The financial statements are prepared under historical cost convention
 on an accrual basis and comply with the Accounting Standards (AS)
 issued by the Institute of Chartered Accountants of India (ICAI),
 referred to in Section 211 (3C) of the Companies Act, 1956. The
 significant accounting policies adopted in the presentation of the
 Accounts are as under:
 
 (a) Accounting Convention and Revenue Recognitions:
 
 The Financial statements have been prepared in accordance with
 historical cost convention except for such fixed which are revalued.
 Both the income and expenditure items are recognized on accrual basis.
 
 (b) Retirement Benefits:
 
 Staff benefits arising out of retirement /death, comprising of
 contributions to Provident Fund, Superannuation & Gratuity Schemes,
 accrued Leave Encashable and other post-separation benefits are
 accounted for on the basis of contribution to the schemes, or an
 independent actuarial valuation as the case may be as per AS-15.
 
 (c) Fixed Assets:
 
 Fixed assets are stated at cost of acquisition and subsequent
 improvements thereto, inclusive of taxes, freight, and other incidental
 expenses related to acquisition, improvements and installation, except
 in case of revaluation of fixed assets where it is stated at revalued
 amount. Interest during construction period on loans to finance fixed
 assets is capitalized as per AS-10.
 
 (d) Depreciation:
 
 Depreciation on fixed assets other than land is provided under the
 straight-line method at the rates and in the manner specified in
 Schedule XIV to the Companies Act, 1956, as existing on that date as
 per AS-6.
 
 (e) Transactions in Foreign Exchange:
 
 Sales made in foreign currency are converted at the prevailing
 applicable exchange rate. Gain /loss arising out of the fluctuations in
 exchange rate is accounted for on realization.
 
 Payment made in foreign currency are converted at the applicable rate
 prevailing on the date of remittance as per AS-11.
 
 (f) Borrowing Cost
 
 Borrowing cost that is attributable to the acquisition /construction of
 fixed assets is capitalized as part of the cost of respective assets as
 per AS-16.
 
 (g) Inventories:
 
 Stock of food and beverages and operating supplies are carried at cost
 or Market Value, whichever is lower as per AS-2.
 
 (h) Taxes on income:
 
 (i) Income tax is computed in accordance with Accounting Standard 22 -
 ''Accounting for Taxes on Income (AS-22), issued by the ICAI. Tax
 expenses are accounted in the same period to which the revenue and
 expenses relate.
 
 (ii) Provision for current income tax is made on the tax liability
 payable on taxable income after considering tax allowances, deductions
 and exemptions determined in accordance with the prevailing tax laws.
 The differences between taxable income and the net profit or loss
 before tax for the year as per the financial statements are identified
 and the tax effect of the deferred tax asset or deferred tax
 1iabilities recorded for timing differences, i.e. differences that
 originate in one accounting period and reverse in another. The tax
 effect is calculated on accumulated timing differences at the end of
 the accounting year based on effective tax rates that would apply in
 the years in which the timing differences are expected to reverse.
 
 (iii) Deferred tax assets are recognized only if there is reasonable
 certainty that they will be realized and are reviewed for the
 appropriateness of their respective carrying values at each balance
 sheet date.
 
 (i) Accounting for Provisions, Contingent Liabilities and Contingent
 Assets
 
 Provisions are recognized in terms of Accounting Standard 29 —
 ''Provisions, Contingent Liabilities and Contingent Assets'' (AS-29),
 issued by the ICAI., when there is a present legal or statutory
 obligation as a result of past events, where it is probable that there
 will be outflow of resources to settle the obligation and when a
 reliable estimate of the amount of the obligation can be made.
 
 Contingent Liabilities are recognized only when there is a possible
 obligation arising from past events due to occurrence or non-occurrence
 of one or more uncertain future events not wholly within the control of
 the Company or where any present obligation cannot be measured in terms
 of future outflow of resources or where a reliable estimate of the
 obligation cannot be made. Obligations are assessed on an ongoing basis
 and only those having a largely probable outflow of resources are
 provided for.
 
 Contingent Assets are not recognized in the financial statements.
 
 (j) Earnings per Share:
 
 The earning considered in ascertaining the earning per share comprise
 net profit after tax. The number of shares used in computing basis
 earning per share is the weighted average number of shares outstanding
 during the year as per AS-20.