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Accounting Policies of Dhanada Corporation Ltd. Company

Mar 31, 2015

1. Basis of Preparation of Financial Statements:

a. The Company follows Mercantile System of Accounting and generally recognizes Income and Expenditure on accrual basis except in case of significant uncertainties and are prepared on historical cost convention.

b. The Financial Statements of the Company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP) and comply with accounting standard applicable under section 133 of the Companies Act, 2013, read with rule 7 of the Companies (Accounts) Rules, 2014 (As amended and relevant provisions of the Companies Act, 2013 as applicable.

c. Estimates and Assumptions used in the preparation of the financial statements are based upon Management's evaluation of the relevant facts and circumstances as of the date of the Financial Statements, which may differ from the actual results at a subsequent date.

2. Revenue Recognition:

1. Revenue from Hotel activity is recognized on rendering of services net of Taxes and billing to the customer.

2. Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

3. Fixed Assets:

Fixed assets are stated at cost less accumulated depreciation. The Company capitalizes all direct costs relating to the acquisition and installation of fixed assets. Interest on borrowed funds, if any, used to finance the acquisition of fixed assets, is capitalized up to the date the assets are ready for commercial use. Under-utilized assets are recorded at estimated realizable value.

4. Method of Depreciation:

The Company provides depreciation on all its assets on the Straight Line method at the rates and useful life of Assets in the manner specified in Schedule II of the Companies Act, 2013, proportionate from the date they are put to use.

5. Investments:

Long term investments including interests in incorporated jointly controlled entities, are carried at cost, after providing for any diminution in value, if such diminution is of permanent nature. Current investments are carried at lower of cost or market value. The determination of carrying amount of such investments is done on the basis of specific identification.

6. Retirements Benefits:

i. Gratuity:

The Company provides for gratuity, a defend retirement benefit plan covering eligible employees. The gratuity plan provides for a lump sum payment to employees at retirement, death, incapacitation or termination of the employment based on the respective employee's salary and the tenure of the employment. Liabilities with regard to gratuity plan are determined based on actuarial valuation carried out by independent actuary as at the Balance Sheet date.

Actuarial gains and losses are recognized in full in the Profit and Loss account for the year in which they occur. (Refer note 26 B (10) below).

ii. Provident Fund:

The eligible employees of the Company are entitled to receive the benefits of Provident fund, a defend contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered employee's salary (currently at 12% of the basic salary). The contributions as specified under the law are paid to the Regional Provident Fund Commissioner by the Company.

iii. Leave Encashment:

Employees' are eligible for Leave Encashment. The Company has provided Leave Encashment benefit on actuarial value basis.

iv. Employees' State Insurance Scheme (ESIS):

Employees' State Insurance Scheme (ESIS) is the defend contribution scheme offered by the Company. The contribution to this scheme is charged to the Profit and loss account of the year in which contribution to such scheme becomes due.

7. Inventories:

Stock of food and beverages and operating supplies are carried at cost computed on a weighted average basis or Net Realizable Value, whichever is lower.

8. Research and Development:

The Company does not have a separate Research and Development department and has not incurred any expenditure on Research and Development.

9. Taxation:

Deferred tax resulting from timing differences between book Profits and taxable Profits is accounted for using the tax rates that have been enacted or substantially enacted by the Balance Sheet date to the extent such differences are reversible in subsequent period. Deferred Tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their carrying values at each Balance Sheet date.

10. Earnings per Share:

The Company reports basic earnings per share in accordance with Accounting Standard 20 on 'Earnings per Share'. Basic earnings per share is computed as dividing the net Profit or loss for the period by the weighted average number of Equity shares outstanding during the period.


Mar 31, 2014

1. Basis of Preparation of Financial Statements:

a. The Company follows Mercantile System of Accounting and generally recognizes Income and Expenditure on accrual basis except in case of significant uncertainties.

b. The Financial Statements are prepared on historical cost convention in accordance with the applicable Accounting Standards and the provision of the Companies Act, 1956.

c. Estimates and Assumptions used in the preparation of the financial statements are based upon Management''s evaluation of the relevant facts and circumstances as of the date of the Financial Statements, which may differ from the actual results at a subsequent date.

2. Revenue Recognition:

1. Revenue from Hotel activity is recognized on rendering of services net of Taxes and billing to the customer.

2. Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

3. Fixed Assets:

Fixed assets are stated at cost less accumulated depreciation. The Company capitalizes all direct costs relating to the acquisition and installation of fixed assets. Interest on borrowed funds, if any, used to finance the acquisition of fixed assets, is capitalized up to the date the assets are ready for commercial use. Under-utilized assets are recorded at estimated realizable value.

4. Method of Depreciation:

The Company provides depreciation on all its assets on the Straight Line method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956, proportionate from the date they are put to use.

5. Investments:

Long term investments including interests in incorporated jointly controlled entities, are carried at cost, after providing for any diminution in value, if such diminution is of permanent nature. Current investments are carried at lower of cost or market value. The determination of carrying amount of such investments is done on the basis of specific identification.

6. Retirements Benefits:

i. Gratuity:

The Company provides for gratuity, a defined retirement benefit plan covering eligible employees. The gratuity plan provides for a lump sum payment to employees at retirement, death, incapacitation or termination of the employment based on the respective employee''s salary and the tenure of the employment. Liabilities with regard to gratuity plan are determined based on actuarial valuation carried out by independent actuary as at the Balance Sheet date.

Actuarial gains and losses are recognized in full in the Profit and Loss account for the year in which they occur. (Refer note 27 B (11) below).

ii. Provident Fund:

The eligible employees of the Company are entitled to receive the benefits of Provident fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered employee''s salary (currently at 12% of the basic salary). The contributions as specified under the law are paid to the Regional Provident Fund Commissioner by the Company.

iii. Leave Encashment:

Employees'' are eligible for Leave Encashment. The Company has provided Leave Encashment benefit on actuarial value basis.

iv. Employees'' State Insurance Scheme (ESIS):

Employees'' State Insurance Scheme (ESIS) is the defined contribution scheme offered by the Company. The contribution to this scheme is charged to the profit and loss account of the year in which contribution to such scheme becomes due.

7. Inventories:

Stock of food and beverages and operating supplies are carried at cost computed on a weighted average basis or Net Realizable Value, whichever is lower.

8. Research and Development:

The Company does not have a separate Research and Development department and has not incurred any expenditure on Research and Development.

9. Taxation:

Deferred tax resulting from timing differences between book profits and taxable profits is accounted for using the tax rates that have been enacted or substantially enacted by the Balance Sheet date to the extent such differences are reversible in subsequent period. Deferred Tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their carrying values at each Balance Sheet date.

10. Earnings per Share:

The Company reports basic earnings per share in accordance with Accounting Standard 20 on ''Earnings per Share''. Basic earning per share is computed as dividing the net profit or loss for the period by the weighted average number of Equity shares outstanding during the period.


Mar 31, 2013

1. Basis of Preparation of Financial Statements:

a. The Company follows Mercantile System of Accounting and generally recognizes Income and Expenditure on accrual basis except in case of signifcant uncertainties.

b. The Financial Statements are prepared on historical cost convention in accordance with the applicable Accounting Standards and the provision of the Companies Act, 1956.

c. Estimates and Assumptions used in the preparation of the fnancial statements are based upon Management''s evaluation of the relevant facts and circumstances as of the date of the Financial Statements, which may differ from the actual results at a subsequent date.

2. Revenue Recognition:

1. Revenue from Hotel activity is recognized on rendering of services net of Taxes and billing to the customer.

2. Income from derivatives comprises proft/loss on equity derivative instruments.

Proft/loss on equity derivative transactions is accounted for as explained below:

a. Initial and additional margin paid over and above initial margin, for entering into contracts for Equity Index/ Stock Futures and or equity Index/stock options which are released on fnal settlement/squaring-up of underlying contracts are disclosed under Current Assets, Loans and advances. "Mark-to-market margin- Equity Index/ Stock Futures" representing the amounts paid in respect of mark to market margin is disclosed under Loans and Advances and amount received is shown under current liabilities.

b. "Equity Index/Stock Option Premium Account" represents premium paid or received for buying or selling the options, respectively.

c. On fnal settlement or squaring up of contracts for equity index / stock futures, the realized proft or loss after adjusting the unrealized loss already accounted, if any, is recognized in the Proft and Loss Account. On settlement or squaring up of equity index / stock options before expiry, the premium prevailing in "Equity Index/Stock Option Premium Account" on that date is recognized in the Proft and Loss Account. When more than one contract in respect of the relevant series of equity index / stock futures or equity index / stock options contract to which the squared-up contract pertains is outstanding at the time of the squaring-up of the contract, the contract price of the contract so squared-up is determined using the weighted average cost method for calculating the proft/loss on squaring-up. As at the balance sheet date, the mark to market on all hedged transactions comprising of Securities and Equity.

Derivatives positions are determined on a Portfolio basis with net unrealized losses being recognized in the Proft and Loss Account. Unrealized gains (on portfolio basis) are not recognized in the Proft and Loss Account on grounds of prudence as enunciated in Accounting Standard - 1, Disclosure of Accounting Policies.

3. Fixed Assets:

Fixed assets are stated at cost less accumulated depreciation. The Company capitalizes all direct costs relating to the acquisition and installation of fxed assets. Interest on borrowed funds, if any, used to fnance the acquisition of fxed assets, is capitalized up to the date the assets are ready for commercial use. Under-utilized assets are recorded at estimated realizable value.

4. Method of Depreciation:

The Company provides depreciation on all its assets on the Straight Line method at the rates and in the manner specifed in Schedule XIV of the Companies Act, 1956, proportionate from the date they are put to use.

5. Investments:

Long term investments including interests in incorporated jointly controlled entities, are carried at cost, after providing for any diminution in value, if such diminution is of permanent nature. Current investments are carried at lower of cost or market value. The determination of carrying amount of such investments is done on the basis of specifc identifcation.

6. Retirements Benefts:

i. Gratuity:

The Company provides for gratuity, a defned retirement beneft plan covering eligible employees. The gratuity plan provides for a lump sum payment to employees at retirement, death, incapacitation or termination of the employment based on the respective employee''s salary and the tenure of the employment. Liabilities with regard to gratuity plan are determined based on actuarial valuation carried out by independent actuary as at the Balance Sheet date. Actuarial gains and losses are recognized in full in the Proft and Loss account for the year in which they occur. (Refer note 27 B (11) below).

ii. Provident Fund:

The eligible employees of the Company are entitled to receive the benefts of Provident fund, a defned contribution plan, in which both employees and the Company make monthly contributions at a specifed percentage of the covered employee''s salary (currently at 12% of the basic salary). The contributions as specifed under the law are paid to the

Regional Provident Fund Commissioner by the Company. iii. Leave Encashment:

Employees'' are eligible for Leave Encashment. The Company has provided Leave Encashment beneft on actuarial value basis.

iv. Employees'' State Insurance Scheme (ESIS):

Employees'' State Insurance Scheme (ESIS) is the defned contribution scheme offered by the Company. The contribution to this scheme is charged to the proft and loss account of the year in which contribution to such scheme becomes due.

7. Inventories:

Stock of food and beverages and operating supplies are carried at cost computed on a weighted average basis or Net Realizable Value, whichever is lower.

8. Research and Development:

The Company does not have a separate Research and Development department and has not incurred any expenditure on Research and Development.

9. Taxation:

Deferred tax resulting from timing differences between book profts and taxable profts is accounted for using the tax rates that have been enacted or substantially enacted by the Balance Sheet date to the extent such differences are reversible in subsequent period. Deferred Tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their carrying values at each Balance Sheet date.

10. Earnings per Share:

The Company reports basic earnings per share in accordance with Accounting Standard 20 on ''Earnings per Share''. Basic earning per share is computed as dividing the net proft or loss for the period by the weighted average number of Equity shares outstanding during the period.


Mar 31, 2011

1. Basis of Preparation of Financial Statements:

a. The Company follows Mercantile System of Accounting and generally recognizes Income and Expenditure on accrual basis except in case of signifcant uncertainties.

b. The Financial Statements are prepared on historical cost convention in accordance with the applicable Accounting Standards and the provision of the Companies Act, 1956.

c. Estimates and Assumptions used in the preparation of the financial statements are based upon Management's evaluation of the relevant facts and circumstances as of the date of the Financial Statements, which may differ from the actual results at a subsequent date.

2. Revenue Recognition:

Revenue from Hotel activity is recognized on rendering of services and billing to the customer.

3. Fixed Assets:

Fixed assets are stated at cost less accumulated depreciation. The Company capitalizes all direct costs relating to the acquisition and installation of fixed assets. Interest on borrowed funds, if any, used to finance the acquisition of fixed assets, is capitalized up to the date the assets are ready for commercial use. Under-utilised assets are recorded at estimated realizable value.

4. Method of Depreciation:

The Company provides depreciation on all its assets on the Straight Line method at the rates and in the manner specifed in Schedule XIV of the Companies Act, 1956, proportionate from the date they are put to use.

5. Investments:

Long term investments including interests in incorporated jointly controlled entities, are carried at cost, after providing for any diminution in value, if such diminution is of permanent nature. Current investments are carried at lower of cost or market value. The determination of carrying amount of such investments is done on the basis of specifc identifcation.

6. Retirements Benefits:

i. Gratuity:

The Company provides for gratuity, a defned retirement benefit plan covering eligible employees. The gratuity plan provides for a lump sum payment to employees at retirement, death, incapacitation or termination of the employment based on the respective employee's salary and the tenure of the employment. Liabilities with regard to gratuity plan are determined based on actuarial valuation carried out by independent actuary as at the Balance Sheet date.

Actuarial gains and losses are recognized in full in the profit and Loss account for the year in which they occur. (Refer note 12 (a) above)

ii. Provident Fund:

The eligible employees of the Company are entitled to receive the benefits of Provident fund, a defned contribution plan, in which both employees and the Company make monthly contributions at a specifed percentage of the covered employee's salary (currently at 12% of the basic salary). The contributions as specifed under the law are paid to the Regional Provident Fund Commissioner by the Company.

iii. Leave Encashment:

Employees' are eligible for Leave Encashment. The Company has provided Leave Encashment benefit on actuarial value basis.

iv. Employees' State Insurance Scheme (ESIS):

Employees' State Insurance Scheme (ESIS) is the defned contribution scheme offered by the Company. The contributions to this scheme is charged to the profit and loss account of the year in which contribution to such scheme becomes due.

7. Inventories:

Stock of food and beverages and operating supplies are carried at cost computed on a weighted average basis or Net Realizable Value, whichever is lower.

8. Research and Development:

The Company does not have a separate Research and Development department and has not incurred any expenditure on Research and Development.

9. Taxation:

Deferred tax resulting from timing differences between book profits and taxable profits is accounted for using the tax rates that have been enacted or substantially enacted by the Balance Sheet date to the extent such differences are reversible in subsequent period. Deferred Ta x assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their carrying values at each Balance Sheet date.

10. Earnings Per Share:

The Company reports basic earnings per share in accordance with Accounting Standard 20 on 'Earnings per Share'. Basic earning per share is computed as dividing the net profit or loss for the period by the weighted average number of Equity shares outstanding during the period.


Mar 31, 2000

1. BASIS OF ACCOUNTING

The accounts have been prepared on the basis of Historical costs.

2. SALES

Sales comprise of sale of room, food & beverage and allied services relating to Hotel stay and Miscellaneous Income and sale of material.

3. FIXED ASSETS

Fixed Assets are valued at cost less depreciation. In respect of borrowed capital used for construction of fixed assets, interest during the period of construction capi- talised as per Accounting Standard No. 10 (AS! 0) on accounting for fixed assets issued by the institute of chartered accountants of India.

4. INVENTORIES

Stock of foods and beverages and operating supplies are carried at cost.

5. TREATMENT OF EXPENDITURE DURING CONSTRUCTION

At the end of the year there is capital work in progress to be capitalised in respect of Capsule Lift of Rs. 11,91,286.00, Building Rs. 1,26,00,760.64, Plant & Machinary Rs. 56,01,106.00 & Furniture & Fixture Rs. 33,05,117.00, are capitalised during year.

6. METHOD OF DEPRECIATION

The depreciation has been provided as per Schedulr XIV of the companies Act, 1956, on straight line method.

7. INVESTMENTS

All investments are valued at cost of acquisition.

8. RESEARCH & DEVELOPMENT

The Company does not have a Seperate Research & Development department and has not incurred any expenditure on Research & Development.

9. ACCRUAL SYSTEMS OF ACCOUNTING

Accural system of accounting is adopted in respect of:

(1) Interest on Bank loan, Term Loan from Financial Institutions except as mentioned in report.

(2) Income & Expenses.

10. GRATUITY

Proviion for gratuity liability to employees will be made on the basis of eqatorial valuation.

 
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