The accounts have been prepared on historical cost convention under
 mercantile system of accounting and generally complies with mandatory
 accounting standards.
 
 a.  Fixed Assets :
 
 Fixed Assets are stated 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
 capitalized.
 
 b.  Depreciation :
 
 Depreciation is provided on straight line method on buildings at triple
 the rates and on other fixed assets at double the rates specified in
 Schedule XIV to the Companies Act, 1956, based on technical evaluation.
 
 c.  Impairment of Assets :
 
 The carrying amounts of assets are reviewed at each Balance Sheet date
 if there is any indication of impairment based on Internal / external
 factors. An impairment loss will be recognized wherever the carrying
 amount of an asset exceeds its recoverable amount. The recoverable
 amount is greater of the asset''s net selling price and value in use. In
 assessing value in use, the estimated future cash flows are discounted
 to the present value. A previously recognized impairment loss is
 further provided or reversed depending on changes in circumstances.
 
 d.  Investments :
 
 i.  Current Investments are stated at lower of cost and fair value.
 
 ii.  Long Term Investments are stated at cost. However provision for
 diminution is made to recognize a decline, other than temporary in the
 value of the investments.
 
 e.  Inventories :
 
 i.  To value inventories of provisions, food supplies, crockery,
 cutlery, glassware, beverages, stores and operational supplies at cost
 on Weighted Average Method. Cost includes freight and other incidental
 expenses.
 
 ii.  To charge to revenue the value of crockery, cutlery and glassware
 at the time of first issue,
 
 f.  Miscellaneous Expenditure :
 
 To amortize the preliminary expenses and other deferred revenue
 expenditure over a period of 10 years.
 
 g.  Foreign Currency Transactions :
 
 i.  Transactions in foreign currencies are accounted at the average
 exchange rate prevailing on the date of transaction.
 
 ii.  To account for gain or loss on foreign exchange rate fluctuations
 relating to assets and liabilities as at the date of the Balance Sheet
 at the convertible rate of exchange prevailing on that date.
 
 iii.  To account for all exchange difference arising from foreign
 currency transactions in the Profit and Loss Account.
 
 h.  Revenue Recognition :
 
 i.  Room revenue is recognized on actual occupancy and is net off, of
 cost of complimentary airport pick-up and drop.  
 
 ii.  Food and Beverage at the point of supply.  
 
 
 iii.  Other services on rendering such services.
 
 iv.  Sale of Electricity generated from Wind Turbine Generators is
 recognized on the basis of electricity units metered and invoiced.  i.
 Employee Benefits :
 
 i.  Provident Fund :
 
 The Company contributes to the statutoiy provident fund of the Regional
 Provident Fund Commissioner, in accordance with Employees provident
 fund and Miscellaneous Provisions Act, 1952. The plan is a defined
 contribution plan and contribution paid or payable is recognized as an
 expense in the period in which the employee renders service.
 
 ii.  Gratuity :
 
 Gratuity is a post employment benefit and is defined benefit plan. The
 liability recognized in the balance sheet represents the present value
 of the defined benefit obligation at the balance sheet date less the
 fair value of plan assets together with adjustments for unrecognized
 actuarial gains or losses and past service costs. Independent actuaries
 using the projected unit credit method calculate the defined benefit
 obligation annually.
 
 iii.  Leave Encashment:
 
 Provision for unavailed leave to the credit of the employees at the end
 of the year is made on the basis of the actuarial valuation.
 
 j.  Taxation:
 
 Current Tax is determined as the amount of tax payable in respect of
 taxable income for the period.
 
 Deferred Tax is recognized, subject to the consideration of prudence,
 on timing differences, being the difference between taxable income and
 accounting income that originate in one period and are capable of
 reversal in one or more subsequent periods.
 
 Deferred Tax assets are not recognized on unabsorbed depreciation and
 carry forward of losses unless there is virtual certainty that
 sufficient future taxable income will be available against which such
 deferred tax assets can be realized.
 
 Defined Benefit Plan
 
 The employees'' gratuity fund scheme managed by a Trust is a defined
 benefit plan. The present value of obligation is determined based on
 actuarial valuation using the Projected Unit Credit Method, which
 recognizes each period of service as giving rise to additional unit of
 employee benefit entitlement and measures each unit separately to build
 up the final obligation. The obligation for leave encashment is
 recognized in the same manner as gratuity.