a.  Basis of preparation
 
 The financial statements have been prepared and presented on an accrual
 basis under the historical cost convention and in accordance with the
 applicable accounting standards prescribed by the Companies (Accounting
 Standards) Rules, 2006 and the relevant provisions of the Companies
 Act, 1956. The accounting policies have been consistently applied
 unless otherwise stated.
 
 b.  Use of estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management of the Company to
 make estimates and assumptions that affect the reported amounts of
 assets and liabilities and disclosure of contingent liabilities at the
 date of the financial statements and the results of operations during
 the reporting periods. Although these estimates are based upon
 management''s best knowledge of current events and actions, actual
 results could differ from those estimates. Significant estimates used
 by management in the preparation of these financial statements include
 the estimates of the economic useful lives of the fixed assets,
 provision for bad and doubtful debts, carrying value of investments and
 accruals for employee benefits.
 
 c.  Revenue recognition
 
 Revenues comprise income from the sale of room nights, food and
 beverages and allied services during a guest''s stay at the hotel. Room
 revenue is recognized based on occupation and revenue from sale of food
 and beverages and other allied services, as the services are rendered.
 
 Unbilled revenues represent revenues recognised which have not been
 billed to the customers at the balance sheet date and are billed
 subsequently.
 
 Income from management and technical services are recognised as the
 services are rendered based on agreements with the concerned parties.
 
 Interest Income
 
 Revenue is recognised on a time proportion basis taking into account
 the amount outstanding and the rate applicable.
 
 of.  Fixed assets
 
 Fixed assets are stated at cost less accumulated depreciation /
 amortisation and impairment losses. All costs relating to acquisition
 and installation of fixed assets are capitalised.
 
 Advances paid towards acquisition of fixed assets before the financial
 year-end and the cost of the fixed assets not ready for their intended
 use, are disclosed as capital work-in-progress.
 
 Expenditure directly relating to expansion is capitalized only if it
 increases the life or functionality of an asset beyond its original
 standard of performance.
 
 e.  Borrowing Costs
 
 Borrowings costs that are directly attributable to the acquisition or
 construction of qualifying assets are capitalised as part of the cost
 of such assets for the period up to the completion of their acquisition
 or construction. A qualifying asset is one that necessarily takes a
 substantial period of time to get ready for its intended use. All other
 borrowing costs are charged to the profit and loss account as incurred.
 
 Assets individually costing less than Rs. 5,000 are fully depreciated
 in the year of purchase. Leasehold buildings (including improvements)
 are amortized over the period of the lease.
 
 g.  Goodwill
 
 Goodwill on acquisition of the business of entities is amortised over a
 period of five years.
 
 h.  Impairment of assets
 
 The Company assesses at each balance sheet date whether there is any
 indication that an asset may be impaired. If any such indication
 exists, the Company estimates the recoverable amount of the asset. If
 such recoverable amount of the asset or the recoverable amount of the
 cash generating unit to which the asset belongs is less than its
 carrying amount, the carrying amount is reduced to its recoverable
 amount. The reduction is treated as an impairment loss and is
 recognised in the profit and loss account. If at the balance sheet date
 there is an indication that if a previously assessed impairment loss no
 longer exists, the recoverable amount is reassessed and the asset is
 reflected at the recoverable amount subject to a maximum of depreciated
 historical cost.
 
 i.  Investments
 
 Investments that are readily realizable and intended to be held for not
 more than a year are classified as current investments. All other
 investments are classified as long term investments. Current
 investments are carried at lower of cost and fair value determined on
 an individual investment basis. Long-term investments are carried at
 cost. However, provision for diminution in value is made to recognise a
 decline other than temporary in the value of the long term investments.
 
 j.  Inventory
 
 Inventory comprises stock of food and beverages and stores and spare
 parts and is carried at the lower of cost and net realizable value.
 Cost includes all expenses incurred in bringing the goods to their
 present location and condition and is determined on a weighted average
 basis. Net realizable value is the estimated selling price in the
 ordinary course of business, less estimated costs of completion and to
 make the sale.
 
 k.  Foreign currency transactions
 
 (a) Initial Recognition
 
 Foreign currency transactions are recorded in the reporting currency,
 by applying to the foreign currency amount the exchange rate between
 the reporting currency and the foreign currency at the date of the
 transaction.
 
 (b) Conversion
 
 Foreign currency monetary items are reported using the closing rate.
 The resultant exchange differences are recognised in the profit and
 loss account. Non-monetary items which are carried in terms of
 historical cost denominated in a foreign currency are reported using
 the exchange rate at the date of the transaction and non-monetary items
 which are carried at fair value or other similar valuation denominated
 in a foreign currency are reported using the exchange rates that
 existed when the values were determined.
 
 c.  Leases
 
 For hotel properties i.e. land and buildings, taken on lease along with
 related assets as a part of a combined lease arrangement, the Company
 determines whether these assets acquired are integral to the land and
 building. If these assets are integral, the Company analyses the nature
 of the lease arrangement on a combined basis for all assets. If the
 assets are not integral to the land and building, the Company evaluates
 each asset individually, to determine the nature of the lease.
 
 Finance leases
 
 Leases, which effectively transfer to the Company substantially all the
 risks and benefits incidental to ownership of the leased item, are
 capitalized at the lower of the fair value and present value of the
 minimum lease payments at the inception of the lease term and disclosed
 as leased assets. Lease payments are apportioned between the finance
 charges and reduction of the lease liability based on the implicit rate
 of return.  Finance charges are charged directly to the Profit and Loss
 Account. Lease management fees, legal charges and other initial direct
 costs are capitalised.
 
 If there is no reasonable certainty that the Company will obtain the
 ownership by the end of the lease term, capitalized leased assets are
 depreciated over the shorter of the estimated useful life of the asset
 or the lease term.
 
 Operating leases
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased term, are classified as
 operating leases. Operating lease payments are recognized as an expense
 in the Profit and Loss account on a straight line basis.
 
 m.  Retirement benefits
 
 Expenses and liabilities in respect of employee benefits are recorded
 in accordance with Accounting Standard 15 Employee Benefits.
 
 Provident fund
 
 The Company contributes to the statutory provident fund of the Regional
 Provident Fund Commissioner, in accordance with Employees provident
 fund and Miscellaneous Provision Act, 1952. The plan is a defined
 contribution plan and contribution paid or payable is recognised as an
 expense in the period in which the employee renders services.
 
 Gratuity
 
 Gratuity is a post employment benefit and is a defined benefit plan.
 The liability recognised 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 (if any), together with adjustments for
 unrecognised actuarial gains or losses and past service
 costs.Independent actuaries using the projected unit credit method
 calculate the defined benefit obligation annually.
 
 Actuarial gains or losses arising from experience adjustments and
 changes in actuarial assumptions are credited or charged to the Profit
 and loss account in the year in which such gains or losses arises.
 
 Vacation pay
 
 Liability in respect of leave becoming due or expected to be availed
 within one year from the balance sheet date is recognized on the basis
 of estimated amount required to be paid or estimated value of benefit
 expected to be availed by the employees. Liability in respect of earned
 leave becoming due or expected to be availed more than one year after
 the balance sheet date is estimated on the basis of actuarial valuation
 in a manner similar to gratuity liability.
 
 n.  Stock based compensation
 
 The Company accounts for stock based compensation based on the
 intrinsic value method. Option discount representing the excess of the
 fair value or the market value of the underlying shares at the date of
 the grant over the exercise price of the option is amortised on a
 straight line basis over the vesting period of the shares issued under
 the Company''s Employee Stock Option Plan (ESOP).
 
 o.  Taxes on income
 
 Current tax
 
 Provision is made for I ncome tax under the tax payable method, based
 on the liability computed, after taking credit for allowances and
 exemptions.
 
 Minimum Alternate Tax
 
 Minimum alternate tax (MAT) paid in accordance to the tax laws, which
 gives rise to future economic benefits in the form of adjustment to
 future income tax liability, is considered as an asset if there is
 convincing evidence that the Company will pay normal income tax.
 Accordingly, MAT is recognised as an asset in the balance sheet when it
 is probable that future economic benefit associated with it will flow
 to the Company and the asset can be measured reliably.
 
 Deferred tax
 
 Deferred tax charge or credit reflects the tax effect of timing
 differences between accounting income and taxable income for the
 period. The deferred tax charge or credit and the corresponding
 deferred tax liabilities or assets are recognised using the tax rates
 that have been enacted or substantively enacted by the balance sheet
 date. Deferred tax assets are recognised only to the extent there is
 reasonable certainty that the assets can be realised in future.
 However, where there is unabsorbed depreciation or carried forward loss
 under taxation laws, deferred tax assets are recognised only if there
 is a virtual certainty of realisation of such assets. Deferred tax
 assets are reviewed as at each balance sheet date and written down or
 written-up to reflect the amount that is reasonably virtually certain
 (as the case may be) to be realised.
 
 Unrecognised deferred tax assets of earlier years are re-assessed and
 recognised to the extent that it has become reasonably certain that
 future taxable income will be available against which such deferred tax
 assets can be realised.
 
 p.  Earnings per share
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the year attributable to equity shareholders (after deducting
 preference dividends and attributable taxes) by the weighted average
 number of equity shares outstanding during the year. Partly paid equity
 shares are treated as a fraction of an equity share to the extent that
 they were entitled to participate in dividends relative to a fully paid
 equity share during the reporting period. The weighted average numbers
 of equity shares outstanding during the year are adjusted for events of
 bonus issue; bonus element in a rights issue to existing shareholders;
 share split; and reverse share split (consolidation of shares).
 
 For the purpose of calculating diluted earnings per share, the net
 profit or loss for the year attributable to equity shareholders and the
 weighted average number of shares outstanding during the year are
 adjusted for the effects of all dilutive potential equity shares.
 
 qr.  Provisions and contingent liabilities
 
 The Company creates a provision when there is a present obligation as a
 result of a past event that probably requires an outflow of resources
 and a reliable estimate can be made of the amount of the obligation. A
 disclosure for a contingent liability is made when there is a possible
 obligation or a present obligation that may, but probably will not,
 require an outflow of resources. Where there is a possible obligation
 or a present obligation in respect of which the likelihood of outflow
 of resources is remote, no provision or disclosure is made.
 
 r.  Onerous contracts
 
 Present obligations arising under onerous contracts are recognized and
 measured as a provision. An onerous contract is considered to exist
 where the company has a contract under which the unavoidable costs of
 meeting the obligations under the contract exceed the economic benefits
 expected to be received under it.