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Accounting Policies of Fomento Resorts & Hotels Ltd. Company

Mar 31, 2014

Basis of preparation

The financial statements of the Company are prepared under the historical cost convention on accrual basis of accounting in all material respects in accordance with the applicable accounting standards and the provisions of the Companies Act, 1956. The accounting policies have been consistently applied by the Company during the year.

Significant Accounting Policies adopted in the preparation and presentation of accounts is as under:

A) FIXED ASSETS:

Fixed Assets are valued at cost net of recoverable taxes less accumulated depreciation/amortisation.

B) DEPRECIATION:

a) In respect of Leasing Division depreciation has been provided on written down value method as per the rates mentioned in Schedule XIV of the Companies Act, 1956.

b) In respect of Hotel Division depreciation has been provided on the Straight Line Method as per the rates mentioned in Schedule XIV of the Companies Act, 1956.

c) Intangible Asset is amortised on straight line basis over the period of sixty months and is stated at cost less accumulated amortisation.

C) INVESTMENTS:

Investments are stated at cost.

D) INVENTORY:

Inventory of Stores & Spares, Food & Beverages is valued at cost and method of valuation adopted is "Moving Weighted Average" method.

E) RETIREMENT BENEFITS:

Retirement benefits to employees are provided by way of contribution to Provident Fund, Superannuation Fund & Gratuity. Contribution for Gratuity is made on actuarial valuation to Fomento Resorts & Hotels Ltd Employees Gratuity Trust and Superannuation contributions are made to Fomento Resorts and Hotels Ltd Superannuation Fund. Both the funds are maintained with HDFC Standard Life Insurance Company Ltd.

F) FOREIGN CURRENCY TRANSACTIONS:

Transactions in Foreign Currency are recorded at the rates of exchange in force at the time the transactions are effected. Exchange differences arising on realisation of foreign currency are accounted at the time of realisation. Foreign currency assets and liabilities are translated into rupees at the exchange rate prevailing at the Balance Sheet date.

G) REVENUE RECOGNITION:

Revenue is recognised at the time the bills are raised to customers and there exist no significant uncertainty as to determination or realisation of debts.

H) BORROWING COST:

Borrowing costs that are directly attributable to the acquisition and construction of qualifying assets are capitalised.

I) SEGMENT REPORTING:

The Company is presently operating only one integrated hotel business at Goa namely, Cidade de Goa. The entire operation is governed by the same set of risk and returns and hence the same has been considered as representing a single segment. The said treatment is in accordance with the guiding principles enunciated in Accounting Standard 17 (AS-17).

J) TAXES ON INCOME:

Provision for Income tax is made on the basis of tax liability computed in accordance with relevant tax rates and tax laws. Provision for deferred tax has been made as per Accounting Standard 22 (AS-22). Deferred tax assets are recognised only if there is reasonable certainty that they will be realised and are reviewed for the appropriateness of their respective carrying values at each Balance sheet date.


Mar 31, 2012

A) FIXED ASSETS:

Fixed Assets are valued at cost net of recoverable taxes less accumulated deprecia- tion. .

B) DEPRECIATION:

a) In respect of Leasing Division depreciation has been provided on written down value method as per the rates mentioned in Schedule XIV of the Companies Act, 1956.

b) In respect of Hotel Division depreciation has been provided on the Straight Line Method as per the rates mentioned in Schedule XIV of the Companies Act, 1956.

C) INVESTMENTS:

Investments are stated at cost.

D) INVENTORY:

Inventory of Stores & Spares, Food & Beverages is valued at cost and method of valuation adopted is 'First in First out'.

E) RETIREMENT BENEFITS:

Retirement benefits to employees are provided by way of contribution to Provident Fund, Superannuation Fund & Gratuity. Contribution for Gratuity is made on actuarial valuation to Fomento Resorts & Hotels Ltd Employees Gratuity Trust and Superan- nuation contributions are made to Fomento Resorts and Hotels Ltd Superannuation Fund. Both the funds are maintained with HDFC Standard Life Insurance Company Ltd.

F) FOREIGN CURRENCY TRANSACTIONS:

Transactions in Foreign Currency are recorded at the rates of exchange in force at the time the transactions are effected. Exchange differences arising on realisation of foreign currency are accounted at the time of realisation. Foreign currency assets and liabilities are translated into rupees at the exchange rate prevailing at the Balance Sheet date.

G) REVENUE RECOGNITION:

Revenue is recognised at the time the bills are raised to customers and there exist no significant uncertainty as to determination or realisation of debts.

H) SEGMENT REPORTING:

The Company is presently operating only one integrated hotel business at Goa namely, Cidade de Goa. The entire operation is governed by the same set of risk and returns and hence the same has been considered as representing a single segment. The said treatment is in accordance with the guiding principles enunciated in Accounting Standard 17(AS-17).

I) TAXES ON INCOME:

Provision for Income tax is made on the basis of tax liability computed in accordance with relevant tax rates and tax laws. Provision for deferred tax has been made as per Accounting Standard 22 (AS-22). Deferred tax assets are recognised only if there is reasonable certainty that they will be realised and are reviewed for the appropriateness of their respective carrying values at each Balance sheet date.


Mar 31, 2010

Basis of preparation

The financial statements of the Company are prepared under the historical cost convention on accrual basis of accounting in all material respects in accordance with the applicable accounting standards and the provisions of the Companies Act, 1956. The accounting policies have been consistently applied by the Company during the year.

Significant Accounting Policies adopted in the preparation and presentation of accounts are as under:

A) FIXED ASSETS:

Fixed Assets are valued at cost less accumulated depreciation.

B) DEPRECIATION:

a) In respect of Leasing Division depreciation has been provided on written down value method as per the rates mentioned in Schedule XIV of the Companies Act, 1956.

b) In respect of Hotel Division depreciation has been provided on the Straight Line Method as per the rates mentioned in Schedule XIV of the Companies Act, 1956.

C) INVESTMENTS:

Investments are stated at cost.

D) INVENTORY:

Inventory of Stores & Spares, Food & Beverages is valued at cost and method of valuation adopted is First in First out.

E) RETIREMENT BENEFITS:

Retirement benefits to employees are provided by way of contribution to Provident Fund, Superannuation Fund & Gratuity. Contribution for Gratuity is made on actuarial valuation to HDFC Employees Gratuity Trust. Superannuation contributions are made to HDFC Standard Life Insurance Company Ltd.

F) FOREIGN CURRENCY TRANSACTIONS:

Transactions in Foreign Currency are recorded at the rates of exchange in force at the time the transactions are effected. Exchange differences arising on realisation of foreign currency are accounted at the time of realisation. Foreign currency assets and liabilities are translated into rupees at the exchange rate prevailing at the Balance Sheet date.

G) REVENUE RECOGNITION:

Revenue is recognised at the time the bills are raised to customers and there exist no significant uncertainty as to determination or realisation of debts.

H) SEGMENT REPORTING:

The Company is presently operating only one integrated hotel business at Goa namely, Cidade de Goa. The entire operation is governed by the same set of risk and returns and hence the same has been considered as representing a single segment. The said treatment is in accordance with the guiding principles enunciated in Accounting Standard 17 (AS-17) issued by the Institute of Chartered Accountants of India on Segment Reporting.

l) TAXES ON INCOME:

Provision for Income tax is made on the basis of tax liability computed in accordance with relevant tax rates and tax laws. Provision for deferred tax has been made as per Accounting standard 22 (AS-22) issued by the Institute of Chartered Accountants of India. Deferred tax assets are recognised only if there is reasonable certainity that they will be realised and are reviewed for the appropriateness of their respective carrying values at each Balance sheet date.

 
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