Mar 31, 2016
1. Significant Accounting Policies
i. Basis of preparation of Financial Statements:
These financial statements have been prepared to comply with the Generally Accepted Accounting Principles in India, including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013. The financial statements are prepared on accrual basis under the historical cost convention.
ii. Use of Estimates:
The preparation of financial statements requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of the financial statements and the reported amounts of incomes and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known or materialize.
i i i . Fixed Assets :
a) Fixed Assets are stated at cost of construction or acquisition less accumulated depreciation.
b) All other expenses including taxes, duties, freight incurred to bring the fixed assets to working condition is also treated as the cost of the fixed assets. However, convert availed in respect of the fixed assets is deducted from the cost of the fixed asset.
c) Depreciation is provided on straight line method over the estimated useful lives of the assets as prescribed under Schedule II of the Companies Act, 2013.
iv. Investments:
a) Current investments are carried at lower of cost and market value.
b) Long term investments are stated at cost. Provisions for diminution in value of long term investments are made, if the diminution is other than temporary.
v. Impairment of Assets:
At each balance sheet date, the company consider whether there is any indication that an asset may be impaired. If any indication exits the recoverable amount of the assets is estimated. An impairment loss is recognized immediately whenever the carrying amount of an asset exceeds its recoverable amount.
vi. Valuation of Inventories:
a) Inventory comprises stock of food and beverages and stores and spares and is carried at lower of cost and net realizable value. Cost includes all expenses incurred in bringing the goods to their present location and condition. Net realizable value is the estimated selling price in the ordinary course of business, less estimated cost of completion and to make the sale.
b) Inventory of Cutlery, crockery, linen & uniform are amortized over the period of forty eighth months.
vii. Deferred Revenue Expenditure:
a) Deferred Revenue Expenditure related to windmill has been amortized over a period of twenty years.
b) Deferred Revenue Expenditure other than above is amortized over a period of five years.
viii. Revenue Recognition:
a) Income from Rooms, Banquets, and Restaurant and Other Services represents invoice value of goods sold and services rendered exclusive of all applicable taxes.
b) Revenue from windmill energy generation is accounted for on the basis of units generated against consumption at the Hotel, taking into consideration the energy charges and fuel charges charged by Torrent Power Ltd according to PPA agreement with them.
ix. Foreign Currency Transactions:
Transactions in Foreign Currencies are recorded at the exchange rate prevailing on the date of transaction.
x. Borrowing Cost:
a) Borrowing cost is recognized as expense in the period in which these are incurred.
b) Interest and other borrowing cost on specific borrowings, attributable to qualifying assets are capitalized.
c) Foreign Exchange difference arising on repayment of foreign exchange term loan has been adjusted to interest cost.
xi. Provision for Taxation and Deferred Tax:
a) Provision for Income tax for the current year is based on the estimated taxable income for the period in accordance with the provisions of the Income Tax Act, 1961.
b) Deferred Tax resulting from "timing difference" between book and taxable profit is accounted for using tax rates & tax laws that have been enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset is recognized only to the extent that there is a reasonable certainty that the future taxable profit will be available against which the deferred tax assets can be realized.
xii. Employee Benefits:
a) Gratuity liability is a defined benefit obligation and is recorded based on actuarial valuation on projected unit credit method made at the end of the financial year. The gratuity liability and the net periodic gratuity cost is actuarially determined after considering discount rates, expected long term return on plan assets and increase in compensation levels.
b) Company''s contribution to Provident Fund and Employees State Insurance is charged to the statement of profit and loss for the year.
c) Provision for leave salary has been made as determined by the management.
2.3.1 Security Particulars of Secured Loans
- Term Loan from SBI
i) First pari passu charge over present and future movable and immovable fixed assets at Ahmadabad and Surat properties of the Company.
ii) In addition to the above, the subsidiary company, Lov Kush Properties Pvt. Ltd., has given the corporate guarantee to the limits availed by the company.
iii) The term loans are further guaranteed by the personal guarantee of all executive directors.
- Term Loan & Working Capital Loan from ICICI
i) Pari passu charge over present and future movable and immovable fixed assets at Ahmadabad and Surat properties of the Company.
ii) The term loans are further guaranteed by the personal guarantee of all executive directors.
- Term Loan from Religare Finvest Ltd.
i) Pari passu charge over present and future movable and immovable fixed assets at Ahmadabad and Surat properties of the Company.
- Secured Loans from others
i) Vehicle loans are secured by the hypothecation of assets purchased.
F) Related Party Transactions :
a) Related Parties and their Relationship:
Name of Related Party Relationship
New Ramesh Kirana Stores Entities over which Key Management Personnel are able to
exercise significant influence
TGB Foods Pvt. Ltd Entities over which Key Management Personnel are able to
exercise significant influence
TGB Bakers & Confectioners Pvt. Ltd. Entities over which Key Management Personnel are able to
exercise significant influence
Devanand G. Somani HUF Entities over which Key Management Personnel are able to
exercise significant influence
Narendra G. Somani Key Management Personnel
Devanand G. Somani Key Management Personnel
Hemant G. Somani Key Management Personnel
Ramesh K. Motiani Key Management Personnel
Harshita D. Somani Relative of Key Management Personnel
Sunita N. Somani Relative of Key Management Personnel
Neeta H. Somani Relative of Key Management Personnel
Bhagwati Sales Corporation Relative of Key Management Personnel
G) Segment Reporting :
Since the company has only one segment, there is no separate reportable segment as required in AS-17 issued by the ICAI.
H) Since the business of the company is by way of Food and Beverages, the quantity wise details of purchase, consumption, turnover, stock etc. are not furnished as the items are so large in number that it is not practicable to present.
I) The company had not received any intimation from suppliers regarding their status under the Micro, Small & Medium Enterprise Act, 2006, and hence disclosures, if any, relating to amounts unpaid as the year end together with interest paid of payable as required under said Act, have not been given.
J) In the opinion of the Board, the Current Assets, Loans and Advances are approximately of the value stated, if realized, in the ordinary course of business. Provision for all known liabilities is adequate and not in excess of the amount reasonably necessary.
K) The previous year''s figure have been reworked, regrouped and reclassified wherever necessary.
Mar 31, 2014
I. Basis of preparation of Financial Statements:
The financial statements are prepared and presented under the
historical cost convention on an accrual basis of accounting in
accordance with generally accepted accounting principles in India and
are to comply with the applicable accounting standards notified under
Section 211 (3C) of the Companies (Accounting Standards) Rules, 2006
and the relevant provisions of the Companies Act, 1956, read with the
General Circular 15/2013 dated 13th September 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013.
The accounting policies have been consistently applied unless otherwise
stated.
ii. Use of Estimates:
The preparation of financial statements requires the management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent liabilities as at the date
of the financial statements and the reported amounts of incomes and
expenses during the reporting period. Difference between the actual
results and estimates are recognised in the period in which the results
are known or materialise.
iii. Fixed Assets:
a) Fixed Assets are stated at cost of construction or acquisition less
accumulated depreciation.
b) All other expenses including taxes, duties, freight incurred to
bring the fixed assets to working condition is also treated as the cost
of the fixed assets. However, cenvat availed in respect of the fixed
assets is deducted from the cost of the fixed asset.
c) Depreciation on Fixed Assets is provided on straight line method at
the rates and in the manner prescribed in schedule XIV to the Companies
Act, 1956.
iv. Investments:
a) Current investments are carried at lower of cost and market value.
b) Long term investments are stated at cost. Provisions for diminution
in value of long term investments are made, if the diminution is other
than temporary.
v. Impairment of Assets:
As at each Balance Sheet date, the carrying amount of fixed assets is
tested for impairment so as to determine:
a) The provision for impairment loss, if any, required or
b) The renewal, if any, required of impairment loss recognized in
previous periods. Impairment of loss is recognized when the carrying
amount of an asset exceeds its recoverable amount.
vi. Valuation of Inventories:
a) Inventory comprises stock of food and beverages and stores and
spares and is carried at lower of cost and net realizable value. Cost
includes all expenses incurred in bringing the goods to their present
location and condition. Net realizable value is the estimated selling
price in the ordinary course of business, less estimated cost of
completion and to make the sale.
b) Inventory of Cutlery, crockery, linen & uniform are amortised over
the period of twenty four months.
vii. Deferred Revenue Expenditure:
a) Deferred Revenue Expenditure related to windmill has been amortized
over a period of twenty years.
b) Deferred Revenue Expenditure other than above (i) is amortized over
a period of five years.
viii. Revenue Recognition:
a) Income from Rooms, Banquets, and Restaurant and Other Services
represents invoice value of goods sold and services rendered exclusive
of all applicable taxes.
b) Revenue from windmill energy generation is accounted for on the
basis of units generated against consumption at the Hotel, taking into
consideration the energy charges and fuel charges charged by Torrent
Power Ltd according to PPA agreement with them.
ix. Foreign Currency Transactions:
Transactions in Foreign Currencies are recorded at the exchange rate
prevailing on the date of transaction.
x. Borrowing Cost:
a ) Borrowing cost is recognized as expense in the period in which
these are incurred.
b) Interest and other borrowing cost on specific borrowings,
attributable to qualifying assets are capitalized.
c) Foreign Exchange difference arising on repayment of foreign exchange
term loan has been adjusted to interest cost.
xi. Provision for Taxation and Deferred Tax:
a) Provision for Income tax for the current year is based on the
estimated taxable income for the period in accordance with the
provisions of the Income Tax Act, 1961.
b) Deferred Tax resulting from "timing difference" between book and
taxable profit is accounted for using tax rates & tax laws that have
been enacted or substantively enacted as on the Balance Sheet date. The
deferred tax asset is recognized only to the extent that there is a
reasonable certainty that the future taxable profit will be available
against which the deferred tax assets can be realized.
xii. Employee Benefits:
a) Gratuity liability is a defined benefit obligation and is recorded
based on actuarial valuation on projected unit credit method made at
the end of the financial year. The gratuity liability and the net
periodic gratuity cost is actuarially determined after considering
discount rates, expected long term return on plan assets and increase
in compensation levels.
b) Company''s contribution to Provident Fund and Employees State
Insurance is charged to the statement of profit and loss for the year.
The company has no other obligation other than contribution payable.
c) Provision for leave salary has been made as determined by the
management.
Mar 31, 2013
I. Basis of preparation of Financial Statements:
The financial statements are prepared and presented under the
historical cost convention on an accrual basis of accounting in
accordance with generally accepted accounting principles in India and
are to comply with the applicable accounting standards notified under
Section 211 (3C) of the Companies (Accounting Standards) Rules, 2006
and the relevant provisions of the Companies Act, 1956. The accounting
policies have been consistently applied unless otherwise stated.
ii. Use of Estimates:
The preparation of financial statements requires the management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent liabilities as at the date
of the financial statements and the reported amounts of incomes and
expenses during the reporting period. Difference between the actual
results and estimates are recognised in the period in which the results
are known or materialise.
iii. Fixed Assets:
a) Fixed Assets are stated at cost of construction or acquisition less
accumulated depreciation.
b) All other expenses including taxes, duties, freight incurred to
bring the fixed assets to working condition is also treated as the cost
of the fixed assets. However, cenvat availed in respect of the fixed
assets is deducted from the cost of the fixed asset.
c) Depreciation on Fixed Assets is provided on straight line method at
the rates and in the manner prescribed in schedule XIV to the Companies
Act, 1956.
d) Goodwill is being amortized over the period of five years on
straight line basis.
iv. Investments:
a) Current investments are carried at lower of cost and market value.
b) Long term investments are stated at cost. Provisions for diminution
in value of long term investments are made, if the diminution is other
than temporary.
v. Impairment of Assets:
As at each Balance Sheet date, the carrying amount of fixed assets is
tested for impairment so as to determine:
a) The provision for impairment loss, if any, required or
b) The renewal, if any, required of impairment loss recognized in
previous periods. Impairment of loss is recognized when the carrying
amount of an asset exceeds its recoverable amount.
vi. Valuation of Inventories:
a) Inventory comprises stock of food and beverages and stores and
spares and is carried at lower of cost and net realizable value. Cost
includes all expenses incurred in bringing the goods to their present
location and condition. Net realizable value is the estimated selling
price in the ordinary course of business, less estimated cost of
completion and to make the sale.
b) Inventory of Cutlery, crockery, linen & uniform are amortised over
the period of twenty four months.
vii. Deferred Revenue Expenditure:
a) Deferred Revenue Expenditure related to windmill has been amortized
over a period of twenty years.
b) Deferred Revenue Expenditure other than above (i) is amortized over
a period of five years.
viii. Revenue Recognition:
a) Income from Rooms, Banquets, and Restaurant and Other Services
represents invoice value of goods sold and services rendered exclusive
of all applicable taxes.
b) Revenue from windmill energy generation is accounted for on the
basis of units generated against consumption at the Hotel, taking into
consideration the energy charges and fuel charges charged by Torrent
Power Ltd according to PPA agreement with them.
ix. Foreign Currency Transactions:
Transactions in Foreign Currencies are recorded at the exchange rate
prevailing on the date of transaction.
x. Borrowing Cost:
a) Borrowing cost is recognized as expense in the period in which these
are incurred.
b) Interest and other borrowing cost on specific borrowings,
attributable to qualifying assets are capitalized.
c) Foreign Exchange difference arising on repayment of foreign exchange
term loan has been adjusted to interest cost.
xi. Provision for Taxation and Deferred Tax:
a) Provision for Income tax for the current year is based on the
estimated taxable income for the period in accordance with the
provisions of the Income Tax Act, 1961.
b) Deferred Tax resulting from "timing difference" between book and
taxable profit is accounted for using tax rates & tax laws that have
been enacted or substantively enacted as on the Balance Sheet date. The
deferred tax asset is recognized only to the extent that there is a
reasonable certainty that the future taxable profit will be available
against which the deferred tax assets can be realized.
xii. Employee Benefits:
a) Gratuity liability is a defined benefit obligation and is recorded
based on actuarial valuation on projected unit credit method made at
the end of the financial year. The gratuity liability and the net
periodic gratuity cost is actuarially determined after considering
discount rates, expected long term return on plan assets and increase
in compensation levels.
b) Company''s contribution to Provident Fund and Employees State
Insurance is charged to the statement of profit and loss for the year.
The company has no other obligation other than contribution payable.
c) Provision for leave salary has been made as determined by the
management.
Mar 31, 2012
I. Accounting Convention
The financial statements have been prepared under historical cost
convention and on basis of the going concern, in accordance with the
generally accepted accounting principles (GAAP) in India and as per the
provision of the provision of the Companies Act,1956, wherever
applicable.
Indian GAAP enjoins management to make estimates and assumptions that
affect reported amount of assets, liabilities, revenue, expenses and
contingent liabilities pertaining to year, the financial statements
relate to. Actual result could differ from such estimates. Any revision
in accounting estimate is recognized prospectively from current year
and material revision, including its impact on financial statement, is
reported in notes to accounts in the year of incorporation of revision.
ii. Fixed Assets
a) Fixed Assets are stated at cost of construction or acquisition less
accumulated depreciation.
b) All other expenses including taxes, duties, freight incurred to
bring the fixed assets to working condition is also treated as the cost
of the fixed assets. However, cenvat availed in respect of the fixed
assets is deducted from the cost of the fixed asset.
c) Depreciation on Fixed Assets is provided on straight line method at
the rates and in the manner prescribed in schedule XIV to the Companies
Act, 1956.
d) Goodwill is being amortized over the period of five years on
straight line basis.
iii. Investments:
e) Current investments are carried at lower of cost and market value.
f) Long term investments are stated at cost. Provisions for diminution
in value of long term investments are made, if the diminution is other
than temporary.
iv. Impairment of Assets:
As at each Balance Sheet date, the carrying amount of fixed assets is
tested for impairment so as to determine:
a) The provision for impairment loss, if any, required or
b) The renewal, if any, required of impairment loss recognized in
previous periods. Impairment of loss is recognized when the carrying
amount of an asset exceeds its recoverable amount.
v. Valuation of Inventories:
a) Inventory comprises stock of food and beverages and stores and
spares and is carried at lower of cost and net realizable value. Cost
includes all expenses incurred in bringing the goods to their present
location and condition. Net realizable value is the estimated selling
price in the ordinary course of business, less estimated cost of
completion and to make the sale.
b) Inventory of Cutlery, crockery, linen & uniform are amortised over
the period of twenty four months.
vi. Deferred Revenue Expenditure:
a) Deferred Revenue Expenditure related to windmill has been amortized
over a period of twenty years.
b) Deferred Revenue Expenditure other than above (i) is amortized over
a period of five years.
vii. Revenue Recognition:
a) Income from Rooms, Banquets, and Restaurant and Other Services
represents invoice value of goods sold and services rendered exclusive
of all applicable taxes.
b) Revenue from windmill energy generation is accounted for on the
basis of units generated against consumption at the Hotel, taking into
consideration the energy charges and fuel charges charged by Torrent
Power Ltd according to PPA agreement with them.
viii. Foreign Currency Transactions:
Transactions in Foreign Currencies are recorded at the exchange rate
prevailing on the date of transaction.
ix. Borrowing Cost:
a) Borrowing cost is recognized as expense in the period in which these
are incurred.
b) Interest and other borrowing cost on specific borrowings,
attributable to qualifying assets are capitalized.
c) Foreign Exchange difference arising on repayment of foreign exchange
term loan has been adjusted to interest cost.
X. Provision for Taxation and Deferred Tax:
a) Provision for Income tax for the current year is based on the
estimated taxable income for the period in accordance with the
provisions of the Income Tax Act, 1961.
b) The Deferred Tax resulting from timing difference is accounted for
using tax rates & tax laws that have been enacted or substantively
enacted as at the Balance Sheet date.
xi. Employee Benefits:
a) Gratuity liability is a defined benefit obligation and is recorded
based on actuarial valuation on projected unit credit method made at
the end of the financial year. The gratuity liability and the net
periodic gratuity cost is actuarially determined after considering
discount rates, expected long term return on plan assets and increase
in compensation levels. All actuarial gains / losses are immediately
charged to the profit and loss account and are not deferred.
b) Provident fund is a defined contribution scheme and the company has
no further obligation beyond the contributions made to the fund.
Contributions are charged to the profit and loss account in the year in
which they are accrued.
c) The Company has no other obligation other than the contribution
payable.
d) Provision for leave salary has been made as determined by the
management.
Mar 31, 2011
1. Basis of preparation :
The financial statements have been prepared and presented on an accrual
basis under the historical cost convention and in accordance with the
applicable accounting standards prescribed by the Companies (Accounting
Standards) Rules, 2006 and the relevant provisions of the Companies
Act, 1956. The accounting policies have been consistently applied
unless otherwise stated.
2. Use of Estimates:
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumption that affects the reported amount of assets and
liabilities on the date of financial statements and reported amount of
revenues and expenses during the reporting period. Difference between
the actual results and estimates are recognized in the period in which
the results are known/materialised.
3. Fixed Assets:
(i) Fixed Assets are valued at cost less accumulated depreciation.
(ii) Incidental expenditure directly attributable to construction is
accumulated as Capital Work-in-Progress.
4. Depreciation and Amortisation:
Tangible Assets:
During the year company has provided depreciation as per Straight Line
Method at the rate & manner specified in Schedule XIV of the Companies
Act.
5. Investments:
Investments are stated at cost of acquisition. Provision for diminution
in value of Investment is made only if such a decline is other than
temporary in the opinion of the management.
6. Valuation of Inventories:
(i) Inventory comprises stock of food and beverages and stores and
spares and is carried at lower of cost and net realizable value. Cost
includes all expenses incurred in bringing the goods to their present
location and condition. Net realizable value is the estimated selling
price in the ordinary course of business, less estimated cost of
completion and to make the sale.
(ii) Inventory of Cutlery, crockery, linen & uniform are amortised over
the period of twenty four months.
7. Miscellaneous Expenditure:
(i) Deferred Revenue Expenditure related to windmill has been amortized
over a period of twenty years. (ii) Deferred Revenue Expenditure other
than above (i) is amortized over a period of five years.
8. Revenue Recognition:
(i) Income from Rooms, Banquets, and Restaurant and Other Services
represents invoice value of goods sold and services rendered exclusive
of all applicable taxes.
(ii) Revenue from windmill energy generation is accounted for on the
basis of units generated against consumption at the Hotel, taking into
consideration the energy charges and fuel charges charged by Torrent
Power Ltd according to PPA agreement with them.
9. Foreign Currency Transactions:
Transactions in Foreign Currencies are recorded at the exchange rate
prevailing on the date of transaction.
10. Borrowing Cost:
(i) Borrowing cost is recognised as expense in the period in which
these are incurred.
(ii) Interest and other borrowing cost on specific borrowings,
attributable to qualifying assets are capitalised.
(iii) Foreign Exchange difference arising on repayment of foreign
exchange term loan has been adjusted to interest cost.
11. Provision for Taxation:
(i) Provision for Income tax for the current year is based on the
estimated taxable income for the period in accordance with the
provisions of the Income Tax Act, 1961.
(ii) The Deferred Tax resulting from timing difference is accounted for
using tax rates & tax laws that have been enacted or substantively
enacted as at the Balance Sheet date.
12. Employee Benefits:
(i) Gratuity liability is a defined benefit obligation and is recorded
based on actuarial valuation on projected unit credit method made at
the end of the financial year. The gratuity liability and the net
periodic gratuity cost is actuarially determined after considering
discount rates, expected long term return on plan assets and increase
in compensation levels. All actuarial gains / losses are immediately
charged to the profit and loss account and are not deferred.
(ii) Provident fund is a defined contribution scheme and the company
has no further obligation beyond the contributions made to the fund.
Contributions are charged to the profit and loss account in the year in
which they are accrued.
(iii) The Company has no other obligation other than the contribution
payable.
(iv) Provision for leave salary has been made as determined by the
management.
Mar 31, 2010
1. Basis of preparation of Financial Statements:
The Financial Statements are prepared and presented under the
historical cost convention on the accrual basis of accounting in
accordance with accounting principles generally accepted in India
("Indian GAAP") and are in compliance with Accounting Standards issued
by the Institute of Chartered Accountants of India ("ICAI") and the
provisions of Companies Act, 1956.
2. Accounting Convention and Revenue Recognition:
The Company follows mercantile system of accounting and recognizes
significant items of income and expenditure on accrual basis.
3. Fixed Assets:
(i) Fixed Assets are valued at cost less accumulated depreciation.
(ii) Incidental expenditure directly attributable to construction is
accumulated as Capital Work-in-Progress.
4. Depreciation and Amortisation:
Tangible Assets:
During the year company has provided depreciation as per Straight Line
Method at the rate & manner specified in Schedule XIV of the Companies
Act.
5. Investments:
Investments are classified into current and long term investment.
Investments are stated at cost of acquisition. Provision for
diminution in value of Investment is made only if such a decline is
other than temporary in the opinion of the management.
6. Valuation of Inventories:
(i) Stock of food, beverages and other supplies are valued at cost on
first-in-first-out basis. (ii) Inventory of Cutlery, crockery, linen &
uniform are amortised over the period of 24 months.
7. Miscellaneous Expenditure:
(i) Hitherto the Company was amortizing the share issue expenses and
preliminary expenses over a period of five years and the balance of
unamortized expenses as on 1st April 2009 was Rs. 351.45 lacs and
Rs.9.66 lacs respectively. The Company has changed the basis of
amortizing such expenses during the year and amortized the entire
unamortized share issue expenses of Rs.351.45 lacs and preliminary
expenses of Rs. 9.66 lacs against the Share Premium Account during the
year as permissible under Section 78(2) of the Companies Act, 1956. As
a result of this change, the profits of the Company for the year ended
31st March 2010 are over stated by Rs.122.62 lacs.
(ii) Deferred Revenue Expenditure related to windmill has been
amortized over a period of 20 years.
(iii) Deferred Revenue Expenditure other than above (ii) is amortized
over a period of 5 years.
8. Revenue Recognition:
(i) Income from Rooms, Banquets, and Restaurant and Other Services
represents invoice value of goods sold and services rendered exclusive
of all applicable taxes.
(ii) Revenue from windmill energy generation is accounted for on the
basis of units generated against consumption at the Hotel, taking into
consideration the energy charges and fuel charges charged by Torrent
Power Ltd according to PPA agreement with them.
9. Foreign Currency Transactions:
Transactions in Foreign Currencies are recorded at the exchange rate
prevailing on the date of transaction.
10. Borrowing Cost:
(i) Borrowing cost is recognised as expense in the period in which
these are incurred.
(ii) Interest and other borrowing cost on specific borrowings,
attributable to qualifying assets are capitalised.
(iii) Foreign Exchange difference arising on repayment of foreign
exchange term loan has been adjusted to interest cost.
11. Provision for Taxation:
(i) Provision for Income tax for the current year is based on the
estimated taxable income for the period in accordance with the
provisions of the Income Tax Act, 1961.
(ii) The Deferred Tax resulting from timing difference is accounted for
using tax rates & tax laws that have been enacted or substantively
enacted as at the Balance Sheet date.
12. Employee Benefits:
(i) Gratuity liability is a defined benefit obligation and is recorded
based on actuarial valuation on projected unit credit method made at
the end of the financial year. The gratuity liability and the net
periodic gratuity cost is actuarially determined after considering
discount rates, expected long term return on plan assets and increase
in compensation levels. All actuarial gains / losses are immediately
charged to the profit and loss account and are not deferred.
(ii) Provident fund is a defined contribution scheme and the company
has no further obligation beyond the contributions made to the fund.
Contributions are charged to the profit and loss account in the year in
which they are accrued.
(iii) The Company has no other obligation other than the contribution
payable.
(iv) Provision for leave salary has been made as determined by the
management.
Mar 31, 2009
1. Basis of preparation of Financial Statements:
The Financial Statements are prepared and presented under the
historical cost convention on the accrual basis of accounting in
accordance with accounting principles generally accepted in India
("Indian GAAP") and are in compliance with Accounting Standards issued
by the Institute of Chartered Accountants of India ("ICAI") and the
provisions of Companies Act, 1956.
2. Accounting Convention and Revenue Recognition:
The Company follows mercantile system of accounting and recognizes
significant items of income and expenditure on accrual basis.
3. Fixed Assets:
(i) Fixed Assets are valued at cost less accumulated depreciation.
(ii) Incidental expenditure directly attributable to construction is
accumulated as Capital Work-in-Progress.
4. Depreciation and Amortisation: Tangible Assets:
During the year company has provided depreciation as per Straight Line
Method at the rate & manner specified in
Schedule XIV of the Companies Act.
Intangible Assets:
Goodwill will be amortized over the period of 60 months.
5. Investments:
Investments are stated at cost of acquisition. Provision for diminution
in value of Investment is made only if such a decline is other than
temporary in the opinion of the management.
6. Valuation of Inventories:
(i) Stock of food, beverages and other supplies are valued at cost on
first-in-first-out basis.
(ii) Inventory of Cutlery, crockery, linen & uniform are amortised over
the period of 24 months.
7. Miscellaneous Expenditure:
(i) Preliminary Expenses are amortized over a period of 5 years.
(ii) Initial Public Expenditure is amortized over a period of 5 years.
(iii) Deferred Revenue Expenditure related to windmill has been
amortized over a period of 20 years.
(iv) Deferred Revenue Expenditure other than above
(iii) is amortized over a period of 5 years.
8. Revenue Recognition:
(i) Income from Rooms, Banquets, and Restaurant and Other Services
represents invoice value of goods sold and services rendered exclusive
of all applicable taxes.
(ii) Revenue from windmill energy generation is accounted for on the
basis of the billing by Torrent Power Limited as per the Purchase of
Power Agreement entered into with them.
10. Borrowing Cost:
(i) Borrowing cost is recognised as expense in the period in which
these are incurred. (ii) Interest and other borrowing cost on specific
borrowings, attributable to qualifying assets are capitalised. (iii)
Foreign Exchange difference arising on repayment of foreign exchange
term loan has been adjusted to interest cost.
11. Provision for Taxation:
(i) Provision for Income tax and fringe benefit tax for the current
year is based on the estimated taxable income for the period in
accordance with the provisions of the Income Tax Act, 1961.
(ii) The Deferred Tax resulting from timing difference is accounted for
using tax rates & tax laws that have been enacted or substantively
enacted as at the Balance Sheet date.
10. Employee Benefits:
(i) Gratuity liability is a defined benefit obligation and is recorded
based on actuarial valuation on projected unit credit method made at
the end of the financial year. The gratuity liability and the net
periodic gratuity cost is actuarially determined after considering
discount rates, expected long term return on plan assets and increase
in compensation levels. All actuarial gains / losses are immediately
charged to the profit and loss account and are not deferred.
(ii) Provident fund is a defined contribution scheme and the company
has no further obligation beyond the contributions made to the fund.
Contributions are charged to the profit and loss account in the year in
which they are accrued.
(iii) The Company has no other obligation other than the contribution
payable.
11. Financial Derivatives Hedging Transactions:
(i) The use of Financial Derivatives Hedging Contracts is governed by
the Companys policies approved by the Board of Directors which provide
written principles on the use of such financial derivatives consistent
with the companys risk management strategy. The Company does not use
derivative financial instruments for speculative purpose
(ii) Financial Derivative Hedging Contracts are accounted on the date
of their settlement / termination and realized gain / loss in respect
of the settled / terminated contracts are recognised in the Profit and
Loss Account, with the underlying transactions.
(iii) As required by the recent Announcement of the Institute of
Chartered Accountants of India on positions of derivatives, keeping in
view the principle of prudence as per Accounting Standard 1 on
"Disclosure of Accounting Policies, outstanding derivative contracts
at the Balance Sheet date are now reflected by making them to market
and accordingly, the resulting mark to market losses are provided in
the Profit and Loss Account.
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