Accounting Policies of H S India Ltd. Company

Mar 31, 2025

Note 1’- SIGNIFICANT ACCOUNTING POLICIES

A. Corporate Information:

These financial statements comprise financial statements of H S India Limited
(“the Company”) for the year ended on 31^st March, 2025. The Company was incorporated on
12^th September, 1989 under the provisions of the Companies Act, 1956. The Company is into
the business of Hotels and Restaurants. The Company is listed on BSE Ltd.

B. Basis of Preparation:

The financial statements of the Company have been prepared in accordance with the provisions
of the Companies Act, 2013 and the Indian Accounting Standards ("Ind AS") notified under
the Companies (Indian Accounting Standards) Rules, 2015 and amendments thereof issued by
Ministry of Corporate Affairs under Section 133 of the Companies Act, 2013 and other
accounting principles generally accepted in India based on Schedule III of the Companies Act,
2013.

Accounting policies have been consistently applied except where a newly issued Accounting
Standard is initially adopted or a revision of an existing Accounting Standard requires a change
in accounting policy hitherto in use unless otherwise stated.

C. Use of Estimates:

The preparation of the financial statements in conformity with Ind AS requires management to
make estimates, judgments and assumptions. These estimates, judgments and assumptions
affect the application of accounting policies and the reported amounts of assets and liabilities,
the disclosures of contingent assets and liabilities at the date of the financial statements and
reported amounts of revenues and expenses during the period. Although these estimates are
based on the management''s best knowledge of current events and actions, uncertainty about
these assumptions and estimates could result in the outcomes requiring a material adjustment
to the carrying amounts of assets or liabilities in future periods. Changes in estimates are
reflected in the financial statements in the period in which changes are made and, if material,
their effects are disclosed in the notes to the financial statements.

D. Classification of Assets and Liabilities into current and Non-current:

The company presents its assets and liabilities in the Balance Sheet based on current/non-
current classification; an asset is treated as current when it is:

i) Expected to be realized or intended to be sold or consumed in the normal operating
cycle; or

ii) Held primarily for the purpose of trading; or

iii) Expected to be realized within twelve months after the reporting period; or

iv) Cash or cash equivalent unless restricted from being exchanged or used to settle a
liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is treated as current when it is:

i) Expected to be settled in the normal operating cycle; or

ii) Held primarily for the purpose of trading; or

iii) Expected to be settled within twelve months after the reporting period; or

iv) There is no unconditional right to defer the settlement of the liability for at least twelve
months after the reporting period.

All other liabilities are classified as non-current.

The operating cycle is the time between the acquisition of assets and their realization in cash
and cash equivalents. Based on the services rendered and their realizations in cash and cash
equivalents, the Company has ascertained its operating cycle is twelve months for the purpose
of current and non-current classification of assets and liabilities.

E. Property, Plant and Equipment:

Property, Plant and Equipment:

Freehold land is carried at historical cost. All other items of property, plant and equipment are
measured at cost less accumulated depreciation and impairment losses, if any. Cost s include
freight, import duties, non-refundable purchase taxes and other expenses directly attributable to
the acquisition of the asset but exclude GST and / or other Taxes against which credit is
availed.

Depreciation and Amortisation:

Depreciation is provided on straight line method applying the useful lives as prescribed in Part
C of the Schedule II to the Companies Act, 2013.

Gains/Losses on disposals/de-recognition of property, plant and equipment are determined by
comparing proceeds with carrying amount and these are recognized in Statement of Profit and
Loss.

F. Intangible Assets:

Intangible assets are carried at cost, net of credit availed in respect of any taxes and duties, less
accumulated amortization.

G. Leases:

The determination of whether an arrangement is (or contains) a finance lease or operating lease
is based on the substance of the arrangement at the inception of lease. A lease is classified at
the inception date as a finance lease or an operating lease. A lease that transfer substantially all
the risks and rewards incidental to ownership to the lessee is classified as finance lease.

Lessee: Leases where the lessor effectively retains substantially all the risks and benefits of
ownership of assets over the lease term, are classified as operating leases. Operating lease
payments are recognized as an expense in the Statement of Profit and Loss on a straight line
basis unless payments to the lessor are structured to increase in line with expected general
inflation to compensate for the lessor’s expected inflationary cost increase.

Lessor: Rental income from operating lease is recognised on a straight line basis over the lease
term unless payments to the Company are structured to increase in line with expected general
inflation to compensate for the Company’s expected inflationary cost increase. Initial direct
costs incurred in negotiating and arranging an operating lease are added to the carrying amount
of the leased asset and recognised over the lease term on the same basis as rental income.
Contingent rents are recognised as revenue in the period in which they are earned.

H. Revenue Recognition:

Revenue is recognised to the extent that it is probable that the economic benefits will flow to
the Company and the revenue can be reliably measured, regardless of when the payment is
being made. Revenue is measured at the performance specific transaction price (net of variable
consideration, if any) received or receivable, taking into account contractually defined terms of
payment and excluding taxes or duties collected on behalf of the government.

i) Revenue from Rooms, Food and Beverage and Banquets is recognised at the
transaction price that is allocated to the performance obligation. Revenue includes room
revenue, food and beverage sale and banquet services which is recognised after
completion of service to the customer.

ii) Other revenue such as laundry income, communication income and other allied
services, the revenue has been recognised by reference to the time of service rendered.

iii) Income from sale of Liquor is recognised at the time of delivery of goods to the
customer.

iv) Rentals are recognized on accrual basis.

v) Interest income is recognised on a time proportion basis taking into account the amount
outstanding and the rate applicable.

vi) Insurance claims are recognized as and when they are settled / admitted.

vii) Income stated above is exclusive of taxes collected. Rebates and discounts granted to
customers are reduced from revenue.

I. Foreign Exchange Transactions:

The Company’s financial statements are presented in Indian Rupee (Rs.), which is also the
Company’s functional currency.

a. Initial recognition: Transactions in foreign currencies are initially recorded at the exchange
rates (Rs. spot rate) prevailing on the date of the transaction.

b. Conversion: Foreign currency monetary items are reported at the exchange rates (Rs. spot
rate) on Balance Sheet date.

c. Exchange Difference: Exchange differences arising on the settlement of monetary items, on
reporting of such monetary items at rates different from those at which they were initially
recorded during the year or reported in previous financial statements, are recognized as
income or expense in the year in which they arise. Foreign currency assets / liabilities are
restated at the rates prevailing at the year end and the gain / loss arising out of such
restatement is taken to revenue.

J. Inventories:

Inventories of food and beverages and other consumables and operating supplies are measured
at cost. Inventories of liquor / wine are valued at the lower of cost and net realisable value.

K. Financial Instruments:

Financial assets and liabilities are recognised when the Company becomes party to the
contractual provisions of the instrument. Financial assets (except Trade Receivables that are
measured at transaction value) and liabilities are initially measured at fair value. Transaction
costs that are directly attributable to the acquisition or issue of financial assets and financial
liabilities (other than financial assets and financial liabilities at fair value through profit and
loss) are added to or deducted from the fair value measured on initial recognition of financial
assets or financial liabilities

Financial Assets:

Financial assets, other than equity instruments, are subsequently measured at amortised cost,
fair value through other comprehensive income or fair value through profit or loss on the basis
of both:

(a) the entity’s business model for managing the financial assets; and

(b) the contractual cash flow characteristics of the financial asset.

(a) Measured at amortised cost:

A financial asset is measured at amortised cost, if it is held within a business model whose
objective is to hold the assets in order to collect contractual cash flows and the contractual

terms of the financial assets give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal outstanding.

(b) Measured at fair value through other comprehensive income (FVOCI):

A financial asset is measured at FVOCI, if it is held within a business model whose objective is
achieved by both contractual cash flows and selling such financial asset and the contractual
terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal outstanding.

(c) Measured at fair value through profit or loss (FVTPL):

A financial asset, which is not classified in any of above categories, is measured at FVTPL.
Equity Instruments:

All equity instruments are measured at fair value, with value changes recognised in Statement
of Profit and Loss, except for those equity investments for which the Company has elected to
present the value changes in “Other Comprehensive Income”. If sufficient more recent
information is not available to measure the fair value of the equity instrument or where the cost
represents the best estimate of fair value, in such cases, such equity instruments has been
measured at cost.

Impairment:

In accordance with Ind AS 109, the Company uses ‘Expected Credit Loss’ (ECL) model, for
evaluating impairment of financial assets other than those measured at fair value through profit
and loss (FVTPL).

Expected credit losses are measured through a loss allowance at an amount equal to:

• The 12-months expected credit losses (expected credit losses that result from those
default events on the financial instrument that are possible within 12 months after the
reporting date); or

• Full lifetime expected credit losses (expected credit losses that result from all possible
default events over the life of the financial instrument).

For trade receivables Company applies ‘simplified approach’ which requires expected lifetime
losses to be recognised from initial recognition of the receivables. The Company uses historical
default rates to determine impairment loss on the portfolio of trade receivables. At every
reporting date these historical default rates are reviewed and changes in the forward looking
estimates are analysed.

For other assets, the Company uses 12 months ECL to provide for impairment loss where there
is no significant increase in credit risk. If there is significant increase in credit risk full lifetime
ECL is used.

Financial Liabilities:

Initial Recognition and measurement:

All financial liabilities are recognized at fair value and in case of loans, net of directly
attributable cost. Fees of recurring nature are directly recognised in the Statement of Profit and
Loss as finance cost.

Subsequent measurement:

All financial liabilities are recognized at fair value except when the effect of applying it is
immaterial and in case of loans, net of directly attributable cost. Fees of recurring nature are
directly recognised in the Statement of Profit and Loss as finance cost.

De-recognition of Financial Instruments:

The Company derecognizes a financial asset when the contractual rights to the cash flows from
the financial asset expire or it transfers the financial asset and the transfer qualifies for de¬
recognition under Ind AS 109. A financial liability (or a part of a financial liability) is
derecognized from the Company''s Balance Sheet when the obligation specified in the contract
is discharged or cancelled or expires.

Offsetting of financial instruments:

Financial assets and financial liabilities are offset and the net amount is reported in the Balance
Sheet if there is a currently enforceable legal right to offset the recognised amounts and there is
an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

L. Impairment of non-financial assets:

The Company assesses, at each reporting date, whether there is an indication that an asset may
be impaired. If any indication exists, or when annual impairment testing for an asset is
required, the Company estimates the asset’s recoverable amount. An asset’s recoverable
amount is the higher of an asset’s or cash-generating unit’s (CGU) fair value less costs of
disposal and its value in use. Recoverable amount is determined for an individual asset, unless
the asset does not generate cash inflows that are largely independent of those from other assets
or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable
amount, the asset is considered impaired and is written down to its recoverable amount. In
assessing value in use, the estimated future cash flows are discounted to their present value
using a pre-tax discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset. In determining fair value less costs of disposal, recent
market transactions are taken into account. The Company bases its impairment calculation on
detailed budgets and forecast calculations, which are prepared separately for each of the
Company’s CGUs to which the individual assets are allocated. These budgets and forecast
calculations generally cover a period of five years. For longer periods, a long-term growth rate
is calculated and applied to project future cash flows after the fifth year. To estimate cash flow
projections beyond periods covered by the most recent budgets/forecasts, the Company
extrapolates cash flow projections in the budget using a steady or declining growth rate for
subsequent years, unless an increasing rate can be justified. Impairment losses of continuing
operations, including impairment on inventories, are recognised in the statement of profit and
loss. An assessment is made at each reporting date to determine whether there is an indication
that previously recognised impairment losses no longer exist or have decreased. If such
indication exists, the Company estimates the asset’s or CGU’s recoverable amount. A
previously recognised impairment loss is reversed only if there has been a change in the
assumptions used to determine the asset’s recoverable amount since the last impairment loss
was recognised. The reversal is limited so that the carrying amount of the asset does not exceed
its recoverable amount, nor exceed the carrying amount that would have been determined, net
of depreciation, had no impairment loss been recognised for the asset in prior years. Such
reversal is recognised in the statement of profit or loss.

M. Fair Value Measurement:

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. The fair value
measurement is based on the presumption that the transaction to sell the asset or transfer the
liability takes place either:

(i) In the principal market for the asset or liability, or

(ii) In the absence of a principal market, in the most advantageous market for the asset or
liability.

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market
participants would use when pricing the asset or liability, assuming that market participants act
in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s
ability to generate economic benefits by using the asset in its highest and best use or by selling
it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for
which sufficient data are available to measure fair value, maximising the use of relevant
observable inputs and minimising the use of unobservable inputs.

The Company uses the following hierarchy for determining and disclosing the fair value of
financial instruments by valuation technique:

Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: Other techniques for which all inputs which have a significant effect on the recorded
fair value are observable, either directly or indirectly.

Leve l 3: Techniques which use inputs that have a significant effect on the recorded fair value
that are not based on observable market data.

For assets and liabilities that are recognised in the financial statements on a recurring basis, the
Company determines whether transfers have occurred between levels in the hierarchy by re¬
assessing categorisation (based on the lowest level input that is significant to the fair value
measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and
liabilities on the basis of the nature, characteristics and risks of the asset or liability and the
level of the fair value hierarchy as explained above.

N. Employee Benefits:

The Company has following post-employment plans:

(a) Defined benefit plans such a gratuity;

(b) Defined contribution plans such as Provident fund and Superannuation fund; and

(c) Other Employee Benefits.

a) Defined-benefit plan:

For defined benefit plans, the cost of providing benefits is determined using the Projected Unit
Credit Method, with actuarial valuations being carried out at each balance sheet date. Actuarial
gains and losses are recognised in full in the other comprehensive income for the period in
which they occur. Past service cost both vested and unvested is recognised as an expense at the
earlier of (a) when the plan amendment or curtailment occurs; and (b) when the entity
recognises related restructuring cost or termination benefits.

The retirement benefit obligations recognised in the Balance Sheet represents the present value
of the defined benefit obligations reduced by the fair value of scheme assets. Any asset
resulting from this calculation is limited to the present value of available refunds and
reductions in future contributions to the scheme.

b) Defined-contribution plan:

Contributions to defined contribution plans are recognised as expense when employees have
rendered services entitling them to such benefits.

c) Other employee benefits:

Compensated absences which are not expected to occur within twelve months after the end of
the period in which the employee renders the related services are recognised as a liability at the
present value of the obligation as at the Balance sheet date

O. Taxes on Income:

The tax expense for the period comprises of current tax and deferred income tax. Tax is
recognised in Statement of Profit and Loss, except to the extent that it relates to items
recognised in the Other Comprehensive Income or in equity. In which case, the tax is also
recognised in Other Comprehensive Income or Equity.

(a) Current Tax:

Current tax assets and liabilities are measured at the amount expected to be recovered from
or paid to the Income Tax authorities, based on tax rates and laws that are applicable for the
period of Financial Statement.

(b) Deferred Tax:

Deferred tax is recognised on time differences between the carrying amounts of assets and
liabilities in the Financial Statements and the corresponding tax bases used in the
computation of taxable profit.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in
the period in which the liability is settled or the asset realised, based on tax rates (and tax
laws) that have been enacted or substantively enacted by the end of the reporting period.
The carrying amount of Deferred tax liabilities and assets are reviewed at the end of each
reporting period.

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Mar 31, 2024

Note 1’- SIGNIFICANT ACCOUNTING POLICIES

A. Corporate Information:

These financial statements comprise financial statements of H S India Limited
(“the Company”) for the year ended on 31^st March, 2024. The Company was incorporated on
12^th September, 1989 under the provisions of the Companies Act, 1956. The Company is into
the business of Hotels and Restaurants. The Company is listed on BSE Ltd.

B. Basis of Preparation:

The financial statements of the Company have been prepared in accordance with the provisions
of the Companies Act, 2013 and the Indian Accounting Standards ("Ind AS") notified under
the Companies (Indian Accounting Standards) Rules, 2015 and amendments thereof issued by
Ministry of Corporate Affairs under Section 133 of the Companies Act, 2013 and other
accounting principles generally accepted in India based on Schedule III of the Companies Act,
2013.

Accounting policies have been consistently applied except where a newly issued Accounting
Standard is initially adopted or a revision of an existing Accounting Standard requires a change
in accounting policy hitherto in use unless otherwise stated.

C. Use of Estimates:

The preparation of the financial statements in conformity with Ind AS requires management to
make estimates, judgments and assumptions. These estimates, judgments and assumptions
affect the application of accounting policies and the reported amounts of assets and liabilities,
the disclosures of contingent assets and liabilities at the date of the financial statements and
reported amounts of revenues and expenses during the period. Altho ugh these estimates are
based on the management''s best knowledge of current events and actions, uncertainty about
these assumptions and estimates could result in the outcomes requiring a material adjustment
to the carrying amounts of assets or liabilities in future periods. Changes in estimates are
reflected in the financial statements in the period in which changes are made and, if material,
their effects are disclosed in the notes to the financial statements.

D. Classification of Assets and Liabilities into current and Non-current:

The company presents its assets and liabilities in the Balance Sheet based on current/non-
current classification; an asset is treated as current when it is:

i) Expected to be realized or intended to be sold or consumed in the normal operating
cycle; or

ii) Held primarily for the purpose of trading; or

iii) Expe cted to be realized within twelve months after the reporting period; or

iv) Cash or cash equivalent unless restricted from being exchanged or used to settle a
liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is treated as current when it is:

i) Expected to be settled in the normal operating cycle; or

ii) Held primarily for the purpose of trading; or

iii) Expected to be settled within twelve months after the reporting period; or

iv) There is no unconditional right to defer the settlement of the liability for at least twelve
months after the reporting period.

All other liabilities are classified as non-current.

The operating cycle is the time between the acquisition of assets and their realization in cash
and cash equivalents. Based on the services rendered and their realizations in cash and cash
equivalents, the Company has ascertained its operating cycle is twelve months for the purpose
of current and non-current classification of assets and liabilities.

E. Property. Plant and Equipment:

Property, Plant and Equipment:

Freehold land is carried at historical cost. All other items of property, plant and equipment are
measured at cost less accumulated depreciation and impairment losses, if any. Costs include
freight, import duties, non-refundable purchase taxes and other expenses directly attributable to
the acquisition of the asset but exclude GST and / or other Taxes against which credit is
availed.

Depreciation and Amortisation:

Depreciation is provided on straight line method applying the useful lives as prescribed in Part
C of the Schedule II to the Companies Act, 2013.

Gains/Losses on disposals/de-recognition of property, plant and equipment are determined by
comparing proceeds with carrying amount and these are recognized in Statement of Profit and
Loss.

F. Intangible Assets:

Intangible assets are carried at cost, net of credit availed in respect of any taxes and duties, less
accumulated amortization.

G. Leases:

The determination of whether an arrangement is (or contains) a finance lease or operating lease
is based on the substance of the arrangement at the inception of lease. A lease is classified at
the inception date as a finance lease or an operating lease. A lease that transfer substantially all
the risks and rewards incidental to ownership to the lessee is classified as finance lease.

Lessee: Leases where the lessor effectively retains substantially all the risks and benefits of
ownership of assets over the lease term, are classified as operating leases. Operating lease
payments are recognized as an expense in the Statement of Profit and Loss on a straight line
ba sis unless payments to the lessor are structured to increase in line with expected general
inflation to compensate for the lessor’s expected inflationary cost increase.

Lessor: Rental income from operating lease is recognised on a straight line basis over the lease
term unless payments to the Company are structured to increase in line with expected general
inflation to compensate for the Company’s expected inflationary cost increase. Initial direct
costs incurred in negotiating and arranging an operating lease are added to the carrying amount
of the leased asset and recognised over the lease term on the same basis as rental income.
Contingent rents are recognised as revenue in the period in which they are earned.

H. Revenue Recognition:

Revenue is recognised to the extent that it is probable that the economic benefits will flow to
the Company and the revenue can be reliably measured, regardless of when the payment is
being made. Revenue is measured at the performance specific transaction price (net of variable
consideration, if any) received or receivable, taking into account contractually defined terms of
payment and excluding taxes or duties collected on behalf of the government.

i) Revenue from Rooms, Food and Beverage and Banquets is recognised at the
transaction price that is allocated to the performance obligation. Revenue includes room
revenue, food and beverage sale and banquet services which is recognised after
completion of service to the customer.

ii) Other revenue such as laundry income, communication income and other allied
services, the revenue has been recognised by reference to the time of service rendered.

iii) Income from sale of Liquor is recognised at the time of delivery of goods to the
customer.

iv) Rentals are recognized on accrual basis.

v) Interest income is recognised on a time proportion basis taking into account the amount
outstanding and the rate applicable.

vi) Insurance claims are recognized as and when they are settled / admitted.

vii) Income stated above is exclusive of taxes collected. Rebates and discounts granted to
customers are reduced from revenue.

I. Foreign Exchange Transactions:

The Company’s financial statements are presented in Indian Rupee (Rs.), which is also the
Company’s functional currency.

a. Initial recognition: Transactions in foreign currencies are initially recorded at the exchange
rates (Rs. spot rate) prevailing on the date of the transaction.

b. Conversion: Foreign currency monetary items are reported at the exchange rates (Rs. spot
rate) on Balance Sheet date.

c. Exchange Difference: Exchange differences arising on the settlement of monetary items, on
reporting of such monetary items at rates different from those at which they were initially
recorded during the year or reported in previous financial statements, are recognized as
income or expense in the year in which they arise. Foreign currency assets / liabilities are
restated at the rates prevailing at the year end and the gain / loss arising out of such
restatement is taken to revenue.

J. Inventories:

Inventories of food and beverages and other consumables and operating supplies are measured
at cost. Inventories of liquor / wine are valued at the lower of cost and net realisable value.

K. Financial Instruments:

Financial assets and liabilities are recognised when the Company becomes party to the
contractual provisions of the instrument. Financial assets (except Trade Receivables that are
measured at transaction value) and liabilities are initially measured at fair value. Transaction
costs that are directly attributable to the acquisition or issue of financial assets and financial
liabilities (other than financial assets and financial liabilities at fair value through profit and
loss) are added to or deducted from the fair value measured on initial recognition of financial
assets or financial liabilities.

Financial Assets:

Financial assets, other than equity instruments, are subsequently measured at amortised cost,
fair value through other comprehensive income or fair value through profit or loss on the basis
of both:

(a) the entity’s business model for managing the financial assets; and

(b) the contractual cash flow characteristics of the financial asset.

(a) Measured at amortised cost:

A financial asset is measured at amortised cost, if it is held within a business model whose
objective is to hold the assets in order to collect contractual cash flows and the contractual
terms of the financial assets give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal outstanding.

(b) Measured at fair value through other comprehensive income (FVOCI):

A financial asset is measured at FVOCI, if it is held within a business model whose objective is
achieved by both contractual cash flows and selling such financial asset and the contractual
terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal outstanding.

(c) Measured at fair value through profit or loss (FVTPL):

A financial asset, which is not classified in any of above categories, is measured at FVTPL.
Equity Instruments:

All equity instruments are measured at fair value, with value changes recognised in Statement
of Profit and Loss, except for those equity investments for which the Company has elected to
present the value changes in “Other Comprehensive Income”. If sufficient more recent
information is not available to measure the fair value of the equity instrument or where the cost
represents the best estimate of fair value, in such cases, such equity instruments has been
measured at cost.

Impairment:

In accordance with Ind AS 109, the Company uses ‘Expected Credit Loss’ (ECL) model, for
evaluating impairment of financial assets other than those measured at fair value through profit
and loss (FVTPL).

Expected credit losses are measured through a loss allowance at an amount equal to:

• The 12-months expected credit losses (expected credit losses that result from those
default events on the financial instrument that are possible within 12 months after the
reporting date); or

• Full lifetime expected credit losses (expected credit losses that result from all possible
default events over the life of the financial instrument).

For trade receivables Company applies ‘simplified approach’ which requires expected lifetime
losses to be recognised from initial recognition of the receivables. The Company uses historical
default rates to determine impairment loss on the portfolio of trade receivables. At every
reporting date these historical default rates are reviewed and changes in the forward looking
estimates are analysed.

For other assets, the Company uses 12 months ECL to provide for impairment loss where there
is no significant increase in credit risk. If there is significant increase in credit risk full lifetime
ECL is used.

Financial Liab ilities:

Initial Recognition and measurement:

All financial liabilities are recognized at fair value and in case of loans, net of directly
attributable cost. Fees of recurring nature are directly recognised in the Statement of Profit and
Loss as finance cost.

Subsequent measurement:

All financial liabilities are recognized at fair value except when the effect of applying it is
immaterial and in case of loans, net of directly attributable cost. Fees of recurring nature are
directly recognised in the Statement of Profit and Loss as finance cost.

De-recognition of Financial Instruments:

The Company derecognizes a financial asset when the contractual rights to the cash flows from
the financial asset expire or it transfers the financial asset and the transfer qualifies for de¬
recognition under Ind AS 109. A financial liability (or a part of a financial liability) is
derecognized from the Company''s Balance Sheet when the obligation specified in the contract
is discharged or cancelled or expires.

Offsetting of financial instruments:

Financial assets and financial liabilities are offset and the net amount is reported in the Balance
Sheet if there is a currently enforceable legal right to offset the recognised amounts and there is
an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

L. Impairment of non-financial assets:

The Company assesses, at each reporting date, whether there is an indication that an asset may
be impaired. If any indication exists, or when annual impairment testing for an asset is
required, the Company estimates the asset’s recoverable amount. An asset’s recoverable
amount is the higher of an asset’s or cash-generating unit’s (CGU) fair value less costs of
disposal and its value in use. Recoverable amount is determined for an individual asset, unless
the asset does not generate cash inflows that are largely independent of those from other assets
or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable
amount, the asset is considered impaired and is written down to its recoverable amount. In
assessing value in use, the estimated future cash flows are discounted to their present value
using a pre-tax discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset. In determining fair value less costs of disposal, recent
market transactions are taken into account. The Company bases its impairment calculation on
detailed budgets and forecast calculations, which are prepared separately for each of the
Company’s CGUs to which the individual assets are allocated. These budgets and forecast
calculations generally cover a period of five years. For longer periods, a long-term growth rate
is calculated and applied to project future cash flows after the fifth year. To estimate cash flow
projections beyond periods covered by the most recent budgets/forecasts, the Company
extrapolates cash flow projections in the budget using a steady or declining growth rate for
subsequent years, unless an increasing rate can be justified. Impairment losses of continuing
operations, including impairment on inventories, are recognised in the statement of profit and
loss. An assessment is made at each reporting date to determine whether there is an indication
that previously recognised impairment losses no longer exist or have decreased. If such
indication exists, the Company estimates the asset’s or CGU’s recoverable amount. A
previously recognised impairment loss is reversed only if there has been a change in the
assumptions used to determine the asset’s recoverable amount since the last impairment loss
was recognised. The reversal is limited so that the carrying amount of the asset does not exceed
its recoverable amount, nor exceed the carrying amount that would have been determined, net
of depreciation, had no impairment loss been recognised for the asset in prior years. Such
reversal is recognised in the statement of profit or loss.

M. Fair Value Measurement:

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. The fair value
measurement is based on the presumption that the transaction to sell the asset or transfer the
liability takes place either:

(i) In the principal market for the asset or liability, or

(ii) In the absence of a principal market, in the most advantageous market for the asset or
liability.

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market
participants would use when pricing the asset or liability, assuming that market participants act
in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s
ability to generate economic benefits by using the asset in its highest and best use or by selling
it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for
which sufficient data are available to measure fair value, maximising the use of relevant
observable inputs and minimising the use of unobservable inputs.

The Company uses the following hierarchy for determining and disclosing the fair value of
financial instruments by valuation technique:

Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: Other techniques for which all inputs which have a significant effect on the recorded
fair value are observable, either directly or indirectly.

Level 3: Techniques which use inputs that have a significant effect on the recorded fair value
that are not based on observable market data.

For assets and liabilities that are recognised in the financial statements on a recurring basis, the
Company determines whether transfers have occurred between levels in the hierarchy by re¬
assessing categorisation (based on the lowest level input that is significant to the fair value
measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and
liabilities on the basis of the nature, characteristics and risks of the asset or liability and the
level of the fair value hierarchy as explained above.

N. Employee Benefits:

The Company has following post-employment plans:

(a) Defined benefit plans such a gratuity;

(b) Defined contribution plans such as Provident fund and Superannuation fund; and

(c) Other Employee Benefits.

a) Defined-benefit plan:

For defined benefit plans, the cost of providing benefits is determined using the Projected Unit
Credit Method, with actuarial valuations being carried out at each balance sheet date. Actuarial
gains and losses are recognised in full in the other comprehensive income for the period in
which they occur. Past service cost both vested and unvested is recognised as an expense at the
earlier of (a) when the plan amendment or curtailment occurs; and (b) when the entity
recognises related restructuring cost or termination benefits.

The retirement benefit obligations recognised in the Balance Sheet represents the present value
of the defined benefit obligations reduced by the fair value of scheme assets. Any asset
resulting from this calculation is limited to the present value of available refunds and
reductions in future contributions to the scheme.

b) Defined-contribution plan:

Contributions to defined contribution plans are recognised as expense when employees have
rendered services entitling them to such benefits.

c) Other employee benefits:

Compensated absences which are not expected to occur within twelve months after the end of
the period in which the employee renders the related services are recognised as a liability at the
present value of the obligation as at the Balance sheet date.

O. Taxes on Income:

The tax expense for the period comprises of current tax and deferred income tax. Tax is
recognised in Statement of Profit and Loss, except to the extent that it relates to items
recognised in the Other Comprehensive Income or in equity. In which case, the tax is also
recognised in Other Comprehensive Income or Equity.

(a) Current Tax:

Current tax assets and liabilities are measured at the amount expected to be recovered from
or paid to the Income Tax authorities, based on tax rates and laws that are applicable for the
period of Financial Statement.

(b) Deferred T ax:

Deferred tax is recognised on time differences between the carrying amounts of assets and
liabilities in the Financial Statements and the corresponding tax bases used in the
computation of taxable profit.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in
the period in which the liability is settled or the asset realised, based on tax rates (and tax
laws) that have been enacted or substantively enacted by the end of the reporting period.
The carrying amount of Deferred tax liabilities and assets are reviewed at the end of each
reporting period.

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Mar 31, 2015

A. Basis of preparation of Financial Statements

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on an actual basis. These financial statements have been prepared to comply m all material aspects with the Accounting Standards specified under section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013.

B. Revenue Recognition

Revenue is recognised on rendering of services and/or sales of goods, net of returns and trade discounts. Sales of goods arc recognised on transfer of significant risks and rewards of he ownership to the buyer, which generally coincides with the delivery of the goods to the customers. Revenue excludes VAT, Luxury Tax, Service Tax, etc.

C. Use of Estimates

In preparing the financial statements in conformity with accounting principles generally accepted in India, management is required to make estimates and assumptions that afFec he reported amounts of assets and liabilities and the disclosures of contingent liabilities as at the dam of financial statements and the amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. Any revision to such estimates is recognised in the period the same is determined.

D. Fixed Assets

(i) Fixed assets are stated at acquisition cost net of recoverable taxes, less accumulated depreciation and impairment loss.

(ii) All costs, including financing costs till commencement of commercial activity attributable to the fixed assets arc capitalised.

(iii) Assets which are not ready for use and other capital work-in-progress are earned at cost, comprising direct cost, related incidental expenses and attributable interest.

(iv) Pursuant to the enactment of Companies Act, 2013, the company has applied the estimated useful lives as specified in the Schedule II. Accordingly, the unamortiscd carrying value is being dcpreciated/amortised over the revised/remaming useful lives. The written down Value of Fixed assets whose lives have expired as at 1 April, 2°14 have bcen adjusTed in the opening balance of Profit and Loss account amounting to Rs. 1,04,69,810 as per provisions of the Companies Act, 2013.

E. Depreciation, Amortisation and Impairment

Depreciation on fixed assets is charged on Straight Line Method as per the useful Life prescribed in Schedule 11 to the Companies Act, 2013.

Impairment is ascertained at each balance sheet date in respect of the Company’s fixed assetsAn impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value m use. In assessing value in use, die estimated future cash flows arc discounted to their present value based on an appropriate discount factor.

F. Inventories

Stock of food, beverages, other supplies, wine and liquor arc valued at cost (which is computed on first in first out basis) or net realisable value, whichever is lower.

G. Borrowing Costs

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalised as a part of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to Statement of Profit & Loss in the year in which they are incurred.

H. Investments

Long term Investments are stated at cost. Diminution in the value of investments is provided for by reducing the value of investments and charging the same to the Statement of Profit & Loss only if such diminution is other than temporary.

Current Investments are carried at the lower of cost and fair value determined on a category basis.

I. Accounting for Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognised when there is a present legal obligation as a result of past events, where it is probable that there will be outflow of resources to settle the obligations and when a reliable estimate of the amount of the obligation can be made. Contingent Liabilities are recognised 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 can’t be measured in term of future outflow of resources, or where a reliable estimate of the obligation can’t he made. Obligations arc assessed on an ongoing basis and only those having a largely probable outflow of resource are provided for. Contingent Assets are not recognised in the financial statements.

J. Employee’s Benefits

(i) Contributions to Provident Fund, Gratuity Fund and Family Pension Fund are charged to the Statement of Profit & Loss for the year in which related service is rendered.

(ii) Gratuity is charged to revenue on actuarial valuation as provided by Life Insurance Corporation of India under the Employees Group Gratuity policy with them.

(iii) Pro vision for Leave encashment is made on the basis of actual leave outstanding at the end of the year based on the present pay structure.

K. Foreign Exchange Transactions

Transactions denominated in foreign currency settled/negotiated during the year are recorded at exchange rate on the date of settlement/negotiation. Foreign currency transactions remaining not settled/ncgotiatcd at the end of the year are converted into rupees at the year end rates. All gains or losses on foreign exchange transaction including those related to Fixed Assets are recognised in the Statement of Profit & Loss.

L. Taxes on Income

(i) Tax expenses accounted in the Provision for current income tax » made Jor the in accordance after considering tax a the differences between the taxable income and the net profit with the prevailing tax laws. The difference statements are identified and the tax assest or defeered tax liablity. The tax effect is calcluated on accumlaring timing differecne at the accounting year, baesd on effective tax rates substatively enacted balancesheet date.

(ii) Current tax assest and current tax liablities arenoffsetnwhrn therenis a legaliy enforceble right to set the reconigsed amounts and there is an seetlr the assest and the on a net basis. M. Cash and Cash Equivalent Of cash and which are subject to insignificant risk of chages by the same governing taxation laws.

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Mar 31, 2014

A. Basis of preparation of Financial Statements

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on an accrual basis. These financial statements have been prepared to comply in all material aspects with the Accounting Standards (AS) notified under Section 211(3C) [Companies (Accounting Standards) Rules, 2006, (as amended)] (which continue to be applicable in respect of section 133 of the Companies Act, 2013 in terms of General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs) and the other relevant provisions of the Companies Act, 1956.

B. Revenue Recognition

Revenue is recognised on rendering of services and/or sales of goods, net of returns and trade discounts. Sales of goods are recognised on transfer of significant risks and rewards of the ownership to the buyer, which generally coincides with the delivery of the goods to the customers. Revenue excludes VAT, Luxury Tax, Service Tax, etc.

C. Use of Estimates

In preparing the financial statements in conformity with accounting principles generally accepted in India, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities as at the date of financial statements and the amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. Any revision to such estimates is recognised in the period the same is determined.

D. Fixed Assets

(i) Fixed assets are stated at acquisition cost net of recoverable taxes, less accumulated depreciation and impairment loss.

(ii) All costs, including financing costs till commencement of commercial activity attributable to the fixed assets are capitalised.

(iii) Assets which are not ready for use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

E. Depreciation, Amortisation and Impairment ''

Depreciation on fixed assets is charged on Straight Line Method with the rates and in the manner specified in Schedule XIV to the Companies Act, 1956. The company is following policy to depreciate fixed assets only up to 95% unless it is sold or discarded.

Impairment is ascertained at each balance sheet date in respect of the Company''s fixed assets. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

F. Inventories

Stock of food, beverages, other supplies, wine and liquor are valued at cost (which is computed on first in first out basis) or net realisable value, whichever is lower.

G. Borrowing Costs

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalised as a part of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to Statement of Profit & Loss in the year in which they are incurred.

H. investments

Long term Investments are stated at cost. Diminution in the value of investments is provided for by reducing the value of investments and charging the same to the Statement of Profit & Loss only if such diminution is other than temporary.

Current Investments are carried at the lower of cost and fair value determined on a category basis.

I. Accounting for Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognised in terms of Accounting Standard 29- ''Provisions, Contingent Liabilities and Contingent Assets - (AS-29), notified by the Companies''(Accounting Standards) Rules, 2006 (as amended), when there is a present legal obligation as a result of past events, where it is probable that there will be outflow of resources to settle the obligations and when a reliable estimate of the amount of the obligation can be made. Contingent Liabilities are recognised 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 can''t be measured in term of future outflow of resources, or where a reliable estimate of the obligation can''t be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resource are provided for. Contingent Assets are not recognised in the financial statements.

J. Employee''s Benefits

(i) Contributions to Provident Fund, Gratuity Fund and Family Pension Fund are charged to the Statement of Profit & Loss for the year in which related service is rendered.

(ii) Gratuity is charged to revenue on actuarial valuation as provided by Life Insurance Corporation of India under the Employees Group Gratuity policy with them.

(iii) Provision for Leave encashment is made on the basis of actual leave outstanding at the end of the year based on the present pay structure.

K. Foreign Exchange Transactions

Transactions denominated in foreign currency settled / negotiated during the year are recorded at exchange rate on the date of settlement/ negotiation. Foreign currency transactions remaining not settled / negotiated at the end of the year are converted into rupees at the year end rates. All gains or losses on foreign exchange transaction other than those related to Fixed Assets are recognised in the Statement of Profit & Loss.

L. Taxes on Income

(i) Tax expenses are accounted in the same period to which the revenue and expense relate. Provision for current income tax is made for 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 the taxable income and the net profit and loss before tax for the year as per the financial statements are identified and the tax effect of timing differences at the end of the accounting year, based on effective tax rates substantively enacted by the Balance Sheet date.

(ii) Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle the asset and the liability on a net basis. Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off assets against liabilities representing current tax and where the deferred tax assets and the deferred tax liabilities relate to taxes on income levied by the same governing taxation laws.

M. Cash and Cash Equivalents

Cash comprises of the cash on hand and demand deposits with banks. Cash equivalents are short term balances, highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

(ii) Terms & Rights of Shareholders:

The Company has one class of equity shares having par value of Rs. 10/- each. Each shareholder is eligible for one vote per Share held.

(iii) Shareholders holding more than 5% shares in the company: ''

(ii) Term Loan from Bank was secured by 1st & exclusive charge by way of registered mortgage over Hotel Land & Building (both present and future) and hypothecation of all movable assets (both present and future) including Plant & Machinery, Furniture and other Misc. fixed Assets and further by way of personal guarantee of Director. The same has been repaid in current Financial Year.

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Mar 31, 2013

A. Basis of preparation of Financial Statements Companies Act, 1956.

B. Revenue Recognition

C. Use of Estimates

D. Fixed Assets

(i) Fixed assets are stated at acquisition cost net of recoverable taxes, less accumulated

E. Depreciation, Amortisation and Impairment

F. Inventories

G. Borrowing Costs

H. Investments

Current Investments are carried at the lower of cost and fair value determined on a category

I. Accounting for Provisions, Contingent Liabilities and Contingent Assets: made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resource are provided for. Contingent Assets are not recognif ed r/the financial

J. Employee''s Benefits

(iii) Provision for Leave encashment is made on the basis ofactual lave outstanding at the

K. Foreign Exchange Transactions related to FiXed Assets are recognised in the Statement of Profit & Loss.

L. Taxes on income with the prevailing tax laws. The differences between the taxable income and the net tax and where the deferredtal assets and the deferred tax liabilities relate to taxes on

M. Cash and Cash Equivalents amounts of cash and which are subject to insignificant risk of changes in value.

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Mar 31, 2012

A. Basis of preparation of Financial Statements

The Financial Statements are prepared under the historical cost convention on the basis of going concern and in accordance with the accounting standards notified by the Companies (Accounting Standards) Rules, 2006 issued by the Central Government in consultation with the National Advisory Committee on Accounting Standards and relevant provisions of the Companies Act, 1956.

B. Revenue Recognition

Revenue is recognised on rendering of services and/or sales of goods, net of returns and trade discounts. Sales of goods are recognised on transfer of significant risks and rewards of the ownership to the buyer, which generally coincides with the delivery of the goods to the customers. Revenue excludes VAT, Luxury Tax, Service Tax, etc.

C. Use of Estimates

In preparing the financial statements in conformity with accounting principles generally accepted in India, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities as at the date of financial statements and the amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. Any revision to such estimates is recognised in the period the same is determined.

D. Fixed Assets

(i) Fixed assets are stated at acquisition cost less accumulated depreciation.

(ii) Expenditure including cost of financing incurred during the course of construction, installation and commissioning of building, plant and machinery is included in the cost of respective fixed assets.

(iii) Assets which are not ready for use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

E. Depreciation, Amortisation and Impairment

Depreciation on fixed assets is charged on Straight Line Method with the rates and in the manner specified in Schedule XIV to the Companies Act, 1956. The company is following policy to depreciate fixed assets only up to 95% unless it is sold or discarded.

Impairment is ascertained at each balance sheet date in respect of the Company's fixed assets. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

F. Inventories

Stock of food, beverages, other supplies, wine and liquor are valued at cost (which is computed on first in first out basis) or net realisable value, whichever is lower.

G. Borrowing Costs

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalised as a part of such assets. All other borrowing costs are charged to revenue in the year in which they are incurred.

H. Investments

Long term Investments are stated at cost. Diminution in the value of investments is provided for by reducing the value of investments and charging the same to Statement of Profit & Loss.

Current Investments are carried at the lower of cost and fair value determined on a category basis.

I. Accounting for Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognised in terms of Accounting Standard 29 - 'Provisions, Contingent Liabilities and Contingent Assets - (AS-29), notified by the Companies (Accounting Standards) Rules, 2006 (as amended), when there is a present legal obligation as a result of past events, where it is probable that there will be outflow of resources to settle the obligations and when a reliable estimate of the amount of the obligation can be made. Contingent Liabilities are recognised 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 can't be measured in term of future outflow of resources, or where a reliable estimate of the obligation can't be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resource are provided for. Contingent Assets are not recognised in the financial statements.

J. Employee's Benefits

i. Contributions to Provident Fund, Gratuity Fund and Family Pension Fund are charged to Statement of Profit and Loss.

ii. Gratuity is charged to revenue on actuarial valuation by Life Insurance Corporation of India under the Employees Group Gratuity policy with them.

iii. Provision for Leave encashment is made on the basis of actual leave outstanding at the end of the year based on the present pay structure.

K. Foreign Exchange Transactions

Transactions denominated in foreign currency settled/negotiated during the year are recorded at exchange rate on the date of settlement/negotiation. Foreign currency transactions remaining not settled/negotiated at the end of the year are converted into rupees at the year end rates. All gains or losses on foreign exchange transaction other than those related to Fixed Assets are recognized in the Statement of Profit and Loss.

L. Taxes on Income

i. Tax expenses are accounted in the same period to which the revenue and expense relate. Provision for current income tax is made for 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 the taxable income and the net profit and loss before tax for the year as per the financial statements are identified and the tax effect of timing differences at the end of the accounting year, based on effective tax rates substantively enacted by the Balance Sheet date.

ii. Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognized amounts and there is an intention to settle the asset and the liability on a net basis. Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off assets against liabilities representing current tax and where the deferred tax assets and the deferred tax liabilities relate to taxes on income levied by the same governing taxation laws.

M. Cash and Cash Equivalents:

Cash comprises of the cash on hand and demand deposits with banks. Cash equivalents are short term balances, highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

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Mar 31, 2010

A. Basis of preparation of Financial Statements

The Financial Statements are prepared under the historical cost convention on the basis of going concern and in accordance with the accounting standards notified by the Companies (Accounting Standards) Rules, 2006 issued by the Central Government in consultation with the National Advisory Committee on Accounting Standards and relevant provisions of the Companies Act, 1956.

B. Revenue Recognition

Revenue is recognised upon rendering of the services and items of income and expenditure are recognised on accrual basis. Income / Sales excludes Sales Tax / VAT, Luxury Tax, Service Tax etc.

C. Use of Estimates

In preparing the financial statements in conformity with accounting principles generally accepted in India, Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities as at the date of financial statements and the amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. Any revision to such estimates is recognised in the period the same is determined.

D. Fixed Assets

(i) Fixed assets are stated at acquisition cost less accumulated depreciation.

(ii) Expenditure including cost of financing incurred during the course of construction, installation and commissioning of building, plant and machinery is included in the cost of respective fixed assets.

(iii) Intangible assets are recorded at cost of Acquisition less amortisation cost.

E. Depreciation, Amortisation and Impairment

Depreciation on fixed assets is charged on Straight Line Method with the rates and in the manner specified in Schedule XIV to the Companies Act, 1956. The company is following policy to depreciate fixed assets only up to 95% unless it is sold or discarded. Intangibles assets are amortised over the economic useful life estimated by the Management.

Impairment is ascertained at each balance sheet date in respect of the Companys fixed assets. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

F. Inventories

Stock of food, beverages and other supplies are valued at cost (computed on a weighted average basis except wine and liquor which is computed on first in first out basis) or net realisable value, whichever is lower.

G. Borrowing Costs

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalised as a part of such assets. All other borrowing costs are charged to revenue in the year in which they are incurred.

H. Investments

Long term Investments are stated at cost. Diminution in the value of investments is provided for by reducing the value of investments and charging the same to Profit & Loss Account. Current Investments are carried at the lower of cost and fair value determined on a category basis.

I. Contingent Liabilities

These are disclosed by way of notes to the accounts. Provision is made in respect of those liabilities, which are likely to materialise after the year end, till the finalisation and have materia effect on the position stated in the balance sheet.

J. Retirement Benefits

i Contributions to Provident Fund, Gratuity Fund and Family Pension Fund are charged to Profit and Loss Account.

ii Gratuity is charged to revenue on actuarial valuation by Life Insurance Corporation of India under the Employees Group Gratuity policy with them.

iii Provision for Leave encashment is made on the basis of actual leave outstanding at the end of the year based on the present pay structure.

K. Foreign Exchange Transactions

Transactions denominated in foreign currency settled / negotiated during a month are recorded at exchange rate on the date of settlement/ negotiation. Foreign currency transactions remaining not settled / negotiated at the end of each month are converted into rupees at the month end rates. Al gains or losses on foreign exchange transaction other than those related to Fixed Assets are recognised in the Profit and Loss Account.

L. Taxation

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of Income Tax Act, 1961.

Deferred Tax is recognised 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.