 335 18636
2 Star 5 130 19 665 11 466 14 749 49 2010
1 Star 1 12 6 180 7 192
Unclassified 242 9536 539 20989 418 22940 501 20640 1700 74105
Total 295 14153 825 50423 748 52471 757 49030 2625 166077
Restaurants 157 13435 605 51103 260 24964 236 26132 1258 115634
Associates 19 0 34 0 22 0 28 0 103 0
Associations 1 0 1 0 1 0 1 0 4 0
Grand Total 472 1465 1031 1022 3990
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FHRAI Institute of Hospitality Management (FIHM)

Over the years, the FHRAI Institute of Hospitality Management 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.
As part of our long-term vision and growth strategy for FIHM, FHRAI entered into a conducting
agreement with ITM Edu-tech (India) Ltd in February 2013. The institute, now known as the ITM-
FHRAI Institute of Hospitality & Management, aims to leverage the complementary strengths of both
organisations, i.e the formidable brand equity and national network of FHRAI and the core
competencies of ITM in offering globally recognised hospitality and tourism related courses.
The institute currently offers a Three Year B.A Degree in International Hospitality and Tourism
Management in collaboration with Queen Margaret University, U.K, a Three Year B.A Degree in
Culinary Arts in association with the University of Derby, U.K. and a One Year Advanced Diploma in
Patisserie and Confectionery. The institute has started Two Year PGDM Program form the academic
year 2015 with a small batch of students. Various short-term courses and training programs will also
be offered to meet the industry's requirements. Students who are wards of FHRAI Members are
entitled to a discount of 20% in tuition fees for all courses, and children of employees of FHRAI
member establishments are allowed a 30% concession.
50th 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 Golden Jubilee Convention of FHRAI is slated to be held from 25th -27th September, 2015 at the
Mayfair Lagoon Hotel, Bhubaneswar. The theme chosen for the Convention is Atithi Devo Bhava.
Dignitaries invited for the function are:
• Dr. Mahesh Sharma, Minister of State for Tourism (I/C) has given his consent to be the Guest
of Honour.
• Shri Navin Patnaik, Chief Minister of Odisha has consented to be the Chief Guest.
• Shri.Dharmenda Pradhan, Minister of State for Petroleum (I/C),
• Shri Jual Oram, Union Minister for Tribal Affairs,
• Shri Rajiv Pratap Rudy, Minister of State for Skill Development & Entrepreneurship (I/C)
• Shri Rahgubar Das, Chief Minister of Jharkhand
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A Heritage Walk has been organized on World Tourism Day -27th September, 2015: Mr. Francois
Richier, Ambassador of France, Mr. Cesare Bieller, Counsel General of Italy (East) and Mr. Gabriel
Hons-Olivier from US Consulate (Hyderabad) have confirmed their participation.
FHRAI Awards
In order to encourage and recognise entrepreneurial leadership, individual professional excellence
and exemplary initiatives to promote environmental sustainability in the Hospitality Industry, FHRAI
this year has invited applications for 18 prestigious awards in three categories. The FHRAI awards
ceremony is a part of the Golden Jubilee Convention of FHRAI in Bhubaneswar.
FHRAI Indian Hotel Industry Survey
The FHRAI Indian Hotel Industry Survey 2013-14 is published in cooperation 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 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 2014-15

On assuming charge as President FHRAI, Mr. T. S. Walia emphasized the need for a few core Sub-
Committees to coordinate various new and ongoing initiatives by involving FHRAI EC members as
Chairmen. The Sub-Committees have been delegated a well-defined mandate to facilitate operational
and organizational support to achieve our desired goals.
In view of above, the following five sub-committees were formed.
Name of the Sub-Committee EC Member /Chairman

1 Legal Matters & Copyright Issues Mr. Pradeep Shetty
2 FIHM Mr. Vivek Nair
3 FAITH Sub Committee Mr. T S Walia
4 Secretariat & Membership Affairs Mr. Garish Oberoi
5 Constitution Review Mr. K. Syama Raju
6 Classification Sub-Committee Mr. Bharat Malkani
7 North-East Tourism Committee Mr. Sudesh Poddar
FHRAI Guide 2015

Members may please recall that FHRAI has substituted the printed edition of the Guide with an
electronic version to promote environmental sustainability, FHRAI Guide 2015 (DVD) was sent to all
FHRAI members. The FHRAI Guide has been recognised as an authoritative and indispensable
resource for travel industry professionals, trade media, professional organisations, suppliers as well
as individual and corporate travelers. The DVD offers unmatched visibility to all FHRAI members’
establishments listed in the Guide with added advantage of easier navigation and convenient
accessibility.
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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
The FHRAI Website www.fhrai.com is a comprehensive portal which gives our members access to
latest industry news, event updates, electronic copies of the current and back-issues of the FHRAI
Magazine and other useful resources and online services.
Government Matters and Policy Issues pertaining to the Hospitality & Tourism Sector
Food Safety & Standards Act

The enactment of the Food Safety & Standards Act is having a far-reaching impact on nearly every
segment of the hospitality industry. In principle, FHRAI has welcomed the legislation as a
progressive initiative aimed at safeguarding public interest and we have been 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. We have requested the Government to take into due consideration, the
prevailing ground realities as well as the practical constraints being encountered by our industry.
In response to our requests, during the course of the past year, the FSSAI has twice extended the last
date for existing Food Business Operators for obtaining License/ Registration under the Food Safety
and Standards (Licensing and Registration of Food businesses) Regulations, 2011. The revised
deadline stipulated by FSSAI is 4th February, 2016.
The FSSAI has initiated a strategy aimed at benchmarking and harmonising the existing food safety
standards and regulations with CODEX and other international best practices. FHRAI has been
providing detailed technical inputs in this process, which can help in developing a modern,
pragmatic and industry-friendly regulatory framework.
FHRAI has also undertaken to catalyze the setting up of state-of-the-art food testing laboratories in
each region, to provide affordable services to our members and facilitate compliance with the FSSAI
Regulations. The first such laboratory has already been commissioned in the Western Region in the
city of Vadodara.
Hotel Classification
Hotel Classification, although entirely voluntary, is a powerful tool for the industry to provide
assurance to our valued guests and patrons on certain uniform standards of amenities and services
across various star categories. This assists informed consumer choice and enables hotels to offer a
differentiated value proposition to their target market segments. With the growing maturity of the
Indian Hospitality Industry and our increasingly discerning clientele, it has been a shared goal of the
Ministry of Tourism and FHRAI, to further strengthen our system of hotel classification.
December 2014, the Ministry of Tourism, Government of India had announced a bouquet of measures
to simplify the classification/ reclassification process to provide greater flexibility to hotel owners.
FHRAI is simultaneously pursuing with the Ministry, the need to comprehensively review its current
Guidelines for Hotel Classification/ Reclassification. Our recommendations incorporate widely accepted
international norms and best practices and also address the genuine constraints and technical
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limitations which our members encounter in adhering to certain provisions which are mandatory as
per the present criteria.
To further facilitate the easy submission of application Online submission for

classification/reclassification and project approval of hotels was introduced from 31st March, 2015 by
the Ministry of Tourism, Government of India.
Applications can be submitted online by accessing their website http://hotelcloud.nic.in . The fee
may be submitted by Demand Draft by post or by hand, till integration of online payment gateway.
FHRAI has also strongly objected to an anomalous policy followed by certain State Governments,
wherein they levy higher differential rates of minimum wages, property taxes, license fee etc,
specifically on classified star hotels.
National Tourism Policy 2015 – Ministry of Tourism, Government of India
Ministry of Tourism, Government Of India is under process to announce the New National Tourism
Policy 2015. FHRAI recommendations which are a part of the New Tourism Policy are as under:
1. Placing Tourism in the Concurrent List of the Indian Constitution for effective legislation to
make tourism into a national agenda.
2. Under the infrastructure lending scheme of the RBI hotels having a CAPEX of Rs.20 crore
(without land cost) and hotels with a star rating of 1 star & above anywhere in India will
became eligible for infrastructure financing under the RBI harmonized list for infrastructure
sub sectors, currently hotels of 200 Crores CAPEX (without land cost) and hotels with a star
rating of 3 star & above are eligible.
3. By classifying the hospitality sector as a permissible infrastructure activity under section 54

EC hotel will be able to raise tax free bonds through notified financial institutions thereby
saving on capital gains tax.
4. It recommends classifying hotels & resorts as infrastructure under section 80IA/IB of the IT
Act so that new hotel projects will be able to avail the benefit of 100% deductions with respect
to profits and gains for new hotels for a period of 10 years. This will lead to many new hotel
projects being set up by Companies re-investing their profits in the Hotel Sector apart from
fresh investment.
5. By declaring all hospitality projects as an industrial activity, they become for eligible for
concessional utility charges & property cess and levy of industrial rates. Hotel will be
benefited by not having to pay commercial rates for using the various utilities.
6. Incentivize large-scale infrastructure development by ensuring availability of a 10-year

income tax holiday to mega tourism zones of minimum 25 hectares, promoting tourism as the
principal economic activity. Theses could be convention & exhibition destinations,
accommodation centers, amusement/theme parks, wellness centers, tourism sports
destination, spiritual tourism destination, tourist attractions etc.
7. Improving the vocational & professional skills of young men & women who wish to be a part
of this dynamic industry by giving them a definitive career path and progression by enrolling
them in skill development programs. Would the setting up of the dedicated University for
Tourism and Hospitality encompass the National Council colleges spread across each state of
India as there is policy paralysis in the National Council Strategy due to which the entrants
have gone down drastically over the years.
-6-
______________________________________________________________________
8. It recommends a strong public –private-people partnership to restore and adapt our historical
and cultural assets.
9. Product Development has followed the well established practice of previous tourism policies
by emphasizing on developing the following products.
• Visit to Heritage and Cultural Tourism- Fairs & Festivals
• Medical Tourism- Ayurveda, Yoga
• Meetings, Incentives, Conferences & Exhibitions (MICE)
• Agritourism -Rural/Village/Farm or Plantation visits
• Beaches, Rivers/Backwaters/Dams
• Cruise tourism along the coast and in inland rivers
• Adventure & Wildlife Tourism
• Event management such as Destination Weddings,
• Promote Eco Tourism
• Sponsor Shopping festivals and food festival stressing on India multifaceted cuisine.
• Cinematic Tourism
10. FHRAI recommended that domestic tourism potential should be exploited and pilgrimage
destinations should be promoted, the tourism policy document highlights the formation of
integrated Development of Tourist Circuits and Destinations such as:
• Swadesh Darshan,
• PRASAD (Pilgrimage Rejuvenation and Spiritual Augmentation Drive)
• Buddhist Circuit,
• Priority Areas – North Eastern Region and J&K. However, there is no revival of the North
East Industrial and Investment Promotion Policy, 2007(NEIIPP – 2007) as desired by the
FHRAI.
• Setting up of Special Tourism Zones on the lines of Special Economic Zones
FHRAI recommendations that have not been suitably addressed in the New Tourism policy:
1. Implementation of Goods and Services Tax (GST) at the earliest at the lowest slab as it is
indicated that with the application of GST the tax on the hotel industry will be in the range of
27% as it will be subsuming all indirect taxes as well as service tax, luxury tax and so on.
Classification of all tourism & hospitality businesses in the lower GST slab and its treatment
as exports for GST paid by foreigners the amount being refunded when they leave the
country will be in line with best international practice. Till such time that GST is implemented
Service Tax and Luxury Tax should be rationalized for tourism service providers.
2. Food Safety and Standards Act of India (FSSAI) aims at harmonizing food safety standards
with the CODEX and other global best practices. In attempting to align the standards
attention should be paid to its applicability and feasibility in the Indian context. There is no
mention of this central act in the policy and how the center plans to ensure its
implementation so that no States, HRACC issues force hoteliers and restaurateurs to
duplicate licensing or permission issues to facilitate ease-of – business for this sector.
3. Single window clearance- due to a delay in securing licences projects are delayed and
investors are put to hardship as they find it difficult to service the loans. The hospitality
promotion board of the states does not operate efficiently. HDPB or the Single Window
Clearance has not featured anywhere on the Policy.
4. CRZ Norms: The FHRAI has proposed that the norms be formulated keeping the DR. M. S.
Swaminathan Committee report instead of the 200 meter HTL as is at present. If this is agreed
-7-
______________________________________________________________________
to then besides the coastal region of Kerala, all the coastal cities like Mumbai, Chennai, Puri
and so on land parcel will be made available as a fair amount of old buildings will become
eligible for redevelopment. There is no mention of this central act in the policy and how the
center plans to ensure its implementation so that no States, HRACC issues force hoteliers and
restaurateurs to duplicate licensing or permission issues to facilitate ease-of – business for this
sector.
5. We have our objections on the Home Stay Scheme.
Cigarettes and other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and
Commerce Production, Supply and Distribution) Amendment Bill 2015
Ministry of Health and Family Welfare (Tobacco Control Division), Government of India has invited
comments/ views on the above captioned Amendment Bill 2015. Presently there are designated
smoking area in hotels, restaurants and airport. It is proposed to remove designated smoking areas
in hotel and restaurants by this amendment.
FHRAI is strongly pursuing this matter with the Ministry to retain Section 4 which allows
designated smoking area in hotels, restaurants and Airports.
Union Budget and Exim Policy
Like in previous years, we had submitted our Pre-Budget Memorandum to the Ministry of Finance
and the Ministry of Tourism, Government of India. Although, the Union Budget 2015-16 had been
received to be good and forward looking budget from socio economic prospective. To boost Swatch
Bharat Abhiyan, increased expenditure on infrastructure, extension of visa on arrival to 150 countries
and some tourism circuits are some of the positive measures.
The Hotel Industry had again been burdened as the Service Tax Regime has increased the imposition
of Service Tax @ 14% on all restaurants other than having facility of air-conditioning or central air –
heating in any part of the establishment, at any time during the year. However the idea in embarking
changing reforms to implement GST from 2016 onwards. The main points which impact the
competitiveness of the Indian tourism and hospitality industry not been addressed.
The abatement available for Hotels 40%, Restaurants 60% and Mandap Keeper 30% respectively.
E - Tourist Visa
FHRAI has consistently emphasized the need for adopting a seamless and differentiated visa
mechanism to encourage and facilitate foreign tourist travel, so as to position India as an attractive
and welcoming destination. Bureaucratic hurdles and antiquated processes that often accompany
visa procurement such as long wait times, absence of local consular offices and excessive
documentation requirement discourage travel, constraining visitor spending and the jobs and growth
it generates.
This facility is available to Foreigners whose sole objective of visiting India is recreation, sight- seeing,
short duration medical treatment, casual business visit, casual visit to meet friends or relatives etc.
and not valid for any other purpose/activities. This will allow entry into India within 30 days from the
date of approval of ETA and will be valid for 30 days stay in India from the date of arrival in India.
The E-tourist visa enabled with ETA cannot be availed more than twice in a calendar year. The facility
will now be available at 16 International airports in the country namely Delhi, Mumbai, Chennai,
Kolkata, Hyderabad, Bengaluru, Thiruvananthapuram, Kochi, Goa, Ahmedabad, Amritsar, Gaya,
Jaipur, Lucknow, Trichy and Varanasi. As on date E-visa facility has been extended to 113 countries.
-8-
______________________________________________________________________
We are requesting the Government to make e-tourist vise more tourist friendly, the multiple entry
visa needs to be streamlined. The tourists add Nepal, Bhutan, Sri Lanka etc. in their India holiday
package and vis-a-versa.
Foreign Trade Policy 2015-2020
i) Service Exports from India Scheme(SEIS)
The Foreign Trade Policy has been announced on 1st April, 2015. The earlier Served from India
Scheme (SFIS) has been replaced with Service Exports from India Scheme (SEIS). The rate of reward
under SEIS would be based on net foreign exchange earned.
The rate of reward applicable is 5% and 3%. Hotels and Restaurants would be getting benefit of 3%.
The reward issued as duty credit scrip would no longer be with actual user condition and will no
longer be restricted to usage for specific types of goods. Useable for all types of goods and Service
Tax/ Custom duty/ excise duty. List of services and rates of rewards would be review after 30th
September, 2015.
SEIS would be extended for units in Special Economic Zone (SEZ).
FHRAI is pursuing this matter vigorously with DGFT so that rate of reward 5% be applicable to
Hotels and Restaurants at par with other industries.
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% (currently 90%) of the
normal export obligation - 6 times the duty saved amount. Second hand capital goods shall not be
permitted to import under EPCG Scheme.
Indian Culinary Institute

Pursuant to the approval of the Union Cabinet, the Ministry of Tourism, Government of India, is
setting up an Indian Culinary Institute at Tirupati and Greater Noida. The institute will be registered
as a Society and its affairs will be managed by a Board of Governors, of which the FHRAI President
has been appointed as a member. The purpose of establishing this institute is to contribute towards
preserving and propagating India's rich culinary heritage and meeting the trade requirement of
specialists specific to Indian cuisine.
Skill Development in the Hospitality Sector

The widening demand-supply gap in the availability of skilled manpower is a serious constraint in
the growth of the hospitality and tourism sector. FHRAI is proud to have been a key partner in the
successful implementation of the Ministry of Tourism's Hunar se Rozgar Yojna. We have also been
strategizing with the MOT and other stakeholders, on ways by which we can add to the scale and
scope of our skill development programs, both in terms of geographical coverage and the number of
people trained. In this regard, we are in the process of finalising the formation of the Tourism &
Hospitality Sector Skill Development Council, which will be a path-breaking collaboration between the
National Skill Development Corporation (NSDC), the Ministry of Tourism and leading Industry
Associations.
Federation of Associations of Indian Tourism and Hospitality (FAITH)
“Global Exhibition on Services–India” GET INDIA” was organized by the Ministry of Commerce &
industry (MOC) and Ministry of Tourism (MOT) in collaboration with Confederation of Indian
Industry (CII) from 23rd to 25th April, 2015 at Pragati Maidan New Delhi. Ms. Usha Sharma, the then
Additional Director General, MOT, entrusted the responsibility of Tourism Section to FAITH. The
total area was approx. 4500 sq. mtrs. and covered area approx. 2500 sq. mtrs. 200 international buyers
-9-
______________________________________________________________________
had participated who were fully hosted under the Hospitality Scheme of MOT and MOC. FAM tours
were arranged for International buyers after the conclusion of GET-INDIA on 25th April, 2015.
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:
Telecom Regulatory Authority of India (TRAI) has issued amendments dated 16th and 18th July, 2014
by which hotels and restaurants was treated at par with ordinary subscribers with regard to the tariff
for TV signal. Hotels & Restaurants were allowed to take signals from a Distribution Platform
Operator (DPO) or Local Cable Operator or DTH Operator and not from the Broadcasters. Indian
Broadcasting Foundation had challenged the tariff before Telecom Dispute Settlement Appellate
Tribunal (TDSAT) vide Appeal No. 7 /2014 and Star India Pvt Ltd had challenged the Regulation by
which Hotels/Restaurants were allowed to take signals form DPO/Cable Operator/DTH Operator
before the High Court of Delhi vide WP (C) 5161/2014. FHRAI had filed impleadment in both the
matters.
• Indian Broadcasting Foundation (IBF) & Ors. Vs. TRAI, Appeal No. 7/2014 in TDSAT –:
TDSAT pronounced its order dated 9th March, 2015 TDSAT has expressed that no adequate
reasons have been given for equating commercial and domestic consumers/subscribers.
However, the TDSAT has continued the present arrangement and directed TRAI to re-look at
the whole issue afresh and issue fresh tariff order in 6 months. The re-look will relate to the
tariff for all the commercial subscribers and ordinary subscribers. In this regard, TRAI had
issued the Consultation Paper No. 3/2015 dated 14th July, 2015 on tariff issues related to
commercial subscribers and Open House Discussions were held on 18th August, 2015.
• FHRAI has challenged the TDSAT judgement dated 9th March, 2015 before Supreme Court of
India Vide Civil Appeal No. 3728/2015. TRAI has also challenged the said TDSAT Judgement
before the Supreme Court of India. The Appeals are pending.
Telecom Regulatory Authority of India (TRAI) has issued two Tariff Amendment Orders -
5/2015 for Digital Addressable System and 4/2015 for analog cable services - dated 8th
September, 2015 by which the maximum tariff for TV signal payable by all subscribers
(including hotels/restaurants) will be the same. Hotels/Restaurants who do not charge
separately for TV signal shall be treated as Ordinary Subscribers and those who charge
separately for TV signal from their guests shall be treated as Commercial Subscribers.
(Commercial subscribers - means a subscriber who causes the signal of TV channels to be
heard or seen by any person for a specific sum of money to be paid by such person).
Hotel & Restaurants are allowed to take signals from a Distribution Platform Operator (DPO)
or Local Cable Operator or DTH Operator and not from the Broadcasters.
Hotels /restaurants who charge their guest for TV signals will be treated as commercial
subscribers and would have to negotiate the rate with DPOs/Broadcasters. However signals
are to be taken from DPOs only . In this situation, Broadcasters have also been allowed to
enter into Tripartite Agreement with Hotels and DPOs and the said Agreement will have to
be filed within 30 days before the TRAI.
• FHRAI Vs. Union of India & Ors., Writ Petition (C) 6482/2011 : FHRAI had also filed a Writ
Petition in the Hon'ble High Court of Delhi, challenging the Service Tax imposed on hotel
accommodation and air-conditioned restaurants. It may please be noted that the similar
matters are pending before the Supreme Court of India and decision of Supreme Court
-10-
______________________________________________________________________
would prevail in the above mentioned matter. The matter is listed for next hearing on 28th
September, 2015.
• We had obtained a stay on TDS to be deducted by tour operators, travel agents, airlines and
other companies in their payments to hotels, under section 194-I of Income tax Act. This stay
is continuing in favour of our members.
• Our intervention Application and Special Leave Petition (SLP) in the Supreme Court on the
matter of Expenditure Tax resulting from the judgement of H P High Court delivered in 1998
had come up for hearing on 3rd August, 2010 before the Constitutional Bench (comprising of
5 Judges). Upon hearing Counsel the Court made the following Oder:
“Since the challenge to the constitutional validity of the Expenditure Tax Act, 1987 (‘1987
Act”, for short) stood repelled by the Constitution Bench Judgement of this Court in the case
of Federation of Hotel & Restaurant vs. Union of India, reported in 1989 (3) S.C.C. 634, and
since the only question which remains to be decided revolves around interpretation of
Sections 3,4 and 5 of 1987 Act, we are of the view that the Constitution Bench need not go
into the said question of interpretation of relevant sections and as far as the interpretation of
relevant sections of 1987 Act is concerned, the same be decided by the appropriate Bench of
this Court. The question as to whether in its applicability the 1987 Act operates arbitrarily or
not will also be decided by the appropriate Bench of this Court. Place these appeals on 16th
September, 2010 before the Bench of three Judges headed by Hon’ble Chief Justice of India”.
The matter is on the Board list and the hearing has not happened till date.
• We had obtained a stay from High Court of Delhi on the matter of property tax in MCD
area of Delhi. This stay is still continuing. This has helped 21 of our hotel members. The
matter is listed for next hearing on 5th November, 2015.
• Union of India & Ors. Vs. FHRAI, Letters Patent Appeal No. 343 of 2007: The Union of India
and Ors. had filed a Letters Patent Appeal (LPA) 343 of 2007 challenging the Single Bench
judgement of High Court of Delhi dated 5th March, 2007 on the MRP matter in favour of
FHRAI. The High Court of Delhi passed its order dated 11th February, 2015 and the operative
order reads as follows:-
17. We accordingly dispose of these appeals in following terms:-
a. Owing to the change in law, there is no need to set aside or affirm the
judgment of the learned Single Judge.
b) However the question of law adjudicated by the learned Single Judge is left open for
adjudication in any fresh proceeding under the new law and the judgment of the learned
Single Judge shall not be a precedent in any such adjudication even if the concerned
provisions of the old and the new law are identical / similar.
c) The appellant shall however not be entitled to initiate any proceeding / prosecution for
violation of the old law in this respect, even if notices of such violation were issued, as in our
opinion, considering the nature of offence, the long time which has elapsed and the doubt
which has arisen whether such prosecution will be within the prescribed time, it is not
deemed expedient that the state resources in this regard, which are already strained, be
expended thereon.
FHRAI Review Petition 192/2015 against above mentioned order has also been dismissed on
15.5.2015. Special Leave Petitions have been filed before the Supreme Court of India against the LPA
order dated 11.2.2015 and the Review Petition Order dated 15.5.2015, and the same are pending.
We continue to pursue these matters and will take up any new legal issues faced by our members.
-11-
______________________________________________________________________
Acknowledgments
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 Parvez Dewan, ( retired on 28.10.2014), Shri Lalit K. Panwar (assumed charge on
30.10.2014 and retried 31.07. 2015), Mr. Vinod Zutshi (assumed charge on 31st August, 2015)
Secretary, Ministry of Tourism, Shri Girish Shankar, Additional Secretary, Shri Anand Kumar( 19.09
2014 ) Shri Suman Billa (took charge on 24.12.2014 ) Joint Secretary and Smt. Usha Sharma,
Additional Director General, Ministry of Tourism( till 03.08.2015). We have also been receiving
valuable support from Shri M.M. Sadana, Deputy Director General (H&R), Shri S.V. Singh, Assistant
Director General (H&R) and their colleagues in the Ministry of Tourism.
Ministry of Commerce and Industry: Smt. Nirmala Sitharaman, Hon’ble Union Minister of State
(Independent Charge) for Commerce and Industry, Smt. Ria Teaotia, Secretary, Department of
Commerce, Shri Pravir Kumar 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 Ratan P Watal,
Secretary, Finance and Secretary, Department of Expenditure, Shri Shaktikanta Das, 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 our sector and identifying the promotion of tourism as a top priority for his
Government.
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. M.D. Kapoor (retired on 16.12.2014), Mr. Amitabh Devendra (took charge
on 01.05.2015) Secretary General during the period under review.
For & on Behalf of the Executive Committee

Sd/- Sd/-
Vivek Nair T S Walia
Honorary Secretary President
DIN – 00005870 DIN -01299186
-12-
______________________________________________________________________
Attendance of Members in the Executive Committee Meetings

No. of Meetings attended
Name Designation out of 5 meetings held
during the year
Mr. Ajit B. Kerkar Member of Honour, FHRAI 0
Mr. T S Walia -DIN-01299186 President, FHRAI 5
Mr. Bharat Malkani -DIN-00486775 Vice President, FHRAI 4
Mr. K Syama Raju-DIN-00314921 Vice President, FHRAI 4
Mr. Luv Malhotra -DIN-00030477 Vice President, FHRAI 5
Mr. Vivek Nair -DIN-00005870 Hony. Secretary, FHRAI 4
Mr. Sudesh Poddar -DIN-00560120 Hony. Treasurer, FHRAI 5
Mr. Garish Oberoi -DIN- 01142920 Jt. Hony. Secretary, FHRAI 4
Mr. K. Murali Rao -DIN- 00534805 Jt. Hony. Secretary, FHRAI 3
Mr. Dinesh Advani -DIN- 01602883 E.C. Member, FHRAI 4
Mr. Subir Bhowmick -DIN-06560810 E.C. Member, FHRAI 4
Mr. Nirav Gandhi -DIN-0064623 E.C. Member, FHRAI 4
Mr. Surendra Kumar Jaiswal -DIN-01886871 E.C. Member, FHRAI 4
Mr. Ravindra Kumar Kashuka -DIN-00516593 E.C. Member, FHRAI 4
Mr. Gurbaxish Singh Kohli -DIN-00482552 E.C. Member, FHRAI 2
Mr. Rajindera Kumar -DIN-00053878 E.C. Member, FHRAI 3
Mr. Vinaay Malhotra-DIN-00192152 E.C. Member, FHRAI 5
Mr. T. Nataraajan -DIN-00478495 E.C. Member, FHRAI 2
Mr. K. Nagaraju-DIN-00592259 E.C. Member, FHRAI 4
Mr. M.P. Purushothaman-DIN-00088631 E.C. Member, FHRAI 2
Mr. S.M. Shervani-DIN-00024390 E.C. Member, FHRAI 4
Mr. Pradeep Shetty-DIN-02986930 E.C. Member, FHRAI 3
Mr. Ashoke Singh-DIN- 00774973 E.C. Member, FHRAI 5
Mr. Pranav Singh -DIN- 01896933 E.C. Member, FHRAI 5
Mr. Sanjay Sood -DIN-00449219 E.C. Member, FHRAI 3

Co-opted E.C. Member,
Mr. Ranvir Bhandari -DIN-03553239 3
FHRAI
Mr. Suresh Kumar -DIN-02741371 3
FHRAI
Mr. Param Kannampilly-DIN-00195444 2
FHRAI
Mr. Souvagya Mohapatra-DIN-03197487 5
FHRAI
-13-
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 2015, the Statement of Income and Expenditure,the Cash Flow
Statementfor 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 membersare 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
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.
- 14 -
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 circumstances, 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 members, 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 aforesaidfinancial 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 2015, and its surplus and its cash flows for the year ended on that date.
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 2015 (“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 Section 143(3) of the Act, we report that:

a. we have sought and obtainedall 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;
- 15 -
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 as
on31 March 2015 and taken on record by the members, none of the members is
disqualified as on 31 March 2015 from being appointed as a member in terms of
Section 164(2) of the Act;
f. 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. as detailed in Note 19 to the financial statements, the Federation 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; and
iii. there were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Federation.
For Walker Chandiok& Co LLP

(Formerly Walker, Chandiok& Co)
Chartered Accountants
Firm’s Registration No.: 001076N/N500013
Sd/-
Per B. P. Singh
Partner
Membership No.: 70116
Place: New Delhi

Date: 22 August 2015
- 16 -
The Federation of Hotel and Restaurant Associations of India
Balance sheet as at 31 March 2015
(INR in thousands)
Notes 31 March 2015 31 March 2014
EQUITY AND LIABILITIES
Shareholders' funds
Reserves and surplus 2 166,201 152,671
166,201 152,671
Non-current liabilities
Other long term liabilities 3 3,000 -
Long-term provisions 4 5,216 4,153
8,216 4,153
Current liabilities
Trade payables 5 493 687
Other current liabilities 6 1,902 1,945
Short-term provisions 4 670 963
3,065 3,595
Total 177,482 160,419
ASSETS
Non-current assets
Fixed assets
Tangible assets 7 112,876 119,262
Long-term loans and advances 8 5,387 3,857
Other non-current assets 9 15 -
118,278 123,119
Current assets
Trade receivables 10 1,051 2,121
Cash and bank balances 11 54,287 30,853
Short-term loans and advances 12 1,710 3,691
Other current assets 13 2,156 635
59,204 37,300
Total 177,482 160,419
Summary of significant accounting policies and other explanatory 1-25

information.
This is the balance sheet referred to in our report of even date.
For and on behalf of the Executive Committee

For The Federation of Hotel and Restaurant Associations of India
Sd/- Sd/- Sd/-

T S Walia Sudesh Kumar Poddar Vivek K Nair
President Hony. Treasurer Hony. Secretary
For Walker Chandiok & Co LLP

(Formerly Walker, Chandiok & Co )
Sd/-
per B.P. Singh
Partner
Place: New Delhi

- 17 -
Statement of income and expenditure for the year ended 31 March 2015
(INR in thousands)
Notes 31 March 2015 31 March 2014
INCOME
Fees and subscription 14 40,042 40,403

Other income 15 4,710 2,957
44,752 43,360
EXPENDITURE
Employee benefit expenses 16 8,406 8,197

Depreciation expense 7 6,476 5,860
Other expenses 17 8,658 11,845
23,540 25,902
Surplus for the year before prior period items 21,212 17,458
Prior period expense - 225
Surplus carried over 21,212 17,233
Summary of significant accounting policies and other explanatory 1-25

information.
This is the statement of income and expenditure referred to in our report of even date.

Sd/- Sd/- Sd/-


Sd/-
per B.P. Singh
Partner
Place: New Delhi

- 18 -
Cash flow statement for the year ended 31 March 2015
(INR in thousands)
31 March 2015 31 March 2014
Cash flows from operating activities
Surplus before tax 21,212 17,233
Adjustment for :
Depreciation expense 6,476 5,860
Interest income (4,476) (2,625)
Provision for bad and doubtful debts 1,295 -
Liabilities written back (205) (311)
Operating profit before working capital changes 24,302 20,157
Changes in trade receivables (225) 616

Changes in loans and advances 1,855 (2,529)
Changes in long-term liabilities 3,000 -
Changes in provisions 770 538
Changes in current liabilities (43) (7,366)
Changes in trade payables 11 (2,602)
Cash flow from operating activities 29,670 8,814
Taxes paid (1,404) (1,007)
Net cash flow from operating activities - (A) 28,266 7,807
Cash flows from investing activities

Purchase of fixed assets (90) (68)
Investments in fixed deposits (having original maturity of more than three months) (25,092) (9,968)
Interest received 2,955 2,074
Net cash used in investing activities - (B) (22,227) (7,962)
Cash flows from financing activities

Net utilisation of legal fund reserve (7,682) 2,713
Net cash (used in)/ flow from financing activities - (C) (7,682) 2,713
Net increase in cash and cash equivalents (A+B+C) (1,643) 2,558
Cash and cash equivalent as at beginning of the period 20,553 17,995

Cash and cash equivalent as at end of the period (refer note 11) 18,910 20,553
(1,643) 2,558
Summary of significant accounting policies and other explanatory

information. 1-25
This is the cash flow statement referred to in our report of even date.

Sd/- Sd/- Sd/-


Sd/-
per B.P. Singh
Partner
Place: New Delhi

- 19 -
Summary of significant accounting policies and other explanatory information for the year ended 31 March 2015
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 & 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. 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 Federation is a Small and Medium Sized Federation (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.
ii) 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.
iii) Fixed assets and depreciation
Fixed assets are stated at cost less accumulated depreciation. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for its intended use.
Depreciation on fixed assets has been provided as per guidance set out in Schedule II of the Companies
Act, 2013 (“the Act”) on written down value method using the under mentioned useful lives-
Block of assets Useful life as per the Act
(in years)
Buildings 60
Office flat 60
Computer equipment 3
- 20 -
Significant accounting policies (Cont’d)
Furniture and fixture 8-10

Motor vehicles 8
Plant and equipment 5-15
iv) Revenue recognition
Annual subscription, entrance and listing fee from members and fee from students 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.
v) 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 ( ITM Edutech Private Limited ) 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.
vi) 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 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
- 21 -
Significant accounting policies (Cont’d)
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.
vii) Inventories
Inventories, if any, are valued at lower of cost or net realisable value. The cost is determined on First-
in-first-out basis. Inventory comprises of guides published annually which is written off at every year
end.
viii) Foreign currency transactions

(i) 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.
(ii) 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.
(iii) 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.
- 22 -
(INR in thousands)
31 March 2015 31 March 2014
2 Reserves and surplus

General reserve
Balance at the beginning of the year 136,545 119,312
Add : Transfer from statement of income and expenditure 21,212 17,233
Less : Depreciation transfer to general reserve - -
Balance at the end of the year 157,757 136,545
Surplus in the statement of income and expenditure

Balance at the beginning of the year - -
Add : Transfer from statement of income and expenditure 21,212 17,233
Less : Transfer to general reserve 21,212 17,233
Balance at the end of the year - -
Legal fund reserve

Balance at the beginning of the year 14,984 12,271
Add : Additions made during the year 5,334 5,242
Less : Utilised during the year (13,016) (2,529)
Balance at the end of the year 7,302 14,984
Scholarship fund
Balance at the beginning and at the end of the year 1,142 1,142
166,201 152,671
3 Other long - term liabilities

Security deposit payable 3,000 -
3,000 -
31 March 2015 31 March 2014 31 March 2015 31 March 2014

Long-term Short-term
4 Provisions
Provisions for gratuity (Also refer 2,916 2,365 325 270

note 4.1 below)
2,300 1,788 345 693
Provisions for compensated
absences (Also refer note 4.1 below)
5,216 4,153 670 963
4.1 Employee benefits

For determination of the liability in respect of gratuity and compensated absences, the Federation has used following
actuarial assumptions:
Discount rate 7.80% 9.10%
Long-term rate of compensation increase 10% 10%
Withdrawal rate 10% 10%
Mortality rate Indian Assured Indian Assured
Lives Lives
Mortality (2006-08) Mortality (2006-08)
Ultimate Ultimate
- 23 -
(INR in thousands)
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,
seniority, 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 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 2015 is INR 206 thousand (previous year INR 135 thousand).
5 Trade payables 31 March 2015 31 March 2014

Dues to micro and small enterprises (Also, refer note 5.1 below) - -
Dues to others 493 687
493 687
Note:
5.1 Based on the information available with the Federation there are no dues outstanding to Micro, Small, and Medium
Enterprises as at 31 March 2015 under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED
Act, 2006). Further, no interest during the year has been paid or payable under the terms of the MSMED Act, 2006.
6 Other current liabilities

Payable to students 591 680
Book debts - 26
Statutory dues 381 309
Employee related payables 780 506
Other payables 22 66
Advances received on account of:
Membership subscription 128 358
1,902 1,945
(This space has been intentionally left blank)
- 24 -
7 Fixed assets (INR in thousands)

Gross block Land - Office flat Building Plant and Furniture Computers Vehicles Crockery Library Total
leasehold equipment and fixtures and cutlery books
Balance as at 1 April 2013 33,178 19,018 102,050 23,767 13,800 6,148 1,500 31 480 199,972
Additions - - - 39 - 29 - - - 68
Disposal - - - - - - - - - -
Balance as at 1 April 2014 33,178 19,018 102,050 23,806 13,800 6,177 1,500 31 480 200,040
Additions - - - 90 - - - - - 90
Disposal - - - - - - - - - -
Balance as at 31 March 2015 33,178 19,018 102,050 23,896 13,800 6,177 1,500 31 480 200,130
Depreciation
Balance as at 1 April 2013 - 9,234 30,625 15,625 11,980 5,907 1,036 31 480 74,918
Depreciation charge for the year - 488 3,570 1,138 444 97 123 - - 5,860
On disposals - - - - - - - - - -
Balance as at 1 April 2014 - 9,722 34,195 16,763 12,424 6,004 1,159 31 480 80,778
Depreciation charge for the year - 448 3,290 1,706 755 151 126 - - 6,476
On disposals - - - - - - - - - -
Balance as at 31 March 2015 - 10,170 37,485 18,469 13,179 6,155 1,285 31 480 87,254
Net block
Balance as at 31 March 2015 33,178 8,848 64,565 5,427 621 22 215 - - 112,876
Balance as at 31 March 2014 33,178 9,296 67,855 7,043 1,376 173 341 - - 119,262
(This space has been intentionally left blank)
- 25 -
(INR in thousands)
31 March 2015 31 March 2014
8 Long-term loans and advances
(Unsecured, considered good)
Security deposits 2,014 1,888
Tax deducted at source receivable 3,135 1,731
Service tax receivable 238 238
5,387 3,857
9 Other non-current assets

Fixed deposits with maturity of more than 12 months 15 -
(Refer note 11)
15 -
10 Trade receivables
Outstanding for a period exceeding six months
from the date they are due for payment
Unsecured, considered good 72 1,353
Doubtful 1,295 -
1,367 1,353
Less : Allowances for bad and doubtful debts (1,295) -
72 1,353
Other debts
Unsecured, considered good 979 768
Doubtful - -
979 768
Less : Allowances for bad and doubtful debts - -
979 768
1,051 2,121
11 Cash and bank balances

Cash and cash equivalents
Cash on hand 2 19
Balances with banks
- in saving accounts 18,870 499
- in deposit account (with original 38 20,035
maturity upto 3 months)
Other bank balances
Fixed deposits with maturity more than 3 months but 35,377 10,300
less than 12 months
Fixed deposits with maturity of more than 12 months 15 -
54,302 30,853
Less: Amount disclosed as non-current 15 -

assets (Refer note: 9)
54,287 30,853
- 26 -
(INR in thousands)
31 March 2015 31 March 2014
12 Short-term loans and advances

(Unsecured, considered good)
Prepaid expenses 19 228
Service tax recoverable 1,048 670
Staff advances - 38
Advances to suppliers 36 11
Employee imprest 49 1
Others 558 2,743
1,710 3,691
13 Other current assets

Interest accrued but not due 2,156 635
2,156 635
14 Fees and subscription

Sale of services
Fees from students - 1,721
Annual subscription from members 16,100 15,743
Entrance fee 1,724 1,332
Listing fee 10,646 10,442
28,470 29,238
Other operating income
Guide subscription 385 297
Advertisement 393 1,340
Royalty 8,283 7,063
Convention and seminars 2,227 1,954
Miscellaneous income 284 511
11,572 11,165
40,042 40,403
15 Other income
Interest on fixed deposits 4,476 2,625
Interest on others 29 21
Liabilities written back 205 311
4,710 2,957
- 27 -
(INR in thousands)
31 March 2015 31 March 2014
16 Employee benefit expense

Salaries, wages and bonus 7,209 7,080
Contribution to gratuity (Also refer note 4) 605 339
Contribution to compensated absences (Also refer note 4) 276 525
Contribution to provident and other defined contribution funds 225 152
Staff welfare expenses 91 101
8,406 8,197
17 Other expenses
Repairs and maintenance
- Buildings 713 239
- Plant and equipment 62 108
Insurance 11 81
Rates and taxes 166 204
Payment to auditors (Also refer note 17.1) 130 214
Communication 647 720
Travel and conveyance 371 425
Printing and stationery 776 649
Legal and professional charges 508 2,250
Provision for bad and doubtful debts 1,295 -
Membership subscription 464 711
Car running and maintenance 232 256
Public relation, meetings and conferences 1,387 2,046
Donations 1,056 2,000
Power and fuel 372 257
Guide magazine 214 1,279
Miscellaneous expenses 254 406
8,658 11,845
17.1 Payment to auditors:-

Audit fee 120 115
Taxation matters - 97
Out of pocket expenses 10 2
130 214
(This space has been left blank intentionally)
- 28 -
Summary of significant accounting policies and other explanatory information Statements for the year
ended 31 March 2015
18. The Federation is registered under section 12A of the Income-tax Act, 1961 vide letter dated
30 September 1988.
19. Contingent liability and commitments:-
i) Contingent liabilities not provided for in respect of:

(INR. in thousands)
31 March 2015 31 March 2014
Service tax [refer note below] 20,970 20,970
In prior year(s), 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 thousands 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 neither registered nor is paying service tax on such services rendered by them.
During the financial year 2012-13, the Commissioner, Panchkula vide order no. IV(16)
Hqrs/Adj/FHRAI/64, 348 and 549/ST/10-11/1320/29.01.2013 dated 24 January 2013 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 20,000 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 under section 86 of the Chapter V of Finance Act, 1994 (as
amended) (32 of 1994) and stay order was granted by the CESAT vide order no. 50612 dated 23
July 2013 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 has 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 not provided any liability in the books as the matter is sub-judice.
20. 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.
This space has been intentionally left blank
- 29 -
ended 31 March 2015
21. 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 • Mr. Tejinder Singh Walia
(KMP) • Mr. Bharat Harkishan Malkani
• Mr. Kosur Shyamaraju
• Mr. Luv Malhotra
• Mr. Vivek Krishnan Nair
• Mr. Sudesh Kumar Poddar
• Mr. Garish Oberoi
• Mr. Kadandale Murali Rao
• Mr. Ravindra Kumar Kashuka
• Mr. Vinaay Malhotra
• Mr. Pranav Singh
• Mr. Ashoke Singh
• Mr. Dinesh Sajan Advani
• Mr. Gurbaxishsingh Kulwantsingh Kohli
• Mr. Pradeep Kariya Shetty
• Mr. Nirav Vinod Gandhi
• Mr. Purushothaman Mooliyil Payyan
• Mr. Nataraajan Thiagarajan
• Mr Subir Bhowmick
• Mr. Kupparaju Nagaraju
• Mr. Saeed Mustafa Shervani
• Mr. Rajindera Kumar
• Mr. Surendra Kumar Jaiswal
• Mr. Sanjay Sood
• Mr. Suresh Kumar
• Mr. Konath Parameswaran Kannampilly
• Mr. Souvagya Mohapatra
• Mr. Ranvir Bhandari
Mr. Gurvinder Singh Juneja
2 Companies in which members • Hotel Leela Ventures Ltd.

of the Federation are able to • LMB Hotel
exercise control or have
significant influence
- 30 -
ended 31 March 2015
c) Summary of transactions with the related parties

(INR in thousands)
31 March 2015 31 March 2014
Hotel room rent & meeting expenses
Hotel Leela Ventures Ltd. 5 134
Eden Park Hotels Pvt. Ltd. - 3
The Shalimar Hotel - 12
LMB Hotel 30 -
Expenses incurred on behalf of:-

Mr. Gurvinder Singh Juneja - 1
Mr. Garish Oberoi - 3
Mr. Gurbaxishsingh Kulwantsingh Kohli - 1
Mr. Nitin Shivji Kothari - 15
Mr. Bharat Harkishan Malkani - 3
Mr. Dinesh Sajan Advani - 1
Mr. Deepak Puri - 1
Mr. Saeed Mustafa Shervani - 1
Total 35 175
d) Balances due from related parties
Amount Recoverable:-
Mr. Nitin Shivji Kothari - 5
Total - 5
This space has been intentionally left blank
- 31 -
ended 31 March 2015
22. Expenditure in foreign currency:

(INR in thousands)
31 March 2015 31 March 2014
Membership fee - 210

Total - 210
23. 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
(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 is conducted, managed and
operated by the operator/conductor. Further, FHRAI will receive a proportionate amount of the
revenue proceeds from ITM-Edutech (India) Limited every year.
24. Till the previous year, the Company was following Schedule XIV to the Companies Act, 1956, which
prescribes depreciation on fixed assets. With the introduction of the Companies Act, 2013, Schedule
XIV has been replaced by Schedule II to the Companies Act, 2013 and accordingly the Company has re-
estimated useful lives of all its assets and residual values of all fixed assets purchased during the year.
Due to the aforementioned, the depreciation charge for the year ended 31 March 2015 is higher by 1,135
thousand and fixed assets and surplus for the year is lower by a corresponding amount.
25. Previous year figures have been regrouped wherever considered necessary to make them comparable
with those of the current year.

Sd/- Sd/- Sd/-


(Formerly Walker, Chandiok & Co)
Sd/-
per B.P. Singh
Partner
Place: New Delhi

- 32 -

59th Annual Report 2014-15

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The Federation of Hotel & Restaurant Associations of India

President : T. S. Walia CIN-U55100DL1955NPL002587 Member of Honour : Dr Ajit B Kerkar

NOTICE OF ANNUAL GENERAL MEETING

ITEM NO. 1 – ADOPTION OF FINANCIAL STATEMENTS

ITEM NO. 2 – APPOINTMENT OF AUDITORS

ITEM NO.3 -ELECTION OF MEMBERS OF THE EXECUTIVE COMMITTEE IN PLACE

By Order of the Executive Committee

Date: New Delhi Amitabh Devendra

By Order of the Executive Committee

Date: 12th September, 2015 Amitabh Devendra

Eastern India Region

Western India Region

Mr. Bharat Malkani

South India Region

Mr. K. Syama Raju

Northern India Region

Mr. Luv Malhotra

Eastern India Region

Mr. Sudesh Poddar

Mr. Vijay Dewan - Co-opted Member

Northern India Region

Mr. Luv Malhotra

Mr. Suresh Kumar - Co-opted Member

Form No. MGT-11

The Federation of Hotel & Restaurant Associations of India

respect of such resolutions as are indicated below:

ADOPTION OF FINANCIAL STATEMENTS

Election of Members of the Executive Committee in place of retiring Members

Signed this…… day of September, 2015 Membership No._________

Signature of Proxy holder(s)

REPORT OF THE EXECUTIVE COMMITTEE

Executive Committee of the Federation

Directors’ Responsibility Statement

Meetings of Executive Committee:

FHRAI Membership Strength

FHRAI Members Break –up as on 22nd August, 2015

Grand Total 472 1465 1031 1022 3990

FHRAI Institute of Hospitality Management (FIHM)

50th FHRAI Annual Convention

Dignitaries invited for the function are:

FHRAI Indian Hotel Industry Survey

FHRAI Sub-committees formed for 2014-15

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

Name of the Sub-Committee EC Member /Chairman

FHRAI Guide 2015

Food Safety & Standards Act

To further facilitate the easy submission of application Online submission for

National Tourism Policy 2015 – Ministry of Tourism, Government of India

3. By classifying the hospitality sector as a permissible infrastructure activity under section 54

6. Incentivize large-scale infrastructure development by ensuring availability of a 10-year

5. We have our objections on the Home Stay Scheme.

Union Budget and Exim Policy

Foreign Trade Policy 2015-2020

i) Service Exports from India Scheme(SEIS)

SEIS would be extended for units in Special Economic Zone (SEZ).

Indian Culinary Institute

Skill Development in the Hospitality Sector

Federation of Associations of Indian Tourism and Hospitality (FAITH)

For & on Behalf of the Executive Committee

Attendance of Members in the Executive Committee Meetings

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

Mr. T S Walia -DIN-01299186 President, FHRAI 5

Mr. Bharat Malkani -DIN-00486775 Vice President, FHRAI 4