1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS & ACCOUNTING
Financial statements have been prepared in accordance with the
historical cost convention, mercantile basis, generally accepted
accounting principles, Accounting Standards and requirements of the
Companies Act, 1956.
2. FIXED ASSETS
Fixed assets (except land) have been stated at cost of acquisition
inclusive of inward freight, duties and taxes and interest during
construction period and incidental expenses related to acquisition. In
respect of items involving construction, installation, erection,
fabrication, etc, all related pre- operational expenses & interest
during construction period has form part of the value of the assets
capitalized. However, Land has been stated at a revalued figure.
Depreciation has been provided on straight-line method as per Schedule
XIV of the Companies Act, 1956. However in respect of assets
purchased/constructed at site at different times, depreciation is
provided on pro-rata basis. Fixed assets are depreciated up to 95
percent of its historical cost.
Inventories have been valued at cost or market price, whichever is
less. Cost includes freight & other related incidental expenses.
5. EMPLOYEE BENEFITS
(i) Defined Contribution Plan
Company''s contributions for the year to Provident Fund & Employees
Pension scheme are recognized in the Profit & Loss Account.
(ii) Defined Benefit Plan
Provision for gratuity has been made on the basis of actuarial
(iii) Short term employee benefits are recognized as an expense at the
undiscounted amount in the Profit & Loss Account of the year in which
the related service is rendered.
6. REVENUE RECOGNITION
Income Comprise of room rent, sale of food & beverages and other
services related to hotel/ Resort operations revenue is recognized upon
rendering of the services.
7. IMPAIRMENT OF ASSETS
The company assesses at balance sheet, date whether there is any
indication of any asset being impaired. An asset is treated as impaired
when the carrying cost of assets exceeds its recoverable value. An
impairment loss is charged to the profit and loss account in the year
in which an asset is identified as impaired. The impairment loss
recognized in prior accounting period is reversed, if there has been a
change in the estimate of recoverable amount.
Current Investments are stated at lower of cost or market value.
Long-Term Investments are stated at cost.
9. PROVISION FOR CURRENT TAX AND DEFERRED TAX; Provision for Current
Tax is made on the basis of estimated taxable income for the current
accounting period and in accordance with the provisions as per Income
Tax Act, 1961. Deferred tax resulting from timing difference between
book and taxable profits for the year is accounted for using the tax
rates and laws that have been enacted or substantially enacted as on
the balance sheet
date. The deferred tax asset is recognized and carried forward only to
the extent that there is reasonable certainty that the assets will be
adjusted in future.