Mahindra Hotels and Residences India Ltd

Balance Sheet as at 31st March 2010

As at As at
March 31, 2010 March 31, 2009
Rs. Rs.
SOURCES OF FUNDS Schedule

Shareholders' funds:

Share capital 1 500,000 500,000

TOTAL 500,000 500,000

APPLICATION OF FUNDS

Fixed assets:

Capital Work in Progress 2 818,747 818,747

Current assets:

Cash & Bank balances 3 501,500 501,500

Less: Current liabilities 4 991,140 948,626

Net Current Asset (489,640) (447,126)

Profit and loss account 5 170,893 128,379

TOTAL 500,000 500,000

Notes on Accounts 7

The schedules referred to above form

an integral part of these accounts

This is the Balance Sheet

referred to in our report of even date

For Anil Nair & Associates On behalf of the Board

Chartered Accountants
Sd/- Sd/- Sd/-
Ramesh
P. Narayanan R. Radhakrishna Ramanathan
Partner Director Director

Place : Chennai
Date : 9th April, 2010
Mahindra Hotels and Residences India Ltd

Profit and Loss Account for the year ended March 31, 2010

Year ended 31st Year ended 31st

March 2010 March 2009
Rs.
INCOME Schedule

Sales - -

Other income - -

Total - -

EXPENDITURE

Other expenses 6 42,514 56,873

Total 42,514 56,873

Profit/(Loss) Before Tax (42,514) (56,873)

Provision for Income Tax - -

Net Profit/(Loss) Before Tax (42,514) (56,873)

Balance brought forward (128,379) (71,506)

Balance carried to Balance Sheet (170,893) (128,379)

Notes on Accounts 7

The schedules referred to above form

an integral part of these accounts

This is the Profit and Loss Account

referred to in our report of even date

For Anil Nair & Associates On behalf of the Board

Chartered Accountants

Sd/- Sd/- Sd/-

Ramesh
P. Narayanan R. Radhakrishna Ramanathan
Partner Director Director

Place : Chennai
Date : 9th April, 2010
 Mahindra Hotels and Residences India Ltd

CASH FLOW STATEMENT FOR THE YEAR ENDED 31st March, 2010
Year ended Year ended
March 31,2010 March 31,2009
Rs. Rs.
A.CASH FLOW FROM OPERATING ACTIVITIES

Net profit before taxation & extraordinary items (42,514) (56,873)

Adjustment for:-

Operating Profit before working capital changes (42,514) (56,873)

Adjustment for changes in working capital - -
Decrease in Sundry Debtor and Other Receivable - -

Increase in Sundry creditors and Other Payables 42,514 877,120

42,514 877,120

Cash generated from Operation - 820,247

Less: Taxes Paid - -

Net Cash used in Operating Activity - 820,247

B.CASH FLOW FROM INVESTING ACTIVITY

Increase in Capital work-in-Progress relating to Fixed
Assets - (818,747)

Net Cash used in Investing Activity - (818,747)

C.CASH FLOW FROM FINANCING ACTIVITY

Proceeds from borrowing - -
Repayment of borrowing - -

Net cash from Financing Activity - -

Net increase in Cash & Cash Equivalent - 1,500

Cash & Cash Equivalents:

Opening Balance ( See Note : 1) 501,500 500,000

Closing Balance ( See Note : 1) 501,500 501,500

Note to the cash flow statement

1. Cash and Cash Equivalents
Cash and cash equivalents consist of cash on hand and balances with banks .
Cash and cash equivalents included in the cash flow statement comprise
the following balance sheet amounts.
31st Mar 2010 31st Mar 2009
Rs Rs
Cash on Hand & Balance with Bank 501,500 501,500
Cash and cash equivalents as restated 501,500 501,500

For Anil Nair & Associates On behalf of the Board of Directors

Chartered Accountants

Sd/- Sd/- Sd/-

P. Narayanan R. Radhakrishna Ramesh Ramanathan
Partner Director Director

Place : Chennai
Date : 9th April, 2010
 Schedules attached to and forming part of the Annual Accounts
as at and for the year ended 31.03.2010

As at As at
March 31, 2010 March 31, 2009
Rs. Rs.
SCHEDULE 1

SHARE CAPITAL

Authorised :
50,000 equity shares of Rs.10 each 500,000 500,000

Issued :
50,000 equity shares of Rs.10 each 500,000 500,000

Subscribed and paid-up :

50,000 equity shares of Rs. 10 each fully
paid 500,000 500,000

500,000 500,000

SCHEDULE 2

FIXED ASSETS

Capital Work-in-Progress 818,747 818,747

818,747 818,747

SCHEDULE 3

CURRENT ASSETS
Cash and Bank Balances:

Balances with Bank - in Current account 501,500 501,500

501,500 501,500

SCHEDULE 4

CURRENT LIABILITIES:

Due to Holding Company 958,050 911,828

Outstanding expenses 33,090 36,798
991,140 948,626
 Mahindra Hotels and Residences India Ltd

Schedules attached to and forming part of the Annual Accounts

as at and for the year ended 31.03.2010

As at As at
March 31, 2010 March 31, 2009
Rs. Rs.

SCHEDULE 5

PROFIT AND LOSS ACCOUNT

Balance brought forward 128,378 71,505

Current year Loss 42,514 56,873
170,892 128,378

FOR THE YEAR FOR THE YEAR

ENDED ENDED
31.03.2010 31.03.2009
Rs. Rs.
SCHEDULE 6

ADMINSITRATION EXPENSES

Audit fees 33,090 33,090

Miscellaneous expenses 9,424 23,783
42,514 56,873
 MAHINDRA HOTELS AND RESIDENCES INDIA LIMITED

SCHEDULE: 7

SIGNIFICANT ACCOUNTING POLICIES & NOTES TO ACCOUNTS AS AT AND FOR THE YEAR
ENDED MARCH 31, 2010

Significant Accounting Policies

1. Accounting Convention

a. The financial statements have been prepared under Historical Cost Convention and in
accordance with the accounting standards referred to in Section 211 (3C) of the Companies
Act, 1956.

b. The company generally follows mercantile system of accounting and recognizes income and
expenditure on accrual basis except those with significant uncertainties.

2. Fixed Assets

a. There were no fixed assets in the company during the year ended March 31, 2009.

b. Capital work-in-Progress:

The Company has incurred Rs 818,747 on the feasibility study conducted by an external
consultant for hotel project in Mahindra World City, Maraimalai Nagar.

3. Revenue Recognition

a. The company had not commenced commercial operations during the year ended March 31,
2010.

4. Inventories

The company did not have inventories during the year ended March 31, 2009.

5. Retirement Benefits

The company did not have any employees on rolls during the year ended March 31, 2010.

6. Taxes on Income

Since the company did not have any commercial operations during the year, the question of
income tax/deferred tax does not arise.

7. Earnings per share

Since the company did not have any commercial operations during the year ended March 31,
2010 the Accounting Standard (‘AS’) 21 on Earnings Per Share, issued by the Institute of
Chartered Accountants of India would not be applicable to the company.
8. Related party Transactions

There are transactions with related parties, required to be disclosed as per AS 18 on Related
Party Disclosure issued by Institute of Chartered Accountants of India, during the year ended
March 31, 2010.

(i) Names of related parties and nature of relationship where control exists:

Name of the Related Party Nature of Relationship

Mahindra Holidays and Resorts India Limited Holding Company

(ii) The related party transactions are as under:

Name of transactions Holding company

Year ended
March 31, 2010
Outstanding
Payable 958,050

9. Segment Reporting: The Company did not commence commercial operations during the year
ended March 31, 2010. Hence, the disclosure requirement as per AS 17 on Segment Reporting
would not be applicable to the company.

/By order of the Board/ As per our report of even date

For Mahindra Hotels & Residences India Limited For Anil Nair & Associates
Chartered Accountants

Sd/- Sd/- Sd/-

Ramesh Ramanathan R. Radhakrishna P.Narayanan

Director Director Partner

Place : Chennai
Date : 9th April, 2010