1.  a) Recognition of Income & Expenditure
 
 All revenues, costs, assets and liabilities are accounted for on
 accrual basis except (i) annual membership fee for special promotional
 schemes/events is accounted as income in the year in which it is
 received, (ii) membership fee from Time Share is recognised as income
 from the year the member starts availing the Time Share Week based on
 the week utilised/ lapsed, (iii) escalations/ claims are reckoned on
 the basis of receipts or as acknowledged/ accepted by the parties, (iv)
 income from civil engineering contracts is recognised on the basis of
 work done, measured and accepted by the contractee and contingencies in
 respect of contracts in progress are reckoned on the completion of the
 contracts and crystallisation of the liability, (v) income from
 consultancy services are accounted for on the basis of actual progress
 / technical assessment of the work executed as per technical evaluation
 done by the management, (vi) revenues which are doubtful or where the
 possibility of recovery is remote, are not accounted for.
 
 b) Retirement Benefits
 
 Liability in .respect of gratuity and leave encashment is provided on
 the basis of actuarial valuation.
 
 c) Fixed Assets
 
 Fixed assets are stated at cost of acquisition or construction
 inclusive of freight, erection & commissioning charges, duties and
 taxes, expenditure during construction period, interest on borrowings
 and financing costs upto the date of acquisition/ installation.
 
 d) Capital Work in Progress
 
 i) Capital work in progress includes Civil Works in progress,
 construction / erection materials lying at site, machinery/ equipment
 in transit / in hand, payment to labour contractors, depreciation on
 assets used for construction and other pre-operative expenses.
 
 ii) Expenditure During Construction : (a) The project cost is
 capitalised on the date the project is ready commercially.  The
 incidental expenditure incurred during construction/ implementation is
 allocated to all the assets in the ratio of direct cost of each asset,
 (b) Depreciation on machinery and equipments used during construction/
 implementation period is capitalised along with other incidental
 expenses in the ratio as mentioned in d (ii) (a) above.
 
 e) Intangible Assets
 
 Intangible assets are stated at cost of acquisition less accumulated
 amortisation. Deferred Revenue Expenditure is amortised in case of
 leased assets over the useful life of the leasehold rights and fees
 paid to the Franchiser is amortised over a period of five years, on a
 straight line basis, commencing from the date the assets are put for
 commercial use.
 
 f) Depreciation
 
 Depreciation has been provided on straight line method on pro-rata
 basis as per rates given in Schedule XIV to the Companies Act, 1956 as
 revised from time to time.
 
 g) Inventories
 
 i) Stocks of Food and Beverages, operating stores and supplies are
 valued : at cost
 
 ii) Work-in-Progress in respect of civil contracts is valued : at
 estimated cost
 
 iii) Construction material is valued : at cost
 
 h) Investments
 
 Long-term investments are stated at cost. In case of long term
 investments, provision / write down is made for permanent diminution in
 value. Current investments are valued at lower of cost or market value.
 Dividend is accounted for as and when received.
 
 i) Foreign Currency Transaction
 
 Transactions in foreign currencies are recorded at the exchange rate(s)
 prevailing on the date of the transaction(s) or at the exchange rate(s)
 under related forward exchange contracts. Transactions not covered by
 forward exchange contracts and outstanding in the books as at the end
 of the year are translated at year end exchange rate(s) and resultant
 gains/ losses are recognised in the profit and loss account.
 
 j) Expenses on Renewal / Upgradation of Hotel Properties
 
 i) Expenses incurred on renewals, renovation and changes to maintain
 the hotel properties are charged to the revenue account in the year in
 which these are incurred.
 
 ii) Expenses incurred on major re-structuring involving relocation and
 redesigning of various outlets, guest floor and additions thereto
 effecting enhancement in the value of assets and revenue generating
 capacity of the hotel.  are capitalised.
 
 k) Contract- Expenses
 
 i) Costs incurred before a contract is secured are treated as expenses
 for the year and charged to revenue, ii) Costs attributable to
 contracts are normally identified with reference to specific contracts.
 However, costs which cannot be identified / identifiable to a specific
 contract are charged to revenue in the year in which they are incurred.
 
 I) Borrowing Cost
 
 Borrowing costs that are directly attributable to the acquisition or
 construction of qualifying assets are capitalised for the period until
 the asset is ready for its intended use. Other borrowing costs are
 recognised as expense in the year in which they are incurred.
 
 m) Taxes on Income
 
 Current tax is determined as the amount of tax payable in respect of
 taxable income for the year. Deferred tax is recognised, subject to the
 consideration of prudence in respect of deferred tax assets, on timing
 differences, being the difference between taxable income and accounting
 income that orginate in one period and are capable of reversal in one
 or more subsequent periods.
 
 n) Proposed Dividend
 
 Dividend on Share Capital, if proposed by the Directors, is provided in
 the books.
 
 o) Impairment of Assets
 
 If the carrying amount of fixed assets exceeds the recoverable amount
 on the reporting date, the carrying amount is reduced to the
 recoverable amount. The recoverable amount is measured as the higher of
 the net selling price or the value in use determined by the present
 value of estimated future cash flows.
 
 p) Provisions, Contingent Liabilities and Contingent Assets
 
 The Company recognises a provision when there is a present obligation
 that probably requires an outflow of resources and a reliable estimate
 can be made of the amount of the obligation.
 
 Reimbursement expected in respect of expenditure required to settle a
 provision is recognised only when it is virtually certain that the
 reimbursement will be received.
 
 A disclosure for a contingent liability is made when, as a result of
 obligating events there is a possible obligation or a present
 obligation that may, but probably will not, require an outflow of
 resources.
 
 Contingent Assets are neither recognised nor disclosed.  However,
 Provisions, Contingent Liabilities and Contingent Assets are reviewed
 at each Balance Sheet date.