1.1 Basis of accounting and preperation of financial statements
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
the Companies (Accounting Standards) Rules 2006 (as amended) and the
relevant provision of the Companies Act 1956.
1.2 Use of estimates
The preparation of the financial statements is conformity with Indian
GAAP requires the management to make estimates and assumption
considered in the reported amount of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The management belives that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could oifter due to these estimates and the differences between the
actual and the estimates are recognized in the periods in which the
results are known / materialize.
Inventories of stores, beverages & eatables are valued at cost. Cost is
arrived at by following Weighted Average method of accounting.
1.4 Cash and Cash equivalents (for purpose of Cash Flow Statement)
Cash comprises Cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of change in Value.
1.5 Cash fiow statement
Cash flows are reported using the indirect method, whereby profit /
(Loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
1.6 Depreciation and amortization
Depreciation on Fixed assets is provided on the Written down Value
Method (W.D.V.), at the rates specified in Schedule XIV to the
Companies Act, 1956, as amended up to the date of Balance Sheet.
Depreciation on Fixed Assets, for which no rates have been specified in
Schedule XIV to the Companies Act, 1956, is provided on the Written
down Value Method at the rates at which the assets are depreciated over
its estimated useful life.
Depreciation is Provided on pro-rata basis from the month in which
assets have been put to use and up to the date on which assets have
been disposed, discarded or sold.
1.7 Revenue recognition
Sale/ Income from.Operations. .
Parks Income is accounted on accrual basis i.e date of visit of park is
the date of reckoning the income however in the case of the Membership
for a specified period, the income has been treated as accrued
proportionateley on the basis of span nf period of membership. Also in
the case of life membership deposits, the income is recognized by
spreading deposit over a period of ten years.
Income from the services
Revenue / Income and Cost I Expenditure a*e generally accounted on
accrual basis as they are earned or incurred except employee''s
retremen: benefits. are accounted as and when actually paid.
1.8 Tangible fixed assets
Fixed Assets are stated at cost of acquisition less accumulated
depreciation. Cost includes pre-Operation expenses net of revenue The
Fixed Assets which are not yet completed are treated as Capital Work
-in- Progress and no depreciation >s provided for the same,
The assets having average life of aoout two yeas such as, Restaurant
Crockery etc. are being clubbed under Miscellaneous Assets and have
been written off after a period of two years.
1.9 Amortization of Miscellaneous Expenses
The preliminary expenses and issue expenses are amortized during the
previous year. Expenses towards intensive advertisement campaign as
well as sales promotion and foreign traveling, the benefit of which are
expected to accrue over a numbe: of years are treated deferred revenue
expenditure. Appropriate amounts are being written off every year.
Advertisement & Other traveling & office expeprfes relating to the
Periodic Membership Schemes whose income have been treated as accrued
on proportionate basis are treated as deferred revenue expenditure and
appropriate amounts are written off every year, over the period of such
1.10 Taxes on.Income
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the income
Minimum Alternate lax (MAT) paiu m accordance witn me tax laws, which
gives future economics benefits in the form of adjustment io future
income tax liability, is considered as an asset if there is convincing
evidence that the Company will pay norma! income tax Accordingly, MAT
is recognized as an asset in the Balance Sheet when it is probaoie that
f.iu. e economic benefit associated with it will flow to the Company.
Deferred tax is recognized on timing differences being the differences
between the taxable income and the accounting income that originate in
one penod and are capable of reversal in one or more subsequent
periods. Deferred tax is measured jsmg use tax rates and the tax iaws
enacted or substantially enacted as at the reporting date. Deferred tax
is liabilities are recognized for all timing differences. Deferred tax
assets in respect of unabsorbed depreciation and carry forward of
losses are recognized only if there is virtual certainty that there
will be sufficient future taxable income available to realise such
assets. Deferred tax assets are recognized for timing differences of
other items only to the extent that reasonable certainty exists that
sufficient future taxable income will be available against which these
can be realised. Deferred tax assets and liabilities are offset if such
items relate to taxes on income levied by the same governing tax iaws
and the Company has a legally enforceable right for such set off.
Deferred tax assets are reviewed at each Balance Sheet date for their
1.11 Other Disclosure
a Figures of Previous year have been regrouped I recast wherever
necessary to make them comparable with the figures of the Current year.
b The company has not provided for the gratuity liability as well as
employees'' other retirement benefits though it should have provided for
the same in line with the accounting standard made mandatory.
c Since the company is following cash method of accounting in this
respect, the liability in respect of gratuity is not being worked out
d No provision has been made for penalty and interest which may levied
upon the Company for non deduction I short deduction of TDS and delay /
default in remitting money to various authorities because the amount is
not ascertainable as on the date of Balance Sheet. The same shall be
accounted for as and when levied by such authorities.
f Balance due to or due from parties/ banks from whom confirmations are
not received, are subject to adjustment on receipt of necessary