1. ACCOUNTING CONVENTION
The financial statements are prepared under the historical cost
convention in accordance with applicable Accounting Standards and
presentational requirements of the Companies Act, 1956, on the basis of
going concern and on an accrual basis unless otherwise stated.
2. USE OF ESTIMATES
The preparation of financial statements requires the management of the
Company to make estimates and assumptions that affect the reported
balances of assets and liabilities and disclosures relating to the
contingent liabilities as at the date of the financial statements and
reported amounts of income and expenses during the period. Examples of
such estimates include provision for doubtful debts, future obligations
under employee retirement benefit plans, provision for income taxes and
the useful life of fixed assets. Contingencies are recorded when it is
probable that a liability will be incurred and the amount can be
reasonably estimated. Actual results could differ from such estimates.
3. REVENUE RECOGNITION
(a) Income from dividends on shares are accounted for on receipt basis.
(c) Income from guest accommodation is recognised on a day to day basis
after the guest checks into the Resort.
All expenses are accounted for on accrual basis.
5. FIXED ASSETS. DEPRECIATION & IMPAIRMENT
Fixed assets are stated at cost including those related to acquisition,
less accumulated depreciation. The Company follows the straight line
method of depreciation in respect of all its assets at the rates
prescribed by Schedule XIV of the Companies Act, 1956.Depreciation is
calculated on a pro-rata basis from the date of additions, except in
the case of assets costing up to Rs.5,000/- each, where each such asset
is fully depreciated in the year of purchase.
At each balance sheet date, the Company assesses whether there is any
indication that an asset may be impaired. If any such indication
exists, an impairment loss, that is the amount by which the carrying
amount of assets exceeds its recoverable amount, is provided in the
books of account.
Long term investments are carried at cost. Provision is made for
diminution in value, other than temporary, on an individual basis.
Current investments are carried at the lower of cost and fair value,
determined on a category-wise basis.
Stock of consumables at restaurant is valued at cost, ascertained on
weighted average purchase price.
8. EMPLOYEE BENEFITS
Short term employee benefits are charged off at the undiscounted amount
in the year in which the related service is rendered. Post employment
and other long term employee benefits are charged off in the year in
which the employee has rendered services. The amount charged off is
recognized at the present value of the amount payable determined using
actuarial valuation techniques. Actuarial gains and losses in respect
of post employment and long term benefits are charged to Profit & Loss
Account. As the Company does not have any employee having service
tenure of over 5 years, provisions for gratuity have not been made in
terms of the Accounting Standard on Accounting for Retirement Benefits
in the Financial Statements of Employees (AS-15).
9. PROVISION FOR INCOME TAX AND DEFFERED TAX
Provision for Minimum Alternate Tax (MAT) amounting to Rs.1.33 lacs
has been made under section 115JB of the Income Tax Act, 1961.
Deferred tax is recognised, subject to the consideration of prudence,
on timing differences, being the difference between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods. In consonance with
Accounting Standard-22, Accounting for Taxes on Income, issued by the
Institute of Chartered Accountants of India, the Company has recognized
deferred tax asset for the year ended March 31, 201 of Rs.0.39 Lacs
in the Profit & Loss Account. Breakup of net deferred tax Liability as
on 31.03.2011 is as follows:
(Amount in Rs.)
10. FOREIGN EXCHANGE TRANSACTIONS
Transactions in foreign currencies are recorded at the exchange rate
prevailing on the date of the transaction.
i). Monetary items outstanding as at the Balance Sheet date are
translated at the exchange rate prevailing at the Balance Sheet date
and the resultant difference is recognised as income or expense, as the
case may be;
ii). Non-monetary items outstanding as at the Balance Sheet date are
reported, using the exchange rate prevailing on the date of each