Basis of preparation
 
 The financial statements of the Company are prepared under the
 historical cost conven- tion on accrual basis of accounting in all
 material respects in accordance with the appli- cable accounting
 standards and the provisions of the Companies Act, 1956. The ac-
 counting policies have been consistently applied by the Company during
 the year.
 
 Significant Accounting Policies adopted in the preparation and
 presentation of accounts are as under:
 
 A) FIXED ASSETS:
 
 Fixed Assets are valued at cost less accumulated depreciation.
 
 B) DEPRECIATION:
 
 a) In respect of Leasing Division depreciation has been provided on
 written down value method as per the rates mentioned in Schedule XIV of
 the Companies Act, 1956.
 
 b) In respect of Hotel Division depreciation has been provided on the
 Straight Line Method as per the rates mentioned in Schedule XIV of the
 Companies Act, 1956.
 
 C) INVESTMENTS:
 
 Investments are stated at cost.
 
 D) INVENTORY:
 
 Inventory of Stores & Spares, Food & Beverages is valued at cost and
 method of valuation adopted is ‘First in First out''.
 
 E) RETIREMENT BENEFITS:
 
 Retirement benefits to employees are provided by way of contribution to
 Provident Fund, Superannuation Fund & Gratuity. Contribution for
 Gratuity is made on actu- arial valuation to HDFC Employees Gratuity
 Trust. Superannuation contributions are made to HDFC Standard Life
 Insurance Company Ltd.
 
 F) FOREIGN CURRENCY TRANSACTIONS:
 
 Transactions in Foreign Currency are recorded at the rates of exchange
 in force at the time the transactions are effected. Exchange
 differences arising on realisation of foreign currency are accounted at
 the time of realisation. Foreign currency assets and liabilities are
 translated into rupees at the exchange rate prevailing at the Balance
 Sheet date.
 
 G) REVENUE RECOGNITION:
 
 Revenue is recognised at the time the bills are raised to customers and
 there exist no significant uncertainty as to determination or
 realisation of debts.
 
 H) SEGMENT REPORTING:
 
 The Company is presently operating only one integrated hotel business
 at Goa namely, Cidade de Goa. The entire operation is governed by the
 same set of risk and returns and hence the same has been considered as
 representing a single segment. The said treatment is in accordance with
 the guiding principles enunciated in Accounting Standard 17 (AS-17)
 issued by the Institute of Chartered Accountants of India on Seg- ment
 Reporting.
 
 I) TAXES ON INCOME:
 
 1.  Provision for Income tax is made on the basis of tax liability
 computed in accordance with relevant tax rates and tax laws. Provision
 for deferred tax has been made as per Accounting standard 22 (AS-22)
 issued by the Institute of Chartered Accountants of India. Deferred tax
 assets are recognised only if there is reasonable certainty that they
 will be realised and are reviewed for the appropriateness of their
 respective car- rying values at each Balance sheet date.
 
 2.  Capital work in progress represents advance payment / development
 and other ex- penses in respect of new projects amounting to Rs
 7,97,37,774/- ( Previous year Rs. 11,78,74,814/-).
 
 3.  Company is carrying on business of hotelier. Government of India,
 Department of Company Affairs vide their order No. 46/143/2009-CL-I II
 dated 20th May 2009 exempted from disclosure of quantitative details
 for the year ended 31st March 2009, 31st March, 2010 and 31st March,
 2011. As required by the above order the following information is
 furnished.
 
 4.  Balance in Sundry Debtors, Creditors and other advances are subject
 to confirmation.
 
 5.  Sundry Debtors include an amount of Rs. 80,80,156/- (Previous Year
 85,21,209/-) due from companies in which some of the Directors are
 common.
 
 6.  Sales are net of commission of Rs 1,82,12,537 /- (Previous Year Rs.
 1,84,49,985 /-).
 
 7.  Based on the information available with the Company, there are no
 dues to micro and small enterprises under the Micro, Small and Medium
 Enterprises Development Act.
 
 8.  The company has made application for compounding of offence under
 section 621A read with section 297(1) of the Companies Act, 1956 in
 respect of service contract entered into with a private limited company
 for the period of 1st April to 30th June 2010, for which prior approval
 of the Central Government was not obtained.