Mar 31, 2018
1.1 SIGNIFICANT ACCOUNTING POLICIES
(a) Current versus non-current classification
The Company''s present assets and liabilities in the balance sheet are based on current/ non-current classification. An asset is treated as current when it is:
- Expected to be realised or intended to be sold or consumed in normal operating cycle
- Held primarily for the purpose of trading
- Expected to be realised within twelve months after the reporting period, or
- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period
All other assets are classified as non-current.
A liability is current when:
- It is expected to be settled in normal operating cycle
- It is held primarily for the purpose of trading
- It is due to be settled within twelve months after the reporting period, or
- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period
The Company classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as noncurrent assets and liabilities.
The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has identified twelve months as its operating cycle.
(b) Property, Plant and Equipment
Property, Plant and Equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Cost comprises of purchase price and any attributable cost of bringing the asset to its working condition for its intended use. When significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives.
Under the previous GAAP (Indian GAAP), property, plant and equipment were carried in the balance sheet at cost net of depreciation. The Company has elected to regard such net cost as deemed cost at the date of transition.
An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement when the asset is derecognised. The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.
The Company identifies and determines cost of asset significant to the total cost of the asset having useful life that is materially different from that of the remaining life.
i. Depreciation on Property, Plant and Equipment is calculated on a straight-line basis using the rates arrived at based on the useful lives estimated by the management. The Company has used the following rates to provide depreciation on its fixed assets.
ii. Depreciation on Property, Plant and Equipment added/ disposed of during the year is provided on pro-rata basis with reference to the date of addition/disposal.
iii. Leasehold land is amortized on straight line basis over the lease period of 30 to 99 years.
iv. The management has estimated, supported by independent assessment by professionals, the useful lives of furniture and fixtures, electrical installations, plant and machinery, building improvements and office equipment as 5 years. These lives are lower than those indicated in Schedule II.
(c) Impairment
The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the assetâs recoverable amount. An assetâs recoverable amount is the higher of an assetâs or cash-generating unitâs (CGU) net selling price and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining net selling price, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used.
An assessment is made at each reporting date whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased.
(d) Leases
Operating Lease:
Where the Company is lessee
Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item are classified as operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss on a straight-line basis over the lease term.
Where the Company is the lessor
Leases in which the Company does not transfer substantially all the risks and benefits of ownership of the asset are classified as operating leases. Assets subject to operating leases are included in fixed assets. Lease income on an operating lease is recognized in the statement of profit and loss on a straight-line basis over the lease term. Costs, including depreciation, are recognized as an expense in the statement of profit and loss. Initial direct costs such as legal costs, brokerage costs, etc. are recognized immediately in the statement of profit and loss.
(e) Government subsidies
Subsidies from the government are recognized when there is reasonable assurance that (i) the Company will comply with the conditions attached to them, and (ii) the subsidy will be received.
When the subsidy relates to revenue, it is recognized as income on a systematic basis in the statement of profit and loss over the periods necessary to match them with the related costs, which they are intended to compensate. Where the subsidy relates to an asset, it is recognized as deferred income and released to income in equal amounts over the expected useful life of the related asset. Where the Company receives non-monetary subsidy, the asset is accounted for on the basis of its acquisition cost. In case a non-monetary asset is given free of cost, it is recognized at a nominal value.
Government subsidy of the nature of promotersâ contribution are credited to capital reserve and treated as a part of shareholders'' funds.
(f) Inventories
Inventories are valued as lower of cost and net realizable value. However, materials and other supplies held for use in the ultimate product/supply are not written down below cost if the finished products in which they will be used are expected to be sold at or above cost. Cost is determined on âFirst in First Outâ basis. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.
(g) Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.
i. Income from Services
Revenue from hospitality services is recognised when the services are rendered and the same becomes chargeable. GST and other statutory dues are collected on behalf of the government and are excluded from revenue. It comprises of sale of room and food and beverages and other services.
ii. Interest
Revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.
iii. Dividends
Revenue is recognised when the shareholdersâ right to receive payment is established by the Balance Sheet date.
(h) Foreign Currency Transaction
i. Initial Recognition
Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency on the date of the transaction.
ii. Conversion
Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date. Nonmonetary items, which are measured in terms of historical cost denominated in a foreign currency, are reported using the exchange rate on the date of the transaction. Non-monetary items, which are measured at fair value or other similar valuation denominated in a foreign currency, are translated using the exchange rate on the date when such value was determined.
iii. Exchange Differences
Exchange differences arising on the settlement of monetary items or on reporting monetary items of Company at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognised as income or as expenses in the year in which they arise.
(i) Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Financial assets
Initial recognition and measurement All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories:
a) Financial assets at amortised cost
b) Financial assets at fair value through profit or loss (FVTPL)
a) Financial assets at amortised cost
Financial assets are subsequently measured at amortised cost if these financial assets are held within a business whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
b) Financial assets at FVTPL
Financial assets are measured at fair value through profit or loss unless it is measured at amortised cost or at fair value through other comprehensive income on initial recognition. The transaction costs directly attributable to the acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognised in the statement of profit and loss.
Derecognition of financial assets A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e. removed from the Companyâs balance sheet) when the rights to receive cash flows from the asset have expired.
Impairment of financial assets
In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the trade receivables or another financial asset that result from transactions that are within the scope of Ind AS 18. ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original EIR.
Financial Liabilities
Initial recognition and measurement
All financial liabilities are recognised initially at fair value and, in the case of payables, net of directly attributable transaction costs.
The Companyâs financial liabilities include trade and other payables only.
Subsequent measurement
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss,
(j) Retirement and other employee benefits
(i) Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no obligation, other than the contribution payable to the provident fund. The Company recognizes contribution payable to the provident fund scheme as an expenditure, when an employee renders the related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution already paid. If the contribution already paid exceeds the contribution due for services received before the balance sheet date, then excess is recognized as an asset to the extent that the pre payment will lead to a reduction in future payment or a cash refund.
(ii) Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation under projected unit credit method made at the end of each financial year.
(iii) Short term compensated absences are provided for based on management estimates.
(iv) Actuarial gains / losses are immediately taken to Statement of Profit and Loss and are not deferred.
(k) Income Tax
Current Income Tax
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date in the countries where the Company operates and generates taxable income.
Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.
Deferred Tax
Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are reassessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
Policy on MAT
Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current tax for the year. The deferred tax asset is recognised for MAT credit available only to the extent that it is probable that the concerned Company will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. In the year in which the Company recognizes MAT credit as an asset, it is created by way of credit to the statement of profit and loss and shown as part of deferred tax asset. The Company reviews the âMAT credit entitlementâ asset at each reporting date and writes down the asset to the extent that it is no longer probable that it will pay normal tax during the specified period.
(I) Segment Reporting Policy
The Companyâs operating businesses are organized and managed separately according to the nature of products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets. The analysis of geographical segments Is based on the areas In which major operating divisions of the company operate. As the Company has hotellerlng as Its sole business segment, the same is considered as Its primary reportable segment. The Company at present operates In India only and therefore analysis of geographical segment Is not applicable.
(m) Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.Partly paid equity shares are treated as a fraction of an equity share to the extent that they are entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share split, and reverse share split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
(n) Provisions
A provision is recognized when the Company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.
(o) Contingent liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.
(p) Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.
(q) Critical accounting estimates and judgments
In the application of the Company''s accounting policies, the directors of the Company are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Detailed information about each of these estimates and judgments is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.
The areas involving critical estimates or judgments are: Estimation of fair values of contingent liabilities - Note 33 Estimation of employee benefit obligations - Note 29
Estimates and judgments are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances.
Mar 31, 2016
1. CORPORATE INFORMATION
The Company is in the hospitality industry and has hotels / resort at Siliguri, Darjeeling, Chalsa, Kalimpong and Burdwan in West Bengal, Ooty in Tamilnadu and Port Blair in Andaman and Nicobar Islands.
2. BASIS OF PREPARATION
The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules 2014. The financial statements have been prepared on an accrual basis and under the historical cost convention, except in case of assets for which revaluation is carried out. The accounting policies applied by the Company, are consistent with those used in the previous year.
2.1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
(a) Depreciation / Amortization
i. Depreciation on fixed assets is calculated on a straight-line basis using the rates arrived at based on the useful lives estimated by the management. The Company has used the following rates to provide depreciation on its fixed assets.
ii. Depreciation on fixed assets added / disposed off during the period is provided on pro-rata basis with reference to the date of addition/disposal.
iii. Leasehold land is amortized on straight line basis over the lease period of 30 to 99 years.
iv. The management has estimated, supported by independent assessment by professionals, the useful lives of Furniture and fixtures, Electrical installations, plant and machinery, building improvements and office equipment as 5 years. These lives are lower than those indicated in schedule II.
(b) Impairment
The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the company estimates the assetâs recoverable amount. An assetâs recoverable amount is the higher of an assetâs or cash-generating unitâs (CGU) net selling price and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining net selling price, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used.
An assessment is made at each reporting date whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased.
(c) Leases
Operating Lease:
Where the Company is lessee
Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item are classified as operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss on a straight-line basis over the lease term.
Where the Company is the lessor
Leases in which the Company does not transfer substantially all the risks and benefits of ownership of the asset are classified as operating leases. Assets subject to operating leases are included in fixed assets. Lease income on an operating lease is recognized in the statement of profit and loss on a straight-line basis over the lease term. Costs, including depreciation, are recognized as an expense in the statement of profit and loss. Initial direct costs such as legal costs, brokerage costs, etc. are recognized immediately in the statement of profit and loss.
(d) Government grants and subsidies
Grants and subsidies from the government are recognized when there is reasonable assurance that (i) the company will comply with the conditions attached to them, and (ii) the grant/subsidy will be received.
When the grant or subsidy relates to revenue, it is recognized as income on a systematic basis in the statement of profit and loss over the periods necessary to match them with the related costs, which they are intended to compensate. Where the grant relates to an asset, it is recognized as deferred income and released to income in equal amounts over the expected useful life of the related asset.
Where the company receives non-monetary grants, the asset is accounted for on the basis of its acquisition cost. In case a non-monetary asset is given free of cost, it is recognized at a nominal value.
Government grants of the nature of promotersâ contribution are credited to capital reserve and treated as a part of shareholdersâ funds.
(e) Investments
Investments that are readily realizable and intended to be held for not more than one year from the date on which such investments are made are classified as current investments. All other investments are classified as long-term investments. On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. If an investment is acquired, or partly acquired, by the issue of shares or other securities, the acquisition cost is the fair value of the securities issued. If an investment is acquired in exchange for another asset, the acquisition is determined by reference to the fair value of the asset given up or by reference to the fair value of the investment acquired, whichever is more clearly evident.
Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments. On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.
(f) Inventories
Inventories are valued as lower of cost and net realizable value. Cost is determined on âFirst in First Outâ basis. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.
(g) Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured,
i. Income from Services
Revenue from hospitality services is recognized when the services are rendered and the same becomes chargeable. Service tax and other statutory dues are collected on behalf of the government and are excluded from revenue. It comprises of sale of room and food and beverages and other services. Membership fees collected from customers either in full upfront or on deferred payment basis against club facilities to be provided to them over the period of membership will be recognized as income over such period of membership after commencement of club operations.
ii. Interest
Revenue is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.
iii. Dividends
Revenue is recognized when the shareholdersâ right to receive payment is established by the Balance Sheet date.
(h) Foreign Currency Transaction
i. Initial Recognition
Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency on the date of the transaction.
ii. Conversion
Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date. Non-monetary items, which are measured in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of the transaction. Non-monetary items, which are measured at fair value or other similar valuation denominated in a foreign currency, are translated using the exchange rate at the date when such value was determined.
iii. Exchange Differences
Exchange differences arising on the settlement of monetary items or on reporting monetary items of Company at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.
(i) Retirement and other employee benefits
(i) Retirement benefit in the form of provident fund is a defined contribution scheme. The company has no obligation, other than the contribution payable to the provident fund. The company recognizes contribution payable to the provident fund scheme as an expenditure, when an employee renders the related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution already paid. If the contribution already paid exceeds the contribution due for services received before the balance sheet date, then excess is recognized as an asset to the extent that the pre payment will lead to a reduction in future payment or a cash refund.
(ii) Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation under projected unit credit method made at the end of each financial year.
(iii) Short term compensated absences are provided for based on management estimates.
(iv) Actuarial gains / losses are immediately taken to Statement of Profit and Loss and are not deferred.
(j) Income taxes
Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.
Deferred income taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date. Deferred income tax relating to items recognized directly in equity is recognized in equity and not in the statement of profit and loss.
Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the Company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.
The carrying amount of deferred tax assets are reviewed at each reporting date. The Company writes-down the carrying amount of deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.
Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current tax. The Company recognizes MAT credit available as an asset only to the extent that there is convincing evidence that the Company will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. In the year in which the Company recognizes MAT credit as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under The Income-tax Act, 1961, the said asset is created by way of credit to the statement of profit and loss and shown as âMAT Credit Entitlement.â The Company reviews the âMAT credit entitlementâ asset at each reporting date and writes down the asset to the extent the Company does not have convincing evidence that it will pay normal tax during the specified period,
(k) Segment Reporting Policy
The companyâs operating businesses are organized and managed separately according to the nature of products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets. The analysis of geographical segments is based on the areas in which major operating divisions of the company operate. As The Company has hoteliering as its sole business segment and the same is considered as its primary reportable segment. The Company at present operates in India only and therefore analysis of geographical segment is not applicable to the Company.
(I) Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Partly paid equity shares are treated as a fraction of an equity share to the extent that they are entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share split, and reverse share split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
(m) Provisions
A provision is recognized when the Company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.
(n) Contingent liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.
(o) Cash and cash equivalents
Cash and cash equivalents comprise of cash at bank and in hand and short-term investments with an original maturity of three months or less.
Mar 31, 2014
(a) Basis of preparation
The financial statements of the Company have been prepared in
accordance with generally accepted accounting principles in India
(Indian GAAP). The Company has prepared these financial statements to
comply in all material respects with the accounting standards notified
under the Companies (Accounting Standards) Rules, 2006, (as amended)
and the relevant provisions ofthe Companies Act, 1956 read with General
Circular No 8/2014 dated 4th April,2014, issued by Ministry of
Corporate Affairs. The financial statements have been prepared on an
accrual basis and under the historical cost convention, except in case
of assets for which revaluation is carried out. The accounting policies
applied by the Company, are consistent with those used in the previous
year.
(b) Use of estimates
The preparation of financial statements in conformity with generally
accepted accounting principles in India requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent liabilities on the date of
the financial statements and the results of operations during the
reporting period end. Although these estimates are based upon
management''s best knowledge of current events and actions, actual
results could differ from these estimates.
(c) Tangible Fixed Assets
Fixed assets are stated at cost (or revalued amounts, as the case may
be), less accumulated depreciation / amortization and impairment
losses, if any. Cost comprises the purchase price and any attributable
cost of bringing the asset to its working condition for its intended
use. Specifically attributable expenditures are directly capitalized as
Fixed Assets / Capital Work in Progress.
(d) Depreciation / Amortization
i. Depreciation is provided using the Straight Line Method as per
rates prescribed under Schedule XIV of the Companies Act, 1956 or at
rates determined based on the useful lives of the respective assets, as
estimated by the management, whichever is higher. The useful lives of
Building Improvements, Furniture and Fixtures, Electrical Installations
and Plant and Machinery and depreciation as per management estimate is
5 years and the depreciation rates are as follows: Particulars Rate as
per current useful life Schedule XIV rates Furniture and Fixtures 20%
9.50%
Electrical Installations 20% 4.75%
Plant and Machinery 20% 4.75%
Building Improvement 20% 1.63%
ii. Unamortized balance of goodwill as at 1st April 2008 is written
off equally over a period of five years.
iii. Leasehold land is amortized over the lease period of 99 years and
30 years in the case of Chalsa and Burdwan respectively.
iv. Depreciation on revalued assets is provided at the rates specified
in Schedule XIV of the Companies Act, 1956. However, in case of fixed
assets whose life is determined by the valuer to be less than their
useful life under Schedule XIV, depreciation is provided at the higher
rates, to ensure the write off of these assets over their useful life,
incidentally such rates coincide with the rates specified in Schedule
XIV of the Companies Act, 1956.
(e) Impairment
The carrying amounts of assets are reviewed at each Balance Sheet date
to determine, if there is any indication of impairment based on
internal / external factors. An impairment loss is recognized wherever
the carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is the greater ofthe asset''s net selling price and
value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of
money and risks specific to the asset.
(f) Leases
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased term, are classified as
operating leases. Operating lease payments are recognized as an expense
in the Statement of Profit and Loss on a straight-line basis over the
lease term.
(g) Government grants and subsidies
Grants and subsidies from the government are recognized when there is
reasonable assurance that the grant / subsidy will be received and all
attaching conditions will be complied with.
Government grants of the nature of promoters'' contribution are credited
to capital reserve and treated as a part of shareholders'' funds.
(h) Investments
Investments that are readily realisable and intended to be held for not
more than one year from the date on which such investments are made are
classified as current investments. All other investments are classified
as long-term investments. Current investments are carried at lower of
cost and fair value determined on an individual investment basis.
Long-term investments are carried at cost. However, provision for
diminution in value is made to recognize a decline other than temporary
in the value of the investments.
(i) Inventories
Inventories are valued as lower of cost and net realizable value. Cost
is determined on "First in First Out" basis. Net realizable value is
the estimated selling price in the ordinary course of business, less
estimated costs of completion and estimated costs necessary to make the
sale.
(j) Revenue Recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured.
i. Income from Services
Revenue from hospitality services is recognised when the services are
rendered and the same becomes chargeable. Service tax and other
statutory dues are collected on behalf of the government and are
excluded from revenue. It comprises of sale of room and food and
beverages and other services.
Membership fees collected from customers either in full upfront or on
deferred payment basis against club facilities to be provided to them
over the period of membership will be recognized as income over such
period of membership after commencement of club operations. Pending
such commencement, these have been included under ''Advance membership
fees received''.
ii. Interest
Revenue is recognised on a time proportion basis taking into account
the amount outstanding and the rate applicable.
iii. Dividends
Revenue is recognised when the shareholders'' right to receive payment
is established by the Balance Sheet date. (k) Foreign Currency
Transaction
i. Initial Recognition
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount the exchange rate between
the reporting currency and the foreign currency on the date of the
transaction.
ii. Conversion
Foreign currency monetary items are retranslated using the exchange
rate prevailing at the reporting date. Non- monetary items, which are
measured in terms of historical cost denominated in a foreign currency,
are reported using the exchange rate at the date of the transaction.
Non-monetary items, which are measured at fair value or other similar
valuation denominated in a foreign currency, are translated using the
exchange rate at the date when such value was determined.
iii. Exchange Differences
Exchange differences arising on the settlement of monetary items or on
reporting monetary items of Company at rates different from those at
which they were initially recorded during the year, or reported in
previous financial statements, are recognised as income or as expenses
in the year in which they arise.
(l) Retirement and other employee benefits
(i) Retirement benefit in the form of provident fund is a defined
contribution scheme. The company has no obligation, other than the
contribution payable to the provident fund. The company recognizes
contribution payable to the provident fund scheme as an expenditure,
when an employee renders the related service. If the contribution
payable to the scheme for service received before the balance sheet
date exceeds the contribution already paid, the deficit payable to the
scheme is recognized as a liability after deducting the contribution
already paid. If the contribution already paid exceeds the contribution
due for services received before the balance sheet date, then excess is
recognized as an asset to the extent that the pre payment will lead to
a reduction in future payment or a cash refund.
(ii) Gratuity liability is a defined benefit obligation and is provided
for on the basis of an actuarial valuation under projected unit credit
method made at the end of each financial year.
(iii) Short term compensated absences are provided for based on
management estimates.
(iv) Actuarial gains / losses are immediately taken to Statement of
Profit and Loss and are not deferred.
(m) Income taxes
Tax expense comprises of current and deferred tax. Current income tax
is measured at the amount expected to be paid to the tax authorities in
accordance with the Income Tax Act, 1961. Deferred income taxes reflect
the impact of timing differences between taxable income and accounting
income originating during the current year and reversal of timing
differences for the earlier years. Deferred tax is measured using the
tax rates and the tax laws enacted or substantively enacted at the
reporting date.
Deferred tax liabilities are recognized for all taxable timing
differences. Deferred tax assets are recognized for deductible timing
differences only to the extent that there is reasonable certainty that
sufficient future taxable income will be available against which such
deferred tax assets can be realized. In situations where the company
has unabsorbed depreciation or carry forward tax losses, all deferred
tax assets are recognized only if there is virtual certainty supported
by convincing evidence that they can be realized against future taxable
profits.
Minimum alternate tax (MAT) paid in a year is charged to the statement
of profit and loss as current tax. The company recognizes MAT credit
available as an asset only to the extent that there is convincing
evidence that the company will pay normal income tax during the
specified period, i.e., the period for which MAT credit is allowed to
be carried forward. In the year in which the company recognizes MAT
credit as an asset in accordance with the Guidance Note on Accounting
for Credit Available in respect of Minimum Alternative Tax under the
Income-tax Act, 1961, the said asset is created by way of credit to the
statement of profit and loss and shown as "MAT Credit Entitlement." The
company reviews the "MAT credit entitlement" asset at each reporting
date and writes down the asset to the extent the company does not have
convincing evidence that it will pay normal tax during the specified
period.
(n) Segment Reporting Policy
The Company has hoteliering as its sole business segment and the same
is considered as its primary reportable segment. The Company at
present, operates in India only and therefore the analysis of
geographical segment is not applicable to the Company.
(o) Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net
result for the period attributable to equity shareholders and the
weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
(p) Provisions
A provision is recognised when an enterprise has a present obligation
as a result of past events 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 best 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 best
estimates.
(q) Contingent liabilities
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the
control of the Company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably. The Company does not
recognize a contingent liability but discloses its existence in the
financial statements.
(r) Cash and cash equivalents
Cash and cash equivalents comprise of cash at bank and in hand and
short-term investments with an original maturity of three months or
less.
Mar 31, 2013
(a) Basis of preparation
The financial statements of the Company have been prepared in
accordance with generally accepted accounting principles in India
(Indian GAAP). The Company has prepared these financial statements to
comply in all material respects with the accounting standards notified
under the Companies (Accounting Standards) Rules, 2006, (as amended)
and the relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on an accrual basis and under the
historical cost convention, except in case of assets for which
revaluation is carried out. The accounting policies applied by the
Company, are consistent with those used in the previous year.
(b) Use of estimates
The preparation of financial statements in conformity with generally
accepted accounting principles in India requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent liabilities on the date of
the financial statements and the results of operations during the
reporting period end. Although these estimates are based upon
management''s best knowledge of current events and actions, actual
results could differ from these estimates.
(c) Tangible Fixed Assets
Fixed assets are stated at cost (or revalued amounts, as the case may
be), less accumulated depreciation / amortization and impairment
losses, if any. Cost comprises the purchase price and any attributable
cost of bringing the asset to its working condition for its intended
use. Specifically attributable expenditures are directly charged to
Fixed Assets / Capital Work in Progress.
(d) Depreciation / Amortization
i. Depreciation is provided using the Straight Line Method as per rates
prescribed under Schedule XIV of the Companies Act, 1956 or at rates
determined based on the useful lives of the respective assets, as
estimated by the management, whichever is higher. During the year the
Company has re-estimated the useful lives of Furniture and Fixtures,
Electrical Installations and Plant and Machinery and depreciation has
been provided based on the following useful life.
ii. Unamortized balance of goodwill as at 1st April 2008 is written off
equally over a period of five years.
iii. Leasehold land is amortized over the lease period of 99 years.
iv. Depreciation on revalued assets is provided at the rates specified
in Schedule XIV of the Companies Act, 1956. However, in case of fixed
assets whose life is determined by the valuer to be less than their
useful life under Schedule XIV, depreciation is provided at the higher
rates, to ensure the write off of these assets over their useful life,
incidentally such rates coincide with the rates specified in Schedule
XIV of the Companies Act, 1956.
(e) Impairment
The carrying amounts of assets are reviewed at each Balance Sheet date
to determine, if there is any indication of impairment based on
internal / external factors. An impairment loss is recognized wherever
the carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is the greater of the asset''s net selling price and
value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of
money and risks specific to the asset.
(f) Leases
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased term, are classified as
operating leases. Operating lease payments are recognized as an expense
in the Statement of Profit and Loss on a straight- line basis over the
lease term.
(g) Government grants and subsidies
Grants and subsidies from the government are recognized when there is
reasonable assurance that the grant / subsidy will be received and all
attaching conditions will be complied with.
Government grants of the nature of promoters'' contribution are credited
to capital reserve and treated as a part of shareholders'' funds.
(h) Investments
Investments that are readily realisable and intended to be held for not
more than one year from the date on which such investments are made are
classified as current investments. All other investments are classified
as long-term investments. Current investments are carried at lower of
cost and fair value determined on an individual investment basis.
Long-term investments are carried at cost. However, provision for
diminution in value is made to recognize a decline other than temporary
in the value of the investments.
(i) Inventories
Inventories are valued as lower of cost and net realizable value. Cost
is determined on "First in First Out" basis. Net realizable value is
the estimated selling price in the ordinary course of business, less
estimated costs of completion and estimated costs necessary to make the
sale.
(j) Revenue Recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured.
i. Income from Services
Revenue from hospitality services is recognised when the services are
rendered and the same becomes chargeable and is net of service tax and
other statutory dues collected on behalf of the government. It
comprises of sale of room and food and beverages and other services.
Membership fees collected from customers either in full upfront or on
deferred payment basis against club facilities to be provided to them
over the period of membership will be recognized as income over such
period of membership after commencement of club operations. Pending
such commencement, these have been included under ''Advance membership
fees received''.
ii. Interest
Revenue is recognised on a time proportion basis taking into account
the amount outstanding and the rate applicable.
iii. Dividends
Revenue is recognised when the shareholders'' right to receive payment
is established by the Balance Sheet date.
(k) Foreign Currency Transaction
i. Initial Recognition
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount the exchange rate between
the reporting currency and the foreign currency on the date of the
transaction.
ii. Conversion
Foreign currency monetary items are retranslated using the exchange
rate prevailing at the reporting date. Non-monetary items, which are
measured in terms of historical cost denominated in a foreign currency,
are reported using the exchange rate at the date of the transaction.
Non-monetary items, which are measured at fair value or other similar
valuation denominated in a foreign currency, are translated using the
exchange rate at the date when such value was determined.
iii. Exchange Differences
Exchange differences arising on the settlement of monetary items or on
reporting monetary items of Company at rates different from those at
which they were initially recorded during the year, or reported in
previous financial statements, are recognised as income or as expenses
in the year in which they arise.
(l) Retirement and other employee benefits
(i) Retirement benefit in the form of provident fund is a defined
contribution scheme. The company has no obligation, other than the
contribution payable to the provident fund. The company recognizes
contribution payable to the provident fund scheme as an expenditure,
when an employee renders the related service. If the contribution
payable to the scheme for service received before the balance sheet
date exceeds the contribution already paid, the deficit payable to the
scheme is recognized as a liability after deducting the contribution
already paid. If the contribution already paid exceeds the contribution
due for services received before the balance sheet date, then excess is
recognized as an asset to the extent that the pre payment will lead to
a reduction in future payment or a cash refund.
(ii) Gratuity liability is a defined benefit obligation and is provided
for on the basis of an actuarial valuation under projected unit credit
method made at the end of each financial year.
(iii) Short term compensated absences are provided for based on
management estimates.
(iv) Actuarial gains / losses are immediately taken to Statement of
Profit and Loss and are not deferred.
(m) Income Taxes
Tax expense comprises of current and deferred tax. Current income tax
is measured at the amount expected to be paid to the tax authorities in
accordance with the Income Tax Act, 1961. Deferred income taxes reflect
the impact of timing differences between taxable income and accounting
income originating during the current year and reversal of timing
differences for the earlier years. Deferred tax is measured using the
tax rates and the tax laws enacted or substantively enacted at the
reporting date.
Deferred tax liabilities are recognized for all taxable timing
differences. Deferred tax assets are recognized for deductible timing
differences only to the extent that there is reasonable certainty that
sufficient future taxable income will be available against which such
deferred tax assets can be realized. In situations where the company
has unabsorbed depreciation or carry forward tax losses, all deferred
tax assets are recognized only if there is virtual certainty supported
by convincing evidence that they can be realized against future taxable
profits.
Minimum alternate tax (MAT) paid in a year is charged to the statement
of profit and loss as current tax. The company recognizes MAT credit
available as an asset only to the extent that there is convincing
evidence that the company will pay normal income tax during the
specified period, i.e., the period for which MAT credit is allowed to
be carried forward. In the year in which the company recognizes MAT
credit as an asset in accordance with the Guidance Note on Accounting
for Credit Available in respect of Minimum Alternative Tax under the
Income-tax Act, 1961, the said asset is created by way of credit to the
statement of profit and loss and shown as "MAT Credit Entitlement." The
company reviews the "MAT credit entitlement" asset at each reporting
date and writes down the asset to the extent the company does not have
convincing evidence that it will pay normal tax during the specified
period.
(n) Segment Reporting Policy
The Company has hoteliering as its sole business segment and the same
is considered as its primary reportable segment. The Company at
present, operates in India only and therefore the analysis of
geographical segment is not applicable to the Company.
(o) Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net
result for the period attributable to equity shareholders and the
weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
(p) Provisions
A provision is recognised when an enterprise has a present obligation
as a result of past events 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 best 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 best
estimates.
(q) Contingent liabilities
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the
control of the Company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably. The Company does
not recognize a contingent liability but discloses its existence in the
financial statements.
(r) Cash and cash equivalents
Cash and cash equivalents comprise of cash at bank and in hand and
short-term investments with an original maturity of three months or
less.
Mar 31, 2012
(a) Basis of preparation
The financial statements of the Company have been prepared in
accordance with generally accepted accounting principles in India
(Indian GAAP). The Company has prepared these financial statements to
comply in all material respects with the accounting standards notified
under the Companies (Accounting Standards) Rules, 2006, (as amended)
and the relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on an accrual basis and under the
historical cost convention, except in case of assets for which
revaluation is carried out. The accounting policies applied by the
Company, are consistent with those used in the previous year except for
changes in the presentation and disclosures of the financial statements
and recognition of dividend income from subsidiary company as described
in Notes. 2(b) and 34 below.
(b) Change in accounting policy
Presentation and disclosure of financial statements:
During the year ended 31 March 2012, the revised Schedule VI notified
under the Companies Act 1956, for preparation and presentation of its
financial statements has become applicable to the Company. Except
accounting for dividend on investments in subsidiary companies (see
below), the adoption of revised Schedule VI does not impact recognition
and measurement principles followed for preparation of financial
statements. However, it has significant impact on presentation and
disclosures made in the financial statements. The Company has also
reclassified the previous year figures in accordance with the
requirements applicable in the current year.
Dividend on investment in subsidiary companies:
Till the year ended 31 March 2011, the Company, in accordance with the
prerevised Schedule VI requirement, had the policy of recognizing
dividend declared by subsidiary company after the reporting date in the
current year's statement of profit and loss, if such dividend
pertained to the period ending on or before the reporting date. The
revised Schedule
VI, applicable for financial years commencing on or after 1 April 2011,
does not contain this requirement. Hence, to comply with AS 9 Revenue
Recognition, the Company has changed its accounting policy for
recognition of dividend income from subsidiary company. In accordance
with the revised policy, the Company recognizes dividend as income only
when the right to receive the same is established by the reporting
date. However, as there was no income on account of dividend from
subsidiary companies in the previous year as well as current year,
there is no impact on the profit for the year due to change in this
accounting policy.
(c) Use of estimates
The preparation of financial statements in conformity with generally
accepted accounting principles in India requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent liabilities on the date of
the financial statements and the results of operations during the
reporting period end. Although these estimates are based upon
management's best knowledge of current events and actions, actual
results could differ from these estimates.
(d) Tangible Fixed Assets
Fixed assets are stated at cost (or revalued amounts, as the case may
be), less accumulated depreciation / amortization and impairment
losses, if any. Cost comprises the purchase price and any attributable
cost of bringing the asset to its working condition for its intended
use. Specifically attributable expenditures are directly charged to
Fixed Assets / Capital Work in Progress.
(e) Depreciation/Amortization
i. Depreciation is provided using the Straight Line Method as per
rates prescribed under Schedule XIV of the Companies Act, 1956 which
coincides the rates derived from useful lives of assets as estimated by
management.
ii. Unamortized balance of goodwill as at 1st April 2008 is written
off equally over a period of five years.
iii. Leasehold land is amortized over the lease period of 99 years.
iv. Depreciation on revalued assets is provided at the rates specified
in Schedule XIV of the Companies Act, 1956. However, in case of fixed
assets whose life is determined by the valuer to be less than their
useful life under Schedule XIV, depreciation is provided at the higher
rates, to ensure the write off of these assets over their useful life,
incidentally such rates coincide with the rates specified in Schedule
XIV of the Companies Act, 1956.
(f) Impairment
The carrying amounts of assets are reviewed at each Balance Sheet date
to determine, if there is any indication of impairment based on
internal / external factors. An impairment loss is recognized wherever
the carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is the greater of the asset's net selling price
and value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of
money and risks specific to the asset.
(g) Leases
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased term, are classified as
operating leases. Operating lease payments are recognized as an expense
in the Statement of Profit and Loss on a straight-line basis over the
lease term.
(h) Government grants and subsidies
Grants and subsidies from the government are recognized when there is
reasonable assurance that the grant / subsidy will be received and all
attaching conditions will be complied with.
Government grants of the nature of promoters' contribution are
credited to capital reserve and treated as a part of shareholders'
funds.
(i) Investments
Investments that are readily realisable and intended to be held for not
more than one year from the date on which such investments are made are
classified as current investments. All other investments are classified
as long-term investments. Current investments are carried at lower of
cost and fair value determined on an individual investment basis. Long-
term investments are carried at cost. However, provision for diminution
in value is made to recognize a decline other than temporary in the
value of the investments.
(j) Inventories
Inventories are valued as lower of cost and net realizable value. Cost
is determined on "First in First Out" basis. Net realizable value
is the estimated selling price in the ordinary course of business, less
estimated costs of completion and estimated costs necessary to make the
sale.
(k) Revenue Recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured.
i. Income from Services
Revenue from hospitality services is recognised when the services are
rendered and the same becomes chargeable and is net of service tax and
other statutory dues collected on behalf of the government. It
comprises of sale of room and food and beverages and other services.
Membership fees collected from customers either in full upfront or on
deferred payment basis against club facilities to be provided to them
over the period of membership will be recognized as income over such
period of membership after commencement of club operations. Pending
such commencement, these have been included under 'Advance membership
fees received/
ii. Interest
Revenue is recognised on a time proportion basis taking into account
the amount outstanding and the rate applicable.
iii. Dividends
Revenue is recognised when the shareholders' right to receive payment
is established by the Balance Sheet date.
(L) Foreign Currency Transaction
i. Initial Recognition
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount the exchange rate between
the reporting currency and the foreign currency on the date of the
transaction.
ii. Conversion
Foreign currency monetary items are retranslated using the exchange
rate prevailing at the reporting date. Non-monetary items, which are
measured in terms of historical cost denominated in a foreign currency,
are reported using the exchange rate at the date of the transaction.
Non-monetary items, which are measured at fair value or other similar
valuation denominated in a foreign currency, are translated using the
exchange rate at the date when such value was determined
ii. Exchange Differences
Exchange differences arising on the settlement of monetary items or on
reporting monetary items of Company at rates different from those at
which they were initially recorded during the year, or reported in
previous financial statements, are recognised as income or as expenses
in the year in which they arise.
(M) Retirement and other employee benefits
(i) Retirement benefit in the form of Provident Fund is a defined
contribution scheme and the contribution is charged to Statement of
Profit and Loss of the year when the contributions are due.
(ii) Gratuity liability is a defined benefit obligation and is provided
for on the basis of an actuarial valuation under projected unit credit
method made at the end of each financial year.
(iii) Short term compensated absences are provided for based on
management estimates.
(iv) Actuarial gains / losses are immediately taken to Statement of
Profit and Loss and are not deferred.
(N) Income taxes
Tax expense comprises of current and deferred tax. Current income tax
is measured at the amount expected to be paid to the tax authorities in
accordance with the Income Tax Act, 1961. Deferred income taxes reflect
the impact of current year timing differences between taxable income
and accounting income for the year and reversal of timing differences
of earlier years.
Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the Balance Sheet date. Deferred
tax assets and deferred tax liabilities are offset, if a legally
enforceable right exists to set off current tax assets against current
tax liabilities and the deferred tax assets and deferred tax
liabilities relate to the taxes on income levied by same governing
taxation laws. Deferred tax assets are recognised only to the extent
that there is reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets can be
realized.
(O) Segment Reporting Policy
The Company has hoteliering as its sole business segment and the same
is considered as its primary reportable segment. The Company at
present, operates in India and therefore the analysis of geographical
segment is not applicable to the Company.
(P) Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net
result for the period attributable to equity shareholders and the
weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
(Q) Provisions
A provision is recognised when an enterprise has a present obligation
as a result of past events 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 best 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 best
estimates.
(R) Contingent liabilities
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the
control of the Company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably. The Company does not
recognize a contingent liability but discloses its existence in the
financial statements.
(S) Cash and cash equivalents
Cash and cash equivalents comprise of cash at bank and in hand and
short-term investments with an original maturity of three months or
less.
(T) Measurement of EBITDA
As permitted by the Guidance Note issued by Institute of Chartered
Accountants of India on the Revised Schedule VI to the Companies Act,
1956, the Company has opted to present earnings before interest, tax,
depreciation and amortization (EBITDA) as a separate line item on the
face of the statement of profit and loss. The Company measures EBITDA
on the basis of profit/ (loss) from continuing operations. In its
measurement, the Company does not include depreciation and amortization
expense, finance costs and tax expense.
Mar 31, 2011
(a) Basis of preparation
The financial statements have been prepared to comply in all material
respects with the generally accepted accounting principles in India
including the Accounting Standards notified by the Companies
(Accounting Standards) Rules, 2006 (as amended) and relevant provisions
of the Companies Act, 1956. The financial statements have been prepared
under the historical cost convention on an accrual basis except in case
of assets for which revaluation is carried out. The accounting
policies applied by the Company, are consistent with those used in the
previous year.
(b) Use of estimates
The preparation of financial statements in conformity with generally
accepted accounting principles in India requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent liabilities at the date of
the financial statements and the results of operations during the
reporting period end. Although these estimates are based upon
management's best knowledge of current events and actions, actual
results could differ from these estimates.
(c) Fixed Assets
Fixed assets are stated at cost (or revalued amounts, as the case may
be), less accumulated depreciation / amortization and impairment
losses, if any. Cost comprises the purchase price and any attributable
cost of bringing the asset to its working condition for its intended
use. Incidental Project Expenditure are directly charged to Fixed
Assets / Capital Work in Progress.
(d) Depreciation / Amortization
i. Depreciation is provided using the Straight Line Method as per rates
prescribed under Schedule XIV of the Companies Act, 1956 which
coincides the rates derived from useful lives of assets as estimated by
management.
ii. Unamortized balance of goodwill as at 1st April 2008 is written
off equally over a period of five years.
iii. Leasehold land is amortized over the period of lease.
iv. Depreciation on revalued assets is provided at the rates specified
in Schedule XIV of the Companies Act, 1956. However, in case of fixed
assets whose life is determined by the valuer to be less than their
useful life under Schedule XIV, depreciation is provided at the higher
rates, to ensure the write off of these assets over their useful life.
(e) Impairment
The carrying amounts of assets are reviewed at each Balance Sheet date
to determine, if there is any indication of impairment based on
internal / external factors. An impairment loss is recognized wherever
the carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is the greater of the asset's net selling price and
value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of
money and risks specific to the asset.
(f) Leases
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased term, are classified as
operating leases. Operating lease payments are recognized as an expense
in the Profit and Loss Account on a straight-line basis over the lease
term.
(g) Government grants and subsidies
Grants and subsidies from the government are recognized when there is
reasonable assurance that the grant / subsidy will be received and all
attaching conditions will be complied with.
Government grants of the nature of promoters' contribution are credited
to capital reserve and treated as a part of shareholders' funds.
(h) Investments
Investments that are readily realisable and intended to be held for not
more than one year from the date on which such investments are made are
classified as current investments. All other investments are classified
as long-term investments.
Current investments are carried at lower of cost and fair value
determined on an individual investment basis. Long- term investments
are carried at cost. However, provision for diminution in value is made
to recognize a decline other than temporary in the value of the
investments.
(i) Inventories
Inventories are valued as lower of cost and net realizable value. Cost
is determined on "First in First Out" basis. Net realizable value is
the estimated selling price in the ordinary course of business, less
estimated costs of completion and estimated costs necessary to make the
sale.
(j) Revenue Recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured.
i. Income from Services
Revenue from hospitality services is recognised when the services are
rendered and the same becomes chargeable.
ii. Interest
Revenue is recognised on a time proportion basis taking into account
the amount outstanding and the rate applicable.
iii. Dividends
Revenue is recognised when the shareholders' right to receive payment
is established by the Balance Sheet date.
(k) Foreign Currency Transaction
i. Initial Recognition
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount the exchange rate between
the reporting currency and the foreign currency on the date of the
transaction.
ii. Exchange Differences
Exchange differences arising on the settlement of monetary items or on
reporting monetary items of Company at rates different from those at
which they were initially recorded during the year, or reported in
previous financial statements, are recognised as income or as expenses
in the year in which they arise.
(l) Retirement and other employee benefits
(i) Retirement benefit in the form of Provident Fund is a defined
contribution scheme and the contribution is charged to Profit and Loss
Account of the year when the contributions are due for payment to the
Regional Provident Fund Commissioner.
(ii) Gratuity liability is a defined benefit obligation and is provided
for on the basis of an actuarial valuation under projected unit credit
method made at the end of each financial year.
(iii) Short term compensated absences are provided for based on
management estimates.
(iv) Actuarial gains / losses are immediately taken to Profit and Loss
Account and are not deferred.
(m) Income taxes
Tax expense comprises of current and deferred tax. Current income tax
is measured at the amount expected to be paid to the tax authorities in
accordance with the Income Tax Act, 1961. Deferred income taxes reflect
the impact of current year timing differences between taxable income
and accounting income for the year and reversal of timing differences
of earlier years.
Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the Balance Sheet date. Deferred
tax assets and deferred tax liabilities are offset, if a legally
enforceable right exists to set off current tax assets against current
tax liabilities and the deferred tax assets and deferred tax
liabilities relate to the taxes on income levied by same governing
taxation laws. Deferred tax assets are recognised only to the extent
that there is reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets can be
realized.
(n) Segment Reporting Policy
The Company has hoteliering as its sole business segment and the same
is considered as its primary reportable segment. The Company at
present, operates in India and therefore the analysis of geographical
segments is not applicable to the Company.
(o) Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
result for the period attributable to equity shareholders and the
weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
(p) Provisions
A provision is recognised 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 best 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 best
estimates.
(q) Cash and cash equivalents
Cash and cash equivalents as indicated in the Cash Flow Statement
comprise of cash at bank and in hand and short- term investments with
an original maturity of three months or less.
Mar 31, 2010
(a) Basis of preparation
The financial statements have been prepared to comply in all material
respects with the accounting standards notified by the Companies
(Accounting Standards) Rules, 2006 (as amended) and relevant provisions
of the Companies Act, 1956. The financial statements have been prepared
under the historical cost convention on an accrual basis except in case
of assets for which revaluation is carried out. The accounting policies
applied by the Company, are consistent with those used in the previous
year.
(b) Use of estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the
financial statements and the results of operations during the reporting
period end. Although these estimates are based upon managementÃs best
knowledge of current events and actions, actual results could differ
from these estimates.
(c) Fixed Assets
Fixed assets are stated at cost (or revalued amounts, as the case may
be), less accumulated depreciation/ amortization and impairment losses
if any. Cost comprises the purchase price and any attributable cost of
bringing the asset to its working condition for its intended use.
(d) Depreciation / Amortization
i. Depreciation is provided using the Straight Line Method as per the
useful life of the assets estimated by the management, which is equal
to the rates prescribed under Schedule XIV of the Companies Act, 1956.
ii. Unamortized balance of goodwill as at 1st April 2008 is written
off equally over a period of five years.
iii. Leasehold land is amortized over the period of lease.
iv. Depreciation on revalued assets is provided at the rates specified
in Section 205(2)(b) of the Companies Act, 1956. However, in case of
fixed assets whose life is determined by the valuer to be less than
their useful life under Section 205, depreciation is provided at the
higher rates, to ensure the write off of these assets over their useful
life.
(e) Impairment
The carrying amounts of assets are reviewed at each balance sheet date
to determine, if there is any indication of impairment based on
internal/external factors. An impairment loss is recognized wherever
the carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is the greater of the assetÃs net selling price and
value in use. In assessing the value in use, the estimated future cash
flows are discounted to their present value at the weighted average
cost of capital.
(f) Leases
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased term, are classified as
operating leases. Operating lease payments are recognized as an expense
in the Profit and Loss account on a straight-line basis over the lease
term.
(g) Government grants and subsidies
Grants and subsidies from the government are recognized when there is
reasonable assurance that the grant/ subsidy will be received and all
attaching conditions will be complied with.
Government grants of the nature of promotersà contribution are credited
to capital reserve and treated as a part of shareholdersà funds.
(h) Investments
Investments that are readily realisable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as long-term investments. Current
investments are carried at lower of cost and fair value determined on
an individual investment basis. Long-term investments are carried at
cost. However, provision for diminution in value is made to recognize a
decline other than temporary in the value of the investments.
(i) Inventories
Inventories are valued as lower of cost and net realizable value. Cost
is determined on Ãfirst in first outà basis.
(j) Revenue Recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured.
i. Income from Services
Revenues from services are recognised pro-rata over the period of the
service as and when services are rendered.
ii. Interest
Revenue is recognised on a time proportion basis taking into account
the amount outstanding and the rate applicable.
iii. Dividends
Revenue is recognised when the shareholdersà right to receive payment
is established by the Balance Sheet date.
(k) Foreign Currency Transaction
i. Initial Recognition
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount the exchange rate between
the reporting currency and the foreign currency on the date of the
transaction.
ii. Exchange Differences
Exchange differences arising on the settlement of monetary items or on
reporting monetary items of company at rates different from those at
which they were initially recorded during the year, or reported in
previous financial statements, are recognised as income or as expenses
in the year in which they arise.
(l) Retirement and other employee benefits
(i) Retirement benefit in the form of Provident Fund is a defined
contribution scheme and the contribution is charged to Profit and Loss
Account of the year when the contributions to the funds are due. There
are no obligations other than the contribution payable to the
respective funds, i.e. Regional Provident Fund Commissioner.
(ii) Gratuity liability is a defined benefit obligation and is provided
for on the basis of an actuarial valuation on projected unit credit
method made at the end of each financial year.
(iii) Actuarial gains/losses are immediately taken to profit and loss
account and are not deferred.
(iv) Short term compensated absences are provided for based on
management estimates.
(m) Income taxes
Tax expense comprises of current, deferred and fringe benefit tax.
Income tax is measured at the amount expected to be paid to the tax
authorities in accordance with the Income Tax Act, 1961. Deferred
income taxes reflect the impact of current year timing differences
between taxable income and accounting income for the year and reversal
of timing differences of earlier years.
Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the balance sheet date. Deferred
tax assets and deferred tax liabilities are offset, if a legally
enforceable right exists to set off current tax assets against current
tax liabilities and the deferred tax assets and deferred tax
liabilities relate to the taxes on income levied by same governing
taxation laws. Deferred tax assets are recognised only to the extent
that there is reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets can be
realized.
(n) Segment Reporting
The Company has identified hoteliering as its sole operating segment
and the same is treated as the primary segment. The Company at present,
operates in India and therefore the analysis of geographical segments
is not applicable to the Company.
(o) Earnings Per Share
Basic earning per share is calculated by dividing the net result for
the period attributable to equity shareholders by the weighted average
number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
result for the period attributable to equity shareholders and the
weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
(p) Provisions
A provision is recognised 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 best 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 best
estimates.
(q) Cash and cash equivalents
Cash and cash equivalents as indicated in the Cash Flow Statement
comprise of cash at bank and in hand and short-term investments with an
original maturity of three months or less.