1.  SYSTEM OF ACCOUNTING
 
 A) The Company follows mercantile system of accounting and recognises
 income and expenditure on accrual basis, unless and other wise
 specified.
 
 The financial statements have been prepared in all material respects in
 compliance of Accounting Standards as notified by the Companies
 (Accounting Standards) Rules, 2006.
 
 B) Financial statements are prepared on historical cost and going
 concern basis.
 
 2.  USE OF ESTIMATES
 
 The preparation of financial statements requires management to make
 certain estimates and assumptions that affect the amounts reported in
 the financial statements and notes thereto.  The Management believes
 that these estimates and assumptions are reasonable and prudent.
 However actual results could differ from these estimates. Differences
 between actual results and estimates are recognized in the period in
 which they materialize.
 
 3.  FIXED ASSETS AND DEPRECIATION
 
 A) Fixed Assets
 
 Fixed Assets are stated at their original cost (including expenses
 related to acquisition and installation) less depreciation except
 certain lands, owned by the Company which have been adjusted for
 revaluation.
 
 B) Depreciation and Amortisation
 
 Depreciation is charged in the accounts on straight line method as
 under:
 
 a.  On fixed assets (other than intangible assets) owned by the company
 at the SLM rates specified in Schedule XIV to the Companies Act, 1956.
 On assets added/disposed off during the year, on pro- rata basis with
 reference to the month of addition/disposal.
 
 b.  Cost of leasehold land and building is amortized over the period of
 lease.
 
 c.  Intangible assets, namely software are amortized over a period of 5
 years.
 
 4.  BORROWING COSTS
 
 Borrowing costs attributable to acquisition, construction or production
 of a qualifying asset are capitalized as part of the cost of that
 asset, where it is possible that they will result in future economic
 benefit. A qualifying asset is one that necessarily takes substantial
 period of time to get ready for intended use.  All other borrowing
 costs are recognized as an expense in the period in which they are
 incurred.
 
 5.  REVENUE RECOGNITION
 
 Revenue is recognized to the extent that it can be reliably measured
 and is probable that the economic benefit will accrue to the company.
 
 a.  In respect of Sterling Silver Streak Holiday Plan, Sterling Happy
 Vistas Holiday Units, Sterling Holiday Flexi Club Units, TRUMPS and
 Sterling Holiday Plan, a portion of the Timeshare consideration (net of
 discount), namely 45% of the sale value (Cash/Equated Monthly
 Instalment (EMI)) is treated as income in the year of sale.
 
 b.  Advance Subscription towards Customer Facilities (ASCF), being
 balance 55%, of the sale value (Cash/EMI) in respect of Holiday Plans
 is accounted as income, in equal proportion, from the year in which the
 holiday entitlement is allotted, over the period for which the
 customers are entitled for holidays.
 
 c.  In respect of sales made under EMI scheme, interest wherever
 applicable is accrued over the contracted period.
 
 d.  Income from resorts comprising of room rent, food and beverages
 sales, other services etc., are recognized when these are sold and
 services are rendered.
 
 e.  Income in respect of amenity charges is accounted on cash basis, in
 view of uncertainty in collection.
 
 f.  Dividend is accounted for when the right to receive the same is
 established. Interest is accounted on time proportionate basis.
 
 6.  INVESTMENTS
 
 a.  Long term investments are stated at cost.  Provision for diminution
 in value, considered on individual basis, is recognized, if in the
 opinion of the Management such a decline is other than temporary.
 
 b.  Current investments are valued at lower of cost and fair value,
 determined on an individual basis.
 
 7.  INVENTORIES
 
 Inventories comprising of provisions, perishables, beverages,
 consumables and operating supplies are valued at lower of cost or net
 realizable value.  Cost is computed on First In First Out basis.
 
 8.  FOREIGN CURRENCY TRANSACTIONS
 
 Transactions in foreign Currency are recorded at the exchange rates
 prevailing on the date of transactions. Monetary items denominated in
 foreign currencies (such as cash, receivables, payables, etc.)
 outstanding at the year end, are translated at exchange rate applicable
 as of that date. Non-monetary items denominated in foreign currency
 (such as investments, fixed assets, etc) are valued at the exchange
 rate prevailing on the date of transaction. Any gains or losses arising
 due to exchange differences at the time of translation or settlement
 are accounted in the Profit & Loss account.
 
 9.  EMPLOYEE BENEFITS
 
 a.  Contribution to Provident Fund, which is a defined contribution
 retirement plan, is made monthly at predetermined rate to the Provident
 Fund authorities and debited to the Profit and Loss account on accrual
 basis.
 
 b.  Company makes annual contribution to Gratuity Fund administered by
 an Insurance Company, which is considered as defined benefit plan. The
 present value of the defined benefit is measured using the ''Projected
 Unit Credit'' method with actuarial valuation being carried out at each
 Balance Sheet date by an independent valuer. Actuarial gains and losses
 are immediately recognized in the Profit and Loss account. Amount of
 contribution, computed by the insurers is paid by the company and
 charged to Profit and Loss account.
 
 c.  The Company makes provision for leave encashment based on actuarial
 valuation carried out by an independent actuary at the Balance Sheet
 date.
 
 10. PROVISIONS & CONTINGENCIES
 
 a.  A provision arising out of a present obligation is recognized when
 it is probable that an outflow of resources will be required to settle
 the obligation and the amount can be reasonably estimated.
 
 b.  Wherever there is a possible obligation which may not require an
 outflow of resources, the same is disclosed by way of contingent
 liability.
 
 c.  Show Cause Notices are not considered as Contingent Liabilities
 unless converted into demand.
 
 11. TAXES ON INCOME
 
 Current tax is determined in accordance with Income Tax Act 1961 on the
 amount of tax payable in respect of the income for the year.  Deferred
 tax assets / liabilities are measured by applying tax rate and tax laws
 that have been enacted or substantially enacted by the Balance Sheet
 date. Deferred tax asset arising on account of loss and unabsorbed
 depreciation under tax laws is recognized only to the extent where
 there is virtual certainty of its realization supported by convincing
 evidence. Deferred tax assets on account of other timing differences
 are recognized only to the extent there is reasonable certainty of its
 realization. At each Balance Sheet date, the carrying amount of
 Deferred Tax Asset is reviewed based on developments to reassess
 realization.
 
 12. IMPAIRMENT OF ASSETS
 
 The carrying amounts of assets are reviewed at each Balance sheet date
 for indication of any impairment based on internal / external factors.
 An impairment loss is recognized wherever the carrying amount of the
 assets exceeds its recoverable amount. Any such impairment loss is
 recognized by charging it to the profit and loss account. A previously
 recognized impairment loss is reversed where it is no longer required
 and the asset is restated to that effect.
 
 13. SEGMENT REPORTING:
 
 Revenue and expenses have been identified to segments on the basis of
 their'' relationship to the operating activities of the segment.
 Revenue and expenses which relate to the enterprise as a whole and are
 not allocable to segments on a reasonable basis have been included
 under Unallocated Corporate Expenses.
 
 There are no inter segment revenues and therefore their basis of
 measurement does not arise.
 
 14. EMPLOYEE STOCK OPTION SCHEME (ESOS)
 
 The Company measures the compensation cost relating to ESOS using the
 fair market value of Equity Shares. The compensation cost is amortized
 on a straight line basis over the total vesting period of the stock
 options.
 
 15. LEASE ACCOUNTING
 
 The lease payments made on the assets comprising of land and building
 taken on operating lease, are recognized as an expense on straight line
 basis over the lease term.