General:
 
 The financial statements of Country Club (India) Limited have been
 prepared and presented in accordance with Indian Generally Accepted
 Accounting Principles (GAAP) under the historical cost convention on
 the accrual basis. GAAP comprises accounting standards notified by the
 Central Government of India under Section 211 (3C) of the Companies
 Act, 1956, other pronouncements of Institute of Chartered Accountants
 of India, the provisions of Companies Act, 1956 and guidelines issued
 by Securities and Exchange Board of India.
 
 Revenue Recognition :
 
 (a) The company''s business is to sell vacation ownership and provide
 holiday facilities and clubbing to members for a specified period each
 year, over a number of years, for which membership fee is collected
 either in full up front, or on installment basis. Membership fees,
 which is non-refundable, is recognized as income on admission of a
 member. Requests for cancellation of membership is accounted for when
 it is accepted by the Company. In respect of installments considered
 doubtful of recovery by the management, the same is treated as a
 cancellation and accounted for accordingly.
 
 (b) Annual subscription fee dues from members are recognized as income
 on receipt basis.
 
 (c) Income from resorts includes income from room rentals, food and
 beverages, etc. and is recognized when services are rendered.
 
 Use of Estimates :
 
 The preparation of the financial statements in conformity with GAAP
 requires management to make estimates and assumptions that affect the
 reported amounts of assets and liabilities and disclosure of contingent
 liabilities on the date of the financial statements and reported
 amounts of revenues and expenses for the year. Actual results could
 differ from these estimates. Any revision to accounting estimates is
 recognized prospectively in the current and future periods.
 
 Investments :
 
 Long-term investments are carried at cost less any other-than-temporary
 diminution in value, determined separately for each individual
 investment. The reduction in the carrying amount is reversed when there
 is a rise in the value of the investment or if the reasons for the
 reduction no longer exist.
 
 Current investments are carried at the lower of cost and fair value.
 The comparison of cost and fair value is done separately in respect of
 each category of investment.
 
 Fixed Assets :
 
 Fixed assets are carried at the cost of acquisition or construction
 less accumulated depreciation. The cost of fixed assets includes
 non-refundable taxes, duties, freight and other incidental expenses
 related to the acquisition and installation of the respective assets.
 Borrowing costs directly attributable to acquisition or construction of
 those fixed assets which necessarily take a substantial period of time
 to get ready for their intended use are capitalized.
 
 Advances paid towards the acquisition of fixed assets outstanding at
 each balance sheet date and the cost of fixed assets not ready for
 their intended use before such date are disclosed under capital
 work-in-progress.
 
 Depreciation :
 
 Depreciation on fixed assets is provided using the straight-line method
 at the rates specified in Schedule XIV to the Companies Act, 1956 or
 based on the useful life of the assets as estimated by Management,
 whichever is higher. Depreciation is calculated on a pro-rata basis
 from the date of installation till the date the assets are sold or
 disposed. Individual assets costing less than 5,000 are depreciated in
 full in the year of acquisition. Assets acquired on finance leases are
 depreciated over the period of the lease agreement or the useful life
 whichever is shorter.
 
 Capital Work-in-Progress :
 
 The Capital Work-in-Progress includes cost of Fixed Assets under
 installation, advances for project cost and unallocated expenditure.
 
 Inventories :
 
 Inventories are valued at the lower of cost and net realizable value.
 Cost of inventories comprises all cost of purchase, cost of conversion
 and other costs incurred in bringing the inventories to their present
 location and condition.
 
 Taxation :
 
 Income tax expense comprises current tax and deferred tax charge or
 credit.
 
 Current tax: The current charge for income taxes is calculated in
 accordance with the relevant tax regulations applicable to the Company.
 
 Deferred tax: Deferred tax charge or credit reflects the tax effects of
 timing differences between accounting income and taxable income for the
 period. The deferred tax charge or credit and the corresponding
 deferred tax liabilities or assets are recognized using the tax rates
 that have been enacted or substantially enacted by the balance sheet
 date. Deferred tax assets are recognized only to the extent there is
 reasonable certainty that the assets can be realized in future;
 however, where there is unabsorbed depreciation or carry forward of
 losses, deferred tax assets are recognized only if there is a virtual
 certainty of realization of such assets. Deferred tax assets are
 reviewed at each balance sheet date and is written-down or written-up
 to reflect the amount that is reasonably / virtually certain (as the
 case may be) to be realized. The break-up of the major components of
 the deferred tax assets and liabilities as at balance sheet date has
 been arrived at after setting off deferred tax assets and liabilities
 where the Company has a legally enforceable right to set-off assets
 against liabilities and where such assets and liabilities relate to
 taxes on income levied by the same governing taxation laws.
 
 Earnings Per Share :
 
 The basic earnings per share (EPS) is computed by dividing the net
 profit after tax for the year by the weighted average number of equity
 shares outstanding during the year. For the purpose of calculating
 diluted earnings per share, net profit after tax for the year and the
 weighted average number of shares outstanding during the year 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.
 The diluted potential equity shares have been adjusted for the proceeds
 receivable had the shares been actually issued at fair value (i.e. the
 average market value of the outstanding shares) as per Accounting
 Standard - 20.
 
 Provisions and contingent liabilities:
 
 The Company creates a provision when there is a present obligation as a
 result of a past event that probably requires an outflow of resources
 and a reliable estimate can be made of the amount of the obligation. A
 disclosure for a contingent liability is made when there is a possible
 obligation or a present obligation that may, but probably will not,
 require an outflow of resources. Where there is possible obligation or
 a present obligation in respect of which the likelihood of outflow of
 resources is remote, no provision or disclosure is made.
 
 Retirement benefits to employees:
 
 Provident fund
 
 Contributions to defined Schemes such as Provident Fund are charged as
 incurred on accrual basis. Eligible employees receive benefits from a
 provident fund, which is a defined contribution plan. Aggregate
 contributions along with interest thereon are paid at retirement,
 death, incapacitation or termination of employment. Both the employee
 and the Company make monthly contributions to the government
 administered authority.
 
 Leases:
 
 Assets taken on lease where the company acquires substantially the
 entire risks and rewards incidental to ownership are classified as
 finance leases. The amount recorded is the lesser of the present value
 of minimum lease rental and other incidental expenses during the lease
 term or the fair value of the assets taken on lease.
 
 The rental obligations, net of interest charges, are reflected as
 secured loans. Leases that do not transfer substantially all the risks
 and rewards of ownership are classified as operating leases and
 recorded as expense as and when the payments are made over the lease
 term.
 
 Borrowing Cost:
 
 Borrowing cost that are attributable to the acquisition, construction
 or production of qualifying asset are capitalized as part of cost of
 such asset till such time as the asset is ready for its intended to use
 or sale. A qualifying asset is an asset that necessarily requires a
 substantial period of time to get ready for its intended use or sale.
 All other borrowing costs are recognized as expenses in the period in
 which they are incurred.
 
 Impairment of assets:
 
 Consideration is given at each balance sheet date to determine whether
 there is any indication of impairment of the carrying amount of the
 company''s fixed assets. If any indication exists, an asset''s
 recoverable amount is estimated. An impairment loss is recognized
 whenever the carrying amount of an asset exceeds its recoverable
 amount. The recoverable amount is greater of the net selling price and
 value in use. In assessing the value in use, the estimated future cash
 flows are discounted to their present value based on an appropriate
 discount factor.