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Accounting Policies of Nicco Parks & Resorts Ltd. Company

Mar 31, 2015

1.1 BASIS OF ACCOUNTING

The financial statements are historical cost conventions, in accordance with the generally accepted accounting principles.

1.2 FIXED ASSETS & DEPRECIATION

(a) Fixed Assets are stated at cost less depreciation. Land (leasehold) represents only site development expenses not relating to specific building (there being no lump sum payment). These expenses are being amortized over the lease period with annual lease rentals being charged to revenue.

(b) Depreciation on Fixed Assets, other than Motor Vehicles, has been provided on Straight Line Method at applicable rates prescribed in Schedule II to the Companies Act, 2013 ('the Act') except for following items for which depreciation has been provided at different rates based on their useful lives as estimated by the Management on the basis of technical evaluation:-

(c) Depreciation on Motor Vehicles has been provided on written down Value Method at applicable rate prescribed in Schedule II to the Act.

(d) Intangible Assets are amortized over a period of five years.

(e) Assets if any, acquired under Finance Lease (i.e. Hire Purchase arrangements) are capitalized at lower of their fair value and the present value of the minimum lease payments.

(f) An impairment loss is recognised wherever the carrying amount of the fixed assets exceeds the recoverable amount, i.e., the higher of the assets' net selling price and its value in use.

(g) Capital grant received from sponsors for construction of specific asset are credited to Capital Reserve and is recognised as income in the Profit and Loss Account to the extent of depreciation charge of related asset.

1.3 BORROWING COSTS

Borrowing costs attributable to the acquisition and construction of qualifying assets are added to the cost of such assets up to the date when such asset is ready for its intended use. Other borrowing costs are recognised as an expense in the period in which they are incurred.

1.4 foreign exchange transactions

Transactions in foreign currency are accounted for at exchange rates prevailing on the date of transactions. Year-end foreign currency balances of monetary items, if any, are translated at the appropriate year-end rates. Non-monetary items which are carried in terms of historical cost denominated in foreign currency are reported using the exchange rates at

the date of transaction. Resultant translation differences arrising on settlement of transactions and /or restatement are appropriately dealt with in the Statement of Profit and Loss.

1.5 INVENTORY VALUATION

(a) Inventories other than Stores and Spares and Contract Work-in-Progress, if any are valued at lower of cost and net realisable value.

(b) Stores and Spares are valued at cost or under. Cost includes freight and other related incidental expenses and is computed on FIFO basis.

(c) Contract Work-in-Progress, if any is valued at cost which relates to future activities on the contract. Appropriate allowance is also made for such cost, recovery of which is not probable.

1.6 REVENUE RECOGNITION

(a) Revenue from fixed price construction contract is recognised on the percentage of completion method, measured by reference to the proportion that contract costs (other than those relating to future activities on such contract) incurred up to the reporting date bears to the estimated total contract costs.

(b) Other items of Income and Expenditure are recognised on accrual and prudent basis.

1.7 INVESTMENTS

(a) Long Term Investments are stated at cost as reduced by provision for diminution, if any, other than temporary, in the related carrying amounts.

(b) Current Investments are carried at lower of cost and net realisable value.

1.8 TAXATION

Tax expenses comprise Current Tax and Deferred Tax. Current Tax is accounted for based on the estimated taxable income for the period as per the related tax laws followed. Deferred Tax is recognised, subject to consideration of prudence in respect of deferred tax assets, on timing differences between taxable income and accounting income that originates in one period and are capable of being reversal in one or more subsequent periods and is measured using tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date.

1.9 employee benefits

(a) Contributions payable in keeping with Defined Contribution Plans are funded and recognised as period's expenditure.

(b) Contribution under Defined Benefit Plans, as determined by Life Insurance Corporation of India (LIC) are funded as per arrangement with them. But the expenditure is recognized as per actuarial valuation, as per AS 15 (Revised).

(c) Provision for other long term benefit,like leave encashment liability for qualifying employees is made on the basis of actuarial valuation.

1.10 provisions, contingent liabilities & contingent assets

A provision is made when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on Management estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates. Contingent Liabilities are not recognised and are disclosed in the notes to the accounts. Contingent Assets are neither recognised nor disclosed in the financial statements.

a) The company has one class of issued shares i.e. equity shares having par value of Re.i per share. Each holder of ordinary shares is entitled to one vote per share and equal right for dividend.

b) There has been no change/movements in number of shares outstanding at the beginning and at the end of the reporting period.

c) The Company does not have any holding company/ultimate holding company.

d) Details of shareholders holding more than 5% shares in the company:

e) No shares have been reserved for issue under options and contracts/ commitments for the sale of shares/ disinvestment as at the balance sheet date.

f) No shares have been allotted or has been bought back by the company during the period of 5 years preceding the date as at which the Balance Sheet is prepared.

g) No convertible securities has been issued by the company during the period.

h) No calls are unpaid by any Director and Officer of the Company during the period.

i. Nature of Security

A first charge by way of hypothecation of all the moveables (save and except book debts) alongwith moveable machinery, machinery spares, tools and accessories, present and future subject to prior charge created and/or to be created in favour of Borrower's bankers on borrower's stock etc., and also first mortgage charge by way of mortgage of immovable properties comprising of leasehold rights of land admeasuring about 40 acres together with buildings, structures, erections, etc, constructed or to be constructed therein in both present or future and the plant , equipments and machinery attached to the earth ranking pari passu for existing term loans of TFCI and Allahabad Bank.


Mar 31, 2014

1.1 BAMS OF ACCOUNTING

Tite financial statements are historical cost conventions, in accordance with tlie generally accepted accounting principal.

1.2 FIXED ASSETS & DEPRECIATION

(a} Fixed Assets are stated at cost less depreciation. Land (leasehold) represents only site development expenses not relating to specific building (them being no lump sum payment). These expenses arc being amortized over the lease period with annual lease rentals being charged to revenue.

(b) Depreciation on Fixed Assets, other than Vehicles, has been provided on Straight Line Method at applicable rates prescribed in Schedule XIV to the Companies Act, 1956 ('the Act') except for following items For which depreciation has been provided at higher rates based on their useful lives as estimated by the Management on the basis of technical evaluation

Particulars Useful Life (in years)

Machinery for Sports facilities 10

Inflatable Rides 4

Civil Works and Buildings at Water 10 and 2.0 respectively Park& Banquet Hall

Machinery, Equipment (Others), Rides, 10 Electrical Installation, Furniture and Fittings at Water Park. Banquet Hall & Haunted House

Theme Derby Rides 4

(cj Depreciation on Vehicles has been provided on Written Down Value Method at applicable rate presc ribed in Schedule XIV to (he Act.

(d) Intangible Assets are amortized over a (teriod of five years.

|e) Assets if any, acquired under Finance Lease {i.e. Hire Purchase arrangements) are capitalized at lower of their (air value and the present value of the minimum lease payments,

if) An impairment loss is recognised wherever the carrying amount of the fixed assets exceeds the recoverable amount, i.e., the higher of the assets' net selling price and its value in use,

(g) Capital grant received from sponsors for construction ofsrecific asset are credited to Capital Reserve and is recognised as income in the Profit and Loss Account to the extent of depreciation charge of related asset.

1.3 BORROWING COSTS

Borrowing costs attributable to the acquisition and construction of qualifying assets are added <0 the cost of such assets tip to the date when such asset is ready for its ml ended use. Other borrowing costs are recognised as an expense in the period in which they are incurred.

1.4 FOREIGN EXCHANGE TRANSACTIONS

Transactions in foreign currency are accounted for at exchange rates prevailing on the date of transactions. Year-end foreign Currency balances of monetary items, if any, are translated at the appropriate year-end rates. Non-monetary items which are carried in terms of historical cost denominated in foreign currency are reported using the exchange rates at the date of trails ad ion. Resultant translation differences am sing on settlement of transactions atid /or restatement are appropriately dealt with in the Statement of Profit and Loss.

INVENTORY VALUATION

(a) Inventories other tlian Stores and Spares and Contract Work-in-Progress, if any are valued at lower of cost and net realisable value.

(b) Stores and Spares ate valued at cost or under. Cost includes freight and other related incidental expenses and is computed on FIFO basis.

(c) Contract Work-in-Progress, if any is valued at cost which relates to Future activities on tlte contract. Appropriate allowance is also made for such cost, recovery of which is not probable.

1.6 REVENUE RECOGNITION

(a) Revenue from fixed price construction contract is recognised on the percentage of completion method, measured by reference to the proportion that contract costs (oilier than those relating to future activities on stick contract) incurred up to the reporting date bears to lire estimated total contract costs.

(b) Other items ofi nCOtne and Expenditure are recognised on accrual and prudent basis. jr-7 INVESTMENTS

(a) Long Term Investments are staled at cost as reduced by provision for diminution, if any, other than temporary, in the related carrying amounts.

(b) Current Investments are carried at lower of tost and net realisable value.

1.8 TAXATION

Tax expenses comprise Current Tax arid Deferred Tax. Current Tax is accounted for based on the estimated taxable income for the period as pet the related tax laws followed. Deferred Tax is tecognised. Subject to consideration of prudence in respect of deferred lax assets, on timing differences between taxable income and accounting income that originates in one |Kriod and are capable of being reversal iti one or more subsequent periods and is measured using tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date

1.9 EMPLOYEE BENEFITS

(a] Contributions payable in keeping with Defined Contribution Plans are funded and recognised as period's expenditure.

(b) Contribution under Defined Benefit Plans, as determined by Life Insurance Corporation of India (L1C) are funded as per arrangement with them. Bui the expenditure is recognised as per actuarial valuation, as per AS 15 (Revised).

(cj Provision for oilier long lertn benefit, I ike leave encashment liability for qualifying employees is made oil the basis of actuarial valuation.

1.10 PROVISIONS, CONTINGENT LIABILITIES & CONTINGENT ASSETS

A provision is made when an enterprise has a preset!t obligation as a result of past event and il is probable that an outflow of resources will be required to settle [lie obligation, in res fleet of which a reliable estimate can be made. Provisions are not discounted to tls present value and are determined based on Management estimate required to settle lire obligation at tlte balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the currem management estimates. Contingent Liabilities are not recognised and are disclosed m tire notes to the accounts. Contingent Assets are neitlier recognised nor disclosed in the financial statements.


Mar 31, 2013

1.1 BASIS OF ACCOUNTING

The financial statements are historical cost conventions, in accordance with the generally accepted accounting principal.

1.2 FIXED ASSETS & DEPRECIATION

(a) Fixed Assets are stated at cost less depreciation. Land (leasehold) represents only site development expenses not relating to specific building (there being no lump sum payment). These expenses are being amortized over the lease period with annual lease rentals being charged to revenue.

(b) Depreciation on Fixed Assets, other than Vehicles, has been provided on Straight Line Method at applicable rates prescribed in Schedule XIV to the Companies Act, 1956 (''the Act'') except for following items for which depreciation has been provided at higher rates based on their useful lives as estimated by the Management on the basis of technical evaluation :-

(c) Depreciation on Vehicles has been provided on Written Down Value Method at applicable rate prescribed in Schedule XIV to the Act.

(d) Depreciation on Theme Derby Rides has been charged to 25% p.a. on Straight Line Method from earlier rate of 4.75% on Straight Line Method based on its useful lives as estimated by the Management on the basis of technical evaluation.

(e) Intangible Assets are amortized over a period of five years.

(f) Assets if any, acquired under Finance Lease (i.e. Hire Purchase arrangements) are capitalized at lower of their fair value and the present value of the minimum lease payments.

(g) An impairment loss is recognised wherever the carrying amount of the fixed assets exceeds the recoverable amount, i.e., the higher of the assets'' net selling price and its value in use.

(h) Capital grant received from sponsors for construction of specific asset are credited to Capital Reserve and is recognised as income in the Profit and Loss Account to the extent of depreciation charge of related asset.

1.3 BORROWING COSTS

Borrowing costs attributable to the acquisition and construction of qualifying assets are added to the cost of such assets up to the date when such asset is ready for its intended use. Other borrowing costs are recognised as an expense in the period in which they are incurred.

1.4 FOREIGN EXCHANGE TRANSACTIONS

Transactions in foreign currency are accounted for at exchange rates prevailing on the date of transactions. Period-end foreign currency balances of monetary items, if any, are translated at the appropriate period-end rates and the resultant translation differences are dealt with in the the appropriate period-end rates and the resultant translation differences are dealt with in the Profit and Loss Account. Non-monetary items which are carried in terms of historical cost denominated in foreign currency are reported using the exchange rates at the date of transaction.

1.5 INVENTORY VALUATION

(a) Inventories other than Stores and Spares and Contract Work-in-Progress, if any are valued at lower of cost and net realisable value.

(b) Stores and Spares are valued at cost or under. Cost includes freight and other related incidental expenses and is computed on FIFO basis.

(c) Contract Work-in-Progress, if any is valued at cost which relates to future activities on the contract. Appropriate allowance is also made for such cost, recovery of which is not probable.

1.6 REVENUE RECOGNITION

(a) Revenue from fixed price construction contract is recognised on the percentage of completion method, measured by reference to the proportion that contract costs (other than those relating to future activities on such contract) incurred up to the reporting date bears to the estimated total contract costs.

(b) Other items of Income and Expenditure are recognised on accrual and prudent basis.

1.7 INVESTMENTS

(a) Long Term Investments are stated at cost as reduced by provision for diminution, if any, other than temporary, in the related carrying amounts.

(b) Current Investments are carried at lower of cost and net realisable value.

1.8 TAXATION

Tax expenses comprise Current Tax and Deferred Tax. Current Tax is accounted for based on the estimated taxable income for the period as per the related tax laws followed. Deferred Tax is recognised, subject to consideration of prudence in respect of deferred tax assets, on timing differences between taxable income and accounting income that originates in one period and are capable of being reversal in one or more subsequent periods and is measured using tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date.

1.9 EMPLOYEE BENEFITS

(a) Contributions payable in keeping with Defined Contribution Plans are funded and recognised as period''s expenditure

(b) Contribution under Defined Benefit Plans, as determined by Life Insurance Corporation of India (LIC) are funded as per arrangement with them. But the expenditure is recognized as per actuarial valuation, as per AS 15 (Revised).

(c) Provision for other long term benefit, like leave encashment liability for qualifying employees is made on the basis of actuarial valuation.

1.10 PROVISIONS, CONTINGENT LIABILITIES & CONTINGENT ASSETS

A provision is made when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on Management estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates. Contingent Liabilities are not recognised and are disclosed in the notes to the accounts. Contingent Assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2012

1.1 BASIS OF ACCOUNTING

The financial statements are historical cost conventions, in accordance with the generally accepted accounting

principal.

1.2 FIXED ASSETS & DEPRECIATION

(a) Fixed Assets are stated at cost less depreciation. Land (leasehold) represents only site development expenses not relating to specific building (there being no lump sum payment). These expenses are being amortised over the lease period with annual lease rentals being charged to revenue.

(b) Depreciation on Fixed Assets, other than Vehicles, has been provided on Straight Line Method at applicable rates prescribed in Schedule XIV to the Companies Act, i956 ('the Act') except for following items for which depreciation has been provided at higher rates based on their useful lives as estimated by the Management on the basis of technical evaluation :-

(c) Depreciation on Vehicles has been provided on Written Down Value Method at applicable rate prescribed in Schedule XIV to the Act.

(d) Assets if any, acquired under Finance Lease (i.e. Hire Purchase arrangements) are capitalized at lower of their fair value and the present value of the minimum lease payments.

(e) An impairment loss is recognized wherever the carrying amount of the fixed assets exceeds the recoverable amount, i.e., the higher of the assets' net selling price and its value in use.

(f) Capital grant received from sponsors for construction of specific asset are credited to Capital Reserve and is recognized as income in the Profit and Loss Account to the extent of depreciation charge of related asset.

1.3 BORROWING COSTS

Borrowing costs attributable to the acquisition and construction of qualifying assets are added to the cost of such assets up to the date when such asset is ready for its intended use. Other borrowing costs are recognised as an expense in the period in which they are incurred.

1.4 FOREIGN EXCHANGE TRANSACTIONS

Transactions in foreign currency are accounted for at exchange rates prevailing on the date of transactions. Period- end foreign currency balances of monetary items, if any, are translated at the appropriate period-end rates and the resultant translation differences are dealt within the appropriate period-end rates and the resultant translation differences are dealt with in the Profit and Loss Account. Non-monetary items which are carried in terms of historical cost denominated in foreign currency are reported using the exchange rates at the date of transactions.

1.5 INVENTORY VALUATION

(a) Inventories other than Stores and Spares and Contract Work-in-Progress, if any, are valued at lower of cost and net realizable value.

(b) Stores and Spares are valued at cost or under. Cost includes freight and other related incidental expenses and is computed on FIFO basis.

(c) Contract Work-in-Progress, if any, is valued at cost which relates to future activities on the contract. Appropriate allowance is also made for such cost, recovery of which is not probable.

1.6 REVENUE RECOGNITION

(a) Revenue from fixed price construction contract is recognized on the percentage of completion method, measured by reference to the proportion that contract costs (other than those relating to future activities on such contract) incurred up to the reporting date bears to the estimated total contract costs.

(b) Other items of Income and Expenditure are recognized on accrual and prudent basis.

1.7 INVESTMENTS

(a) Long Term Investments are stated at cost as reduced by provision for diminution, if any, other than temporary, in the related carrying amounts.

(b) Current Investments are carried at lower of cost and net realizable value.

1.8 TAXATION

Tax expenses comprise Current Tax and Deferred Tax. Current Tax is accounted for based on the estimated taxable income for the period as per the related tax laws followed. Deferred Tax is recognised, subject to consideration of prudence in respect of deferred tax assets, on timing differences between taxable income and accounting income that originates in one period and are capable of being reversal in one or more subsequent periods and is measured using tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date.

1.9 EMPLOYEE BENEFITS

(a) Contributions payable in keeping with Defined Contribution Plans are funded and recognized as period's expenditure.

(b) Contribution under Defined Benefit Plans, as determined by Life Insurance Corporation of India (LIC) are funded as per arrangement with them. But the expenditure is recognized as per actuarial valuation, as per AS i5 (Revised)

(c) Provision for other long term benefit, like leave encashment liability for qualifying employees is made on the basis of actuarial valuation.

1.10 PROVISIONS, CONTINGENT LIABILITIES & CONTINGENT ASSETS

A provision is made when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on Management estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates. Contingent Liabilities are not recognized and are disclosed in the notes to the accounts. Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2011

1. Fixed Assets are stated at cost less depreciation. Land (leasehold) represents only site development expenses not relating to specific building (there being no lump sum payment). These expenses are being amortised over the lease period with annual lease rentals being charged to revenue.

Depreciation on Vehicles has been provided on Written Down Value Method at applicable rate prescribed in Schedule XIV to the Act.

Assets if any, acquired under Finance Lease (i.e. Hire Purchase arrangements) are capitalised at lower of their fair value and the present value of the minimum lease payments.

An impairment loss is recognised wherever the carrying amount of the fixed assets exceeds the recoverable amount, i.e., the higher of the assets net selling price and its value in use.

2 Borrowing costs attributable to the acquisition and construction of qualifying assets are added to the cost of such assets up to the date when such asset is ready for its intended use. Other borrowing costs are recognised as an expense in the period in which they are incurred.

3 Capital grant received from sponsors for construction of specific asset are credited to Capital Reserve and is recognised as income in the Profit and Loss Account to the extent of depreciation charge of related asset.

4 Transactions in foreign currency are accounted for at exchange rates prevailing on the date of transactions. Period-end foreign currency balances of monetary items, if any, are translated at the appropriate period-end rates and the resultant translation differences are dealt with in the Profit and Loss Account. Non-monetary items which are carried in terms of historical cost denominated in foreign currency are reported using the exchange rates at the date of transactions.

5. (a) Inventories other than Stores and Spares and Contract Work-in-Progress, if any are valued at lower of cost and net realisable value.

(b) Stores and Spares are valued at cost or under. Cost includes freight and other related incidental expenses and is computed on FIFO basis.

(c) Contract Work-in-Progress, if any is valued at cost which relates to future activities on the contract. Appropriate allowance is also made for such cost, recovery of which is not probable.

6. (a) Revenue from fixed price construction contract is recognised on the percentage of completion method, measured by reference to the proportion that contract costs (other than those relating to future activities on such contract) incurred up to the reporting date bears to the estimated total contract costs.

(b) Other items of Income and Expenditure are recognised on accrual and prudent basis.

7. (a) Long Term Investments are stated at cost as reduced by provision for diminution, if any, other than temporary, in the related carrying amounts.

(b) Current Investments are carried at lower of cost and net realisable value.

8. Tax expenses comprise Current Tax and Deferred Tax. Current Tax is accounted for based on the estimated taxable income for the period as per the related tax laws followed. Deferred Tax is recognised, subject to consideration of prudence in respect of deferred tax assets, on timing differences between taxable income and accounting income that originates in one period and are capable of being reversal in one or more subsequent periods and is measured using tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date.

9. (a) Contributions payable in keeping with Defined Contribution Plans are funded and recognised as periods expenditure.

(b) Contribution under Defined Benefit Plans, as determined by Life Insurance Corporation of India (LIC) on the basis of actuarial valuation, are funded as per arrangement with LIC and recognized as years expenditure.

(c) Provision for other long term benefit, like leave encashment liability for qualifying employees is made on the basis of actuarial valuation.


Sep 30, 2010

1. Fixed Assets are stated at cost less depreciation. Land (leasehold) represents only site development expenses not relating to specific building (there being no lump sum payment). These expenses are being amortised over the lease period with annual lease rentals being charged to revenue.

Depreciation on Fixed Assets, other than Vehicles, has been provided on Straight Line Method at applicable rates prescribed in Schedule XIV to the Companies Act, 1956 (the Act) except for following items for which depreciation has been provided at higher rates based on their useful lives as estimated by the Management on the basis of technical evaluation :-

Particulars Useful Life (in years)

Machinery for Sports facilities 10 Inflatable Rides 4 Civil Works and Buildings at Water Park 10 and 20 respectively Machinery, Equipment(Others), Rides, Electrical Installation, Furniture and Fittings at Water Park 10

Depreciation on Vehicles has been provided on Written Down Value Method at applicable rate prescribed in Schedule XIV to the Act.

Assets if any, acquired under Finance Lease (i.e Hire Purchase arrangements) are capitalised at lower of their fair value and the present value of the minimum lease payments.

An impairment loss is recognised wherever the carrying amount of the fixed assets exceeds the recoverable amount, i.e., the higher of the assets net selling price and its value in use.

2. Borrowing costs attributable to the acquisition and construction of qualifying assets are added to the cost of such assets up to the date when such asset is ready for its intended use. Other borrowing costs are recognised as an expense in the period in which they are incurred.

3. Capital grant received from sponsors for construction of specific asset are credited to Capital Reserve and is recognised as income in the Profit and Loss Account to the extent of depreciation charge of related asset.

4. Transactions in foreign currency are accounted for at exchange rates prevailing on the date of transactions. Period-end foreign currency balances of monetary items, if any, are translated at the appropriate period-end rates and the resultant translation differences are dealt with in the Profit and Loss Account. Non-monetary items which are carried in terms of historical cost denominated in foreign currency are reported using the exchange rates at the date of transactions.

5. (a) Inventories other than Stores and Spares and Contract Work-in-Progress, if any are valued at lower of cost and net realisable value.

(b) Stores and Spares are valued at cost or under. Cost includes freight and other related incidental expenses and is computed on FIFO basis.

(c) Contract Work-in-Progress, if any is valued at cost which relates to future activities on the contract. Appropriate allowance is also made for such cost, recovery of which is not probable.

6. (a) Revenue from fixed price construction contract is recognised on the percentage of completion method, measured by reference to the proportion that contract costs (other than those relating to future activities on such contract) incurred up to the reporting date bears to the estimated total contract costs.

(b) Other items of Income and Expenditure are recognised on accrual and prudent basis.

7. (a) Long Term Investments are stated at cost as reduced by provision for diminution, if any, other than temporary, in the related carrying amounts.

(b) Current Investments are carried at lower of cost and net realisable value.

8. Tax expenses comprise Current Tax and Deferred Tax. Current Tax is accounted for based on the estimated taxable income for the period as per the related tax laws followed. Deferred Tax is recognised, subject to consideration of prudence in respect of deferred tax assets, on timing differences between taxable income and accounting income that originates in one period and are capable of being reversal in one or more subsequent periods and is measured using tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date.

9. (a) Contributions payable in keeping with Defined Contribution Plans are funded and recognised as years expenditure.

(b) Contribution under Defined Benefit Plans, as determined by Life Insurance Corporation of India (LIC) on the basis of actuarial valuation, are funded as per arrangement with LIC and recognized as years expenditure.

(c) Provision for other long term benefit, like leave encashment liability for qualifying employees is made on the basis of actuarial valuation.


Sep 30, 2009

1. Fixed Assets are stated at cost less depreciation. Land (leasehold) represents only site development expenses not relating to specific building (there being no lump sum payment). These expenses are being amortised over the lease period with annual lease rentals being charged to revenue.

Depreciation on Fixed Assets, other than Vehicles, has been provided on Straight Line Method at applicable rates prescribed in Schedule XIV to the Companies Act, 1956 (the Act)except for following items for which depreciation has been provided at higher rates based on their useful lives as estimated by the Management on the basis of technical evaluation :-

Particulars Useful Life (in years)

Machinery for Sports facilities 10

Inflatable Rides 4

Civil Works and Buildings at Water Park 10 and 20 respectively

Machinery, Equipment(Others), Rides,

Electrical Installation, Furniture and Fittings at Water Park 10

Depreciation on Vehicles has been provided on Written Down Value Method at applicable rate prescribed in Schedule XIV to the Act. (Refer Note B.17 below)

Assets if any, acquired under Finance Lease (i.e. Hire Purchase arrangements) are capitalised at lower of their fair value and the present value of the minimum lease payments.

An impairment loss is recognised wherever the carrying amount of the fixed assets exceeds the recoverable amount, i.e., the higher of the assets net selling price and its value in use.

2. Borrowing costs attributable to the acquisition and construction of qualifying assets are added to the cost of such assets up to the date when such asset is ready for its intended use. Other borrowing costs are recognised as an expense in the period in which they are incurred.

3. Capital grant received from sponsors for construction of specific asset are credited to Capital Reserve and is recognised as income in the Profit and Loss Account to the extent of depreciation charge of related asset.

4. Transactions in foreign currency are accounted for at exchange rates prevailing on the date of transactions. Year-end foreign currency balances of monetary items, if any, are translated at the appropriate year-end rates and the resultant translation differences are dealt with in Profit and Loss Account. Non-monetary items which are carried in terms of historical cost denominated in foreign currency are reported using the exchange rates at the date of transactions.

5. (a) Inventories other than Stores and Spares and Contract Work-in-Progress, if any are valued at lower of cost and net realisable value.

(b) Stores & Spares are valued at cost or under. Cost includes freight and other related incidental expenses and is computed on FIFO basis.

(c) Contract Work-in-Progress, if any is valued at cost which relates to future activities on the contract. Appropriate allowance is also made for such cost, recovery of which is not probable.

6. (a) Revenue from fixed price construction contract is recognised on the percentage of completion method, measured by reference to the proportion that contract costs (other than those relating to future activities on such contract) incurred up to the reporting date bears to the estimated total contract costs.

(b) Other items of Income and Expenditure are recognised on accrual and prudent basis.

7. (a) Long Term Investments are stated at cost as reduced by provision for diminution, if any, other than temporary, in the related carrying amounts.

(b) Current Investments are carried at lower of cost and net realisable value.

8. Tax expenses comprise Current Tax, Fringe Benefit Tax for the applicable period and Deferred Tax. Current Tax is accounted for based on the estimated taxable income for the period as per the related tax laws followed. Based on such tax laws, Fringe Benefit Tax is accounted for based on the estimated value of fringe benefits for the applicable period as per the related provisions of the Income Tax Act. Deferred Tax is recognised, subject to consideration of prudence in respect of deferred tax assets, on timing differences between taxable income and accounting income that originates in one period and are capable of being reversal in one or more subsequent periods and is measured using tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date.

9. (a) Contributions payable in keeping with Defined Contribution Plans are funded and recognized as years expenditure.

(b) Contribution under Defined Benefit Plans, as determined by Life Insurance Corporation of India (LIC) on the basis of actuarial valuation, are funded as per arrangement with LIC and recognized as years expenditure.

(c) Provision for other long term benefit, like leave encashment liability for qualifying employees is made on the basis of actuarial valuation.

10. Securities Issue Expenses (net of tax effect), if any, are adjusted against Securities Premium Account.

 
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