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.
 
 ii) TURNOVER
 
 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
 capitalised.
 
 v) DEPRECIATION
 
 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.
 
 vi) INVENTORIES
 
 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.
 
 x) INVESTMENTS 
 
 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
 incurred.
 
 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
 prudence.
 
 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
 assets.
 
 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.