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.
 
 4.  EXPENDITURE
 
 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.
 
 6.  INVESTMENTS
 
 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.
 
 7.  INVENTORIES
 
 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
 transaction.