(a) System of Accounting
The Company generally adopts the mercantile system of accounting.
(b) Fixed Assets
(i) The fixed assets acquired, if any, during the current year are
stated at cost plus incidental expenses relating to the same.
(ii) The Major part of the fixed assets has been
transferred/sold/disposed off during the year 2007 itself and the
balance fixed assets are also sold during the previous years. Since all
the fixed assets have been sold therefore the going concern concepts of
the business has been affected.
(i) Depreciation is provided under the Straight Line Method at the rate
specified in Schedule XIV to the Companies Act, 1956. Depreciation on
additions is provided prorata on monthly basis.
(ii) The Gross Block & Corresponding depreciation is shown as deduction
wherever assets are sold/ disposed off during the year with Profit/
Loss adjusted to Profit & Loss A/c.
(i) The investments in unquoted and quoted shares (except in
subsidiaries) are stated at cost. The subsidiaries investments are
shown at token value of Rs. 1/- by writing off the investment in
(ii) Any depreciation or fall in investment value unless otherwise held
for long term is provided in the books.
(iii) The Company is currently having investment in subsidiaries
namely, Polar Finance Ltd and Jai Thacker Land Development Ltd.
(iv) Any other investment in share & mutual fund held if any are for
long term period and diminution, if any, is temporary in nature and
hence not provided.
(e) Retirement Benefits
Since the last few years there are no major operations in the company
and also there are no employees in the company and therefore other than
any old liabilities if any which is not known, the provisions of The
Payment of Gratuity Act, 1972, Leave Salary &The Employees Provident
Fund & Miscellaneous Provision Act, 1952 are not applicable.
The company has no sales from business of food or catering or hotel and
no other new activity during the current year ended 31st March 2011 is
commenced and therefore segment reporting is not applicable for the
During the current year, there are no Purchases & Sales and therefore
no inventories are held.
(h) Revenue Recognition
Timeshare Units sold
The company has sold the Hotel at Matheran during the previous years
and correspondingly decided to settle all Timeshare deposit holder''s
amount. No revenue effect on account of Timeshare sale is therefore
applicable during the current year.
(i) Borrowing Costs
Borrowing costs attributable to construction of asset are capitalized
as a part of the cost of such asset upto date when such asset is ready
for its intended use. Other borrowing costs are charged to Profit and
(j) Accounting for Taxes on Income
Provision for the current tax is made on the assessable income at the
relevant assessment year.
Deferred Tax is recognised, on timing differences, being the difference
between taxable income and accounting income that originate in one
period and capable of reversal in one or more subsequent periods.
Deferred Tax assets are recognised if there is reasonable certainty
that there will be sufficient future profits available to realise such
(k) Business Segments
Till the previous years, the company was engaged in the business of
hoteliring, providing catering services and preparing and selling of
sweet and savories. Hence the reportable business segments are Hotel,
Catering Services and Sweet business. Since last few years there is no
business segment except company is earning other income.
(l) Provisions, Contingent Liabilities & Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of recourses.
Contingent liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized, nor disclosed in the
(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
attributable taxes } by the weighted average number of equity shares
outstanding during the year, for the purpose of calculating diluted
earning per shares, the net profit or loss for the year attributable to
equity per shareholders and the weighted average number of shares
outstanding during the year are adjusted for the effects of all
dilutive potential equity shares.
(n) Cash Flow Statement:
Cash flow Statement is prepared under the Indirect Method.