1.  (i) Basis of Accounting
 
 The financial statements have been prepared to comply in all material
 respects with the Accounting Standards notified by Companies Accounting
 Standards Rules, 2006 under the relevant provisions of the Companies
 Act, 1956. The financial statements have been prepared under the
 historical cost convention on an accrual basis. The accounting policies
 have been consistently applied by the Company and are consistent with
 those used in the previous period.
 
 (ii) Use of Estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumptions that affect the reported amounts of assets and
 liabilities and disclosure of contingent liabilities as at the date of
 the financial statements and the results of operations during the
 reporting period. Although these estimates are based upon management’s
 best knowledge of current events and actions, actual results could
 differ from the estimates.
 
 (iii) Revenue Recognition
 
 Revenue is recognized to the extent that it is probable that the
 economic benefits will flow to the Company and the revenue can be
 reliably measured.
 
 (a) Revenue from rendering of hospitality services is recognized when
 the related services are performed and billed to the customer.
 
 (b) Interest income is recognized on time proportion basis taking into
 account the amount outstanding and the rate applicable.
 
 (c) Dividend income from investments is recognized when the Company’s
 right to receive payment is established.
 
 (d) Income from generation of electricity is recognized when the actual
 generated units are transferred and billed to the buyer.
 
 (e) Income from hiring of vehicles is recognized on accrual basis on
 the basis of agreed rate.
 
 (iv) Income in Foreign Exchange
 
 The bills for services rendered are raised in Indian Rupees. The
 payment received in foreign currency against these bills, is credited
 and accounted for at the rate / rates prevalent on the date of receipt
 of payment. The gains / losses arising out of fluctuation in the
 exchange rates are accounted for on realization.
 
 (v) Interest on Income Tax Refunds / Demands
 
 It is accounted for as income in the period/year when granted and as
 tax expense when determined by the Department.
 
 (vi) Borrowing Cost
 
 Borrowing costs attributable to the acquisition or construction of a
 qualifying asset are capitalised as part of the cost of the asset.
 Other borrowing costs are recognised as an expense in the period in
 which they are incurred.
 
 (vii) Claims Recoverable
 
 Claims recoverable are accrued only to the extent as admitted by the
 parties
 
 (viii) Expenses remittable in foreign exchange
 
 These are charged based on invoices (including for earlier years) as
 approved and accepted by the appropriate authorities as applicable.
 
 2.  (i) Foreign Exchange Transaction
 
 Transactions in foreign currency are recorded at the exchange rates
 prevailing at the time of the transaction, while those remaining
 unsettled at the period/year end are translated at the period/year end
 rates resulting in exchange differences being recognized as income
 /expense (net), except exchange difference related to foreign currency
 loan taken for projects.
 
 (ii) Foreign Currency Balances
 
 Foreign Currency balances at the period/year end have been converted at
 the period/year end rate of exchange except those covered by forward
 cover contracts in respect of foreign currency loans, which are
 converted at the contracted forward rates.
 
 3.  Employee Benefits
 
 (i) Provision for gratuity and leave encashment are based on actuarial
 valuation as on the date of the Balance Sheet.
 
 (ii) All employees are covered under contributory provident fund
 benefit of a contribution of 12% of salary. It is a defined
 contribution scheme and the contribution is charged to Profit and Loss
 Account of the period/year when the contributions to the respective
 funds are due. There are no obligations other than the contributions
 payable to the respective fund.
 
 4.  Taxation
 
 (i) Tax expense comprises of current and deferred tax. Current income
 tax is measured at the amount expected to be paid to the tax
 authorities in accordance with the Indian Income Tax Act, 1961.
 Deferred income taxes refects the impact of current period/ year timing
 differences between taxable income and accounting income for the
 period/year and reversal of timing differences of earlier years.
 
 (ii) Deferred Tax is provided during the period/year, using the
 liability method on all temporary differences at the Balance Sheet date
 between the tax bases of assets and liabilities and their carrying
 amounts for financial reporting purposes in accordance with Accounting
 Standard 22 (AS-22).
 
 (iii) Deferred Tax asset is recognized only to the extent that there is
 a reasonable certainty that sufficient taxable profit will be available
 against which such deferred tax asset can be realized.
 
 (iv) Deferred Tax asset and liability are measured at the tax rates
 that are expected to apply to the period when the asset is realized or
 the liability is settled, based on tax rates (and tax laws) that have
 been enacted or substantially enacted at the Balance Sheet date.
 
 5.  Fixed Assets and Depreciation
 
 (a) Fixed Assets
 
 Fixed assets are stated at cost of acquisition or construction or at
 revalued amounts, net of impairment loss if any, less depreciation/
 amortisation. Cost represents the direct expenses incurred on
 acquisition /construction of the assets and the relative share of
 indirect expenses relating to construction allocated in proportion to
 the direct costs involved.
 
 (b) Depreciation
 
 (i) Depreciation as per straight line method has been charged in the
 accounts based on circular no 1/86 of the Department of Company
 Affairs;
 
 (ii) On the assets acquired on or after 2.4.87 at the rates as
 prescribed under Schedule XIV of the Companies Act, 1956 pro rata from
 the month of purchase. If purchased before or on 15th of the month,
 depreciation is charged from the month of purchase, otherwise
 depreciation is charged from the month following the month of purchase.
 
 (iii) On the assets prior to 2.4.87 at the rates computed in the
 respective years of acquisition of those assets on the basis of rates
 specified by the Income Tax Act, 1961 and the rules made there under in
 terms of Section 205(2) (b) of the Companies Act, 1956 without making
 any adjustment in respect of excess depreciation provided for in the
 earlier years amounting to Rs.244.16 Lakhs.
 
 (iv) Depreciation on leasehold improvements is being charged equally
 over the period of the lease.
 
 (v) Depreciation on the increased amount of assets due to revaluation
 is computed on the basis of residual life of the assets as estimated by
 the valuer on straight line method and charged to Revaluation Reserve
 Account.
 
 (vi) No depreciation is charged on the assets sold/ discarded during
 the period/year.
 
 (c) Capital Work in Progress
 
 Capital work in progress represents expenditure directly relating to
 construction activity to be capitalized. All indirect expenditure
 including interest incurred during construction period to be
 capitalized as part of the indirect construction cost to the extent to
 which the expenditure is indirectly related to construction or is
 incidental thereto
 
 6.  Investments
 
 Investments that are readily realisable and intended to be held for not
 more than a year are classified as current investments or short term
 investments. All other investments are classified as long-term
 investments. Current investments are valued at the lower of cost and
 fair value. Changes in the carrying amount of current investments are
 recognised in the Profit and Loss Account. Long-term investments are
 valued at cost, less any provision for diminution, other than
 temporary, in the value of such investments; decline, if any, is
 charged to the Profit and Loss Account. Cost comprises cost of
 acquisition and related expenses such as brokerage and stamp duties.
 
 7.  Inventory
 
 (i) Inventory is valued at cost or net realizable value whichever is
 lower. The Cost is being determined by weighted average method.
 
 (ii) Operating equipment in circulation is valued at weighted average
 cost less estimated diminution in value on account of usage.
 
 8.  Impairment of Assets
 
 The carrying amounts of assets are reviewed at each balance sheet date
 if there is any indication of impairment based on internal/ external
 factors. An impairment loss is recognized wherever the carrying amount
 of an asset exceeds its recoverable amount. The recoverable amount is
 the greater of the asset’s net selling price and value in use. In
 assessing value in use, the Company measures its ‘value in use’ on the
 basis of undiscounted cash flows of next five years projections
 estimated based on current prices.
 
 9.  Earnings per share
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the period attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the period/year.
 
 For the purposes of calculating diluted earning per share, the net
 profits or loss attributable to equity shareholders and the weighted
 average number of shares outstanding are adjusted for the effects of
 all dilutive potential equity shares, if any.
 
 10.  Provisions
 
 A provision is recognized when an enterprise has a present obligation
 as a result of past event and it is probable that an outflow of
 resources will be required to settle the obligation, in respect of
 which a reliable estimate can be made. Provisions are not discounted to
 its present value and are determined based on best estimate required to
 settle the obligation at the balance sheet date. These are reviewed at
 each balance sheet date and adjusted to refect the current best
 estimates.
 
 11.  Cash and Cash Equivalents
 
 Cash and cash equivalents in the cash flow comprise of cash at bank and
 cash /cheques in hand and short term deposits with banks less short
 term advances from banks.
 
 12.  Dividend
 
 Proposed Dividend on equity shares is accounted for pending approval at
 the Annual General Meeting.