a) Convention:
 
 The financial statements are prepared under the historical cost
 convention in accordance with the applicable Accounting Standards and
 the provisions of the Companies Act, 1956.
 
 b) Use of Estimates:
 
 The preparation of financial statements require 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:
 
 Fixed assets are stated at cost (or valuation as applicable) less
 depreciation. Cost includes expenses incidental to the installation of
 the assets and attributable borrowing costs. Cost also includes
 exchange differences arising on reporting of long term foreign currency
 monetary items at rates different from those at which they were
 initially recorded during the period or reported in previous financial
 statements, insofar as they relate to acquisition of a depreciable
 capital asset.
 
 Valuation of freehold land and leasehold rights on properties situated
 at Mumbai, Bangalore, Goa and Kovalam was carried out during March
 2009. All the fixed assets of Goa were initially revalued in the year
 2001 and that of Mumbai in the year 2004. Valuation was carried out in
 all the cases by professional valuers, the basis of valuation being
 realizable value as determined by the valuer.
 
 Revalued fixed assets are stated based on the revaluation and all other
 fixed assets are stated at cost. Additions on account of valuation are
 credited to Revaluation Reserve.
 
 d) Depreciation:
 
 Depreciation on fixed assets has been provided on straight-line method
 at rates specified in Schedule XIV to the Companies Act, 1956.
 Depreciation on additions / deletions during the year has been provided
 on pro-rata basis. Assets purchased / installed during the year costing
 less than Rs. 5,000 each are fully depreciated. Revaluation Reserve is
 withdrawn to the extent of incremental depreciation on account of
 revaluation.
 
 e) Investments:
 
 Long-term investments are carried at cost.
 
 f) Inventories:
 
 Inventories are valued at lower of cost (weighted average basis) or net
 realizable value.
 
 g) Employee benefit:
 
 i) Post-employment benefit plans
 
 Contribution to defined contributory retirement benefit schemes are
 recognised as an expense when employees have rendered services
 entitling them to contributions.
 
 For defined benefit schemes, the cost of providing benefits is
 determined using the Project Unit Credit Method, with actuarial
 valuation being carried out at each Balance Sheet Date. Actuarial gains
 and losses are recognized in full in the profit and loss account for
 the period in which they occur. Past service cost is recognized
 immediately to the extent that the benefits are already vested, and
 otherwise it is amortized on straight-line basis over
 
 the average period until the benefits become eligible for being vested.
 
 ii) Short –term employee benefits
 
 The undiscounted amount of short term employee benefits expected to be
 paid in exchange for the services rendered by employees is recognised
 during the period when the employee renders the service. These benefits
 include compensated absences such as paid annual leave and performance
 incentive.
 
 iii) Long- term employee benefits
 
 Compensated absences which are not expected to occur within twelve
 months after the end of the period in which the employee renders the
 related services are recognized as a liability at the present value of
 the defined benefit obligation at the Balance Sheet date.
 
 h) Sales and Services:
 
 Sales comprise room revenue, food and beverages, other operating
 services, Income from Rental and related services and sale of power.
 
 i) Borrowing Costs:
 
 Borrowing costs that are directly attributable to the acquisition and
 construction of qualifying assets are capitalized. A qualifying asset
 is an asset that necessarily takes substantial period of time to get
 ready for its intended use. Gains/Losses (Net) on settlement of
 derivative contracts where they relate to the acquisition or
 construction of fixed assets are adjusted to the carrying cost of such
 assets.
 
 j) Taxation:
 
 (i) Provision for current taxation has been made in accordance with the
 Income Tax laws applicable to the assessment year.
 
 (ii) Wealth Tax for the year has been provided as required under the
 Wealth Tax Act and Rules, 1957.
 
 (iii) Deferred tax is recognized on timing difference being the
 difference between taxable income and accounting income that originates
 in one period and is capable of reversal in one or more subsequent
 periods. Where there is unabsorbed depreciation, or carry forward
 losses, deferred tax assets are recognised only if there is virtual
 certainty of realization of such assets.  
 
 k) Impairment of assets:
 
 The carrying amounts of assets are reviewed at each balance sheet date,
 if there is any indication of impairment. If any such indication
 exists, the recoverable amount of such assets is estimated. An
 impairment loss is recognized wherever the carrying amount of the
 assets exceeds its recoverable amount. The recoverable amount is
 greater of the net selling price or value in use. In assessing value in
 use, the estimated future cash flows are discounted to their present
 value, based on an appropriate discounting factor.
 
 After impairment, depreciation is provided on the revised carrying
 amount of the assets over its remaining useful life. A previously
 recognized impairment loss is increased or reversed depending on
 changes in circumstances. However, the carrying value after reversal is
 not increased beyond the carrying value that would have prevailed by
 charging usual depreciation if there was no impairment.  
 
 l) Foreign Currency Transaction:
 
 (i) Foreign currency transactions are recorded at the rates of exchange
 prevailing on the date of the transactions.
 
 (ii) In line with
 option given by the Ministry of Corporate Affairs vide Notification No
 G.S.R.225 (E) dated 31st March 2009, the exchange differences arising
 on reporting of long term foreign currency monetary items at rates
 different from those at which they were initially recorded during the
 period, or reported in previous financial statements, in so far as they
 relate to acquisition of a depreciable capital asset, are added to or
 deducted from the cost
 
 of the asset and will be depreciated over the balance life of the
 asset, and in other cases are accumulated in ‘Foreign Currency Monetary
 Item Translation Difference Account’ in the Company’s financial
 statements and amortized over the balance period of such long-term
 asset/liability but not beyond 31st March 2011, by recognition as
 income or expense in each such of the periods except exchange
 differences which are regarded as an adjustment to interest costs in
 terms of paragraph 4(e) of Accounting Standard AS (16) Borrowing costs
 
 (iii) All other monetary assets and liabilities in foreign currency as
 at Balance Sheet date are translated at rates prevailing at the year-
 end and the resultant net gains or losses are recognized as income or
 expense in the year in which they arise.  
 
 m) Assets taken on lease:
 
 In respect of operating lease transactions, the assets are not
 capitalized in the books of the Company and the lease payments are
 charged to the profit and loss account.  
 
 n) Accounting for Provisions, Contingent Liabilities and Contingent
 Assets:
 
 A provision is recognised when the Company 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 present
 value and are determined as best estimates required to settle the
 obligation at the Balance Sheet date.  Contingent Liability is
 disclosed in case of:
 
 (a) A present obligation arising from past events, when it is not
 probable that an outflow of resources will be required to settle that
 obligation;
 
 (b) A present obligation when no reliable estimate is possible; and
 
 (c) A possible obligation arising from past events where the
 probability of outflow of resources is remote.
 
 Contingent Assets are not recognized in the financial statements.