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Accounting Policies of H S India Ltd. Company

Mar 31, 2015

A. Basis of preparation of Financial Statements

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

B. Revenue Recognition

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

C. Use of Estimates

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

D. Fixed Assets

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

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

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

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

E. Depreciation, Amortisation and Impairment

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

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

F. Inventories

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

G. Borrowing Costs

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

H. Investments

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

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

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

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

J. Employee’s Benefits

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

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

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

K. Foreign Exchange Transactions

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

L. Taxes on Income

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

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


Mar 31, 2014

A. Basis of preparation of Financial Statements

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

B. Revenue Recognition

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

C. Use of Estimates

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

D. Fixed Assets

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

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

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

E. Depreciation, Amortisation and Impairment ''

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

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

F. Inventories

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

G. Borrowing Costs

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

H. investments

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

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

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

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

J. Employee''s Benefits

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

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

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

K. Foreign Exchange Transactions

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

L. Taxes on Income

(i) Tax expenses are accounted in the same period to which the revenue and expense relate. Provision for current income tax is made for the tax liability payable on taxable income after considering tax allowances, deductions and exemptions'' determined in accordance with the prevailing tax laws. The differences between the taxable income and the net profit and loss before tax for the year as per the financial statements are identified and the tax effect of timing differences at the end of the accounting year, based on effective tax rates substantively enacted by the Balance Sheet date.

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

M. Cash and Cash Equivalents

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

(ii) Terms & Rights of Shareholders:

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

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

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


Mar 31, 2013

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

B. Revenue Recognition

C. Use of Estimates

D. Fixed Assets

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

E. Depreciation, Amortisation and Impairment

F. Inventories

G. Borrowing Costs

H. Investments

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

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

J. Employee''s Benefits

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

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

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

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


Mar 31, 2012

A. Basis of preparation of Financial Statements

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

B. Revenue Recognition

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

C. Use of Estimates

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

D. Fixed Assets

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

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

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

E. Depreciation, Amortisation and Impairment

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

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

F. Inventories

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

G. Borrowing Costs

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

H. Investments

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

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

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

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

J. Employee's Benefits

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

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

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

K. Foreign Exchange Transactions

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

L. Taxes on Income

i. Tax expenses are accounted in the same period to which the revenue and expense relate. Provision for current income tax is made for the tax liability payable on taxable income after considering tax allowances, deductions and exemptions' determined in accordance with the prevailing tax laws. The differences between the taxable income and the net profit and loss before tax for the year as per the financial statements are identified and the tax effect of timing differences at the end of the accounting year, based on effective tax rates substantively enacted by the Balance Sheet date.

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

M. Cash and Cash Equivalents:

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


Mar 31, 2010

A. Basis of preparation of Financial Statements

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

B. Revenue Recognition

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

C. Use of Estimates

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

D. Fixed Assets

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

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

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

E. Depreciation, Amortisation and Impairment

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

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

F. Inventories

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

G. Borrowing Costs

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

H. Investments

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

I. Contingent Liabilities

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

J. Retirement Benefits

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

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

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

K. Foreign Exchange Transactions

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

L. Taxation

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

Deferred Tax is recognised on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

 
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