1. SIGNIFICANT ACCOUNTING POLICIES
i) OF PREPARATION OF FINANCIAL STATEMENTS
To prepare financial statements in accordance with the historical cost
convention, generally accepted accounting principles in India and
relevant presentational requirements of the Companies Act, 1956.
To state Gross Income from Operations, which represents invoiced value
of goods sold and services rendered, net of sales tax but inclusive of
all applicable taxes.
iii) INVESTMENT INCOME
To account for Income from Investments on an accrual basis, inclusive
of related tax deducted at source.
iv) FIXED ASSETS
To state Fixed Assets at cost of acquisition inclusive of inward
freight, duties and taxes and incidental expenses related to
acquisition. In respect of major projects involving construction,
related pre-operational expenses form part of the value of the assets
To calculate depreciation on Fixed Assets in a manner that amortises
the cost of the assets after commissioning, over their estimated useful
lives or lives based on the rates specified in Schedule XIV to the
Companies Act, 1956, whichever is lower, by equal annual installments.
Leasehold land is amortised over the period of the lease.
To value all inventories at lower of cost and net realisable value.
Cost includes freight and other related incidental expenses and is
computed on weighted average method.
vii) RETIREMENT BENEFITS
To make regular monthly contributions to various Provident Funds,
Pension Funds and Gratuity Funds which are charged against revenue. To
also charge against revenue, actual disbursements made, when due, under
the Workers' Voluntary Retirement Scheme.
To administer through duly constituted and approved independent trusts,
various funds with the exception of Provident Fund with regard to
Non-Management Staff the contributions in respect of which are
statutorily deposited with the Government.
viii) PROPOSED DIVIDEND
To provide for Dividend as proposed by the Directors in the books of
account, pending approval at the Annual General Meeting.
ix) FOREIGN CURRENCY TRANSLATIONS
To record transactions in foreign currencies at the exchange rates
prevailing on the date of the transaction. Gains/Losses arising out of
fluctuations in the exchange rates are recognised in profit and loss in
the period in which they arise. Liability/Receivables on account of
foreign currency are converted at the exchange rates prevailing as at
the end of the year.
To state Long Term Investments at cost. Where applicable, provision is
made where there is a permanent fall in valuation of investments.
xi) BORROWING COSTS
To capitalise the borrowing costs that are directly attributable to the
acquisition or construction of that capital asset. Other borrowing
costs are recognised as an expense in the period in which they are
xii) TAXES ON INCOME
To provide and determine Current tax as the amount of tax payable in
respect of taxable income for the period.
To provide and recognise Deferred tax on timing differences between
taxable income and accounting income subject to consideration of
Not to recognise Deferred tax assets on unabsorbed depreciation and
carry forward of losses unless there is virtual certainty that there
will be sufficient future taxable income available to realise such
xiii) FINANCIAL AND MANAGEMENT INFORMATION SYSTEMS
To practice an integrated Accounting System which unifies both
Financial Books and Costing Records. The books of account and other
records have been designed to ensure compliance of the relevant
provisions of the Companies Act, 1956 on the one hand, and meet the
internal requirements of information and systems for Planning, Review
and Internal Control (designed and based on Uniform System of Accounts
for Hotels), on the other.