A Basis of preparation of Financial Statements -
The Financial Statements have been prepared under the historical cost
convention and in accordance with the normally accepted accounting
principles and the provisions of the Companies Act, 1956.
B. Fixed Assets and Depreciation
1) Fixed Assets are stated at acquisition cost less accumulated
2) Expenditure incurred during the course of construction, installation
and commissioning of Building and plant and machinery are included in
the cost of respective fixed assets including cost of financing.
3) Depreciation on fixed assets is provided on Written down value
method at the rates and in the manner prescribed in Schedule XIV to the
Companies Act, 1956.
4) Intangible assets i.e. License Fees for Software, are, amortized
over a period of 10 years, on Straight Line Method.
5) Leasehold premium is amortized over the period of lease.
C. Inventories - Stock of Food, beverages, Liquors and other supplies
is valued at Cost.
D. Basis of Accounting - All items of income and expenditure having a
material bearing on the financial statements are recognized on accrual
E. Sales - Sales are accounted net of Discounts and allowances, if
F. Foreign Currency Transactions:
1) Income in foreign currency - In respect of billing where payments is
tendered in equivalent foreign currency, exchange difference on
surrender of such exchange is charged to the profit and loss account.
2) Foreign Currency on hand at the end of the year is revalued at
year-end rates. Monetary items denominated in foreign currencies are
restated at the year end rate.
3) Any Income or Expense on account of exchange difference either on
settlement or on translation is recognized in the profit and loss
G. Revenue - Revenue in respect of Hotel Operations is recognized as
and when Service is rendered. Sale of Certified Emission Reduction
(CER) is recognized as income on the delivery of the CER to the
customers account as evidenced by receipt of confirmation of execution
of delivery instruction.
H. Investments - Long-term investments are stated at cost. Current
Investment is stated at lower of cost and Net Asset value/Market value.
I. Borrowing Costs - Borrowing costs that are attributable to the
acquisition or construction of qualifying assets are capitalized as a
part of the cost of such assets.
A qualifying asset is one that necessarily takes substantial period of
time to get ready for its intended use. All other borrowings costs are
charged to revenue.
J. Employee Benefits - Short term employee benefits are recognized as
an expense at the undiscounted amount in the profit & loss account of
the year in which the related service is rendered. Post employment and
other long term employee benefits are recognized as an expense in the
profit and loss account for the year in which the employee has rendered
services. The expense is recognized at the present value of the amount
payable determined using actuarial valuation techniques. Actuarial
gains & losses in respect of post employment and other long term
benefits are charged to profit and loss account.
In respect of employees stock options, the excess of fair price on the
date of grant is recognized as deferred compensation cost amortized
over vesting period.
K. Provision for Taxation - Provision for Current taxation is made
after considering various, relief admissible under the Income Tax Act,
Deferred tax is recognized on the timing difference, being the
difference between taxable incomes and accounting income, which
originates in one period and are capable of reversal in one or more