Accounting Policies of Sterling Holiday Resorts (I) Ltd. Company

Mar 31, 2014

1. SYSTEM OF ACCOUNTING

A. The Company follows mercantile system of accounting and recognises income and expenditure on accrual basis, unless and otherwise specifed.

The fnancial statements have been prepared in all material respects in compliance of Accounting Standards as notifed by the Companies (Accounting Standards) Rules, 2006.

B. Financial statements are prepared under historical cost convention and on "Going Concern" basis.

2. USE OF ESTIMATES

The preparation of fnancial statements requires management to make certain estimates and assumptions that affect the amounts reported in the fnancial statements and notes thereto. The Management believes that these estimates and assumptions are reasonable and prudent. However actual results could differ from these estimates. Differences between actual results and estimates are recognized in the period in which they materialise.

3. FIXED ASSETS AND DEPRECIATION:

A) Fixed Assets

Fixed assets (other than certain lands which have been revalued) including Intangible Assets are stated at their original cost (including expenses related to acquisition / installation and borrowing costs on construction / acquisition of fxed assets up to the period the assets are ready for use) less depreciation and impairment provision, if any.

B) Depreciation and Amortisation

Depreciation is calculated on Straight line Method (SlM) as under:

a. On Tangible assets owned by the Company at the rates specifed in Schedule XIV to the Companies Act, 1956. On assets added / disposed off during the year, on pro-rata basis with reference to the month of addition / disposal; any addition or extension to existing assets which is of a capital nature and which becomes integral part of the existing asset is depreciated over the remaining useful life of the assets.

b. Cost of leasehold land, building and improvements made thereon is amortised over the period of lease.

c. Intangible assets, namely Software are amortised over a period of 5 years.

4. IMPAIRMENT OF ASSETS

The carrying amounts of assets are reviewed at each balance sheet date for indication of any impairment based on internal / external factors. An impairment loss is recognised wherever the carrying amount of the assets exceeds its recoverable amount. Any such impairment loss is recognised by charging it to the Statement of Proft and Loss. A previously recognised impairment loss is reversed where it is no longer required and the asset is restated to that effect.

5. BORROWING COSTS

Borrowing costs attributable to acquisition, construction or production of a qualifying asset are capitalised as part of the cost of that asset, where it is possible that they will result in future economic beneft. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are recognised as an expense in the period in which they are incurred.

6. REVENUE RECOGNITION

Revenue is recognised to the extent that it can be reliably measured and is probable that the economic beneft will accrue to the Company;

a. In respect of Sterling Holiday Vacation Ownership Plan (SHVOP), 60% of the product value, being admission fee, is recognised as income in the year of sale and the balance 40%, being entitlement fee, is recognised as income over the period of entitlement.

b. In respect of all other timeshare products, a portion of the consideration, namely 45% of the sale value is treated as income in the year of sale. Advance subscription towards Customer Facilities (ASCF), being balance 55%, of the sale value is accounted as income over the period of entitlement.

c. In respect of sales made under EMI scheme, interest wherever applicable is accrued over the contracted period.

d. Income from resorts comprising of room rent, food and beverages sales, utility charges, other services etc., are recognised when these are sold and services are rendered.

e. Incomes in respect of Annual Amenity Charges (AAC) / Annual Subscription Fees (ASF) are accounted on cash basis, in view of uncertainity in collection.

f. Securitised assets are derecognised as the contractual rights therein are transferred to the third party. On de-recognition, the difference between book value of the securitised asset and consideration received is recognised as income.

g. Dividend is accounted for when the right to receive the same is established. Interest is accounted on time proportionate basis.

h. Proft / Loss on Sale of Investments are recognised on the date of redemption.

7. INVESTMENTS

a. long-term investments are stated at cost. Provision for diminution in value, considered on individual basis, is recognised, if in the opinion of the management such a decline is other than temporary.

b. Current investments are valued at lower of cost and realisable value, determined on individual basis.

8. INVENTORIES

Inventories comprising of provisions, perishables, beverages, consumables and operating supplies are valued at lower of cost and net realisable value. Cost is computed on First in First out basis.

9. FOREIGN CURRENCY TRANSACTIONS

Transactions in Foreign Currency are recorded at the exchange rates prevailing on the date of Transactions. Monetary items denominated in foreign currencies (such as cash, receivables, payables, etc.) outstanding at the year end, are translated at exchange rate applicable as of that date. Non-monetary items denominated in foreign currency (such as investments, fxed assets, etc.) are valued at the exchange rate prevailing on the date of transaction. Any gain or loss arising due to exchange differences at the time of translation or settlement are accounted in the Statement of Proft and loss.

10. EMPLOYEE BENEFITS

LONG-TERM EMPLOYEE BENEFIT PLANS DEFINED CONTRIBUTION PLAN

Contribution to Provident Fund, which is a defned contribution retirement plan, is made monthly at predetermined rate to the Provident Fund authorities and debited to the Statement of Proft and loss on accrual basis.

DEFINED BENEFIT PLAN

Company makes annual contribution to Gratuity fund and leave Encashment Fund administered by an Insurance Company, which is considered as defned beneft plan. The present value of the defned beneft is measured using ''Projected Unit Credit'' Method with actuarial valuation being carried out at each Balance Sheet date by an independent valuer. Actuarial gains and losses are immediately recognised in the Statement of Proft and loss. Amount of contribution, computed by the insurers is paid by the Company and charged to Statement of Proft and Loss.

11. PROVISIONS & CONTINGENCIES

A provision arising out of a present obligation is recognised when it is probable that an outfow of resources will be required to settle the obligation and the amount can be reasonably estimated.

Wherever there is a possible obligation which may not require an outfow of resources, the same is disclosed by way of contingent liability.

Show Cause Notices are not considered as Contingent liabilities unless converted into demand.

12. TAXES ON INCOME

Current tax is determined in accordance with Income Tax Act 1961 on the amount of tax payable in respect of the income for the year. Deferred tax assets / liabilities are measured by applying tax rate and tax laws that have been enacted or substantially enacted by the Balance Sheet date. Deferred tax asset arising on account of loss and unabsorbed depreciation under tax laws is recognised only to the extent there is virtual certainty of its realisation supported by convincing evidence. Deferred tax assets on account of other timing differences are recognised only to the extent there is reasonable certainty of its realisation. At each Balance Sheet date, the carrying amount of Deferred Tax Asset is reviewed based on developments to re-assess realisation.

13. EMPLOYEE STOCK OPTION SCHEME (ESOS)

Measurement and disclosure of the Employee Share-based Payment plans is done in accordance with SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 and the Guidance Note on Accounting for Employee Share-based Payments, issued by ICAI. The Company measures compensation cost relating to employee stock options using the intrinsic value method (i.e., excess of market value of shares over the exercise price of the option at the date of grant). Compensation expense is amortised over the vesting period of the each separate vesting portion of the option on a straight line basis.

14. EMPLOYEES STOCK PURCHASE SCHEME (ESPS)

Measurement and disclosure of the Employee Share-based Payment plans is done in accordance with SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 and the Guidance Note on Accounting for Employee Share-based Payments, issued by ICAI. The Company measures compensation cost relating to employee stock purchase using the intrinsic value method (i.e., excess of market value of shares over the exercise price of the shares at the date of issue).

15. LEASE ACCOUNTING

The lease payments made on the assets comprising of land and building taken on operating lease, are amortised as an expense on straight line basis over the lease term.

i Preferential Issue

On March 14, 2014, the Company has allotted 20650000 Shares of INR 10 each at a premium of INR 80.49 per Share on preferential basis to Thomas Cook Insurance Services (India) limited (TCISl) based on Share Subscription Agreement executed by the Company with TCISl. As on March 31, 2014, TCISl holds 30051191 Shares (Previous year - nil) including Shares acquired prior to the date of preferential allotment. All these Shares are subject to lock-in period as per SEBI (Issue of Capital and Disclosure Requirements) Regulations 2009.

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Mar 31, 2013

1. SYSTEM OF ACCOUNTING

(a) The Company follows mercantile system of accounting and recognises Income and expenditure on accrual basis'' unless and otherwise specified.

The financial statements have been prepared In all material respects In compliance of Accounting Standards as notified by the Companies (Accounting Standards) Rules'' 2006.

(b) Financialstatements are prepared underhlstorlcal cost convention and on "Going Concern" basis.

2. USE OF ESTIMATES

The preparation of financial statements requires Management to make certain estimates and assumptions that affect the amounts reported In the financial statements and notes thereto. The Management believes that these estimates and assumptions are reasonable and prudent. However actual results could differ from these estimates. Differences between actual results and estimates are recognised In the period In which they materialise.

3. FIXED ASSETS AND DEPRECIATION

(a) Fixed Assets

Fixed Assets (other than certain lands which have been revalued) Including Intangible Assets are stated at their original cost (Including expenses related to acquisition/Installation and borrowing costs on construction/acquisition of Fixed Assets up to the period the assets are ready for use) less depreciation and Impairment provision'' If any.

(b) Depreciation and Amortisation

Depreciation Is calculated on Straight Line Method (SLM) as under:

CO On Tangible Assets owned by the Company at the rates specified in Schedule XIV to the Companies Act'' 1956. On assets added/disposed off during the year'' on pro-rata basis with reference to the month of addition/disposal; any addition or extension to existing assets which Is of a capital nature and which becomes Integral part of the existing asset Is depreciated over the remaining useful life of the assets.

(U) Cost of leasehold land'' building and Improvements made thereon Is amortised over the period of lease.

(Ill) Intangible assets'' namely Software are amortised over a period of 5 years.

4. IMPAIRMENT OF ASSETS

The carrying amounts of assets are reviewed at each Balance Sheet date for Indication of any Impairment based on Internal/external factors. An Impairment loss Is recognised wherever the carrying amount of the assets exceeds Its recoverable amount. Any such Impairment loss Is recognised by charging It to the Statement of Profit and Loss. A previously recognised Impairment loss Is reversed where It Is no longer required and the asset Is restated to that effect.

5. BORROWING COSTS

Borrowing costs attributable to acquisition'' construction or production of a qualifying asset are capitalised as part of the cost of that asset'' where It Is possible that they will result In future economic benefit. A qualifying asset Is one that necessarily takes substantial period of time to get ready for Intended use. All other borrowing costs are recognised as an expense In the period In which they are Incurred.

6. REVENUE RECOGNITION

Revenue Is recognised to the extent that It can be reliably measured and Is probable that the economic benefit will accrue to the Company;

(a) In respect of Sterling Holidays Vacation Ownership Plan (SHVOP)'' 60% of the product value'' being admission fee'' Is recognised as Income In the year of sale and the balance 40%'' being entitlement fee'' Is recognised as Income over the period of entitlement.

(b) In respect of all other Tlmeshare products'' a portion of the consideration'' namely 45% of the sale value Is treated as Income In the year of sale. Advance subscription towards Customer Facilities (ASCF)'' being balance 55%'' of the sale value Is accounted as Income over the period of entitlement.

(c) In respect of sales made under EMI scheme'' Interest wherever applicable Is accrued over the contracted period.

(d) Income from resorts comprising of room rent'' food and beverages sales'' utility charges'' other services etc.'' are recognised when these are sold and services are rendered.

(e) Incomes In respect of Annual Amenity Charges (AAC)/Annual Subscription Fees (ASF) are accounted on cash basis'' In view of uncertainty In collection.

(f) Securitised Assets are derecognised as the contractual rights therein are transferred to the third party. On derecognition'' the difference between book vaiue of the securitised asset and consideration received is recognised as income.

(g) Dividend is accounted for when the right to receive the same is established. Interest is accounted on time proportionate basis.

7. INVESTMENTS

(a) Long-term investments are stated at cost. Provision for diminution in vaiue'' considered on individual basis'' is recognised'' if in the opinion of the Management such a decline is other than temporary.

(b) Current investments are valued at lower of cost and realisable value'' determined on individual basis.

8. INVENTORIES

Inventories comprising of provisions'' perishables'' beverages'' consumables and operating supplies are valued at lower of cost and net realisable value. Cost is computed on First In'' First Out basis.

9. FOREIGN CURRENCY TRANSACTIONS

Transactions in Foreign Currency are recorded at the exchange rates prevailing on the date of Transactions. Monetary items denominated in foreign currencies (such as cash'' receivables'' payables'' etc.) outstanding at the year end'' are translated at exchange rate applicable as of that date. Non-monetary items denominated in foreign currency (such as investments'' Fixed Assets'' etc.) are valued at the exchange rate prevailing on the date of transaction. Any gain or loss arising due to exchange differences at the time of translation or settlement are accounted in the Statement of Profit and Loss.

10. EMPLOYEE BENEFITS

LONG-TERM EMPLOYEE BENEFIT PLANS DEFINED CONTRIBUTION PLAN:

Contribution to Provident Fund'' which is a defined contribution retirement plan'' is made monthly at pre- determined rate to the Provident Fund authorities and debited to the Statement of Profit and Loss on accrual basis.

DEFINED BENEFIT PLAN

Company makes annual contribution to Gratuity Fund and Leave Encashment Fund administered by an Insurance Company'' which is considered as defined benefit plan. The present value of the defined benefit is measured using ''Projected Unit Credit'' method with actuarial valuation being carried out at each Balance Sheet date by an independent valuer. Actuarial gains and losses are immediately recognised in the Statement of Profit and Loss. Amount of contribution'' computed by the insurers is paid by the Company and charged to Statement of Profit and Loss.

11. PROVISIONS & CONTINGENCIES

A provision arising out of a present obligation is recognised when it is probable that an outflow of resources will be required to settle the obligation and the amount can be reasonably estimated.

Wherever there is a possible obligation which may not require an outflow of resources'' the same is disclosed by way of contingent liability.

Show Cause Notices are not considered as Contingent Liabilities unless converted into demand.

12. TAXES ON INCOME

Current Tax is determined in accordance with Income Tax Act 1961 on the amount of Tax Payable in respect of the income for the year. Deferred Tax Assets/ Liabilities are measured by applying Tax rate and Tax laws that have been enacted or substantially enacted by the Balance Sheet date. Deferred Tax Asset arising on account of loss and unabsorbed depreciation under Tax laws is recognised only to the extent there is virtual certainty of its realisation supported by convincing evidence. Deferred Tax Assets on account of other timing differences are recognised only to the extent there is reasonable certainty of its realisation. At each Balance Sheet date'' the carrying amount of Deferred Tax Asset is reviewed based on developments to reassess realisation.

13. EMPLOYEE STOCK OPTION SCHEME (ESOS)

The Company measures the compensation cost relating to ESOS using the fair market value of Equity Shares. The compensation cost is amortised on a straight line basis over the total vesting period of the Stock Options.

14. EMPLOYEES STOCK PURCHASE SCHEME (ESPS)

The Company measures the compensation cost relating to ESPS using the fair market value of Equity Shares. The compensation cost is charged to Statement of Profit and Loss immediately on allotment of Shares.

15. LEASE ACCOUNTING

The lease payments made on the assets comprising of land and building taken on operating lease'' are amortised as an expense on straight line basis over the lease term.

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Mar 31, 2012

1. SYSTEM OF ACCOUNTING

A. The Company follows mercantile system of accounting and recognises income and expenditure on accrual basis, unless and otherwise specified.

The financial statements have been prepared in all material respects in compliance of Accounting Standards as notified by the Companies (Accounting Standards) Rules, 2006.

B. Financial statements are prepared under historical cost convention and on "going concern" basis.

2. USE OF ESTIMATES

The preparation of financial statements requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. The Management believes that these estimates and assumptions are reasonable and prudent. However actual results could differ from these estimates. Differences between actual results and estimates are recognized in the period in which they materialize.

3. FIXED ASSETS AND DEPRECIATION

A) Fixed Assets

Fixed Assets are stated at their original cost (including expenses related to acquisition and installation) less depreciation except certain lands, owned by the Company which have been adjusted for revaluation.

B) Depreciation and Amortisation

Depreciation is charged in the Accounts on Straight Line Method (SLM) as under:

a. On fixed assets (other than intangible assets) owned by the Company at the rates specified in Schedule XIV to the Companies Act, 1956. On assets added/disposed off during the year, on pro- rata basis with reference to the month of addition/ disposal;

b. Cost of leasehold land, building and improvements made thereon is amortized over the period of lease, i.e. @ 6.66% and 33.33% as the case may be.

c. Intangible assets, namely software are amortized over a period of 5 years.

4. BORROWING COSTS

Borrowing costs attributable to acquisition, construction or production of a qualifying asset are capitalized as part of the cost of that asset, where it is possible that they will result in future economic benefit. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are recognized as an expense in the period in which they are incurred.

5. REVENUE RECOGNITION

Revenue is recognized to the extent that it can be reliably measured and is probable that the economic benefit will accrue to the Company;

a. In respect of Sterling Holiday Vacation Ownership Plan (SHVOP), 60% of the product value, being admission fee, is recognized as income in the year of sale and the balance 40%, being entitlement fee, is recognized as income over the period of entitlement.

b. In respect of all other timeshare products, a portion of the consideration, namely 45% of the sale value is treated as income in the year of sale Advance subscription towards Customer Facilities (ASCF), being balance 55%, of the sale value is accounted as income over the period of entitlement.

c. In respect of sales made under EMI scheme, interest wherever applicable is accrued over the contracted period.

d. Income from resorts comprising of room rent, food and beverages sales, other services etc., are recognized when these are sold and services are rendered.

e. Income in respect of amenity charges is accounted on cash basis, in view of uncertainty in collection.

f. Dividend is accounted for when the right to receive the same is established. Interest is accounted on time proportionate basis.

6. INVESTMENTS

a. Long term investments are stated at cost. Provision for diminution in value, considered on individual basis, is recognized, if in the opinion of the management such a decline is other than temporary.

b. Current investments are valued at lower of cost and realizable value, determined on individual basis.

7. INVENTORIES

Inventories comprising of provisions, perishables, beverages, consumables and operating supplies are valued at lower of cost and net realizable value. Cost is computed on First in First Out basis.

8. FOREIGN CURRENCY TRANSACTIONS

Transactions in Foreign Currency are recorded at the exchange rates prevailing on the date of transactions. Monetary items denominated in foreign currencies (such as cash receivables, payables, etc.) outstanding at the year end, are translated at exchange rate applicable as of that date Non-monetary items denominated in foreign currency (such as investments, fixed assets, etc) are valued at the exchange rate prevailing on the date of transaction. Any gains or losses arising due to exchange differences at the time of translation or settlement are accounted in the Statement of Profit and Loss.

9. EMPLOYEE BENEFITS

a. Contribution to Provident Fund, which is a defined contribution retirement plan, is made monthly at predetermined rate to the Provident Fund authorities and debited to the Statement of Profit and Loss on accrual basis.

b. Company makes annual contribution to Gratuity Fund and Leave Encashment Fund administered by an Insurance Company, which is considered as defined benefit plan. The present value of the defined benefit is measured using 'Projected Unit Credit' Method with actuarial valuation being carried out at each Balance Sheet date by an independent valuer. Actuarial gains and losses are immediately recognized in the Statement of Profit and Loss. Amount of contribution, computed by the insurers is paid by the Company and charged to Statement of Profit and Loss.

10. PROVISIONS & CONTINGENCIES

a. A provision arising out of a present obligation is recognized when it is probable that an outflow of resources will be required to settle the obligation and the amount can be reasonably estimated.

b. Wherever there is a possible obligation which may not require an outflow of resources, the same is disclosed by way of contingent liability.

c. Show cause notices are not considered as contingent liabilities unless converted into demand.

11. TAXES ON INCOME

Current tax is determined in accordance with Income Tax Act 1961 on the amount of tax payable in respect of the income for the year. Deferred tax assets / liabilities are measured by applying tax rate and tax laws that have been enacted or substantially enacted by the Balance Sheet date. Deferred tax asset arising on account of loss and unabsorbed depreciation under tax laws is recognized only to the extent there is virtual certainty of its realization supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized only to the extent there is reasonable certainty of its realization. At each Balance Sheet date, the carrying amount of Deferred Tax Asset is reviewed based on developments to reassess realization.

12. IMPAIRMENT OF ASSETS

The carrying amounts of assets are reviewed at each Balance Sheet date for indication of any impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of the assets exceeds its recoverable amount. Any such impairment loss is recognized by charging it to the Statement of Profit and Loss. A previously recognized impairment loss is reversed where it is no longer required and the asset is restated to that effect.

13. EMPLOYEE STOCK OPTION SCHEME (ESOS)

The Company measures the compensation cost relating to ESOS using the fair market value of Equity Shares. The compensation cost is amortized on a straight line basis over the total vesting period of the stock options.

14. EMPLOYEES STOCK PURCHASE SCHEME (ESPS)

The Company measures the compensation cost relating to ESPS using the fair market value of Equity Shares. The compensation cost is charged to Statement of Profit and Loss immediately on allotment of shares.

15. LEASE ACCOUNTING

The lease payments made on the assets comprising of land and building taken on operating lease, are amortized as an expense on Straight Line basis over the lease term.

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Mar 31, 2011

1. SYSTEM OF ACCOUNTING

A) The Company follows mercantile system of accounting and recognises income and expenditure on accrual basis, unless and other wise specified.

The financial statements have been prepared in all material respects in compliance of Accounting Standards as notified by the Companies (Accounting Standards) Rules, 2006.

B) Financial statements are prepared on historical cost and going concern basis.

2. USE OF ESTIMATES

The preparation of financial statements requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. The Management believes that these estimates and assumptions are reasonable and prudent. However actual results could differ from these estimates. Differences between actual results and estimates are recognized in the period in which they materialize.

3. FIXED ASSETS AND DEPRECIATION

A) Fixed Assets

Fixed Assets are stated at their original cost (including expenses related to acquisition and installation) less depreciation except certain lands, owned by the Company which have been adjusted for revaluation.

B) Depreciation and Amortisation

Depreciation is charged in the accounts on straight line method as under:

a. On fixed assets (other than intangible assets) owned by the company at the SLM rates specified in Schedule XIV to the Companies Act, 1956. On assets added/disposed off during the year, on pro- rata basis with reference to the month of addition/disposal.

b. Cost of leasehold land and building is amortized over the period of lease.

c. Intangible assets, namely software are amortized over a period of 5 years.

4. BORROWING COSTS

Borrowing costs attributable to acquisition, construction or production of a qualifying asset are capitalized as part of the cost of that asset, where it is possible that they will result in future economic benefit. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are recognized as an expense in the period in which they are incurred.

5. REVENUE RECOGNITION

Revenue is recognized to the extent that it can be reliably measured and is probable that the economic benefit will accrue to the company.

a. In respect of Sterling Silver Streak Holiday Plan, Sterling Happy Vistas Holiday Units, Sterling Holiday Flexi Club Units, TRUMPS and Sterling Holiday Plan, a portion of the Timeshare consideration (net of discount), namely 45% of the sale value (Cash/Equated Monthly Instalment (EMI)) is treated as income in the year of sale.

b. Advance Subscription towards Customer Facilities (ASCF), being balance 55%, of the sale value (Cash/EMI) in respect of Holiday Plans is accounted as income, in equal proportion, from the year in which the holiday entitlement is allotted, over the period for which the customers are entitled for holidays.

c. In respect of sales made under EMI scheme, interest wherever applicable is accrued over the contracted period.

d. Income from resorts comprising of room rent, food and beverages sales, other services etc., are recognized when these are sold and services are rendered.

e. Income in respect of amenity charges is accounted on cash basis, in view of uncertainty in collection.

f. Dividend is accounted for when the right to receive the same is established. Interest is accounted on time proportionate basis.

6. INVESTMENTS

a. Long term investments are stated at cost. Provision for diminution in value, considered on individual basis, is recognized, if in the opinion of the Management such a decline is other than temporary.

b. Current investments are valued at lower of cost and fair value, determined on an individual basis.

7. INVENTORIES

Inventories comprising of provisions, perishables, beverages, consumables and operating supplies are valued at lower of cost or net realizable value. Cost is computed on First In First Out basis.

8. FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign Currency are recorded at the exchange rates prevailing on the date of transactions. Monetary items denominated in foreign currencies (such as cash, receivables, payables, etc.) outstanding at the year end, are translated at exchange rate applicable as of that date. Non-monetary items denominated in foreign currency (such as investments, fixed assets, etc) are valued at the exchange rate prevailing on the date of transaction. Any gains or losses arising due to exchange differences at the time of translation or settlement are accounted in the Profit & Loss account.

9. EMPLOYEE BENEFITS

a. Contribution to Provident Fund, which is a defined contribution retirement plan, is made monthly at predetermined rate to the Provident Fund authorities and debited to the Profit and Loss account on accrual basis.

b. Company makes annual contribution to Gratuity Fund administered by an Insurance Company, which is considered as defined benefit plan. The present value of the defined benefit is measured using the 'Projected Unit Credit' method with actuarial valuation being carried out at each Balance Sheet date by an independent valuer. Actuarial gains and losses are immediately recognized in the Profit and Loss account. Amount of contribution, computed by the insurers is paid by the company and charged to Profit and Loss account.

c. The Company makes provision for leave encashment based on actuarial valuation carried out by an independent actuary at the Balance Sheet date.

10. PROVISIONS & CONTINGENCIES

a. A provision arising out of a present obligation is recognized when it is probable that an outflow of resources will be required to settle the obligation and the amount can be reasonably estimated.

b. Wherever there is a possible obligation which may not require an outflow of resources, the same is disclosed by way of contingent liability.

c. Show Cause Notices are not considered as Contingent Liabilities unless converted into demand.

11. TAXES ON INCOME

Current tax is determined in accordance with Income Tax Act 1961 on the amount of tax payable in respect of the income for the year. Deferred tax assets / liabilities are measured by applying tax rate and tax laws that have been enacted or substantially enacted by the Balance Sheet date. Deferred tax asset arising on account of loss and unabsorbed depreciation under tax laws is recognized only to the extent where there is virtual certainty of its realization supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized only to the extent there is reasonable certainty of its realization. At each Balance Sheet date, the carrying amount of Deferred Tax Asset is reviewed based on developments to reassess realization.

12. IMPAIRMENT OF ASSETS

The carrying amounts of assets are reviewed at each Balance sheet date for indication of any impairment based on internal / external factors. An impairment loss is recognized wherever the carrying amount of the assets exceeds its recoverable amount. Any such impairment loss is recognized by charging it to the profit and loss account. A previously recognized impairment loss is reversed where it is no longer required and the asset is restated to that effect.

13. SEGMENT REPORTING:

Revenue and expenses have been identified to segments on the basis of their' relationship to the operating activities of the segment. Revenue and expenses which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis have been included under "Unallocated Corporate Expenses".

There are no inter segment revenues and therefore their basis of measurement does not arise.

14. EMPLOYEE STOCK OPTION SCHEME (ESOS)

The Company measures the compensation cost relating to ESOS using the fair market value of Equity Shares. The compensation cost is amortized on a straight line basis over the total vesting period of the stock options.

15. LEASE ACCOUNTING

The lease payments made on the assets comprising of land and building taken on operating lease, are recognized as an expense on straight line basis over the lease term.

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Mar 31, 2010

1. SYSTEM OF ACCOUNTING

A. The Company follows mercantile system of accounting and recognises income and expenditure on accrual basis, unless and other wise specified.

The financial statements have been prepared in all material respects in compliance to mandatory Accounting Standards as notified in the Companies (Accounting Standards) Rules, 2006 and relevant provisions of the Companies Act, 1956.

B. Financial statements are prepared on historical cost basis and as a going concern.

2. USE OF ESTIMATES

The preparation of financial statements requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. Differences between actual results and estimates are recognized in the period in which they materialize.

3.FIXED ASSETS AND DEPRECIATION:

A) Fixed Assets

Fixed Assets are stated at their original cost (including expenses related to acquisition and installation) less depreciation except certain lands, owned by the Company which have been adjusted for revaluation.

B) Depreciation and Amortization

Depreciation is charged in the

Accounts on straight line method as under:

a) On fixed assets of the company at the rates specified in Schedule XIV to the Companies Act, 1956

b) On fixed assets added/disposed off during the year, on pro- rata basis with reference to the month of addition/disposal;

c) Cost of leasehold land and building is amortized over the period of lease.

d) Intangible assets, namely Software are depreciated over a period of 6 years.

4. BORROWING COSTS

Borrowing costs attributable to acquisition, construction or production of a qualifying asset are capitalized as part of the cost of that asset, where it is possible that they will result in future economic benefit. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are recognized as an expense in the period in which they are incurred.

5. REVENUE RECOGNITION

Revenue is recognized to the extent that it can be reliably measured and is probable that the economic benefit will accrue to the company.

a. In respect of Sterling Silver Streak Holiday Plan, Sterling Happy Vistas, Holiday Units, Sterling Holiday Flexi Club Units, TRUMPS and Sterling Holiday plan, the cost portion of the time share consideration (net of discount), namely 45% of the sale value is treated as income in the year of sale.

b. Advance subscription towards Customer Facilities (ASCF), being the balance 55%, of the sale value in respect of Holiday products is accounted as income, in equal

proportion, from the year in which the Holiday entitlement is allotted, over the period for which the customers are entitled for holidays.

c. Income from resorts comprising of room rent, food and beverages sales, other services etc., are recognized when these items are sold and services are rendered.

d. Income in respect of amenity charges are accounted on cash basis, in view of uncertainty in collection.

e. Dividend is accounted for when the right to receive the same is established. Interest is accounted on time proportionate basis.

6. INVESTMENTS

a. Long term investments are stated at cost. Provision for diminution in value, considered on individual basis, is recognized, if in the opinion of the management such a decline is other than temporary.

b. Current investments are valued at lower of cost and fair value, determined on individual basis.

7. INVENTORIES

Inventories comprising of provisions, perishables, beverages and consumables are valued at lower of cost or net realizable value. Cost is computed on First in first out basis.

8. FOREIGN CURRENCY TRANSACTIONS

Transactions in Foreign Currency are recorded at the exchange rates prevailing on the date of Transactions. Monetary items denominated in foreign currencies (such as cash, receivables, payables, etc.) outstanding at the year end, are translated at exchange rate applicable as of that date. Non-monetary items denominated in foreign currency (such as investments, fixed assets, etc) are valued at the exchange rate prevailing on the date of transaction. Any gains or losses arising due to

exchange differences at the time of translation or settlement are accounted in the Profit & Loss Account.

9. EMPLOYEE BENEFITS

a. Contribution to Provident Fund, which is a defined contribution retirement plan, is made monthly at predetermined rate to the Provident Fund authorities and debited to the Profit and Loss Account on accrual basis.

b. Company makes annual contribution to Gratuity funds administered by Insurance Companies, which is considered as defined benefit plan.The present value of the defined benefit is measured using the Projected unit Credit Method with actuarial valuation being carried out at each Balance Sheet date by an independent valuer. Actuarial gains and losses are immediately recognized in the Profit and Loss Account. Amount of contribution, computed by the insurers is paid by the company and charged to Profit and Loss account. No additional liability is anticipated under the scheme administered by the insurance Companies.

c. The Company makes provision for leave encashment based on actuarial valuation carried out by an independent actuary at the Balance Sheet date.

10. PROVISIONS & CONTINGENCIES

a. A provision arising out of a present obligation is recognized when it is probable that an outflow of resources will be required to settle the obligation and the amount can be reasonably estimated

b. Wherever there is a possible obligation that may, but probably will not require an outflow of resources, the same is disclosed by way of contingent liability.

c.Show Cause Notices are not considered as Contingent Liabilities unless converted into demand.

11.TAXES ON INCOME

Current tax is determined in accordance with Income Tax Act 1961 on the amount of tax payable in respect of the income for the year. Deferred tax assets / liabilities are measured by applying tax rate and tax laws that have been enacted or substantially enacted by the Balance Sheet date. Deferred tax asset arising on account of loss and unabsorbed depreciation under tax laws is recognized only to the extent there is virtual certainty of its realization supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized only to the extent there is reasonable certainty of its realization. At each Balance Sheet date, the carrying amount of Deferred Tax Asset is reviewed based on developments to reassess realization.

12. IMPAIRMENT OF ASSETS

The carrying amounts of assets are reviewed at each balance sheet date for indication of any impairment based on internal / external factors. An impairment loss is recognized wherever the carrying amount of the assets exceeds its recoverable amount. Any such impairment loss is recognized by charging it to the profit and loss account. A previously recognized impairment loss is reversed where it is no longer required and the asset is restated to that effect

13. SEGMENT REPORTING:

Revenue and expenses have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenue and expenses which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis have been included under "Unallocated Corporate Expenses".

There are no inter segment revenues and therefore their basis of

measurement does not arise

14.EMPLOYEE STOCK OPTION SCHEME (ESOS)

The Company measures the compensation cost relating to ESOS using the fair market value of equity shares. The compensation cost is amortized on a straight line basis over the total vesting period of the stock options.

15. LEASE ACCOUNTING

The lease payments made on the assets comprising of land and building taken on operating lease, are recognized as an expense on straight line basis over the lease term.

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Mar 31, 2009

1. SYSTEM OF ACCOUNTING

A.The Company follows the mercantile system of accountng and recognises income and expenditure on accrual basis.

The financial statements have been prepared in all material respects in compliance to with accountng standards as notfied in the Companies (Accountng Standards) Rules, 2006 and relevant provisions of the Companies Act, 1956.

B. Financial statements are prepared on historical cost basis and as a going concern.

2. USE OF ESTIMATES.

The preparaton of financial statements requires management to make certain estmates and assumptons that affect the amounts reported in the financial- statements and notes thereto. Differences between actual results and estmates are recognized in the period in which they materialize.

3. FIXED ASSETS AND DEPRECIATION :

A)Fixed Assets

Fixed Assets are stated at their original cost (including expenses related to acquisiton and installaton) less depreciaton. Certain lands, owned by the Company have been re-valued. The surplus on revaluaton amountng to Rs. 2081.96 lacs determined by an external valuer based on the then prevailing market value,in the years 1989, 1992 and 1999, stands credited to Revaluaton Reserve.

B) Depreciaton and Amortzaton

Depreciaton is charged in the Accounts on straight line method as under:

a)On fixed assets of the company at rates specified in Schedule XIV to the Companies Act, 1956 on the original cost. b)On fixed assets added/disposed of during the year, on pro- rata basis with reference to the month of additon/disposal; c) Cost of leasehold land is amortzed over the period of lease.

4. BORROWING COSTS

Borrowing costs atributable to acquisiton, constructon or producton of a qualifying asset are capitalized as part of the cost of that asset, where it is possible- that they will result in future economic benefit. A qualifying asset is one that necessarily takes substantal period of tme to get ready for intended use. All other borrowing costs are recognized as an expense in the period in which they are incurred.

5. REVENUE RECOGNITION

Revenue is recognized to the extent that it can be reliably measured and is probable that the economic benefit will follow to the company.

a. In respect of Sterling Silver Streak Holiday Plan, Sterling Happy Vistas Holiday Units and Sterling Holiday Flexi Club Units & TRUMPS the cost porton of the tme share consideraton (net of discount) namely 45% specified in the agreement is treated as income in the year of sale.

b. Advance subscripton towards customer facilites, being the balance 55%, in respect of Holiday products is accounted as income, in equal proporton, from the year in which the Holiday entitlement is alloted over the period for which the customers are entitled for holidays.

c. Income from resorts comprising of room rent, food and beverages sales, other services, etc., are recognized when the items are sold and services are rendered. Income in respect of amenity charges are accrued during the year but reversed at the end of the year, if not recovered, in view of uncertainty in collecton.

d. Dividend is accounted for when the right to receive the same is established. Interest is accounted on the tme proportonate basis.

6. INVESTMENTS

Long term investments are stated at cost. Provision for diminuton in value is considered if in the opinion of the management such a decline is considered, other than temporary.

7. INVENTORIES

Inventories comprising of provisions, perishables, beverages and consumables are valued at lower of cost or net realizable value. Cost is computed on First in First out basis.

8. FOREIGN CURRENCY TRANSACTIONS

transactions in Foreign Currency are recorded at the exchange rates prevailing on the date of transactions. Monetary items denominated in foreign currencies (such as cash receivables, payables, etc.) outstanding at the year end, are translated at exchange rate applicable as of that date. Non-monetary items denomi nated in foreign currency (such as investments, fixed assets, etc) are valued at the exchange rate prevailing on the date of transacton. Any gains or losses arising due to exchange differences at the tme of translaton or setlement are accounted in the Profit & Loss Account.

9. EMPLOYEE BENEFITS

a) Short term employees benefits are charged at the undiscounted amount to profit and loss account in the year in which the related service is rendered.

b) Contributons to defined contributon schemes towards retirement benefits in the form of Provident Fund and Pension Scheme are remited to Government Provide Fund, are charged to profit and loss account, as incurred.

c) In respect of the existng employees in Corporate Pay roll, the company has established an Employees Group Gratuity Fund and Leave Encashment Scheme with the Life Insurance Corporaton of India and the premium levied is charged to revenue. In respect of previous year, for Corporate Pay roll employees and in respect of employees in the Resorts division the liabilites in respect of defined benefit plans are determined based on the actuarial valuaton made by an independent actuary using projected unit credit method as at the balance sheet date. The actuarial gains or losses are recognized immediately in the profit and loss account.

d) Contributons to Employee Pension Scheme 1995 are accounted on accrual basis with corresponding remitance made to Government Provident Fund authority.

10. PROVISIONS & CONTINGENCIES

a) A provision arising out of a present obligaton is recognized when it is probable that an outlow of resources will be required to setle the obligaton and the amount can be reasonably Estimated

b) Wherever there is a possible obligaton that may, but probably will not require an outlow of resources, the same is disclosed by way of contngent liability.

c) Show Cause Notces are not considered as Contngent Liabilites unless converted into demand.

11. TAXES ON INCOME

Current tax is determined in accordance with Income Tax Act 1961 on the amount of tax payable in respect of the income for the year. Deferred tax assets / liabilites are measured by applying tax rate and tax laws that have been enacted or substantally enacted by the Balance Sheet date. Deferred tax asset arising on account of loss and unabsorbed depreciaton under tax laws is recognized only to the extent there is virtual certainty of its realizaton supported by convinc- ing evidence. Deferred tax assets on account of other tming differences are recognized only to the extent there is reasonable certainty of its realizaton. At each Balance Sheet date, the carrying amount of Deferred Tax Asset is reviewed based on developments to reassess realizaton.

12. IMPAIRMENT OF ASSET

The carrying amounts of assets are reviewed at each balance sheet date for indicaton of any impairment based on internal / external factors. An impairment loss is recognized wherever the carrying amount of the assets exceeds its recoverable amount. Any such impairment loss is recognized by charging it to the profit and loss account. A previously recognized impairment loss is reversed where it no longer required and the asset is restated to that effect

13. SEGMENT REPORTING:

Revenue and expenses have been identfied to segments on the basis of their relatonship to the operatng actvites of the segment Revenue and expenses which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis have been included under "Unallocated Corporate Expenses:

There are no inter segment revenues and therefore their basis of measurement does not arise

14. EMPLOYEE STOCK OPTION SCHEME (ESOS)

The Company measures the compensaton cost relatng to ESOS using the fair market value of equity shares. The compensaton cost is amortzed on a straight line basis over the total vestng period of the stock optons.

15. LEASE ACCOUNTING

The lease payments made on the assets comprising of land and building taken on operatng lease, are recognized as an expense on a straight line basis over the lease term.