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.
 
 3.  DEPRECIATION
 
 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.
 
 4.  INVENTORIES
 
 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
 valuation
 
 (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.
 
 8.  INVESTMENTS
 
 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.