Accounting Policies of Cindrella Hotels Ltd. Company

Mar 31, 2015

1. METHOD OF ACCOUNTING:

The Company generally follows the accrual system of accounting. The Accounts are prepared on historical cost basis as a going concern and are consistent with generally accepted accounting practices.

2. INCOME RECOGNITION:

All known incomes are accounted for on accrual basis.

3. TREATMENT OF EXPENSES:

All known expenses are being accounted for on accrual basis.

4. DEFFERED TAX ASSET/LIABILITY:

To provide and recognize deferred tax on timing difference between taxable income and accounting income subject to consideration of prudence. Not to recognize Deferred Tax Asset on Unabsorbed Depreciation and carried forward of losses unless there is virtual certainty that there will be sufficient future taxable income available to realize such assets. Deferred Tax Asset have also been recognized on assets the useful life have expired in terms of Schedule-II of the Companies Act, 2013 and the depreciable amount remaining after deducting the scrape value has been transferred to the Reserves & Surplus on the basis of the fact that no further depreciation will be allowable as per the Companies Act, 2013 however depreciation as per Schedule-XIV of the Income-tax Act, 1961 will continue to be provided.

5. SHORT TERM BORROWINGS:

The Company has a Cash Credit Account with State Bank of India, the details of securities, guarantee and rate of interest are as below:

Secured by: Primary Security:

Hypothecation of the entire current assets of the firm including stocks, receivables and other current assets of the company.

Collateral Security:

Land measuring 0.327 acre situated at Paragna-Baikunthpur, Mouza-Dabgram, P.S. - Raiganj, District- Jalpaiguri. Recorded in JL No.2, R.S. No. 45, Khaitan No. 285/1, Sheet No. 5, plot No. 120 vide. The Sale Deed No.I-4288 executed in the name of Cindrella Hotels ltd on 07.09.1992

(Boundary of the land- North: Land of Shri Vivek Baid, south: Land of Joy Gopal Anand, East: Land of Shri Vivek Baid, West: Land of Deepika Baid).

Guarantee:

Personal guarantee of directors Shri Vivek Baid & Smt. Sangita Devi Baid.

Rate of Interest:

4% above Base Rate (Base Rate- 9% w.e.f. 28/01/2014), Present Effective Rate being 13% p.a

6. TAXES ON INCOME:

The current tax liability has been calculated after considering the permissible tax exemption, deduction and disallowances as per the provisions of the Income Tax Act, 1961 and provided for as short term provisions.

7. FIXED ASSETS:

Fixed Assets are stated at their historical cost inclusive of legal and/or installation charges less Depreciation charged in terms of Schedule-II to the Companies Act, 2013. Details of Fixed Assets have been given in "Note no 10" forming part of Balance Sheet and Profit & Loss Account. None of the Fixed Assets have been revalued during the year.

Pursuant to Accounting Standard (AS-28), Impairment of Assets coming into effect, the company has assessed all the assets and found that there is no external/internal indication of impairment of assets. So the company has not made the provision for impairment of assets.

8. ACCOUNTING FOR INVESTMENTS:

Investments are long term in nature, are quoted investments and are stated at cost. However, provision if any for diminution is made to recognize any decline other than temporary, in the value of investment. But there is no diminution in value of investment which would have long term effect. There are no significant restrictions regarding the minimum holding period for sale/ disposal, utilization of sale proceeds. The Market Value of quoted investments amounts to Rs. 2045026.00.

9. INVENTORIES:

Inventories have been valued at lower of Cost or Net Realizable Value. Inventories have been classified as stores, bar items, linen sheets, rockeries & utensils and food & beverages.

10. EMPLOYEE BENEFITS Defined Contribution Scheme:

The company makes Provident Fund Contribution and Employees State Insurance contribution to defined contribution retirement benefit plans for qualifying employees. Under the scheme the company is required to contribute a specified percentage of the pay roll costs under the schemes for benefits. The amount of Rs 3,99,732/- has been recognized as expense under the head Employers Contribution to Provident Fund and Rs 2,81,328/- under the head Employers Contribution to ESI. The company is also contributing to gratuity fund created by the Life Insurance Corporation of India towards meeting the gratuity expense of the employees. The total contribution to the gratuity fund is Rs 1,00,000.00 during the year.

11. DEPRECIATION:

Depreciation on Fixed Assets is provided on Written down Value Method on a consistent basis as per Schedule II of the Companies Act, 2013 on pro-rata basis. Details of depreciation have been stated in "Note no 10" forming part of Balance Sheet and Profit & Loss Account.

12. RELATED PARTY TRANSACTIONS:

The details regarding related parties and transactions taken place between them during the financial year 2014-15 has been given below:

---

Mar 31, 2014

1. METHOD OF ACCOUNTING :

The Company generally follows the accrual system of accounting. The Accounts are prepared on historical cost basis as a going concern and are consistent with generally accepted accounting practices.

2. INCOME RECOGNITION:

All known incomes are accounted for on accrual basis except income from Membership Fees and dividends which are accounted for as and when received.

3. TREATMENT OF EXPENSES:

All known expenses are being accounted for on accrual basis.

4. DEFFERED TAX ASSET/LIABILITY:

To provide and recognize deferred tax on timing difference between taxable income and accounting income subject to consideration of prudence. Not to recognize Deferred Tax Asset on Unabsorbed Depreciation and carried forward of losses unless there is virtual certainty that there will be sufficient future taxable income available to realize such assets.

5. SHORT TERM BORROWINGS:

The Company has a Cash Credit Account with State Bank of India, the details of securities,guarantee and rate of interest are as below:

Secured by:

Primary Security:

Hypothecation of the entire current assets of the firm including stocks, receivables and other current assets of the company.

Collateral Security:

Land measuring 0.327 acre situated at Paragna-Baikunthpur, Mouza-Dabgram, P.S. - Raiganj, District- Jalpaiguri. Recorded in JL No.2, R.S. No. 45, Khaitan No. 285/1, Sheet No. 5, plot No. 120 vide. The Sale Deed No.I-4288 executed in the name of Cindrella Hotels ltd on 07.09.1992 (Boundary of the land- North: Land of Shri Vivek Baid, south: Land of Joy Gopal Anand, East:

Land of Shri Vivek Baid, West: Land of Deepika Baid).

Guarantee:

Personal guarantee of directors Shri Vivek Baid & Smt. Sangita Devi Baid.

Rate of Interest:

4% above Base Rate (Base Rate- 9% w.e.f. 28/01/2014), Present Effective Rate being 13% p.a

6. TAXES ON INCOME:

The current tax liability has been calculated after considering the permissible tax exemption, deduction and disallowances as per the provisions of the Income Tax Act, 1961 and provided for as short term provisions.

7. FIXED ASSETS:

Fixed Assets are stated at their historical cost inclusive of legal and/or installation charges less Depreciation. Details of Fixed Assets have been given in "Note no 10" forming part of Balance Sheet and Profit & Loss Account. None of the Fixed Assets have been revalued during the year.

Pursuant to Accounting Standard (AS-28), Impairment of Assets coming into effect, the company has assessed all the assets and found that there is no external/internal indication of impairment of assets. So the company has not made the provision for impairment of assets.

8. ACCOUNTING FOR INVESTMENTS:

Investments are long term in nature, are quoted investments and are stated at cost. However, provision if any for diminution is made to recognize any decline other than temporary, in the value of investment. But there is no diminution in value of investment which would have long term effect. There are no significant restrictions regarding the minimum holding period for sale/ disposal, utilization of sale proceeds The Market Value of quoted investments amounts to Rs. 12,90,932.10.

9. INVENTORIES:

Inventories have been valued at lower of Cost or Net Realisable Value. Inventories have been classified as stores, bar items, linen sheets, crockeries & utensils and food & beverages.

10. EMPLOYEE BENEFITS

Defined Contribution Scheme:

The company makes Provident Fund Contribution and Employees State Insurance contribution to defined contribution retirement benefit plans for qualifying employees. Under the scheme the company is required to contribute a specified percentage of the pay roll costs under the schemes for benefits. The amount of Rs. 2,81,328/- has been recognized as expense under the head Employers Contribution to Provident Fund and Rs. 2,24,918/- under the head Employers Contribution to ESI.

11. DEPRECIATION:

Depreciation on Fixed Assets is provided on Written down Value Method on a consistent basis as per Schedule II of the Companies Act, 2013 on pro-rata basis. Details of depreciation have been stated in "Note no 10" forming part of Balance Sheet and Profit & Loss Account.

12. Figures of the previous year have been regrouped and/or recasted wherever necessary.

---

Mar 31, 2013

1. METHOD OF ACCOUNTING:

The Company generally follows the accrual system of accounting. The Accounts are prepared on historical cost basis as agoing concern and are consistent with generally accepted accounting practices.

2. INCOME RECOGNITION:

All known incomes are accounted for on accrual basis except income from Membership Fees and dividends which are accounted for as and when received.

3. TREATMENT OF EXPENSES:

All known expenses are being accounted for on accrual basis.

4 SHARE CAPTTAL:

Equity Shares have equitable voting rights.

The details of shareholding in excess of 5% are as below:

5. DEFFERED TAX ASSET/LIABILITY: To provide and recognize deferred tax on timing difference between taxable income and accounting income subject to consideration of prudence. Not to recognize Deferred Tax Asset on Unabsorbed Depreciation and carried forward of losses unless there is virtual certainty that there will be sufficient future taxable income available to roelize such assets.

6. SHORT TERM BORROWINGS:

The Company has a Cash Credit Account with State Bank of India, the details of securities, gurantee and rate of interest are as below: Secured by: Primary Security:

Hypothecation of the entire current assets of the firm including stocks, receiveables and other current assets of the company. Collateral Security.

Land measuring 0.327 acre situated at Paragna-Baikunthpur, Mouza-Dabgram, P.S.- raiganj, District- Jalpaiguri. Recorded in JL No,2, R.S.

No. 45, Khaitan No. 285/1, Sheet No. 5, plot No. 120 vide. The Sale Deed No.l-4288 executed in the name of Cindrella Hotels ltd on

07.09.1992

(Boundary of the land- North: Land of Shri Vivek Baid, south: Land of JoyGopal Anand, East:

Land of Shri Vivek Baid, West: Land of Deepika Baid).

Gurantee:

Personal gurantee of directors Shri Vivek Baid & Smt. Sangita Devi Baid.

Rate of Interest

4% above Base Rate (Base Rate-8.25% w.e.f. 14.02.2011), Present Effective Rate being 12.25% p.a

7 TAXES ON INCOME:

The current tax liability has been calculated after considering the permissible tax exemption, deduction and disallowances as per the provisions of the Income Tax Act, 1961 and provided for as short term provisions.

8. FIXED ASSETS:

Fixed Assets are stated at their historical cost inclusive of legal and/or installation charges less Depreciation. Details of Fixed Assets have been given in "Note no 9" forming part of Balance Sheet and Profit & Loss Account. None of the Fixed Assets have been revalued during the year.

Pursuant to Accounting Standard (AS-28), Impairment of Assets coming into effect, the company has assessed all the assets and found that there is no external/internal indication of impairment of assets. So the company has not made the provision for impairment of assets.

9. ACCOUNTING FOR INVESTMENTS

investments are long term in nature, are quoted investments and are stated at cost However, provision if any for diminution is made to recognize any decline other than temporary, in the value of investment. But there is no diminution in value of investment which would have long term effect. There are nosigniflcant restrictions regarding the minimum holding period for sale/disposal, utilization of sale proceeds The Market Value of quoted investments amounts to Rs. 15,91,021.00.

iO. INVENTORIES:

Inventories have been valued at lower of Cost or Net Realisable Value. Inventories have been classified as stores, bar items, linen sheets,

crockeries & utensils and food & beverages.

11 EMPLOYEE BENEFITS

Defined Contribution Scheme:

The company makes Provident Fund Contribution and Employees State Insurance contribution to defined contribution retirement benefit plans for qualifying employees. Under the scheme the company is required to contribute a specified percentage of the pay roll costs under the schemes for benefits. The amountof'' 2,51,954/- has been recognized as expense under the head Employers Contribution to Provident Fund and'' 1,98,476/- under the head Employers Contribution to ESI.

12. DEPRECIATION:

Depreciation on Fixed Assets is provided on Written Down Value Method on a consistent basis as per Schedule XIV of the Companies Act, 1956 on pro-rata basis. Details of depreciation have been stated in "Note no 9" forming part of Balance Sheet and Profit & Loss Account.

---

Mar 31, 2010

I. CONVENTION :

The Company generally follows the accrual system of accounting. The Accounts are prepared on historical cost basis as a going concern and are consistent with generally accepted accounting practices.

ii. INVENTORIES:

Inventories have been valued at lower of Cost or Net Realisable Value. Inventories has been classified as stores, bar stock and Food & Beverages.

iii. DEPRECIATION:

Depreciation on Fixed Assets is provided on Written Down Value Method on a consistent basis as per Schedule XIV of the Companies Act, 1956 on pro-rata basis. Details of depreciation have been stated in "Schedule C" forming part of Balance Sheet and Profit & Loss Account.

iv. INCOME RECOGNITION :

All known incomes are accounted for on accural basis except income from Membership Fees and dividends which are accounted for as and when received.

v. FIXED ASSETS:

Fixed Assets are stated at their historical cost inclusive of legal and/or installation charges less Depreciation. Details of Fixed Assets have been given in "Schedule-C" forming part of Balance Sheet and Profit & Loss Account. None of the Fixed Assets have been revalued during the year.

vi. ACCOUNTING FOR INVESTMENTS:

All the investments made are long term in nature and are quoted investments. Investments are stated at cost. There are no significant restrictions regarding the minimum holding period for sale/ disposal, utilization of sale proceeds.

vii. TREATMENT OF EXPENSES: All known expenses are being accounted for on accrual basis.

Viii. EMPLOYEE BENEFITS Defined Contribution Scheme:

The company makes Provident Fund Contribution to defined contribution retirement benefit plans for qualifying employees. Under the scheme the company is required to contribute a specified percentage of the pay roll costs to Provident Fund for benefits. The amount of Rs.2,25,322/- has been recognized as expense under the head Employers Contribution to Provident Fund.

Defined Benefit Scheme:

The company pays gratuity to the employees as per the provisions of the Gratuity Act. Gratuity payable for the year under consider- ation is recognized in the Profit & Loss Account. The amount of Rs. 67,414/- has been charged during the year. The amount payable for the year is determined on the basis of actuarial valuation.

ix. RELATED PARTY TRANSACTIONS:

x. TAXES ON INCOME:

a. Current Year: To provide and determine current year tax liability as the amount of the tax payable in respect of taxable income for the year, after considering the permissible tax exemption, deduction and disallowances as per the provisions of the Income Tax Act, 1961.

b. Deferred Tax: To provide and recognise deferred tax on timing difference between taxable income and accounting income subject to consideration of prudence. Not to recognise Deferred Tax Asset on Unabsorbed Depreciation and carried forward of losses unless there is virtual certainty that there will be sufficient future taxable income available to realize such assets.

x. IMPAIRMENT OF ASSETS:

Pursuant to Accounting Standard (AS-28), Impairment of Assets coming into effect, the company has assessed all the assets and found that there is no external/internal indication of impairment of assets. So the company has not made the provision for impairment of assets.