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Accounting Policies of TGB Banquets and Hotels Ltd. Company

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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