a) Basis for preparation of accounts
These financial statements have been prepared and presented under the
historical cost convention on an accrual basis of accounting and comply
with the Accounting Standards as specified in the Companies (Accounting
Standards) Rules, 2006, other pronouncements of the Institute of
Chartered Accountants of India, the relevant provisions of the
Companies Act, 1956 and guidelines issued by the Securities and
Exchange Board of India, to the extent applicable.
b) Use of Estimates
The preparation of financial statement requires the management of the
Company to make estimates and assumptions that affect the reported
balances of assets and liabilities and disclosures relating to the
contingent liabilities as at the date of the financial statements and
the reported amount of income and expenses during the year. Examples of
such estimates include provisions for doubtful debts, employee
benefits, provision for income taxes, useful life of depreciable fixed
assets and provision for impairment.
c) Fixed Assets
i) Fixed assets are recorded at cost of acquisition and stated at
ii) Expenditure incurred on projects during implementation including
cost of borrowing is capitalized and shown as capital work-in-progress
and is apportioned to various assets on commissioning/completion of the
same. Capital work- in-progress includes capital advances also.
Depreciation on fixed assets is provided on straight line method in
accordance with Section 20S(2)(b) of the Companies Act, 1956 at the
rates which are not lower than the rates specified in Schedule XIV to
the Companies Act, 1956. Depreciation on additions/deletions during the
year has been provided for on pro-rata basis. Assets
purchased/installed during the year costing less than Rs. 5,000/-each
are fully depreciated.
Investments are stated at cost of acquisition. Provision is made,
where, there is a permanent fall in the value of investment.
Investments, unless stated otherwise, are long term investments
0 Revenue recognition
Revenue is recognized when there is reasonable certainty of its
ultimate realization/ collection. Dividend income is accounted for when
the right to receive the same is established.
g) Share Issue Expenses
Share issue expenses including advertisement, printing & stationery and
communication expenses are written off against securities premium
h) Foreign Currency Transactions
Foreign currency transactions are recorded at the exchange rates
prevailing on the date of the transaction.
Monetary foreign currency assets and liabilities (monetary items) are
reported at the exchange rate prevailing on the balance sheet date and
the resultant net gains or losses are recognized as incomes or expenses
in the year in which they arise.
Stock of food & beverages, wine and liquor, store and operating
supplies have been valued at cost on first-in-first-out basis or net
realizable value whichever is less.
j) Impairment of assets
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. The recoverable amount of an asset which is
identified as impaired is estimated and impairment loss is recognized.
A provision is recognized when an enterprise has a present obi igation
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 management estimate
required to settle the obligation at the balance sheet date. These are
reviewed at each balance sheet date and adjusted to reflect the current
The provision for taxation is ascertained on the basis of assessable
profits computed in accordance with the provisions of the Income Tax
Act, 1961. Deferred tax is recognized, subject to the consideration of
prudence, on timing differences, being the difference between taxable
income and accounting income that originate in one period and are
capable of reversal in one or more subsequent periods.
m) Earning per Share
Basic earning per share is calculated by dividing the net profit or
loss for the year attributable to equity shareholders (after deducting
preference dividends and attributable taxes) by the weighted average
number of equity shares outstanding during the year.
For the purpose of calculating diluted earrings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares. The
dilutive potential equity shares are deemed converted as of the
beginning of the period, unless they have been issued at a later date.
n) Employee Retirement benefits
Short term employee benefits
All employee benefits payable/available within twelve months of
rendering the service are classified as short-term employee benefits.
Benefits such as salaries, wages and bonus etc., are recognized in the
profit and loss account in the period in which the employee renders the
Defined benefit plans
Defined benefit plans of the company consists of gratuity and provident
The company has an obligation towards gratuity, a defined benefit
retirement plan covering eligible employees. The plan provides for a
lump sum payment to vested employees at retirement, death while in
employment or on termination of employment of an amount based on the
respective employee''s salary and the tenure of employment. Vesting
occurs upon completion of five years of service.
The company makes specified monthly contribution towards the employees''
provident fund for eligible employees.
The liability in respect of defined benefit plans, other than provident
fund, is accrued in the books of account on the basis of actuarial
valuation carried out by an independent actuary. The contribution made
to the provident fund are charged to profit and loss account as and
when these become payable.
Defined contribution plans
- Leaves Encashment
As per the company''s policy, eligible leaves can be accumulated by the
employees and carried forward to future periods either to be utilized
during the service, or encashed. Encashment can be made during service,
on early retirement, on withdrawal of scheme, at resignation and upon
death of the employee. The value of benefits is determined based on the
seniority and the employee''s salary.
The company accounts for the liability for leave encashment payable in
future on the basis of actuarial valuation carried out by an