The Federation of Hotel & Restaurant Associations of India · Secretary to act as the Scrutinizer,...

The Federation of Hotel & Restaurant Associations of India Member of Honour : Ajit B. Kerkar President : Garish Oberoi Hony. Secretary : Surendra Kumar Jaiswal Vice President : T. S. Walia Jt. Hony. Secretary : Bharat H. Malkani Vice President : Dilip C. Datwani Jt. Hony. Secretary : Pranav Singh Secretary General : Rahul Lall

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

NOTICE OF 62nd ANNUAL GENERAL MEETING

Dear Members,

NOTICE is hereby given that the Adjourned 62nd Annual General Meeting of The Federation of Hotel and

Restaurant Associations of India (FHRAI) (originally scheduled to be held on Saturday, the 29th day of

September, 2018 at 12.30 p.m. at Pride Plaza Hotel, Aerocity, New Delhi–110037) will be held on Tuesday the

30th day of October, 2018 at 12:30 p.m. at Pride Plaza Hotel, Aerocity, New Delhi-110037 (Ph. 91-11-66007700)

to transact following businesses:

ORDINARY BUSINESS

ITEM NO.1: ADOPTION OF FINANCIAL STATEMENTS

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

31st March, 2018, including audited balance sheet and Statement of Income and Expenditure for the year ended on

31st March 2018 together with the reports of the Executive Committee and Auditors thereon.

ITEM NO.2: ELECTION OF MEMBERS OF EXECUTIVE COMMITTEE IN PLACE OF THOSE

RETIRING EXECUTIVE COMMITTEE MEMBERS IN ACCORDANCE WITH PARA

II (a) READ WITH PARA III OF APPENDIX ‘A’ OF THE ARTICLES OF

ASSOCIATION OF THE FEDERATION

By Order of the Executive Committee

Rahul Lall

Secretary General

Place: New Delhi

Dated: 15th October, 2018


Notes:

1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A

PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF, THE PROXY, HOWEVER HAS TO BE A

MEMBER OF FHRAI. THE INSTRUMENT APPOINTING THE PROXY SHOULD BE IN WRITING

UNDER THE HAND OF THE APPOINTING MEMBER. PROXY FORM ATTACHED.

THE INSTRUMENT APPOINTING A PROXY SHOULD BE DEPOSITED AT THE REGISTERED

OFFICE OR SENT BY POST SO AS TO REACH THE FEDERATION, NOT LESS THAN 48 HOURS

BEFORE THE TIME OF THE MEETING

2. Election of Executive Committee Members shall be in accordance with Para II (a) read with Para III of Appendix

‘A’ of the Articles of Association of the FHRAI. All 24 Members of the Executive Committee (6 Members from

each of the four Regional Associations) are elected every year of the basis of nominations received from each

Regional Associations Viz. Eastern Region, Northern Region, Western Region and Southern Region.

3. 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.

4. 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.

5. 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. 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.

6. 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 Friday, 27th day of October, 2018 of and will end at 5.00 P.M. on Sunday, 29th

day of October, 2018. The Federation has appointed Mr. Surendra Prasad Barnwal a Practicing Company

Secretary to act as the Scrutinizer, for conducting the scrutiny of the votes cast.

7. The facility for voting through ballot will also be made available at the AGM, and members attending the AGM

who have not already casted their vote by remote e-voting will be able to exercise their right at the AGM.

Members who have not cast their vote electronically, by remote e-voting shall only cast their vote at the AGM

through ballot paper.

8. All documents referred to in the Notice are open for inspection at the Registered Office of the Federation and

copies thereof shall also be made available for inspection in physical or electronic form at the Registered Office of

the Federation during office hours on all working days, Monday to Saturday between 10.00 A.M. to 6.00 P.M. and

inclusive of the date of the Annual General Meeting.

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

1. In compliance with the provisions of Section 108 of the Companies Act, 2013, read with Rule 20 of the Companies

(Management and Administration) Rules, 2014, as amended and the provisions of Regulation 44 of the Securities

and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Members

are provided with the facility to cast their vote electronically, through the e-voting services provided by Karvy

Computershare Private Limited (Karvy) on all resolutions set forth in this Notice, from a place other than the venue

of the Meeting (Remote e-voting).


2. Karvy shall be sending the User ID and Password to those Members whose e-mail addresses are registered with

the Federation. For Members who have not registered their E-Mail address, can write to the Federation at

[email protected] for getting User ID and Password.

3. Launch internet browser by typing the URL: https://evoting.karvy.com.

4. Enter the login credentials (i.e. User ID and password). In case of physical folio, User ID will be EVEN

(E-Voting Event Number) followed by folio number. However, if you are already registered with Karvy for

e-voting, you can use your existing User ID and password for casting your vote.

5. After entering these details appropriately, click on “LOGIN”.

6. You will now reach password change Menu wherein you are required to mandatorily change your password.

The new password shall comprise of minimum 8 characters with at least one upper case (A- Z), one lower case

(a-z), one numeric value (0-9) and a special character (@, #, $, etc.,). The system will prompt you to change

your password and update your contact details like mobile number, email ID etc. on first login. You may also

enter a secret question and answer of your choice to retrieve your password in case you forget it. It is strongly

recommended that you do not share your password with any other person and that you take utmost care to keep

your password confidential.

7. You need to login again with the new credentials.

8. On successful login, the system will prompt you to select the “EVENT” i.e., ‘Name of the Company”

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

10. A confirmation box will be displayed. Click “OK” to confirm else “CANCEL” to modify. Once you have voted

on the resolution (s), you will not be allowed to modify your vote. During the voting period, Members can login

any number of times till they have voted on the Resolution(s).

GENERAL INSTRUCTIONS:

1. In case of any query and/or grievance, in respect of voting by electronic means, Members may refer to the Help

& Frequently Asked Questions (FAQs) and E-voting user manual available at the download section of https://

evoting.karvy.com (Karvy Website) or contact Mr. S.V. Raju, Deputy General Manager, Karvy Computershare

Private Limited, Karvy Selenium Tower B, Plot 31-32, Gachibowli, Financial District, Nanakramguda,

Hyderabad - 500 032 or at [email protected] or phone no. 040 – 6716 1569 or call Karvy’s toll free No. 1-

800-34-54-001 for any further clarifications.

2. You can also update your mobile number and e-mail id in the user profile details of the folio which may be used

for sending future communication(s).

3. The remote e-voting period commences on 27th October,2018 (9:00A.M. IST) and ends on 29th October, 2018

(5:00 P.M.IST). During this period, Members of the Company, holding shares either in physical form or in

dematerialized form, as on the cut-off date of 23rd October, 2018, may cast their votes electronically. A person

who is not a Member as on the cut-off date should treat this Notice for information purposes only. The remote e-

voting module shall be disabled for voting thereafter. Once the vote on a resolution(s) is cast by the Member, the

Member shall not be allowed to change it subsequently.

4. Mr. Surendra Prasad Barnwal, a Practicing Company Secretary having certificate of practice number 8036

has been appointed as the Scrutinizer to scrutinize the e-voting process in a fair and transparent manner.

mailto:[email protected]

https://evoting.karvy.com


5. The Scrutinizer shall immediately after the conclusion of voting at the AGM, first count the voting cast at the

meeting, thereafter unblock the votes cast through remote e-voting in the presence of at least two (2)

witnesses not in the employment of the Federation and make a Consolidated Scrutinizer’s Report of the votes

cast in favour or against, if any, and to submit the same to the Chairman of the AGM not later than three

working days from the conclusion of the AGM.

6. 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.

7. 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 Karvy immediately after the declaration of the results by the Chairman.

By Order of the Executive Committee

Rahul Lall

Secretary General

Place: New Delhi

Dated: 15th October, 2018

South India Region

APPENDIX ‘A’

“PARA II”

MEMBERS OF THE EXECUTIVE COMMITTEE RETIRING AT THE ENSUING ANNUAL GENERAL MEETING

Name of retiring Member DIN

1 TEJINDER SINGH WALIA 01299186

2 PRANAV SINGH 01896933

3 SUDESH KUMAR PODDAR 00560120

4 ASHOKE SINGH 00774973

5 SOUVAGYA KUMAR MOHAPATRA 03197487

6 VIJAY DEWAN 00051164


1 DILIP C. DATWANI 00975332

2 BHARAT MALKANI 00486775

3 GURBAXISH SINGH KOHLI 00482552

4 NIRAV GANDHI 00064623

5 SHERRY BHATIA 00446300

Western India Region


1 K. SYAMA RAJU 00314921

2 M. P. PURUSHOTHAMAN 00088631

3 K. MURALI RAO 00534805

4 K. NAGARAJU 00592259

5 DVS SOMARAJU 02249145


1 SANJAY SOOD 00449219

2 GARISH OBEROI 01142920

3 RAJINDERA KUMAR 00053878

4 LAKSHYARAJ SINGH MEWAR 00071906

5 SURENDRA KUMAR JAISWAL 01886871

6 AMARVIR SINGH 03328032

Northern India Region

Eastern India Region

Southern India Region

“PARA III”

NOMINATIONS RECEIVED FROM ALL REGIONS FOR THE FEDERATION OF HOTEL & RESTAURANT ASSOCIATIONS OF INDIA (FHRAI) FOR ELECTION AS MEMBER OF ITS EXECUTIVE COMMITTEE IN PLACE OF THE RETIRING MEMBERS AT THE ENSUING ANNUAL GENERAL MEETING

Name of Nominated Member DIN

1 SURENDRA KUMAR JAISWAL 01886871

2 AMARVIR SINGH 03328032

3 LAKSHYARAJ SINGH MEWAR 00071906

4 VINOD GULATI 00239160

5 VINEET TAING 06712954

6 AMIT JAIN 00229652

Northern India Region

Eastern India Region


1 SUDESH KUMAR PODDAR 00560120

2 TEJINDER SINGH WALIA 01299186

3 PRANAV SINGH 01896933

4 ASHOKE SINGH 00774973

5 VIJAY DEWAN 00051164

6 NITIN S. KOTHARI 00714653


1 GURBAXISH SINGH KOHLI 00482552

2 DILIP DATWANI 00975332

3 SHERRY BHATIA 00446300

4 PRADEEP SHETTY 02986930

5 NIRAV GANDHI 00064623

6 P. S. GHAI 02067299

Western India Region


1 K. NAGARAJU 00592259

2 DVS SOMARAJU 02249145

3 M. VENKADASUBBU 01895162

I/We, being the member of the above named Federation, hereby appoint:-

1. Name:………………………………..

Address:

E-mail Id:

Signature ………………………………….. , Or failing him/her

2. Name:………………………………..

Address:

E-mail Id:


CIN CIN-U55100DL1955NPL002587

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

Registered office

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

New Delhi - 110 001

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

E-Mail : [email protected], Website : www.fhrai.com

The Federation of Hotel & Restaurant Associations of India Regd. Office: B-82, 8th Floor, Himalaya House, 23 Kasturba Gandhi Marg, New Delhi - 110 001

Phones : (011) 40780780, Fax : (011) 40780777, E-Mail : [email protected], Website : www.fhrai.com 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)

Name of the member

Registered

E-mail

Folio No/ Client

3. Name:………………………………..

Address:

E-mail Id:


as my/our proxy to attend and vote (on a poll) for me/us and on behalf at the 62nd Annual General

Meeting of the company, to be held on the 30th day of October, 2018 at 12:30 p.m. at Pride Plaza Hotel,

Aerocity, New Delhi-110037 (Ph. 91-11-66007700) and at any adjournment thereof in respect such

resolutions as are indicated

Resolution

ITEM NO.1: ADOPTION OF FINANCIAL STATEMENTS

ITEM NO.2: ELECTION OF MEMBERS OF EXECUTIVE COMMITTEE IN PLACE OF THOSE RETIRING EXECUTIVE COMMITTEE MEMBERS IN ACCORDANCE WITH PARA II (a) READ WITH PARA III OF APPENDIX ‘A’ OF THE ARTICLES OF ASSOCIATION OF THE FEDERATION

Signed this…...… day of October, 2

Signature of

Signature of Proxy

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

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

AFFIX REVENUE

STAMP

ATTENDANCE SLIP

(To be presented at the entrance)

Folio No._____________

DP ID ______________________________

Client ID ____________________________

I/We hereby record my/our presence at the 62nd ANNUAL GENERAL MEETING of FHRAI at Pride

Plaza Hotel, Aerocity, New Delhi-110037 at 12:30 p.m. On Tuesday 30th day of October, 2018.

PLEASE COMPLETE THIS ATTENDANCE SLIP AND HAND IT OVER AT THE ENTRANCE OF THE

MEETING HALL. JOINT MEMBERS MAY OBTAIN ADDITIONAL SLIP AT THE VENUE OF THE

MEETING.

__________________________________

Signature of the Member/ Proxy

The Federation of Hotel & Restaurant Associations of India Regd. Office: B-82, 8th Floor, Himalaya House, 23 Kasturba Gandhi Marg, New Delhi - 110 001

Phones : (011) 40780780, Fax : (011) 40780777, E-Mail : [email protected], Website : www.fhrai.com CIN-U55100DL1955NPL002587

The Federation of Hotel & Restaurant Associations of India

62nd

Annual Report

2017-18

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REPORT OF THE EXECUTIVE COMMITTEE for the year ended 31st March, 2018

Dear Members,

The Members of the Executive Committee of FHRAI have great pleasure in presenting the 62nd Annual Report together with the Audited Accounts for the year ended 31st March, 2018.

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 for the financial year 2017-18 was constituted at its first Meeting held on 23rd September, 2017 at Hotel Le-Meridien, New Delhi; i.e. immediately after their election at the last Annual General Meeting.

The said Executive Committee elected Mr. Garish Oberoi from Northern Region to be the President of FHRAI for 2017-18. The Committee elected Mr. Surendra Kumar Jaiswal of Northern Region as Hony. Secretary. The Committee also elected Mr. K. Syama Raju of Southern Region as Hony. Treasurer, Mr. Pranav Singh and Mr. Bharat H. Malkani of Eastern Region and Western Region respectively as Joint Hony. Secretaries, Mr. Dilip Datwani of Western Region, Mr. K. Murali Rao of Southern Region and Mr. T. S. Walia of Eastern Region as Vice Presidents of FHRAI. 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.366.09 Lacs whereas total expenditure incurred stands at Rs.365.96 Lacs, having a surplus of income of Rs.0.13 Lacs over the expenditure. Moreover, the financial highlights are as under:

As on date the year ended 31 March, 2018, FHRAI has invested a total sum of Rs.65.58 Lacs in various assets like building, plant, machinery & equipment, computers and intangible assets (membership software) etc. FHRAI has also made investment in FDRs with HDFC Bank Ltd. and Indian Overseas Bank to the extent of Rs.715.40 Lacs.

Auditors

At the Annual General Meeting held on 30thSeptember, 2016, M/s Walker Chandiok & Co. LLP Chartered Accountant, having FRN 001076N/N500013, were appointed as Statutory Auditors of the Company to hold the office till the conclusion of 64th Annual General Meeting of the Company. In terms of the provisions of amended Section 139(1) of the Companies Act, 2013, the appointment of statutory auditors shall not be for ratification at every Annual General Meeting.

Further, Statutory Auditor of the Company has submitted Auditor’s Report on the Accounts of the Company for the accounting year ended on 31st March, 2018. The Auditor’s report is self-explanatory and requires no comments.

Directors’ Responsibility Statement

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

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

ii) That the Directors have adopted such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year as on March 31, 2018.

(Rs. In Lacs)

As at 31 March, 2018 As at 31 March, 2017

Surplus/ (Deficit) for the year before prior period items 45.52 97.04

Prior period expenses 45.39 1.40

Extra ordinary items - 116.91

Balance at the beginning of the year 1815.92 1837.19

Balance at the end of the year 1816.05 1815.92

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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/ outgoing 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 outgoing during the year stand at Rs. 0.07 lacs and Nil respectively.

DISCLOSURE AS PER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013

The Company has zero tolerance towards sexual harassment at workplace. The Board of Directors has constituted an Internal Complaints Committee to consider and redress complaints of sexual harassment & also adopted a policy on prevention, prohibition and redressal of sexual harassment at workplace in line with the provisions of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the rules framed thereunder.

During the financial year 2017-18, the Company has received no complaints on sexual harassment.

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 2017 were 3754 (members joined FHRAI and ceased/terminated during the year). As on 31st March 2018, the total membership remained at 3728. The region-wise and category-wise details of the members of FHRAI are as under:

FHRAI Members Break-up as on 31st March, 2018

North East West South Total

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

5 Star Deluxe 45 10607 8 1256 28 8337 33 7031 114 27231

5 Star With Alcohol 24 3594 6 856 40 4770 42 5009 112 14229

5 Star Without Alcohol 2 281 0 0 3 416 4 203 9 900

4 Star With Alcohol 8 730 7 735 22 2805 60 3977 97 8247

4 Star Without Alcohol 0 0 0 0 6 454 9 571 15 1025

Heritage Classic With Alcohol 0 0 0 0 1 22 1 50 2 72

Heritage Classic Without Alcohol 0 0 0 0 0 0 0 0 0 0

Heritage Grand 1 65 0 0 0 0 1 40 2 105

Heritage 12 522 0 0 1 37 1 22 14 581

3 Star 15 1047 13 514 37 2566 50 3078 115 7198

2 Star 3 49 1 24 1 37 2 45 7 155

1 Star 0 0 0 0 2 109 0 0 2 109

Unclassified 688 34308 270 11741 527 26903 531 34036 2016 107068

Category of Membership Nos. Rooms Nos. Rooms Nos. Rooms Nos. Rooms Nos. Rooms

Hotels 798 51203 305 15126 668 46456 734 54062 2505 166920

Restaurants 527 45286 179 15274 233 24780 202 19768 1141 105108

Associates 23 0 16 0 17 0 22 0 78 0

Organisation 1 0 1 0 1 0 1 0 4 0

Grand Total 1349 0 501 0 919 0 959 0 3728 0

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FHRAI Institute of Hospitality Management (FIHM)

FHRAI had set up the “FHRAI Institute of Hospitality Management” in 2005 as 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 is aimed to make a seminal contribution in nurturing high-caliber managerial and professional talent.

During the reporting period, many significant strides were undertaken by the FHRAI leadership which could embolden its efforts to take the Institute to the envisioned glory. The most important and decisive achievement, out of these efforts was that all the long pending statutory clearances and approvals with regard to the FHRAI Institute of Hospitality Management (FIHM) were successfully obtained and the Institute is made fully equipped to be raised as a premier institute of reckoning in the country on Hospitality Management.

The President, FHRAI held a series of meetings with the Ministry of Tourism, Government of India regarding affiliation of FIHM with National Council for Hotel Management and Catering Technology (NCHMCT) and in December 2017, the Ministry had principally agreed to provide IHM approval to the FHRAI Institute of Hospitality Management (FIHM), Greater Noida.

53rd FHRAI Annual Convention

The FHRAI Annual Convention is the most sought-after event in the hospitality industry with active participation of leaders from the hospitality sector from India and aboard including prominent hoteliers and all major stakeholders from the tourism and hospitality industry. In view of its pride positioning as the single largest business & networking platform of the hospitality sector in the country, the FHRAI Annual Convention stands today as a privileged platform in networking, knowledge dissemination and business development for the corporate and industries.

The 53rd FHRAI Annual Convention has been slated to be held from 20th to 22nd September, 2018 at Ramada Lucknow Hotel & Convention Centre, Lucknow. The theme chosen for the Convention is “Spiritual & Wellness Tourism – Look with India”.

Logo of the 53rd Annual Convention is given below:

Dignitaries invited for the function are:

• Shri. Yogi Adityanath, Hon’ble Chief Minister of Uttar Pradesh

• Dr. Dinesh Sharma, Deputy Chief Minister, Government of Uttar Pradesh

• Shri. J.P Nadda, Hon’ble Minister for Health & Family Welfare, Government of India

• Shri. K J Alphons, Hon’ble Minister of State for Tourism (I/C), Government of India

• Shri. Ashok Chandra Panda, Hon’ble Minister for Tourism & Culture, Government of Odisha

• Shri. Suresh Khanna, Hon’ble Minister for Parliamentary Affairs, Urban Development, Government of Uttar Pradesh

• Shri. Rajesh Agarwal, Hon’ble Minister for Finance, Government of Uttar Pradesh

• Smt. Rita Bahuguna Joshi, Hon’ble Minister for Tourism, Government of Uttar Pradesh

Thematic Business Sessions on topical issues has been designed for the delegates. The post-convention tours have been planned as part of the Convention providing an enthralling experience to the delegates about the vivid and vibrant culture and legacy of Uttar Pradesh.

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FHRAI Awards

The FHRAI Awards were instituted in the year 2000 to encourage young industry professionals and also to recognize excellence in the Hospitality Industry. Over the years, these awards have firmly established themselves as being among the most credible and coveted accolades in the hospitality sector.

The FHRAI Awards has been decided to be distributed during a glittering ceremony during the 53rd FHRAI Annual Convention, on 22nd September, 2018.

Categories of FHRAI Awards have been reviewed and keeping in mind the changes and the developments in the hospitality industry new categories have been added:

a) Luxury Upper Upscale, Upscale and Upper Mid-scale, Mid-Scale and Economy have been added. b) Environment Champion award have been rechristened as Green Hotel Awards. c) The following new categories are also added to the category of awards:

- Best Hospitality Institute of the Year - Best Hotel Spa of the Year - Best Wellness Resort of the year - Security Manager of the year

d) It has also been decided to institute a FHRAI Life Time Achievement Award for outstanding contribution in the field of Hospitality, from this year onwards.

e) It was also decided to extend the FHRAI Awards to the non-members also so that more members would be reached out and be made members of the Federation.

Hospitality Exhibition

An exhibition featuring the latest products and technologies in hospitality viz. building and interior; engineering, IT; Housekeeping & Service; F&B, Consumables, Kitchen/Bakery equipment’s etc. has been scheduled to be held along with the Convention at Ramada Lucknow Hotel & Convention Centre, Lucknow. It will provide an opportunity to all delegates to stay abreast of new hospitality solution, source them, as well as build vendor database.

FHRAI Indian Hotel Industry Survey

FHRAI has been publishing the Indian Hotel Industry Survey, an annual report on performance of Hotel Industry in India based on performance data requested from and provided by its member hotels. This Survey analyses the performance of the Indian hospitality industry across parameters such as facilities, manpower, operational performance and marketing trends.

The FHRAI Indian Hotel Industry Survey 2017-18 was published in co-operation with HVS Hospitality Services, but the association got discontinued in 2018 on account of some entity changes in the partner association from HVS Hospitality Services to Hotelivate.

Thereafter, Horwath HTL Consults Pvt ltd and STR Global Ltd approached FHRAI and expressed their willingness to take up the assignment of publishing the Hotel Industry Survey. An agreement was signed between Horwath HTL Consults Pvt ltd, STR Global Ltd and FHRAI to publish the Indian Hotel Industry Survey for the year 2018-19.

FHRAI Sub-committees formed for 2017-18

On assuming charge as President, FHRAI, Mr. Garish Oberoi emphasized on the importance to constitute an Administrative committee comprising of all the office bearers for close supervision of FIHM, pursuing of legal matters, suggesting amendments in FHRAI Memorandum and Articles of Association and other related issues. With this in view, the Administrative Committee of FHRAI for the year 2017 – 18 was constituted as :

Name of the Member Designation

Mr. Garish Oberoi Chairman

Mr. T. S. Walia Member

Mr. Dilip C. Datwani Member

Mr. K. Murali Rao Member

Mr. Surendra Kumar Jaiswal Member

Mr. K. Syama Raju Member

Mr. Pranav Singh Member

Mr. Bharat H. Malkani Member

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FHRAI Guide 2018

Acceding to the repeated requests from the esteemed members, FHRAI published the Hotel & Restaurant Guide India 2018 as a ready reckoner for the members. FHRAI Guide has been recognized as an authentic and indispensable resource for travel industry professionals, trade media, professional organizations, suppliers as well as individual and corporate travelers.

A copy of the same was circulated among FHRAI membership. Online data of all FHRAI members is available under the heading “Membership”, on the FHRAI website.

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. It is very gratifying for the Executive Committee to note that FHRAI Members / readers of the FHRAI Magazine are appreciating the modern layout and expanded editorial contents of this prestigious publication.

FHRAI Website

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

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

FHRAI HOSPITALITY FLASH

The e-journal FHRAI HOSPITALITY FLASH has been introduced to highlight and disseminate news, events and initiatives taken up by the association and industry at regular intervals. The digital editions were created in-house by the Secretariat and were sent to all members. It has proved to be an effective tool to reach out to members more actively.

FHRAI ON SOCIAL MEDIA

FHRAI initiated its presence on Social Media Channels- Facebook and LinkedIn. These platforms are used to highlight, post the activities / events taken up by the Association, Government and Industry including latest trends, news and updates pertaining to the tourism and hospitality industry. These channels are also used to engage members more actively.

52nd FHRAI Annual Convention, Bengaluru

The 52nd FHRAI Annual Convention was held in Bangalore from 14th -16th September, 2017. The theme chosen for the Convention was “Hospitality 2025 – The Future is Now”. Gurudev Sri Sri Ravi Shankar, Founder, Art of Living Foundation welcomed all the delegates. The Inaugural Session of the Convention was attended by Shri. Ananth Kumar, Hon’ble Union Minister for Parliamentary Affairs, Chemicals and Fertilizers, Shri. R.V. Deshpande, Hon’ble Minister for Large and Medium Industries, Government of Karnataka, Shri. Ashok Chandra Panda, Hon’ble Minister for Tourism, Government of Odisha along with other dignitaries and industry leaders.

The FHRAI Convention in Bangalore elicited an overwhelming response from delegates and other industry stakeholders and added yet another chapter in this event’s illustrious history.

A multifaceted agenda was conceptualized for the Convention, with the aim of facilitating greater convergence and synergy between various stakeholders in Government, business and civil society, towards achieving the shared goal of catapulting India to its rightful position of being a world leader in tourism. Through meticulously structured business sessions, featuring presentations, keynote speeches and interactive panel discussions, the 52nd Convention explored the

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indispensable role which Tourism is poised to play in revitalizing “Hospitality 2025 – The Future is Now” on the global canvas and driving India’s’ transformational future growth.

The 16th FHRAI Awards were presented by Shri. Sanjeev Kapoor, Celebrity Chef and Shri. K. Syama Raju, President FHRAI at the closing ceremony of the 52nd FHRAI Annual Convention in Bangalore.

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

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

According to an order issued by FSSAI dated 6th October, 2017 every Food Business Operator has to employ at least one Food Safety Supervisor (FSS) trained (qualified under Fostac) having more than 25 food handlers. FSSAI has allotted one year to catering services such as hotels/restaurants to comply the order.

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

FSSAI has also introduced a Guidance Document for Hygiene Rating & Responsible Place to Eat, for compliance of the hygiene rating scheme by the state and the local authorities.

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

The “Food Safety Hand Book” published by FHRAI provides all details about the procedures to be followed by Hotels/Restaurants while implementing the Guidelines of FSSAI. This Hand Book has been found as a valuable resource document by the entire food industry.

Revised Guidelines for approval of Hotels at Project Stage and Star Classification/ Reclassification of Operational Hotels

As a result of a number of representations put forward by FHRAI through various interactions and meetings, the Ministry of Tourism has made changes to the Approval Guidelines. The Ministry of Tourism, Government of India vide its letter No. 8-TH-I (3)/2013-Pt.1 dated 19th January, 2018 have issued the revised Guidelines for approval of Hotels at Project stage & Star Classification /Reclassification of Operational Hotels.

The Ministry notified that cases of hotels where classification is pending due to the non-fulfilment of Hunar Se Rozagar Tak Targets under the present guidelines would be considered for classification without insisting upon HSRT targets. The requirement of attainment of HSRT targets would be waived off for such hotels. However, hotels whose application have been given a final decision prior to the amended guidelines coming into force, would need to apply afresh, if they are desirous of classification.

Time limit of 3 months has been included for rectification of any deficiencies in the classification application. Failing which the application will be rejected and Hotels has to apply afresh under an appropriate category.

As per the revised guidelines, detailed timeline for clearance of classification application of hotels has to be completed. In every case where the required documents and procedures are fulfilled, the classification will be completed within 3 months. Failure to upload documents/ complete all requirements within the stipulated time will result in rejection of the application.

It also allowed some relaxation in bathroom size for hotels built before 01.01.2012 as the minimum bathroom size may be relaxed by 10% (to be rounded off to be next integer) provided the total size of the room and the bathroom has been taken together.

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Incredible India Bed & Breakfast/Homestay Scheme

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

FHRAI also made representations that guidelines for accreditation of Online Travel Agents (OTA’s be formulated by MOT).

National Medical & Wellness Tourism Board

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

It is evident that Medical Tourism is a fast-growing segment in India and to augment its growth, the Ministry of Tourism is compiling the guidelines for the National Medical and Wellness Tourism.

Federation of Association of Indian Tourism and Hospitality (FAITH)

The Federation of Associations in Indian Tourism & Hospitality (FAITH) is the common platform of the entire spectrum of hospitality industry to present a shared vision and collective approach for the growth of the sector. FHRAI is one among the 10 national tourism associations came together to form FAITH in the year 2013.

Mr. Garish Oberoi, President FHRAI was elected as Hony. Treasurer, FAITH for the year 2017-18. FAITH represented the travel, trade and hospitality industry to the Government on a number of issues affecting the industry while functioning as an umbrella organization of all Associations in the travel, tourism and hospitality sectors.

Union Budget

As has been practiced in previous years, FHRAI had submitted its Proposals for Union Budget 2018-19 to the Ministry of Finance and Ministry of Tourism, Government of India. But nothing significant happened in the Union Budget 2018- 19 while acknowledging the contribution of hospitality/ tourism industry and no concessions were given which could impact the industry directly.

The Union Budget for 2018-19, has extended the E-Tourist Visa (E-TV) facility to 165Countries.

A long pending demand of the Tourism sector to accord infrastructure status to hospitality industry was favorably considered by a group of Secretaries and subsequently forwarded for approval of the Cabinet. But some confusion about the threshold for industries, because as per the Government sources, it would be applicable to projects above Rs.50 Crores but the tourism sector demand was for projects above Rs.25 Crores.

FHRAI had send many representations for reducing GST rates of Hotels from 28 % to various government officials and as per the information received, Central Government was considering to take a positive step of reducing the rates from 28 % for the hotels after analyzing the revenue collection status by end of March 2018.

Foreign Trade Policy 2015-2020

i) Service Exports from India Scheme (SEIS)

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

The rate of reward applicable to the Hotels & Restaurants has been increased to 5%. The reward issued as duty credit scrip.

SEIS is applicable for units in Special Economic Zone.

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

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

FHRAI EFFORTS FOR THE INDUSTRY:

All the best possible efforts were made to promote the integrity within the industry. FHRAI worked towards achieving consensus on various issues among all segments, five-star luxury to budget hotels, restaurants across all over India. The Committee worked hard towards bringing relief to the industry to the maximum.

During the year FHRAI submitted various representations on the issues concerning the industry:

A delegation led by FHRAI President, Mr. Garish Oberoi, Mr. Pranav Singh, Joint Hony. Secretary and Mr. Sudesh Poddar, EC Member met with Dr. Himanshu Biswa Sharma, Hon’ble Minister of Finance, Government of Assam, Mr. Rajesh Agarwal, Hon’ble minister of Finance, government of U.P. and Mr. Hasmukh Adhia, Revenue Secretary, Ministry of Finance on 9th November,2017 at Guwahati, for lowering the GST on hotels from 28%to 18% and submitted the representation.

FHRAI has sent a representation to Shri Suresh Prabhu, Minister of Commerce, Government of India requesting for urgent intervention in relation to the reopening of past benefits granted under the Served from India Scheme qua the Hotel Industry in India.

Mr. Garish Oberoi, President FHRAI with other Associations Presidents met with the Smt. Madhulika P Sukul, Additional Secretary, Consumer Affairs, Krishi Bhawan, New Delhi. He put across positive views in favour of industry. It was briefed that Hotels and Restaurants have been more responsible towards the food wastage by various checks, evaluation and audits for cost control. It was submitted that consumers’ awareness campaign on food wastage needs to be initiated.

RELIEF TO THE INDUSTRY

Some of the silver-lined achievements of the Association’s advocations and lobbying efforts have been as under:

1. The 28 per cent GST imposed on hotel rooms with a tariff of Rs 5000 above were increased to Rs 7500 and above. Levy of 18 percent GST on rooms with tariffs between Rs 2,500 and Rs 7,500.

2. The GST on restaurants in five-star and luxury hotels was reduced from 28 to 18 per cent, bringing it at par with standalone air-conditioned restaurants.

3. GST rate on restaurants slashed to 5% (without Input tax credit). The concern of industry pertaining to Restaurants on rented premises was taken up by the association and a representation was submitted to Ministry of Finance and GST council for extending the ITC benefit to such units.

4. Amendments were made in the licensing conditions applicable for renewal of FSSAI Licenses.

5. Hotels and Restaurants are not under the purview of Legal Metrology Act and Standard of Weights and Measures Act and can sell the packaged commodities above MRP.

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:

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

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

EEMA has filed the above captioned writ petition against Union of India in which PPL/IPRS/Novex Communications/FHRAI are parties to it. EEMA has challenged the applicability of Music License being issued by PPL/IPRS/Novex Communications. The notice was served to FHRAI.

The matter came up for hearing on 24th April, 2017 wherein the Counsel of EEMA requested the Court to make a direction to UOI (Respondent 1) to file details relating to enquiry against IPRS/PPL before the Court. He further requested for constitution of Copyright Board for faster redressal of issues. After hearing the parties, the matter was adjourned to 12th October, 2017.

M/s Parekh & Co. appeared on behalf of FHRAI to argue the matter against PPL, IPRS and Novex.

The matter was disposed off on 12th October, 2017.

The efforts of FHRAI has resulted in that the Hon’ble Court upheld that PPL, IPRS and Novex shall not function as registered copyright societies and carry on the business of granting licenses under Section 33(1) of the Copyright Act.

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

FHRAI has filed SLP against the orders dated 11th February, 2015 and 15th May, 2015 of the Division Bench of the Hon’ble High Court of Delhi wherein the Division bench upheld that the Judgment of the Single Bench that charging price above MRP on bottle of Mineral water and other packaged commodities while serving to the Guest/customer, Hotel & Restaurant does not violate any provision of the Standard of Weights and Measurers Act will not be a precedent in any such adjudication even if the concerned provisions of the old and the new law are identical / similar.

Mr. K.V. Vishwanathan, Senior Advocate has been engaged on behalf of FHRAI for the final hearing before the Hon’ble Supreme Court.

The case was disposed off on 12th December,2017.

FHRAI has won the long battle for its members wherein the bench of Justice Nariman and Justice Sinha. Hon’ble court allowed the appeal filed by FHRAI and upheld the order of the Single Judge of Delhi High Court dated 05.03.2017 and upheld that Hotels and Restaurants are not under the purview of Legal Metrology Act and Standard of Weights and measures Act and can sell packaged commodities above MRP.

3. Casino Hotels Unit of CGH Earth Pvt. Ltd. Vs. The Federation of Hotel & Restaurant Associations – before the National Company Law Tribunal (NCLT)

Mr. Jose Dominic, owner of Casino Hotel, Cochin had filed a Petition under Section 241, 242 and 244 of the Companies Act, 2013 against The Federation of Hotel & Restaurant Association of India (“FHRAI)” challenging the Item No. 4 i.e. “To approve the Alteration in Article of Associations of FHRAI proposed to be passed in the 61st AGM of FHRAI to be held on September 23, 2017. The aforesaid Petition was listed on September 22, 2017 before the Hon’ble National Company Law Tribunal, Principal Bench (“NCLT”).

The Hon’ble NCLT vide its order dated September 22, 2017 directed that the meeting in relation to other item may proceed except item no. 4 under the sub heading ‘Special Business shall stay. The matter was listed for hearing on November 29, 2017.

Thereafter, the AGM was held on September 23, 2017 and in accordance with the Order dated September 22, 2017, the AGM was concluded without considering the item no. 4.

Mr. Virendra Ganda, Senior Advocate was engaged by FHRAI in the above-mentioned matter.

The case was disposed off on 23rd April,2018 wherein the Hon’ble NCLT after hearing the arguments from both the sides and on the basis of the resolution not to proceed with the alteration of Articles of Association filed by FHRAI which has been passed by majority of the Executive Committee on 17.04.2018 disposed of the petition with the condition that if any modification in the Articles of Association (Appendix A) in respect of Clause (iv) (b) and (c) is to be brought, then the same should be done only with the permission of this Tribunal.

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4. Federation of Hotel & Restaurant Associations of India Versus UOI & Ors. W.P.(C) No. 11519 of 2017 before Hon’ble Delhi High Court

FHRAI had file the Writ Petition(C) No. 11519 of 2017 against Copyright Society that IPRS will take remedial action with regard to the observations detailed in the letter No. F. No. 07-01/2017-CO dated November 28,2017. We further submitted that this clearly shows that the impugned registration is conditional/provisional in nature which could not have been granted under the provisions of Copyright Act,1957.

Mr. Rajiv Nayar, Senior Counsel along with M/s Kapil Sapra & Co. was engaged by FHRAI.

The matter came up for hearing on 21.12.2017 wherein the Federation of Hotel & Restaurant Associations of India (FHRAI) was represented by Mr. Rajiv Nayar, Senior Advocate and KSA Team. Mr. Nayar submitted that the Rule 49 of the Rules provide for registrar to grant registration to a Copyright Society on the fulfillment of conditions prescribed therein. He thereafter took the attention of the Hon’ble Court to Form-X and submitted that the additional conditions as mentioned in the certificate of registration granted to IPRS do not find mention in the Form-X prescribed under the rules. Despite the forceful arguments made by FHRAI, the Hon’ble court was of the view that Form X of the Rules cannot be read in a strict manner and the same is only indicative and not exhaustive in nature. Accordingly, the Hon’ble Court dismissed the Writ Petition.

The case was disposed off on 21st Deember,2017.

5. FHRAI Versus Union of India & Ors. – Before Hon’ble Supreme Court of India

The Government of India had levied Expenditure Tax Act 1987. The Expenditure Tax was abolished in 2003.The High Court of Himachal Pradesh ruled that the HET was payable on the total receipt earned by the hotel. In view of the above, H.P. Tourism Development Corporation filed a writ petition against the Union of India in 1997. HP Tourism Development Corporation of India filed a Civil appeal 4700- 4702 of 1999 in Supreme Court of India.

The Income Tax Department was charging the Expenditure Tax on the total receipt of the Hotel. The Hotel Industry had objected Hotel Expenditure Tax (HET) should be charged on the room rates/not the total revenue earned by the hotel. In Goa, Income Tax Authorities had issued notices to Hotels for recovery of Tax with retrospective effect.

In lieu of which FHRAI has filed an Intervention Application and SLP (Civil) No. 4932-4934/2001 on behalf of its members before the Hon’ble Supreme Court of India.

As the matter was pending since long and the members of FHRAI were not keen to pursue the matter the Executive Committee decided to withdraw the matter.

The captioned matters were listed for hearing on 19.04.2018 before bench comprising of Hon’ble Mr. Justice Kurian Joseph, Hon’ble Mr. Justice M.M. Shantanagoudar and Hon’ble Mr. Justice Navin Sinha in Court No. 5 as item no. 101, Bhasin & Co. appeared on behalf of FHRAI.

When the matters were taken up, Bhasin & Co. informed the court on behalf of FHRAI that a letter was circulated on 17.04.2018 seeking permission of the Court for withdrawal of the CA No. 4932-4934/2011 and Intervention Application in CA No. 4700-02/1999 filed by FHRAI.

After hearing the submissions on the reasons for withdrawal and after considering the request as contained in the advance letter circulated by FHRAI. The Court permitted to withdraw both the Civil Appeal and the Intervention Application. The same stand dismissed as withdrawn.

M/s Bhasin & Co. was engaged by FHRAI in the above-mentioned matter.

The case was disposed off on 19th April,2018.

6. Multi-Screen Media Pvt. Ltd. (MSM)and Indian Broadcaster Foundation (IBF) Ors. Vs. Telecom Regulatory Authority of India (TRAI) and Ors. Appeal Nos. 4 ©/2015 and 5 ©/2015 before TDSAT (M/s Parekh & Co.) AND Indian Broadcasters Foundation (IBF) & Ors. Vs. TRAI Contempt Petition – M A No. 160-161/2015 in (Appeal No. 7(C)/2014) in TDSAT

Hon’ble TDSAT vide its judgment dated 21.08.2018 dismissed the appeals filed by Broadcasters (MSM Pvt. Ltd. and IBF) and upheld that TV sets in Hotel rooms/ Restaurants are part of the amenity provided to the guests at no additional cost and thus Hotel/ Restaurants cannot be treated as Commercial consumers. The Hon’ble TDSAT has upheld the TRAI

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definition of Commercial subscriber as one who provides cable TV programmes for a fee/ additional charges. Thus, it has confirmed the TRAI Tariff order whereby Hotels/ Restaurants are to be treated as Ordinary Subscribers to pay cable TV charges at par with what is payable by domestic consumers.

The case was disposed off on 21st August, 2018.

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

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

M/s Parekh & Co. is handling the matter on behalf of FHRAI before Patiala House Court.

The matter was listed for hearing on 17.05.2018 for arguments wherein, FHRAI submitted that the Defendant No. 1, Mr. Amitabh Devendra passed away on 25.03.2018 and PPL may move an appropriate application. At this juncture, Mr. Sagar, Counsel for PPL submitted that the Plaintiff does not wish to bring the legal heirs of the Defendant No. 1(Amitabh Devendra) on record and will proceed against Defendant No. 2(FHRAI) as well the proposed Defendant Nos. 3 to 6(Mahagun Hotels Pvt. Ltd., Hotel the Grand, Hotel Crown Plaza, Hotel Dusit Devrana). Counsel of PPL also submitted that they have settled the matter with Defendant Nos. 7 and 8 (Hotel J.W. Marriott and Hotel Claridges). After hearing both the parties, the Ld. Judge adjourned the matter to 26th September,2018 for final hearing.

M/s Parekh & Co. is handling the matter on behalf of FHRAI before Patiala House Court.

8. Pratima Pandey Versus Union of India & Ors. W.P.(C) No. 22274 of 2016 before Allahabad High Court

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

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

Mr. Kumar Ayush, Advocate is appearing on behalf of FHRAI and HRANI.

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

9. FHRAI & Ors. Vs. Union of India & Ors. Civil Appeal 8316/2016 before Hon’ble Supreme Court of India

FHRAI has filed SLP against the Delhi High Court Judgement dated 23rd March, 2016 (in the matter of TDS, Section 194-1 of the IT Act) W.P. (C) No. 2130/1999.

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

On 9th December, 2016, upon the hearing the submissions, the court directed that Counter Affidavit may be filed by the respondents.

The matter will come up for hearing to its seniority.

M/s Parekh & Co. is contesting the case on behalf of FHRAI before Hon’ble Supreme Court.

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10. FHRAI Vs. Union of India & Central Board of Excise and Customs Civil Appeal 11931/2016 before Supreme Court of India

FHRAI has filed the SLP against the judgement of DHC dated 12.08.2016 before the Supreme Court of India on the applicability of service Tax on Restaurant.

The SLP (C) 33288/2016 has been converted Civil Appeal No. 11931/2016. The matter is tagged with other connected matters i.e. Civil Appeal No. 10871/2014. The matter will come up for hearing according to its seniority.

In SLP, FHRAI has challenged the constitutional validity of the impugned provisions of the Finance Act, 1994 being Section 65(105) (ZZZZV) as inserted by amendment by the Finance Act, 2011 whereby the provision to any person by a restaurant by having the facility of air-conditioning in any part of its establishment serving food or beverage, including alcoholic beverages or both in its premises has been made amenable to Service Tax.

Mr. Siddharth Agarwal, Advocate has been engaged in the above-mentioned matter to contest the case before Hon’ble Supreme Court.

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

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

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

M/s Parekh & Co. is appearing on behalf of FHRAI.

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

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

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

Star India filed fresh WP (C) 506/2015 against TRAI’s Order dated 14th September, 2015 (Regulation) by which Hotels/Restaurants were allowed to take signals from DPO/Cable Operator/DTH Operator.

M/s Parekh & Co. is handling the case on behalf of FHRAI.

On 2.5.2016, FHRAI requested the Hon’ble Court to allow the application of impleadment and the Hon’ble Court was pleased to allow the same. Both the petitions have been tagged in the court.

The matter came up for hearing on 14.05.2018, wherein the matter was called out the counsel for the Petitioner intimated the Hon’ble Court that the same issue is pending determination before the Ld. TDSAT and the TDSAT has reserved judgment in the matter. The Hon’ble Court however directed that it would want to examine the pleadings in Civil Appeal No. 8316 of 2017. However, FHRAI submitted that the said matter does not have any relation to the present petition. In the meantime, the Court directed the Star India to place the record of the SLP filed by FHRAI before the Hon’ble Court. The matter has been adjourned for further hearing on 30th August,2018.

13. CS(OS) 592/2014 Star Sports India Pte. Ltd. & Anr. Vs. DIGI Cable comms Services Pvt. Ltd. & Ors. – High Court of Delhi.

The above captioned Suit has been filed by Star Sports India Pte. Ltd. in Delhi High Court and obtained the Interim-stay against known and unknown defendants (Hotels/ Restaurants/ Bars/Cable Operators etc.) to obtain separate licence to

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show/telecast the sport event such as: Cricket series – India Tours to New Zealand (organized by New Zealand) and other such events from the broadcasters/authorized agents. FHRAI has filed invention applications in all suits to safeguard the interest of Hotels/Restaurants. Hotels/Restaurants availing cable/DTH facility in their establishments either in rooms, restaurants/common area and are paying the cable charges to the cable operator/DTH operator are not required to take separate license for the India Tours New Zealand and other such events.

FHRAI has engaged M/s Parekh & Co. in the above-mentioned matter.

The matter came up for hearing on 23.05.2018 before the Registrar Court wherein FHRAI mentioned that the written statements of the defendant Nos. 66, 69 & 73 has been served to the Plaintiff as per the last order dated 24.04.2018 and Applications for condonation of delay are also listed. At this junction Plaintiff’s Counsel (Star Sports India Pvt. Ltd) submitted that he will file the reply to FHRAI’s applications. In view of the same the Ld. Joint Registrar directed the matter to be listed for hearing of all the pending Applications and for admission/denial of documents. Accordingly, the matter got adjourned and the matter is directed to be listed on 23rd July,2018

The matter came up for hearing on 23.07.2018 wherein the Counsel of the Star Sports sought time to address arguments on I.A. Ld. Registrar has listed the matter for argument on 29th August,2018.

Meetings of Executive Committee:

The Executive Committee met Nine (9) times during the year i.e. 10th April,2017, 9th May,2017, 31st May,2017,25th July,2017, 29th July,2018, 14th September,2017,23rd September,2017,21st November,2017 and 20th march,2018 under report out of which six (6) meetings were held before the 61st AGM, 2016-2017 and three (3) meetings were held on or after 61st AGM 2016-2017, the details of the meetings are as under:

Attendance from April 1, 2017 to September 14th ,2017

S. No.

Name

2017 2017 2017 2017 2017 2017

TOTAL 10-04-2017 New Delhi

09-05-2017 Amritsar

31-05-2017 New Delhi

25-07-2017 Mumbai

29-08-2017 Kolkata

14-09-2017 Bengaluru

OFFICE BEARERS

1. Mr. Ajit B. Kerkar, Member of Honour - - - - - -

2. Mr. Syamaraju Kosur, DIN-00314921 President

Y Y Y Y Y Y 6

3. Mr. Garish Oberoi DIN- 01142920 Vice President

Y Y Y Y Y Y 6

4. Mr. Tejinder Singh Walia, DIN-01299186 Vice President

Y - Y Y Y Y 5

5. Mr. Dilip Chandiram Datwani DIN- 00975332 Vice President

Y Y Y Y Y Y 6

6. Mr. Vivek K Nair- DIN-00005870 Hony. Secretary

- - - Y Y - 2

7. Mr. K. Murali Rao DIN- 00534805 Hony. Treasurer

- - - Y Y Y 3

8. Mr. Surendra Kumar Jaiswal DIN-01886871 Jt. Hony. Secretary

Y Y Y Y -

Y 5

9. Mr. Ashoke Singh DIN- 00774973 Jt. Hony. Secretary

Y Y - Y - Y 4

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S. No.

Name

2017 2017 2017 2017 2017 2017

TOTAL 10-04-2017 New Delhi

09-05-2017 Amritsar

31-05-2017 New Delhi

25-07-2017 Mumbai

29-08-2017 Kolkata

14-09-2017 Bengaluru

EC Members

10. Mr. Nirav Vinod Gandhi DIN-0064623

- Y - Y - Y 3

11. Mr. Gurbaxish Singh Kulwant Singh Kohli DIN-00482552

- Y - - Y Y 3

12. Mr. Rajindera Kumar DIN-00053878 Y Y Y Y Y Y 6

13. Mr. Bharat Harkishan Malkani DIN-00486775

- Y - Y - - 2

14. Mr. Luv Malhotra DIN-00030477 - Y Y Y - Y 4

15. Mr. Vinaay Malhotra-DIN-00192152 Y Y Y Y Y Y 6

16. Mr. Souvagya Kumar Mohapatra DIN-03197487

- Y - Y Y Y 4

17. Mr. Thiagarajan Nataraajan DIN-00478495

- - Y

Y - Y 3

18. Mr. Kupparaju Nagaraju DIN -00592259

- Y Y - - - 2

19. Mr. Sudesh Kumar Poddar DIN-00560120

Y - - Y Y Y 4

20. Mr. Purushothaman Mooliyil Payyan DIN-00088631

- - - - - - -

21. Mr. Venkata Satya Somaraju Dandu DIN-02249145

Y - Y - - Y 3

22. Mr. Saeed Mustafa Shervani DIN-00024390

Y Y - Y - Y 4

23. Mr. Pradeep K Shetty DIN-02986930 - - - Y Y - 2

24. Mr. Pranav Singh- DIN- 01896933 Y - Y Y Y Y 5

25. Mr. Sanjay Sood - DIN-00449219 Y Y Y Y Y Y 6

26. Mr. Anil Chadha Co-opted E.C. Member

- Y - - - - 1

27. Mr. Vijay Dewan -DIN-00051164 Co-opted E.C. Member

Y - - - Y - 2

28. Mr. Sureshchand Premchand Jain DIN - 00004402 Co-opted E.C. Member

- Y - - - - 1

29. Mr. Suresh Kumar DIN-02741371 Co-opted E.C. Member

Y Y - - - - 2

Attendance from April 1, 2017 to September 14th ,2017

-15-

S.No. Name

2017 2017 2018

Total 23-09-2017 New Delhi

21-11-2017 Hyderabad

20-03-2018 Mumbai

OFFICE BEARERS

1. Mr. Ajit B. Kerkar, Member of Honour - - -

2.

Mr. Garish Oberoi -DIN- 01142920 President

Y Y Y 3

3.

Mr. Tejinder Singh Walia - DIN-01299186 Vice President

Y Y - 2

4.

Mr. Dilip Chandiram Datwani - DIN- 00975332 Vice President

Y

Y Y 3

5.

Mr. K. Murali Rao - DIN- 00534805 Vice President

Y -

Y 2

6.

Mr. Surendra Kumar Jaiswal - DIN-01886871 Hony. Secretary

Y Y Y 3

7.

Mr. Syamaraju Kosur - DIN-00314921 Hony. Treasurer

Y Y Y 3

8.

Mr. Pranav Singh - DIN- 01896933 Jt. Hony. Secretary

Y Y Y 3

9.

Mr. Bharat Harkishan Malkani - DIN-00486775 Jt. Hony. Secretary

Y Y Y 3

EC Members

10.

Mr. Sherry Khubchand Bhatia DIN -00446300 Y - - 1

11. Mr. Vijay Dewan -DIN-00051164 - Y - 1

12. Mr. Nirav Vinod Gandhi - DIN-0064623 - Y - 1

13. Mr. Gurbaxish Singh Kulwant Singh Kohli - DIN-00482552 - Y Y 2

14. Mr. Rajindera Kumar DIN-00053878 Y Y Y 3

15. Maharaj Kumar Lakshyaraj Singh Mewar - DIN-00071906 Y - Y 2

16. Mr. Souvagya Kumar Mohapatra- DIN-03197487 Y - Y 2

17. Mr. Vivek K Nair -DIN-00005870 Y - Y 2

18. Mr. Thiagarajan Nataraajan -DIN-00478495 Y Y - 2

19. Mr. Kupparaju Nagaraju -DIN -00592259 - Y Y 2

20. Mr. Sudesh Kumar Poddar -DIN-00560120 Y - Y 2

21. Mr. Purushothaman Mooliyil Payyan-DIN-00088631 - Y - 1

22. Mr. Ashoke Singh -DIN- 00774973 Y Y Y 3

23. Mr. Venkata Satya Somaraju Dandu -DIN-02249145 Y Y - 2

24. Mr. Amarvir Singh – DIN-03328032 Y Y Y 3

25. Mr. Sanjay Sood-DIN -00449219 Y Y Y 3

26. Ms. Deepika Arora- DIN—06483400 Co-opted E.C. Member

Y Y - 2

27. Mr. Anil Chadha, Co-opted E.C. Member - - - 0

28. Mr. Param Kannampilly, Co-opted E.C. Member - - Y 1

29. Ms. Ranju Alex, Co-opted E.C. Member - - - 0

Attendance from September 23, 2017 to March 20th ,2018

-16-

S.No. Name of the Member 11th October,2017 18th January,2018 Total

1. Mr. Garish Oberoi Y Y 2

2. Mr. T. S. Walia Y - 1

3. Mr. Dilip C. Datwani Y Y 2

4. Mr. K. Murali Rao - - 0

5. Mr. Surendra Kumar Jaiswal Y Y 2

6. Mr. K. Syama Raju Y Y 2

7. Mr. Pranav Singh Y Y 2

8. Mr. Bharat H. Malkani - Y 1

9. Mr. Sudesh Poddar - Y 1

Meetings of Administrative Committee:

The Administrative Committee met two (2) times during the year under report i.e. on 11th October,2017 and 18th January,2018.

Acknowledgments

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

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

Ministry of Tourism: Shri K. J. Alphons, Union Minister of State (Independent Charge) for Tourism, Smt. Rashmi Verma, Secretary, Shri Suman Billa, Joint Secretary and Smt. Meenakshi Sharma, Additional Director General, Ministry of Tourism and We have also been receiving valuable support from Shri B.B. Dash, Director (H&R) Shri Sagnik Chowdhury, Assistant Director General (H&R) and their colleagues in the Ministry of Tourism.

Ministry of Commerce and Industry: Shri Suresh Prabhu, Hon’ble Union Minister for Commerce and Industry, Smt. Rita A Teaotia, Secretary, Department of Commerce, Shri Alok Vardhan Chaturvedi, Director General of Foreign Trade and all his colleagues in the DGFT.

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

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

The Executive Committee also wishes to place on record its appreciation for the valuable guidance given by the Office Bearers of the Federation and the hard work put in by the Federation Secretariat under the guidance of Mr. Amitabh Devendra, Secretary General (till 23rd September, 2017) and Mr. Rahul Lall (took charge on 16th October, 2017) as Secretary General during the period under review.

For & on Behalf of the Executive Committee The Federation of Hotel & Restaurant Associations of India

Sd/- Sd/- Surendra Kumar Jaiswal Garish Oberoi DIN-00005870 DIN -00314921

-17-

EXTRACT OF ANNUAL RETURN

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

(Management and Administration) Rules, 2014)

II. Principle Business Activities of the Company

III. Particulars of Holding, Subsidiary and Associates Not Applicable

IV. Share holding pattern Not Applicable

V. Indebtedness:

Indebtedness at the beginning of the Financial Year NIL

Indebtedness at the end of the Financial Year NIL

VI. Remuneration of Directors and Key Managerial Personnel Not Applicable

VII. Penalties/Punishment/Compounding of offences NIL

I. REGISTRATION & OTHER DETAILS:

1 CIN U55100DL1955NPL002587

2 Registration Date 7th December, 1955

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

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

Indian Non- Government company

5 Address of the Registered office & contact details

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

6 Whether listed company NO

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

S. No. Name and description of main products /services NIC Code of the product/Service

% to the total turnover of the Company

1 Promote, encourage and protect the interests of proprietors and

other persons interested or concerned in hotels, restaurants,

board houses and to take such steps including provision of legal

and other professional advice and assistance

9411 100%

-18-

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 2018 , the Statement of Income and Expenditure and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

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

Auditor’s Responsibility

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

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

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

6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial controls relevant to the Federation’s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Federation’s management, as well as evaluating the overall presentation of the financial statements.

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

-19-

Opinion

8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Federation as at 31 March 2018, 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 2016 (“the Order”), issued by the Central Government of India in terms of Section 143(11) of the Act, since in our opinion and according to the information and explanations given to us, the Order is not applicable.

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

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

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

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

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

e. Mr. Vivek Krishnan Nair, a director of the Federation, has not produced written representation as to whether any Company in which he is also a director as on 31 March 2018, has not defaulted in terms of sub-section (2) of section 164 of the Act. In the absence of this representation, we are unable to comment whether he is disqualified from being appointed as a director under sub-section (2) of section 164 of the Act. As far as other directors are concerned, on the basis of the written representations received from such directors as on 31 March 2018 and taken on record by the Board of Directors, we report that none of the remaining directors is disqualified as on 31 March 2018 from being appointed as a director in terms of sub -section (2) of section 164 of the Act;

f. we have also audited the internal financial controls over financial reporting (IFCoFR) of the Federation as of 31 March 2018 in conjunction with our audit of the financial statements of the Federation for the year ended on that date and our report dated 9 August 2018 as per Annexure I expressed an unmodified opinion; and

g. with respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us: i. the Federation, as detailed in Note 20 to the financial statements, has disclosed the impact of pending

litigations on its financial position; ii. the Federation did not have any long-term contracts including derivative contracts for which there were any

material foreseeable losses; iii. there were no amounts which were required to be transferred to the Investor Education and Protection Fund

by the Federation; and iv. the disclosure requirements relating to holdings as well as dealings in specified bank notes were applicable for

the period from 8 November 2016 to 30 December 2016 which are not relevant to these financial statements. Hence, reporting under this clause is not applicable.

For Walker Chandiok & Co LLP Chartered Accountants Firm’s Registration No.: 001076N/N500013 -Sd/- Rohit Arora Partner Membership No.: 504774 Place: Gurugram Date: 9 August 2018

Independent Auditor’s Report of even date to the members of The Federation of Hotel and Restaurant Associations of India, on the financial statements for the year ended 31 March 2018 (Cont’d)

-20-

Independent Auditor’s report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Sec-

tion 143 of the Companies Act, 2013 (“the Act”)

1. In conjunction with our audit of the financial statements of The Federation of Hotel and Restaurant Associa-

tions of India (“the Federation”) as of and for the year ended 31 March 2018, we have audited the internal fi-

nancial controls over financial reporting (“IFCoFR”) of the Federation of as of that date.

Management’s Responsibility for Internal Financial Controls

2. The Federation’s management is responsible for establishing and maintaining internal financial controls based

on the internal control over financial reporting criteria established by the Federation considering the essential

components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Fi-

nancial Reporting (“the Guidance Note”) issued by the Institute of Chartered Accountants of India (“ICAI”).

These responsibilities include the design, implementation and maintenance of adequate internal financial con-

trols that were operating effectively for ensuring the orderly and efficient conduct of the Federation’s business,

including adherence to Federation’s policies, the safeguarding of its assets, the prevention and detection of

frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of relia-

ble financial information, as required under the Act.

Auditors’ Responsibility

3. Our responsibility is to express an opinion on the Federation's IFCoFR based on our audit. We conducted our

audit in accordance with the Standards on Auditing, issued by the ICAI and deemed to be prescribed under

section 143(10) of the Act, to the extent applicable to an audit of IFCoFR, and the Guidance Note issued by

the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan

and perform the audit to obtain reasonable assurance about whether adequate IFCoFR were established and

maintained and if such controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the IFCoFR and

their operating effectiveness. Our audit of IFCoFR included obtaining an understanding of IFCoFR, assessing

the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of

internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, includ-

ing the assessment of the risks of material misstatement of the financial statements, whether due to fraud or

error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our

audit opinion on the Federation’s IFCoFR.

Meaning of Internal Financial Controls over Financial Reporting

6. A company's IFCoFR is a process designed to provide reasonable assurance regarding the reliability of financial

reporting and the preparation of financial statements for external purposes in accordance with generally accept-

ed accounting principles. A company's IFCoFR includes those policies and procedures that (1) pertain to the

maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions

of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to

permit preparation of financial statements in accordance with generally accepted accounting principles, and that

receipts and expenditures of the company are being made only in accordance with authorisations of manage-

Annexure I to the Independent Auditor’s Report of even date to the members of The Federation of Hotel and Restaurant Associations of India, on the financial statements for the year ended 31 March 2018

-21-

ment and members of the company; and (3) provide reasonable assurance regarding prevention or timely detec-

tion of unauthorised acquisition, use, or disposition of the company's assets that could have a material effect on

the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

7. Because of the inherent limitations of IFCoFR, including the possibility of collusion or improper management

override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projec-

tions of any evaluation of the IFCoFR to future periods are subject to the risk that IFCoFR may become inade-

quate because of changes in conditions, or that the degree of compliance with the policies or procedures may

deteriorate.

Opinion

8. In our opinion, the Federation has, in all material respects, adequate internal financial controls over financial

reporting and such internal financial controls over financial reporting were operating effectively as at 31 March

2018, based on the internal control over financial reporting criteria established by the Federation considering

the essential components of internal control stated in the Guidance Note issued by the ICAI.

For Walker Chandiok & Co LLP Chartered Accountants Firm’s Registration No.: 001076N/N500013 -Sd/- Rohit Arora Partner Membership No.: 504774 Place: Gurugram Date: 9 August 2018

Annexure I to the Independent Auditor’s Report of even date to the members of The Federation of Hotel and Restaurant Associations of India, on the financial statements for the year ended 31 March 2018 (cont’d)

-22-

For Walker Chandiok & Co LLP For and on behalf of the Executive Committee of Chartered Accountants The Federation of Hotel and Restaurant Associations of India Firm’s Registration No.: 001076N/N500013 -Sd/- -Sd/- -Sd/- Rohit Arora Garish Oberoi K Syama Raju Partner President Hony. Treasurer Membership No.: 504774 (DIN-01142920) (DIN-00314921) -Sd/-

Surendra Kumar Jaiswal Hony. Secretary (DIN-01886871)

Place: Gurugram Place: New Delhi Date: 9 August 2018 Date: 9 August 2018

The Federation of Hotel and Restaurant Associations of India

Balance sheet as at 31 March 2018

(in INR thousands)

Notes 31 March 2018 31 March 2017

EQUITY AND LIABILITIES

Shareholders' funds

Reserves and surplus 2 183,870 183,232

183,870 183,232

Non-current liabilities

Long-term provisions 3 3,946 5,241

3,946 5,241

Current liabilities

Trade payables

Payable to micro enterprises and small enterprises 21 - -

Other payables 2,216 3,842

Other current liabilities 5 6,192 7,131

Short-term provisions 3 2,068 641

10,476 11,614

Total 198,292 200,087

ASSETS

Non-current assets

Fixed assets

Property, plant and equipment 6 107,555 112,549

Intangible assets 6 429 585

Long-term loans and advances 7 7,344 6,416

Other non-current assets 8 489 18

115,817 119,568

Current assets

Trade receivables 9 4,123 3,940

Cash and bank balances 10 74,977 71,550

Short-term loans and advances 11 1,209 3,304

Other current assets 12 2,166 1,725

82,475 80,519

Total 198,292 200,087

Summary of significant accounting policies and other ex-planatory information.

1-24

This is the Balance Sheet referred to in our report of even date.

-23-





Statement of Income and Expenditure for the year ended 31 March 2018

(in INR thousands)

Notes 31 March 2018 31 March 2017

INCOME

Revenue from operations 13 30,658 30,148

Other income 14 5,951 7,029

36,609 37,177

EXPENDITURE

Employee benefits expense 15 11,560 11,408

Depreciation and amortisation expense 6 7,161 6,119

Other expenses 16 13,336 9,946

32,057 27,473

Surplus before extraordinary items and prior period items 4,552 9,704

Prior period items 17 (4,539) (140)

Extraordinary items 18 - (11,691)

Surplus/ (Deficit) carried over 13 (2,127)

Summary of significant accounting policies and other explanatory information.

1-24

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

-24-


Cash flow statement for the year ended 31 March 2018

(in INR thousands)

31 March 2018 31 March 2017

Cash flows from operating activities

Surplus before tax and prior period items 4,552 9,704

Adjustment for :

Extraordinary items - (11,691)

Prior period items (4,539) (140)

Depreciation and amortisation expense 11,700 6,119

Interest income (5,587) (6,301)

(Profit)/ Loss on sale of fixed assets (12) 342

Liabilities written back (100) (135)

Operating surplus/ (deficit) before working capital changes 6,014 (2,102)

Adjustments for changes in working capital

Changes in trade receivables (183) (3,144)

Changes in loans and advances 2,094 256

Changes in provisions 132 806

Changes in other current liabilities (183) (15,437)

Changes in trade payables (1,626) 2,703

Cash flow from/ (used in) operating activities 6,248 (16,918)

Taxes paid (net of refunds) (970) (355)

Net cash flow from/ (used in) operating activities - (A) 5,278 (17,273)

Cash flows from investing activities

Purchase of fixed assets (7,151) (10,695)

(Investments in)/ Redemption of fixed deposits (with (8,103) 22,197

original maturity of more than three months)

Proceeds from sale of fixed assets - 195

Interest received 5,136 8,633

Net cash flow (used in)/ from investing activities - (B) (10,118) 20,330

Cash flows from financing activities

Net utilisation of legal fund reserve 625 (2,303)

Net cash flow from/ (used in) financing activities - (C) 625 (2,303)

Net (decrease)/ increase in cash and cash equivalents (A+B+C) (4,215) 754

Cash and cash equivalent as at beginning of the period 8,128 7,374

Cash and cash equivalent as at end of the period (refer note 10) 3,913 8,128

Summary of significant accounting policies and other explanatory information.

1-24

This is the Cash Flow Statement referred to in our report of even date.




-25-

1. Significant accounting policies

i) Corporate information

The Federation of Hotel and Restaurant Associations of India (“FHRAI” or “the Federation”) was founded in 1955 with initiative of the four regional associations. These regional associations are the organizations members and the arms of the Federation in the four regions. It also has direct membership of hotels and restaurants who are called individual members, and all other entities associated with the hotel and restaurant Industry in India. These are called Associate Members and include state/ city hotel and restaurant associations, corporate hotel companies, travel agents, tour operators, hospitality education institutions, suppliers to the industry, consultants and others. The Federation was founded for encouraging, promoting and protecting, by lawful means, the interests of hotel and restaurant industry in India, and for raising the standards and reputation of the industry both at home and abroad. It was also enjoined to consider all questions of interest to the hotel and restaurant industry, recommend policies and implement projects to achieve these objectives. The Federation is registered under section 8 of the Companies Act, 2013

ii) Basis of preparation

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

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

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

iii) Use of estimates

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

iv) Fixed assets, depreciation and amortisation

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

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

Lease hold Land is amortised over the period of Lease.

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

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

The Federation of Hotel and Restaurant Associations of India Summary of significant accounting policies and other explanatory information for the year ended 31 March 2018

-26-

v) Revenue recognition

Revenue is recognised to the extent that it can be reliably measured and is probable that the economic benefits will flow to the Federation. Annual subscription and entrance fee from members are recognised as income on accrual basis.

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

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

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

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

vi) Restricted funds

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

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

vii) Employee benefits

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

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

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

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

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


Significant accounting policies (Cont’d)

-27-

viii) Foreign currency transactions

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

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

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

ix) Contingent liabilities and provisions

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

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

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

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

x) Impairment

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

xi) Cash and cash equivalents

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

(This space has been intentionally left blank)


Significant accounting policies (Cont’d)

-28-


Summary of significant accounting policies and other explanatory information for the year ended 31 March 2018

(in INR thousands)

31 March 2018 31 March 2017

2 Reserves and surplus

General reserve

Balance at the beginning of the year 181,592 183,719

Add : Transfer from statement of income and expenditure 13 (2,127)

Balance at the end of the year 181,605 181,592

Surplus in the statement of income and expenditure

Balance at the beginning of the year - -

Add : Transfer from statement of income and expenditure 13 (2,127)

Less : Transfer to general reserve 13 (2,127)

Balance at the end of the year - -

Legal fund reserve

Balance at the beginning of the year 498 2,801

Add : Additions made during the year 8,337 8,349

Less : Utilised during the year (7,712) (10,652)

Balance at the end of the year 1,123 498

Scholarship fund

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

183,870 183,232

31 March 2018 31 March 2017 31 March 2018 31 March 2017

Long-term Short-term

3 Provisions

Provisions for gratuity (Also refer note 4 below)

2,742 3,761 1,670 416

Provisions for compensated absenc-es (Also refer note 4 below)

1,204 1,480 398 225

3,946 5,241 2,068 641

4 Employee benefits

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

Discount rate 7.50% 7.00%

Long-term rate of compensation increase 8% 10%

Withdrawal rate 8% 10%

Mortality rate Indian Assured

Lives Indian Assured

Lives

Mortality (2006-08) Ultimate

Mortality (2006-08) Ultimate

-29-

(in INR thousands)

31 March 2018

31 March 2017

5 Other current liabilities

Payable to students

363 363

Statutory dues

950 993

Employee related payables

1,617 654

Capital creditors

- 656

Amount payable to South India Hotels and Restaurants Association 2,620 -

Amount payable to Hotel and Restaurant Association of Western India

- 3,750

Advances received on account of:

-Membership subscription 642 312

-Advertisement - 385

Other payables

- 18

6,192 7,131




The Federation assesses these assumptions with the projected long-term plans of growth and prevalent industry standards. The estimates of future salary increases, considered in actuarial valuation, take into account inflation, promotion and other relevant factors, such as supply and demand in the employment market. The discount rate has been chosen by reference to market yields on government bonds as at the date of the valuation. The Federation makes contribution to statutory provident fund in accordance with The Employees Provident Fund and Miscellaneous Provision Act, 1952. This is in the nature of defined contribution plan. Contribution made by the Federation during the year ended 31 March 2018 is INR 305 thousand (previous year INR 325 thou-sand).

-30-

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-31-



(in INR thousands)

31 March 2018 31 March 2017

7 Long-term loans and advances

(Unsecured, considered good)

Security deposits 1,974 1,973

Capital advance - 43

Tax deducted at source receivable 5,370 4,400

7,344 6,416

8 Other non-current assets

Fixed deposits with maturity of more than 12 months (Refer note 10) 476 15

Interest accrued but not due 13 3

489 18

9 Trade receivables

Outstanding for a period exceeding six months

from the date they are due for payment

Unsecured, considered good 3,804 725

Doubtful 43 1,362

3,847 2,087

Less : Allowances for bad and doubtful debts (43) (1,362)

3,804 725

Other debts

Unsecured, considered good 319 3,215

4,123 3,940

10 Cash and bank balances

Cash and cash equivalents

Cash on hand 31 27

Balances with banks

- in saving accounts 3,882 8,101

Other bank balances

Fixed deposits with maturity more than 3 months but 71,064 63,422

less than 12 months*

Fixed deposits with maturity of more than 12 months** 476 15

75,453 71,565

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

476 15

74,977 71,550

* The deposits amounting to 15 thousand are restricted as they are under lien/pledged.

**The deposits amounting to 476 thousand are restricted as they are under lien/pledged.

-32-



(in INR thousands)

31 March 2018 31 March 2017

11 Short-term loans and advances

(Unsecured, considered good)

Amount recoverable in cash or kind 22 493

Prepaid expenses 97 82

Balances recoverable from government authorities 1,007 2,649

Staff advances 81 75

Employee imprest 2 5

1,209 3,304

12 Other current assets

Interest accrued but not due 2,166 1,725

2,166 1,725

13 Revenue from operations

Sale of services

Annual subscription from members 25,271 25,217

Entrance fee 202 1,475

25,473 26,692

Other operating income

Subscription of publication 161 7

Royalty 1,200 2,200

Convention and seminars 2,620 1,249

Advertisement income 1,204 -

5,185 3,456

30,658 30,148

14 Other income

Interest income

- on fixed deposits 5,268 5,649

- on income tax refund - 126

- on others 319 526

Subscription 154 342

Profit on sale of fixed assets 12 -

Liabilities written back 100 135

Miscellaneous 98 251

5,951 7,029

-33-



(in INR thousands)

31 March 2018 31 March 2017

15 Employee benefits expense

Salaries, wages and bonus 10,812 9,994

Contribution to gratuity (Refer note 4) 236 592

Contribution to compensated absences (Refer note 4) 50 394

Contribution to provident and other defined contribution funds 338 343

Staff welfare expenses 49 85

Staff recruitment expenses 75 -

11,560 11,408

16 Other expenses

Repairs

- Buildings 320 270

- Plant and equipment 156 229

Power and fuel 1,118 1,222

Insurance 104 76

Rates and taxes 259 253

Payment to auditors (Refer note 16.1) 192 196

Communication, postage and courier 1,127 1,083

Travel and conveyance 1,104 593

Printing and stationery 2,085 1,540

Legal and professional 1,077 468

Security, housekeeping and gardening 1,976 1,775

Advertisements 982 -

Membership subscription 477 478

Public relation, meetings and conferences 2,009 1,087

Loss on sale of fixed assets - 342

Bank charges 279 76

Miscellaneous 71 258

13,336 9,946

16.1 Payment to auditors:-

Audit fee 180 180

Out of pocket expenses 12 16

192 196

-34-



(in INR thousands)

31 March 2018 31 March 2017

17 Prior period expense

Employee benefits expense (refer note (a) below) - 140

Amortisation expense ( refer note (b) below) 4,539 -

4,539 140

Note:

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

b) Amount pertains to amortisation of leasehold land till the year ended 31 March 2017.

18 Extraordinary items

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

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

- 11,691

a) With effect from 1 March 2013, the Federation had entered into an agreement with ITM-Edutech (India) Limited (operator/conductor) for operating the FHRAI Institute of Hospitality and Management (‘the Institute’) for a period of fifteen years for offering required and desirable courses, training leading to award of degree, diploma and certificate. All the operations of the Institute are conducted, managed and operated by the operator/conductor. Further, Federation would be eligible to receive a proportionate amount of the revenue proceeds from ITM-Edutech (India) Limited every year. As outstanding from operator were not being paid, the Federation had encashed a bank guarantee given by operator amounting to INR 21,000 thousand on account of recoverability of royalty amount and other miscellaneous expenses.

Consequently, the agreement had been terminated with the mutual agreement and consent of the Federation and ITM-Edutech (India) Limited. The agreement came into force with effect from 22 June 2016 and the Federation had returned a sum of INR 21,080 thousand on 22 June 2016 after adjustment of revenues and expenditures receivable from ITM-Edutech (India) Limited up to 10 May 2016, the final date of settlement. The Federation had paid a sum of INR 3,500 thousand as a settlement cost to ITM-Edutech (India) Limited in addition to returning the balance amount of bank guarantee encashed by the Federation during a previous financial year.

During the current year, Federation has initiated the process of identification of the new operator to run the operations of the institute and accordingly management believes that no adjustment should be recorded in the carry-ing value of the assets related to the institute.

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

-35-

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

20. Contingent liability and commitments

Contingent liabilities not provided for in respect of:

i) Service tax

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

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

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

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

The Federation has received an order setting aside the aforesaid impugned order and allowed the appeal. The Department has taken up such issues of other parties before the Hon’ble Supreme Court and matter is still pending.

The matter came for hearing on 4 September 2017 in the Hon’ble Supreme Court and the appeal has been tagged with the Civil Appeal No.7497/2012 of Ranchi Club Limited, filed by the Commissioner of Service Tax, Delhi for similar matters and the matter is still pending for hearing. The Federation has not provided any liability in the books as the matter is sub-judice and believes no liability would devolve upon the Federation.

ii) Employee disputes

An employee working with the Federation since 19 April 1996, was terminated from his service on 28 November 2017 and in the absence of mutual consent on statutory dues, the employee has filed a complaint against the Federation before the Assistant Labour Commissioner for claiming his statutory dues, allowances and retrenchment compensation amounting to INR 1,787 thousand. The Federation has worked a sum of INR 1,204 thousand towards the same which has been provided in the books of accounts. The matter is still pending for hearing and the management believes no further liability would devolve upon the Federation.

The Federation of Hotel and Restaurant Associations of India Summary of significant accounting policies and other explanatory information Statements for the year ended 31 March 2018

(INR. in thousands)

31 March 2018 31 March 2017

i) Service tax [refer note (i)] 20,970 Nil

(INR. in thousands)

31 March 2018 31 March 2017

ii) Employee disputes [refer note (ii)] 583 Nil

-36-

21. Disclosure under Micro, small and medium enterprises development Act, 2006

Based on the information available with the Federation there are no dues outstanding to Micro, Small, and Medium Enterprises as at 31 March 2018 under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006). Further, no interest during the year has been paid or was payable under the terms of the MSMED Act, 2006.

22. 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:


Summary of significant accounting policies and other explanatory information Statements for the year ended 31 March 2018

S.No. Relationship Names

1 Key Management Personnel • Mr. Vivek Krishnan Nair

(KMP) • Mr. Vijay Dewan

• Mr. Rajender Kumar

• Mr. Nirav Vinod Gandhi

• Mr. Lakshyaraj Singh Mewar

• Mr. Purushothaman Mooliyil Payyan

• Mr. Konath Parameswaran Kannampilly

• Mr. Kosur Shyamaraju

• Mr. Sherry Khubchand Bhatia

• Mr. Sanjay Sood

• Mr. Nataraajan Thiagarajan

• Mr. Gurbaxishsingh Kulwantsingh Kohli

• Mr. Bharat Harkishan Malkani

• Mr. Kadandale Murali Rao

• Mr. Sudesh Kumar Poddar

• Mr. Kupparaju Nagaraju

• Mr. Ashoke Singh

• Mr. Dilip Chandiram Datwani

• Mr. Garish Oberoi

• Mr. Tejinder Singh Walia

• Mr. Surendra Kumar Jaiswal

• Mr. Pranav Singh

• Mr. Venkata Satya Somaraju Dandu

• Mr. Souvagya Kumar Mohapatra

• Mr. Amarvir Singh

• Ms. Deepika Arora

-37-




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

· Hotel Leela Ventures Limited

· Apeejay Surendra Park Hotels Limited

· Hotel Jayshree

· Datwani Hotels Private Limited

· GRT Temple Bay

· The Pride Hotel

b) Summary of transactions with the related parties

(INR in thousands)

31 March 18 31 March 17

Hotel room rent, meeting and convention expenses

GRT Temple Bay - 85

The Pride Hotel - 194

Mr. Sanjay Sood 16 5

Mr. K. Syama Raju 1,100 1,100

Mr. Garish Oberoi 61 -

Hotel Leela Ventures Limited 6 -

Apeejay Surendra Park Hotels Limited 4 -

Hotel Jayshree 15 -

Datwani Hotels Pvt. Limited 19 -

Total 1,221 1,384

-38-


c) Membership Subscription

(Amount in INR)

S No. Name of related party Name of Hotel City 31 March 2018 31 March 2017

1 Mr. K. Syama Raju Hotel Maurya Bengaluru 14,538 14,308

2 Mr. T. S. Walia Hotel Walson Kolkata 8,096 8,212

3 Mr. Bharat Malkani Hotel Transit Pvt. Ltd. Mumbai 11,259 11,371

4 Mr. Bharat Malkani T24 Residency Mumbai 11,347 -

5 Mr. Vivek Nair The Leela Ambience Gurgaon Gurgaon 21,505 21,719

6 Mr. Vivek Nair The Leela Goa Salcette 21,505 21,813

7 Mr. Vivek Nair The Leela Raviz Kovalam Thiruvanantha-puram

22,066 21,719

8 Mr. Vivek Nair The Leela Mumbai Mumbai 21,598 21,812

9 Mr. Vivek Nair The Leela Palace New Delhi New Delhi 21,604 22,182

10 Mr. Vivek Nair The Leela Palace, Bangalore Bengaluru 21,598 21,812

11 Mr. Vivek Nair The Leela Palace, Udaipur Udaipur 11,259 11,371

12 Mr. Sudesh Kumar Poddar Manthan Restaurant Kolkata 8,342 8,212

13 Mr. Sudesh Kumar Poddar Hotel Natraj Dibrugarh 11,552 11,420

14 Mr. Garish Oberoi Hotel Uberoi Anand Bareilly 14,538 14,370

15 Mr. Garish Oberoi Uberoi Anand & Associate Bareilly 8,307 8,212

16 Mr. Garish Oberoi Amber Restaurant Bareilly 8,307 8,212

17 Mr. K. Murali Rao New Woodlands Hotel Pvt. Ltd.

Chennai 21,505 21,719

18 Mr. Pranav Singh Opium Restaurant Cum Bar Kolkata 9,488 9,581

19 Mr. Ashoke Singh A.V. Hotel Kolkata 11,259 11,259

20 Mr. Ashoke Singh Ashoka Hotel Kolkata 8,096 8,096

21 Mr. Nirav Gandhi Hotel Express Towers Vadodara 11,259 11,371

22 Mr. Nirav Gandhi Hotel Express Residency Vadodara 11,259 11,371

23 Mr. Nirav Gandhi Hotel Express Residency Jamnagar 14,168 14,308

24 Mr. M.P. Purushothaman Hilton - Chennai Chennai 21,505 21,505

25 Mr. M.P. Purushothaman Hotel Victoria Chennai 11,259 11,420

26 Mr. T Nataraajan GRT Grand Chennai 14,230 14,370

27 Mr. T Nataraajan GRT Nature Trails Sky Rocca Yercaud 11,308 11,420

28 Mr. T Nataraajan GRT Regency Madurai 11,308 11,420

29 Mr. T Nataraajan GRT Regency Kanchipuram Dist.

8,131 8,212

30 Mr. T Nataraajan GRT Regency Sameera Vellore 11,601 11,420

31 Mr. T Nataraajan GRT Regency Tiruttani Tiruttani 8,131 8,212

32 Mr. T Nataraajan GRT Regency Tuticorin Tuticorin 11,308 11,420

33 Mr. T Nataraajan Radisson Blu Hotel GRT Chennai

Chennai 14,230 14,370

34 Mr. K. Nagaraju Radisson Blu Atria Bengaluru 22,066 21,812

35 Mr. Rajindera Kumar Vivanta By Taj Ambassador New Delhi 14,168 14,308

-39-


c) Membership Subscription (Cont.’d)

(Amount in INR)

S No. Name of related party Name of Hotel City 31 March 2018 31 March 2017

36 Mr. Rajindera Kumar Larrys China Restaurant Delhi 8,096 8,177

37 Mr. Surendra Jaiswal Hotel Deep Lucknow 11,259 11,420

38 Mr. Surendra Jaiswal Hotel Deep Avadh Lucknow 14,168 14,308

39 Mr. Surendra Jaiswal Hotel Deep Palace Lucknow 11,259 11,420

40 Mr. Param Kannampilly The Fern Residency Mumbai 11,552 -

41 Mr. Souvagya Mohapatra Mayfair Hideaway Spa Resort Goa 8,096 8,212

42 Mr. Souvagya Mohapatra Mayfair Lagoon Bhubaneswar 14,168 14,370

43 Mr. Souvagya Mohapatra Mayfair Spa Resort & Casino Gangtok 11,259 11,420

44 Mr. Vijay Diwan The Park Kolkata 14,230 14,370

45 Mr. Vijay Diwan The Park New Delhi 22,159 21,812

46 Mr. Vijay Diwan The Park Visakhapatnam 11,601 11,259

47 Mr. Dilip C Datwani Hotel Jayshree Mumbai 8,131 8,212

48 Mr. Gurbaxish Singh Kohli Hotel Midtown Pritam Mumbai 11,259 11,420

49 Mr. Gurbaxish Singh Kohli Pritam Hotel & Restaurant Mumbai 9,488 9,623

50 Mr. Sanjay Sood The Devicos Restaurant Shimla 9,530 9,623

51 Mr. Sanjay Sood Hotel Marc Shimla 8,096 8,212

52 Mr. D.V.S. Soma Raju Katriya Hotel And Towers Hyderabad 22,066 21,812

53 Mr. Anil Chadha ITC Grand Chola - A Luxury Collection Hotel

Chennai 22,066 21,505

54 Mr. Amarvir Singh Hotel Natraj Ludhiana 8,307 -

55 Maharaj Kumar Lakshyaraj Singh Mewar

Fateh Prakash Palace Udaipur 12,744 -


Shiv Niwas Palace Udaipur 9,086 -


Garden Hotel Udaipur 9,086 -


Shikarbadi Hotel Udaipur 9,086 -


Karni Bhawan Palace Bikaner 8,096 -


Gajner Palace Hotel Bikaner 11,259 -


Fateh Bagh Ranakpur 8,096 -


Gorbandh Palace Jaisalmer 14,168 -


The Aodhi Hotel Kelwara 14,168 -

64 Mr. Sherry Bhatia Hotel Golden Swan Mumbai 8,096 -

65 Ms. Deepika Arora Ramada Gurgaon Central Gurugram 14,538 -

Membership subscription fee received from related parties has been shown in the concerned year only.

-40-

23. In the convention held during the current year, certain events were sponsored. The invoices for the event have been directly issued to sponsors by the vendor for the sponsored event and the payments have also been made directly to the vendor by the sponsors. There was no transaction between the vendor and the Federation for sponsorship events, thus the same has not been recorded in the financial statements.

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






52ND FHRAI ANNUAL CONVENTION HELD IN BENGALURU, KARNATAKA

The 52nd FHRAI Annual Convention was held in Bangalore from 14th -16th September, 2017. The Convention was inaugurated by Gurudev Sri Sri Ravi Shankar, Founder, Art of Living Foundation along with Shri. Ananth Kumar, Hon’ble Union Minister for Parliamentary Affairs, Chemicals and Fertilizers, Shri. R.V. Deshpande, Hon’ble Minister for Large and Medium Industries, Government of Karnataka, Shri. Ashok Chandra Panda, Hon’ble Minister for Tourism, Government of Odisha.

The 16th FHRAI Awards were presented by Shri. Sanjeev Kapoor, Celebrity Chef and Shri. K. Syama Raju, President FHRAI at the closing ceremony of the 52nd FHRAI Annual Convention in Bangalore.

PRESS CONFERENCE OF FHRAI

FHRAI held a press conference on 14th April, 2017 at Hotel Lalit, New Delhi for seeking a legal course of action against the order of the Supreme Court to ban liquor in Hotel and Restaurants within 500 metres of National and State Highways

Executive Committee Meetings of

FHRAI in 2017-2018

EC meeting of FHRAI held in Hyderabad on 21st November,2017

EC meeting of FHRAI held in Amritsar on 09th May,2017

EC Meeting of FHRAI held in Mumbai on 20th March,2018

FHRAI PRESIDENT, MR. GARISH OBEROI AND HONY. SECRETARY FHRAI MR. S. K. JAISWAL INVITING SHRI K.J. ALPHONS, HON'BLE MINISTER OF STATE FOR

TOURISM, GOVERNMENT OF INDIA FOR UPCOMING FHRAI CONVENTION 2018 AT LUCKNOW.

FHRAI PRESIDENT, MR. GARISH OBEROI AND HONY. SECRETARY FHRAI MR. S. K. JAISWAL INVITING

HON'BLE CHIEF MINISTER UTTAR PRADESH SRI. YOGI ADITYA NATH JI FOR UPCOMING

FHRAI CONVENTION 2018 AT LUCKNOW.

President FHRAI Mr. Garish Oberoi and Hony. Secretary, FHRAI Mr. S. K. Jaiswal with Hon'ble Deputy Chief Minister

Shri. Dinesh Sharma, Shri. Keshav Prasad Mourya, Hon'ble Tourism Minister Smt. Reeta Bahuguna Joshi Govt. of Uttar Pradesh, Principal

Secretary/DG Tourism Shri. Awanish Kumar Awasthi and Special Secretary Tourism Shri. Akhand Pratap Singh during inauguration of FHRAI Guide 2018 at Investors Summit Tourism Session at Indira

Gandhi Pratisthan, Lucknow.

INVITATION FOR 53RD ANNUAL

CONVENTION TO BE HELD IN LUCKNOW

FROM 20th -22nd SEPTEMBER,2018

INAGURATION OF FHRAI GUIDE 2018

The Federation of Hotel & Restaurant Associations of India · Secretary to act as the Scrutinizer,...

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