Mar 31, 2023
The Viceroy Hotels Limited ("VHL" or the "Company"), is primarily engaged in the business of Hoteliering. The company is domiciled and incorporated in India in 1965 and its registered office at HUDA Techna Enclave, Hyderabad Telangana-500081, India. The financial statements for the year ended March 31, 2023 were approved by the Board of Directors and authorized for issue on 29th May 2023.
The Financial Statements are presented in Indian Rupees (Rounded Off to Thousands). The financial statements have been prepared on the following basis:
These financial statements have been prepared in accordance with Indian Accounting Standards ("Ind AS") as prescribed under Section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules, 2015 and other provisions of the Companies Act, 2013 as amended from time to time.
These financial statements have been prepared on a historical cost basis, except for certain financial instruments which are measured at fair value at the end of each reporting period. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
All assets and liabilities are classified as current and non-current as per company''s normal operating cycle of 12 months which is based on the nature of business of the Company. Current Assets do not include elements which are not expected to be realized within 12 months and Current Liabilities do not include items which are due after 12 months, the period of 12 months being reckoned from the reporting date.
The preparation of these financial statements in conformity with the recognition and measurement principles of Ind AS requires management to make judgments, estimates and assumptions, that affect the reported balances of assets and liabilities, disclosures relating to contingent liabilities as at the date of the financial statements and the reported amounts of income and expenses for the years presented. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.
In particular, information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements pertain to:
⢠Useful lives of property, plant and equipment: The Company has estimated useful life of each class of assets based on the nature of assets, the estimated usage of the asset, the operating condition of the asset, past history of replacement, anticipated technological changes, etc. The Company reviews the useful life of property, plant and equipment and Intangible assets as at the end of each reporting period. This reassessment may result in change in depreciation expense in future periods.
⢠Impairment testing: Property, plant and equipment and Intangible assets that are subject to amortization/ depreciation are tested for impairment when events occur or changes in circumstances indicate that the recoverable amount of the cash generating unit is less than its carrying value. The recoverable amount of cash generating units is higher of value-in-use and fair value less cost to sell. The calculation involves use of significant Estimates and assumptions which includes turnover and earnings multiples, growth rates and net margins used to calculate projected future cash flows, risk-adjusted discount rate, future economic and market conditions.
⢠Impairment of investments: The Company reviews its carrying value of investments annually, or more frequently when there is indication for impairment. If the recoverable amount is less than its carrying amount, the impairment loss is accounted for.
⢠Income Taxes: Deferred tax assets are recognized to the extent that it is regarded as probable that deductible temporary differences can be realized. The Company estimates deferred tax assets and liabilities based on current tax laws and rates and in certain cases, business plans, including management''s expectations regarding the manner and timing of recovery of the related assets. Changes in these estimates may affect the amount of deferred tax liabilities or the valuation of deferred tax assets and thereby the tax charge in the Statement of Profit or Loss. Provision for tax liabilities require judgments on the interpretation of tax legislation, developments in case law and the potential outcomes of tax audits and appeals which may be subject to significant uncertainty. Therefore, the actual results may vary from expectations resulting in adjustments to provisions, the valuation of deferred tax assets, cash tax settlements and therefore the tax charge in the Statement of Profit or Loss.
⢠Litigation: From time to time, the Company is subject to legal proceedings, the ultimate outcome of each being always subject to many uncertainties inherent in litigation. A provision for litigation is made when it is considered probable that a payment will be made and the amount of the loss can be reasonably estimated. Significant judgement is made when evaluating, among other factors, the probability of un favorable outcome and
the ability to make a reasonable estimate of the amount of potential loss. Litigation provisions are reviewed at each accounting period and revisions made for the changes in facts and circumstances.
⢠Defined benefit plans: The cost of the defined benefit plans and the present value of the defined benefit obligation are based on actuarial valuation using the projected unit credit method. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate; future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each Balance Sheet date.
d) Revenue recognition:
Revenue is recognized at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring the goods or services to a customer i.e., on transfer of control of the goods or service to the customer. Revenue from sales of goods or rendering of services is net of Indirect taxes, returns and discounts.
Revenue is recognized at the transaction price that is allocated to the performance obligation. Revenue includes room revenue, food and beverage sale and banquet services which is recognized once the rooms are occupied, food and beverages are sold and banquet services have been provided as per the contract with the customer.
Revenue is recognized when it is earned and no significant uncertainty exists as to its realization or collection. Revenue from restaurant is recognized upon rendering of service. Sales are net of discounts.
Interest income is accrued on a time proportion basis using the effective interest rate method.
Dividend income is recognized when the Company''s right to receive the amount is established.
e) Employee Benefits
The eligible employees of the Company are entitled to receive benefits under the provident fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees'' salary (currently 12% of employees'' salary), which is recognized as an expense in the Statement of Profit and Loss during the year. The contributions as specified under the law are paid to the provident fund set up as irrevocable trust by the Company or to respective Regional Provident Fund Commissioner. The Company is generally liable for annual contributions and any shortfall in the fund assets based on the minimum rates of return prescribed by the Central Government and recognizes such contributions and shortfall, if any, as an expense in the year in which the corresponding services are rendered by the Employee.
The Company makes annual contributions to gratuity funds administered by the trustees for amounts notified by the funds. The Gratuity plan provides for lump sum payment to vested employees on retirement, death or termination of employment of an amount based on the respective employee''s last drawn salary and tenure of employment. The Company accounts for the net present value of its obligations for gratuity benefits, based on an independent actuarial valuation, determined on the basis of the projected unit credit method, carried out as at the Balance Sheet date. The obligation determined as aforesaid less the fair value of the plan assets is reported as a liability or assets as of the reporting date. Actuarial gains and losses are recognized immediately in the Other Comprehensive Income and reflected in retained earnings and will not be reclassified to the Statement of Profit and Loss.
The costs of all short-term employee benefits (that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service) are recognized during the period in which the employee renders the related services. The accruals for employee entitlements of benefits such as salaries, bonuses and annual leave represent the amount which the Company has a present obligation to pay as a result of the employees'' services and the obligation can be measured reliably. The accruals have been calculated at undiscounted amounts based on current salary levels at the Balance Sheet date.
f) Property, Plant and Equipment:
Property, plant and equipment are stated at cost; less accumulated depreciation (other than freehold land) and accumulated impairment losses, if any.
All property, plant and equipment are initially recorded at cost. Cost includes the acquisition cost or the cost of construction, including duties and non-refundable taxes, expenses directly related to bringing the asset to the location and condition necessary for making them operational for their intended use and, in the case of qualifying assets, the
attributable borrowing costs. Initial estimate of costs of dismantling and removing the item and restoring the site on which it is located is also included if there is an obligation to restore it. First time issues of operating supplies for a new hotel property, consisting of linen and chinaware, glassware and silverware (CGS) are capitalized and depreciated over their estimated useful life.
Subsequent expenditure relating to property, plant and equipment is capitalized only when it is probable that future economic benefits associated with these will flow to the Company and the cost of the item can be measured reliably.
An asset''s carrying amount is written down immediately to its recoverable amount if the asset''s carrying amount is greater than its estimated recoverable amount.
Depreciation is charged to Statement of Profit and Loss so as to expense the cost of assets (other than freehold land and properties under construction) less their residual values over their useful lives, using the straight line method, as per the useful life prescribed in Schedule II to the Companies Act, 2013 except in respect of the following categories of assets, in whose case the life of the assets had been re-assessed as under based on technical evaluation, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers'' warranties and maintenance support, etc.
Class of Assets |
Useful Life of Asset |
Buildings |
60 Years |
Plant and Equipment |
10 Years |
Electrical Installation and Equipment |
20 Years |
Hotel Wooden Furniture |
15 Years |
End User devices - Computers, Laptops etc. |
6 Years |
Operating supplies (issued on opening of a new hotel property) |
2 to 3 Years |
Other Miscellaneous Hotel Assets |
4 Years |
In respect of Buildings on Leasehold Land, depreciation is based on the tenure which is lower of the life of the buildings or the expected lease period. Improvements to buildings are depreciated on the basis of their estimated useful lives or expected lease period, whichever is lower.
Freehold land is not depreciated.
The assets'' useful lives and residual values are reviewed at the Balance Sheet date and the effect of any changes in estimates are accounted for on a prospective basis.
An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in the Statement of Profit and Loss. Proportionate depreciation is charged for the addition and disposal made during the year.
Capital work in progress represents projects under which the property, plant and equipment are not yet ready for their intended use and are carried at cost determined as aforesaid.
g) Intangible Assets
Intangible assets are measured on initial recognition at cost less accumulated amortization and accumulated impairment losses, if any.
The useful lives of intangible assets are assessed as finite. Intangible assets are amortized over their useful economic lives and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates. The amortization expense is recognized in the statement of profit or loss.
Gains or losses arising from de-recognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit or loss when the asset is derecognized.
Assets that are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable an impairment loss is recognised for the amount by which the asset''s carrying amount exceeds its recoverable amount Recoverable amount is the higher of fair value less costs of disposal 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 the risks specific to the asset for which the estimates of future cash flows have not been adjusted if the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount An impairment loss is recognized immediately in the Statement of Profit and Loss. When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years a reversal of an impairment loss is recognized immediately in Statement of Profit and Loss.
The functional currency of the Company is Indian rupee Initial Recognition
On initial recognition, all foreign currency transactions are recorded by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.
As at the reporting date, non-monetary items which are carried at historical cost and denominated in a foreign currency are reported using the exchange rate at the date of the transaction. All non-monetary items which are carried at fair value denominated in a foreign currency are retranslated at the rates prevailing at the date when the fair value was determined. Income and expenses in foreign currencies are recorded at exchange rates prevailing on the date of the transaction. Foreign currency denominated monetary assets and liabilities are translated at the exchange rate prevailing on the balance sheet date and exchange gains and losses arising on settlement and restatement are recognised in the Statement of Profit and Loss.
Stock of food and beverages and stores and operating supplies are carried at the lower of cost (computed on a Weighted Average basis) or net realizable value.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and selling expenses. Cost includes the fair value of consideration paid including duties and taxes (other than those refundable), inward freight, and other expenditure directly attributable to the purchase. Trade discounts and rebates are deducted in determining the cost of purchase.
Income tax expense comprises current tax expense and the net change in the deferred tax asset or liability during the year Current and deferred tax are recognized in statement of profit and loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity, respectively.
Current tax expenses are accounted in the same period to which the revenue and expenses relate. Provision for current income tax is made for the tax liability payable on taxable income after considering tax allowances, deductions and exemptions determined
in accordance with the applicable tax rates and the prevailing tax laws Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle the asset and the liability on a net basis.
Deferred income tax is recognised using the balance sheet approach. Deferred income tax assets and liabilities are recognised for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount in financial statements, except when the deferred income tax arises from the initial recognition of goodwill, an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profits or loss at the time of the transaction. Deferred income 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.
Deferred tax liabilities are generally recognized for all taxable temporary differences except in respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures where the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future. The carrying amount of deferred tax assets is reviewed at each Balance Sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred income tax asset to be utilized. Deferred tax liabilities and assets are measured at tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantially enacted by the end of the reporting period.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis Minimum Alternative Tax ("MAT") credit forming part of Deferred tax assets is recognized as an asset only when and to the extent there is reasonable certainty that the Company will pay normal income tax during the specified period. Such asset is reviewed at each Balance Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer a reasonable certainty to the effect that the Company will pay normal income tax during the specified period
l) Provisions and Contingent Liabilities:
Provisions are recognised when the Company has a binding present obligation. This may be either legal because it derives from a contract, legislation or other operation of law, or constructive because the Company created valid expectations on the part of third parties by accepting certain responsibilities. To record such an obligation, it must be probable that an outflow of resources will be required to settle the obligation and a reliable estimate
can be made for the amount of the obligation. The amount recognised as a provision and the indicated time range of the outflow of economic benefits are the best estimate (most probable outcome) of the expenditure required to settle the present obligation at the balance sheet date, taking into account the risks and uncertainties surrounding the obligation. Noncurrent provisions are discounted if the impact is material.
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.
m) Borrowing Costs:
General and specific borrowing costs directly attributable to the acquisition or construction of qualifying assets that necessarily takes a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Borrowing costs consist of interest and other costs that the company incurs in connection with the borrowing of funds. Interest income earned on temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. Borrowing costs that are not directly attributable to a qualifying asset are recognised in the Statement of Profit or Loss using the effective interest method.
n) Statement of Cash Flows
Cash flows are reported using the indirect method, whereby profit/ (loss) before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. Cash Flow for the year is classified by operating, investing and financing activities.
o) Earnings Per Share
Basic earnings per share is computed by dividing the profit or loss after tax by the weighted average number of equity shares outstanding during the year including potential equity shares on compulsory convertible debentures. Diluted earnings per share is computed by dividing the profit / (loss) after tax as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share.
p) Exceptional items:
The company discloses certain financial information both including and excluding exceptional Items. The presentation of information excluding exceptional items allows a better Understanding of the underlying trading performance of the company and provides consistency with the company''s internal management reporting. Exceptional items are identified by virtue of either their size or nature so as to facilitate Comparison with prior periods and to assess underlying trends in the financial performance of the company. Exceptional items can include, but are not restricted to, gains and losses on the disposal of assets/ investments, impairment charges, exchange gain/ loss on long term borrowings/ assets and changes in fair value of derivative contracts.
Financial assets are recognised when, and only when, the Company becomes a party to the contractual provisions of the financial instrument. The Company determines the classification of its financial assets at initial recognition. When financial assets are recognised initially, they are measured at fair value, plus, in the case of financial assets not at fair value through profit or loss directly attributable transaction costs. Transaction costs of financial assets carried at fair value through profit or loss are expensed in the Statement of Profit and Loss.
⢠Cash and Cash Equivalents - Cash comprises cash on hand and demand deposits with Banks. Cash Equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.
⢠Debt Instruments -The Company classifies its debt instruments as subsequently measured at amortized cost, fair value through Other Comprehensive Income or fair value through profit or loss based on its business model for managing the financial assets and the contractual cash flow characteristics of the financial asset.
(i) Financial assets at amortized cost
Financial assets are subsequently measured at amortized cost if these financial assets are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest. Interest income from these financial assets is included as a part of the Company''s income in the Statement of Profit and Loss using the effective interest rate method.
(ii) Financial assets at fair value through Other Comprehensive Income (FVOCI)
Financial assets are subsequently measured at fair value through Other Comprehensive Income if these financial assets are held for collection of contractual cash flows and for
selling the financial assets, where the assets'' cash flows represent solely payments of principal and interest. Movements in the carrying value are taken through Other Comprehensive Income, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains or losses which are recognised in the Statement of Profit and Loss. When the financial asset is derecognized, the cumulative gain or loss previously recognized in Other Comprehensive Income is reclassified from Other Comprehensive Income to the Statement of Profit and Loss. Interest income on such financial assets is included as a part of the Company''s income in the Statement of Profit and Loss using the effective interest rate method.
(iii) Financial assets at fair value through profit or loss (FVTPL)
Assets that do not meet the criteria for amortized cost or FVOCI are measured at fair value through profit or loss. A gain or loss on such debt instrument that is subsequently measured at FVTPL and is not part of a hedging relationship as well as interest income is recognised in the Statement of Profit and Loss.
⢠Equity Instruments - The Company subsequently measures all equity investments (other than the investment in subsidiaries, joint ventures and associates which are measured at cost) at fair value.
Where the Company has elected to present fair value gains and losses on equity investments in Other Comprehensive Income ("FVOCI"), there is no subsequent reclassification of fair value gains and losses to profit or loss.
Dividends from such investments are recognised in the Statement of Profit and Loss as other when the Company''s right to receive payment is established. At the date of transition to Ind AS, the Company has made an irrevocable election to present in other Comprehensive income subsequent changes in the fair value of equity investments that are not held for trading. When the equity investment is derecognized, the cumulative gain or loss previously recognized Other Comprehensive Income is reclassified from Other Comprehensive Income to the Retained Earnings directly.
A financial asset is derecognized only when the Company has transferred the rights to receive cash flows from the financial asset. Where the Company has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognized where the Company has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognized where the Company retains control of the financial asset, the asset is continued to be recognised to the extent of continuing involvement in the financial asset.
Initial recognition and measurement financial liabilities are recognised when, and only when, the Company becomes a party to the contractual provisions of the financial instrument. The Company determines the classification of its financial liabilities at initial recognition. All financial liabilities are recognised initially at fair value, plus, in the case of financial liabilities not at fair value through profit or loss directly attributable transaction costs. Subsequent measurement after initial recognition, financial liabilities that are not carried at fair value through profit or loss are subsequently measured at amortized cost using the effective interest method. Gains and losses are recognised in the Statement of Profit and Loss when the liabilities are derecognized, and through the amortization process.
A financial liability is de-recognised 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 a de-recognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognised in the Statement of Profit and Loss.
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged and the type of hedge relationship designated during the years reported, no hedge relationship was designated.
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognised at the proceeds received, net of direct issue costs. Repurchase of the Company''s own equity instruments is recognised and deducted directly in equity. No gain or loss is recognised in the Statement of Profit and Loss on the purchase, sale, issue or cancellation of the Company''s own equity instruments.
(iii) Impairment of financial assets
The Company assesses, at each reporting date, whether a financial asset or a group of financial assets is impaired. Ind AS-109 on Financial Instruments, requires expected credit losses to be measured through a loss allowance. For trade receivables only, the
Company recognizes expected lifetime losses using the simplified approach permitted by Ind AS-109, from initial recognition of the receivables. For other financial assets (not being equity instruments or debt instruments measured subsequently at FVTPL) the expected credit losses are measured at the 12 month expected credit losses or an amount equal to the lifetime expected credit losses if there has been a significant increase in credit risk since initial recognition.
A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt Instrument. Financial guarantee contracts issued by the Company are measured at their fair values and recognised as income in the Statement of Profit and Loss. Where guarantees in relation to loans or other payables of group companies are provided for no compensation, the fair value are accounted for as contributions and recognised as part of cost of investment
Business combinations of entities under common control are accounted using the "pooling of interests" method and assets and liabilities are reflected at the predecessor carrying values and the only adjustments that are made are to harmonies accounting policies. The figures for the previous periods are restated as if the business combination had occurred at the beginning of the preceding period irrespective of the actual date of the combination.
Mar 31, 2016
Significant Accounting Policies
The financial statements are prepared under the historical cost convention, on an accrual basis and comply with the Accounting Standards (AS) notified by the Companies (Accounting Standards) Rules, 2006. The preparation of the financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses. The Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Future results could differ from these estimates. The significant accounting policies adopted in the presentation of the financial statements are asunder:
(a) Basis of preparation of financial Statements.
The financial statements have been prepared under the historical cost convention in accordance with Generally Accepted Accounting Principles and the provisions of the Companies Act, 2013.
b) Use of estimates
The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and differences between actual results and estimates are recognized in the periods in which the results are known/materialize.
(c) Revenue Recognition:
Revenue is recognized when it is earned and no significant uncertainty exists as to its realization or collection.
Revenue from restaurant and sweet shop sales (food and beverages) is recognized upon rendering of service. Sales are net of discounts. Value added tax is reduced from sales.
The Company also operates through franchise arrangements with third parties in terms of which the third parties are permitted to use the Companyâs established trademarks:
- Initial Access Premium Fee charged to franchisees, in consideration of being considered as competent to open a restaurant under a Company owned trademark, is recognized on formalization of the franchise agreement. The Initial Access Premium Fee is non - refundable, regardless of whether the restaurant outlet under the franchise agreement commences operations or not.56
- Royalty and Management Fee charged to franchisees for the use of the trademarks is calculated as a percent age of monthly sales of the restaurant and accrued for inline with restaurant sales.
Revenue from displays and sponsorships are recognized based on the period for which the products or the sponsorâs advertisements are promoted/displayed.
In respect of gift vouchers and point awards scheme operated by the company, sales are recognized when the gift vouchers or points are redeemed and on sale of meals to customers.
(d) Employee Benefits:
Compensation to employees for services rendered is measured and accounted for in accordance with Accounting Standard 15 on Employee Benefits.
Employee Benefits such as salaries, allowances, non-monetary benefits and employee benefits under defined contribution plans such as provident and other funds, which fall due for payment within a period of twelve months after rendering service, are charged as expense to the Statement of Profit and Loss in the period in which the service is rendered.
Employee Benefits under defined benefit plans such as gratuity which fall due for payment after completion of employment are measured by the projected unit credit method, other basis of actuarial valuations carried out by third party actuaries at each balance sheet date. The companyâs obligations recognized in the balance sheet represent the present value of obligations as reduced by the fair value of plan assets, where applicable.
Actuarial Gains and losses are recognized immediately in the Statement of Profit and Loss.
(e) Investments
Investments are classified as current or long-term in accordance with Accounting Standard 13 on Accounting for Investments.
Current investments are stated at the lower of cost and fair value. Any reduction in the carrying amount and any reversals of such reductions are charged or credited to the Statement of Profit and Loss.
Long term investments are stated at cost. Provision for diminution is made to recognize a decline, other than temporary, in the value of such investments.
(f) Fixed Assets:
(i) Tangible Assets
Tangible Assets are stated at the if cost of acquisition less accumulated depreciation and impairment losses. Cost comprises of all costs incurred to bring the assets to their present location and working condition.
Assets acquired under finance leases are accounted for at the inception of the lease in accordance with Accounting Standard 19on Leases at the lower of the fair value of the asset and present value of minimum lease payments
(ii) Intangible assets
Intangible assets are stated at the it cost of acquisition, less accumulated amortization and impairment losses. An intangible asset is recognized, where it is probable that the future economic benefits attributable to the asset will flowstone enterprise and where its cost can be reliably measured.
The company capitalizes software costs where it is reasonably estimated that the software has an enduring useful life. Software is depreciated over the managementâs estimate of its useful life of five years. Trademarks are amortized uniformly over a period of five years.
(g) Depreciation:
Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.
Leasehold improvements are depreciated over the lower of the lease period and the managementâs estimate of the useful life of the asset.
The depreciable amount of intangible assets is allocated over the best estimate of its useful life on a straight-line basis.
(h) Impairment of Assets:
The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment of assets. If any indication of such impairment exists, the recoverable amount of such assets is estimated and impairment is recognized, if the carrying amount on these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and value in use. Value in use is arrived at by discounting the future cash flow to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognized for an asset in prior accounting periods no longer exists or may have decreased, such reversal of i1mpairment loss is recognized.
(i) Transactions in Foreign Exchange:
Transactions in foreign currencies are accounted for at the prevailing rates of exchange on the date of the transaction.
Monetary items denominated in foreign currencies, are restated at the prevailing rates of exchange at the Balance Sheet date. All gains and losses arising out of fluctuations in exchange rates are accounted for in the Statement of Profit and Loss.
Exchange differences on forward exchange contracts, entered into for hedging foreign exchange fluctuation risk in respect of an existing asset/liability, are recognized in the Statement of Profit and Loss in the reporting period in which the exchange rate changes. Premium / Discount on forward exchange contracts is amortized over the period of the contract.
(j) Borrowing Cost:
i. Interest and other borrowing costs, attributable to qualifying assets are capitalized.
ii. Interest not attributable to qualifying assets is charged to the Profit and Loss Account in the year in which it is incurred.
iii. Debenture issue costs and the entire premium on redemption of Debentures are adjusted against the Securities Premium Account in accordance with the provision of Section 52 of the Companies Act, 2013.
iv. Other Borrowing Costs are charged to revenue account over the tenure of the borrowing.
(k) Inventories:
Stock of food and beverages and operating supplies are carried at cost or Market Value, whichever is lower as per AS-2.
Cost of inventories comprises of all costs of purchase and other costs incurred in bringing the inventories to their present condition and location. Cost of materials is determined by the FIFO method.
(l) Taxes on income:
(i) Income tax is computed in accordance with Accounting Standard 22-âAccounting for Taxes on Income (AS-22), issued by the ICAI. Tax expenses are accounted in the same period to which the revenue and expenses relate.
(ii) Provision for current income tax is made on the tax liability payable on taxable income after considering tax allowances, deductions and exemptions determined in accordance with the prevailing tax laws. The differences between taxable income and the net profit or loss before tax for the year as per the financial statements are identified and the tax effect of the deferred tax asset or deferred tax liabilities recorded for timing differences, i.e. differences that originate in one accounting period and reverse in another. The tax effect is calculated on accumulated timing differences at the end of the accounting year based on effective tax rates that would apply in the years in which the timing differences are expected to reverse.
(iii) Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of the irrespective carrying values teach balance sheet date.
(m) Accounting for provisions, Contingent Liabilities and Contingent Assets:
Provisions are recognized in terms of Accounting Standard 29-âProvisions, Contingent Liabilities and Contingent Assetsâ (AS-29), issued by the ICAI., when there is a present legal or statutory obligation as a result of past events, where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.
Contingent Liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable out flow of resources are provided for.
Contingent Assets are not recognized in the financial statements.
(n) Earnings per Share:
The Company reports basic and diluted Earnings per Share (EPS) in accordance with Accounting Standard 20 on Earnings per Share. Basic EPS is computed by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted EPS is computed by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year as adjusted for the effects of all dilutive potential equity shares, except where the results arsenate-dilutive.
Mar 31, 2015
(a) Basis of preparation offinancial Statements.
The financial statements have been prepared under the historical cost
convention in accordance with Generally Accepted Accounting Principles
and the provisions ofthe Companies Act, 2013.
b) Use of estimates
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles requires estimates and assumptions to be
made that affect the reported amounts of assets and liabilities and
disclosure of contingent liabilities on the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates and
differences between actual results and estimates are recognized in the
periods in which the results are known / materialize.
(c) RevenueRecognition:
Revenue is recognized when it is earned and no significant uncertainty
exists as to its realization or collection.
Revenue from restaurant and sweet shop sales (food and beverages) is
recognized upon rendering of service. Salesare net of discounts. Value
added tax is reducedfrom sales.
The Company also operates through franchise arrangements with third
parties in terms of which the third parties are permittedto use the
Company's establishedtrademarks:
* Initial Access Premium Fee charged to franchisees, in consideration
of being considered as competent to open a restaurant under a Company
owned trademark, is recognized on formalization of the franchise
agreement. The Initial Access Premium Fee is non - refundable,
regardless of whether the restaurant outlet under the franchise
agreement commencesoperationsornot.56
* Royaltyand Management Fee charged to franchisees forthe use ofthe
trademarks is calculated as a percentage of monthly sales ofthe
restaurant and accruedfor inline with restaurant sales.
Revenue from displays and sponsorships are recognized based on the
period for which the products or the sponsor's advertisement
sarepromoted/displayed.
In respect of gift vouchers and point awards scheme operated by the
company, sales are recognized when the gift vouchers or points are
redeemed and on sale of mealsto customers.
(d) EmployeeBenefits:
Compensation to employees for services rendered is measured and
accounted for in accordance with Accounting Standard 15on Employee
Benefits.
Employee Benefits such as salaries, allowances, non-monetary benefits
and employee benefits under defined contribution plans such as
provident and otherfunds, which fall due for payment within a period of
twelve months after rendering service, are charged as expense to the
Statement of Profit and Loss in the period in which the
serviceisrendered.
Employee Benefits under defined benefit plans such as gratuity which
fall due for payment after completion of employment are measured bythe
projected unit credit method, on the basis of actuarial valuations
carried out by third party actuaries at each balance sheet date. The
company's obligations recognized in the balance sheet
representthepresentvalueofobligationsas reduced bythefairvalueofplan
assets, where applicable.
Actuarial Gains and losses are recognized immediately in the Statement
of Profit and Loss.
(e) Investments
Investments are classified as current or longterm in accordance with
Accounting Standard 13 on Accounting for Investments.
Current investments are stated at the lower of cost and fair value. Any
reduction in the carrying amount and any reversals of such
reductionsare charged or creditedto the Statement of Profitand Loss.
Long term investments are stated at cost. Provision for diminution is
made to recognize a decline, other than temporary, in the value of such
investments.
(f) Fixed Assets:
(i) TangibleAssets
Tangible Assets are stated at their cost of acquisition less
accumulateddepreciationand impairment losses.
Cost comprises of all costs incurred to bring the assets to their
present location and working condition.
Assetsacquiredunderfinanceleasesare accounted for at the inception of
the lease in accordance with Accounting Standard 19 on Leases at the
lower of the fair value of the asset and presentvalue of minimum lease
payments
(ii)Intangible assets
Intangible assets are stated at their cost of acquisition, less
accumulated amortization and impairment losses. An intangible asset is
recognized, where it is probable that the future economic benefits
attributable to the asset will flow to the enterprise and where its
cost can be reliably measured.
The company capitalizes software costs where it is reasonably estimated
that the software has an enduring useful life. Software is depreciated
overthe management's estimate of its useful life of five years.
Trademarksareamortized uniformlyoveraperiod o f five years.
(g) Depreciation:
Depreciation is provided based on useful life of the assets as
prescribed in Schedule II to the CompaniesAct, 2013.
Leasehold improvements are depreciated over the lower of the lease
period and the management's estimate of the useful life ofthe asset.
The depreciable amount of intangible assets is allocated over the best
estimate of its useful life on a straight-line basis.
(h) Impairment of Assets:
The carrying values of assets / cash generating units at each Balance
Sheet date are reviewed for impairment of assets. If any indication of
such impairment exists, the recoverable amount of such assets is
estimated and impairment is recognised, if the carrying amount on these
assets exceeds their recoverable amount. The recoverable amount is the
greater of the net selling price and value in use. Value in use is
arrived at by discounting the future cash flow to their present value
based on an appropriate discount factor. When there is indication that
an impairment loss recognised for an asset in prior accounting periods
no longer exists or may have decreased, such reversal ofimpairment loss
is recognised.
(i) Transactions in Foreign Exchange:
Transactionsinforeigncurrencies are accounted for attheprevailin grates
ofexchangeonthedate of the transaction.
Monetary items denominated in foreign currencies, are restated at the
prevailing rates of exchange at the Balance Sheet date. All gains and
losses arising out of fluctuations in exchange rates are accounted for
in the Statement of Profit and Loss.
Exchange differences on forward exchange contracts, entered into for
hedging for eign exchange fluctuation risk in respect of an existing
asset/liability, are recognized in the Statement of Profit and Loss in
the reporting period in which the exchange rate changes. Premium /
Discount on forward exchange contracts is amortized over the
periodofthe contract.
(j) Borrowing Cost:
i. Interest and other borrowing costs, attributable to qualifying
assets are capitalised.
ii. Interest not attributable to qualifying assets is charged to the
Profit and Loss Account in the year in which it is incurred.
iii. Debenture issue costs and the entire premium on redemption of
Debentures are adjusted against the Securities Premium Account in
accordance with the provision of Section 52 of the Companies Act, 2013.
iv. Other Borrowing Costs are charged to revenue account over the
tenureofthe borrowing.
(k) Inventories:
Stock of food and beverages and operating supplies are carried at cost
or Market Value, whichever is lower as per AS-2.
Cost of inventories comprises of all costs of purchase and other costs
incurred in bringing the inventories to their present condition and
location. Cost of materials is determined by the FIFO method.
(l) Taxes on income:
(i) Income tax is computed in accordance with Accounting Standard
22-'Accounting for Taxes on Income (AS-22), issued by the ICAI. Tax
expenses are accounted in the same period to which the revenue and
expenses relate.
(ii) Provision for current income tax is made on the tax liability
payable on taxable income after considering tax allowances, deductions
and exemptions determined in accordance with the prevailing tax laws.
The differences between taxable income and the net profit or loss
before tax for the year as per the financial statements are identified
and the tax effect of the deferred tax asset or deferred tax
liabilities recorded for timing differences, i.e. differences that
originate in one accounting period and reverse in another. The tax
effect is calculated on accumulated timing differences at the end of
the accounting year based on effective tax rates that would apply in
the years in which the timing differences are expected to reverse.
(iii) Deferred tax assets are recognized only if there is reasonable
certainty that they will be realized and are reviewed for the
appropriateness of their respective carrying values at each balance
sheet date.
(m) Accounting for provisions, Contingent Liabilities and Contingent
Assets:
Provisions are recognized in terms of Accounting Standard
29-'Provisions, Contingent Liabilities and Contingent Assets' (AS-29),
issued by the ICAI., when there is a present legal or statutory
obligation as a result of past events, where it is probable that there
will be outflow of resources to settle the obligation and when a
reliable estimate of the amount of the obligation can be made.
Contingent Liabilities are recognized only when there is a possible
obligation arising from past events due to occurrence or non-
occurrence of one or more uncertain future events not wholly within the
control of the Company or where any present obligation cannot be
measured in terms of future outflow of resources or where a reliable
estimate of the obligation cannot be made. Obligations are assessed on
an ongoing basis and only those having a largely probable outflow of
resources are provided for.
Contingent Assets are not recognized in the financial statements.
(n) Earningsper Share:
The Company reports basic and diluted Earnings per Share (EPS) in
accordance with Accounting Standard 20 on Earnings per Share. Basic EPS
is computed by dividing the net profit or loss for the year
attributable to equity shareholders by the weighted average number of
equity shares outstanding during the year. Diluted EPS is computed by
dividing the net profit or loss for the year attributable to equity
shareholders by the weighted average number of equity shares
outstanding during the year as adjusted for the effects of all dilutive
potential equity shares, except where the results are anti-dilutive.
Mar 31, 2014
The financial statements are prepared under the historical cost
convention, on an accrual basis and comply with the Accounting
Standards (AS) notified by the Companies (Accounting Standards) Rules,
2006. The preparation of the financial statements requires the
Management to make estimates and assumptions considered in the reported
amounts of assets and liabilities (including contingent liabilities) as
of the date of the financial statements and the reported income and
expenses. The Management believes that the estimates used in the
preparation of the financial statements are prudent and reasonable.
Future results could differ from these estimates. The significant
accounting policies adopted in the presentation of the financial
statements are as under:
(a) Basis of preparation of financial Statements.
The financial statements have been prepared under the historical cost
convention in accordance with Generally Accepted Accounting Principles
and the provisions of the Companies Act, 1956.
b) Use of estimates
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles requires estimates and assumptions to be
made that affect the reported amounts of assets and liabilities and
disclosure of contingent liabilities on the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates and
differences between actual results and estimates are recognized in the
periods in which the results are known/ materialize.
(c) Revenue Recognition:
Revenue is recognized when it is earned and no significant uncertainty
exists asto its realization or collection.
Revenue from restaurant and sweet shop sales (food and beverages) is
recognized upon rendering of service. Sales are net ofdiscounts. Value
added tax is reduced from sales.
The Company also operates through franchise arrangements with third
parties in terms of which the third parties are permitted to usethe
Company''s established trademarks:
- Initial Access Premium Fee charged to franchisees, in consideration
of being considered as competentto open a restaurant under a Company
owned trademark, is recognized on formalization of the franchise
agreement. The Initial Access Premium Fee is non - refundable,
regardless of whether the restaurant outlet under the franchise
agreement commences operations or not.56
- Royalty and Management Fee charged to franchisees for the use of the
trademarks is calculated as a percentage of monthly sales of the
restaurantand accrued for in line with restaurant sales.
Revenue from displays and sponsorships are recognized based on the
period for which the products or the sponsor''s advertisements are
promoted /displayed.
In respect of gift vouchers and point awards scheme operated by the
company, sales are recognized when the gift vouchers orpoints are
redeemed andon sale of meals to customers.
(d) EmployeeBenefits:
Compensation to employees for services rendered is measured and
accounted for in accordance with Accounting Standard 15 on Employee
Benefits.
Employee Benefits such as salaries, allowances, non-monetary benefits
and employee benefits under defined contribution plans such as
provident and other funds, which fall due for payment within a period
of twelve months after rendering service, are charged as expense to the
Statement of Profit and Loss in the period in which the service
isrendered.
Employee Benefits under defined benefit plans such as gratuity which
fall due for payment after completion of employment are measured by the
projected unit credit method, on the basis of actuarial valuations
carried out by third party actuaries at each balance sheet date. The
company''s obligations recognized in the balance sheet
representthepresentvalueofobligationsas reduced bythefair value of plan
assets, where applicable.
Actuarial Gains and losses are recognized immediately in the Statement
of Profit and Loss.
(e) Investments
Investments are classified as current or long term in accordance with
Accounting Standard 13 on Accounting for Investments.
Current investments are stated at the lower of cost and fair value. Any
reduction in the carrying amount and any reversals of such
reductionsare charged or credited to the Statement of Profit and Loss.
Long term investments are stated at cost. Provision for diminution is
made to recognize a decline, other than temporary, inthe value of such
investments.
(f) Fixed Assets:
(i) Tangible Assets
Tangible Assets are statedattheircost ofacquisition less
accumulateddepreciation and impairmentlosses. Cost comprisesofallcosts
incurred to bring the assets to their present location and working
condition.
Assets acquired under finance leases are accounted for at the inception
of the lease in accordance with Accounting Standard 19 on Leases at the
lower of the fair value of the asset and present value of minimum lease
payments.
(ii) Intangible assets
Intangible assets are stated at their cost of acquisition, less
accumulated amortization and impairment losses. An intangible asset is
recognized, where it is probable that the future economic benefits
attributable to the asset will flow to the enterprise and where its
cost can be reliably measured.
The company capitalizes software costs where it is reasonably estimated
that the software has an enduring useful life. Software is depreciated
overthe management''s estimate of its useful life of fiveyears.
Trade marks are amortized uniformly overa period of five years.
(g) Depreciation:
Depreciation on assets is provided, pro-rata for the period of use, by
the written down value method at the rates prescribed in Schedule XIVto
the Act. Assets costing less than Rs. 5,000 are depreciated at 100%.
Leasehold improvements are depreciated over the lower of the lease
period and the management''s estimate of the useful lifeoftheasset.
The depreciable amount of intangible assets is allocated overthe best
estimate of its useful life on a straight-line basis.
(h) ImpairmentofAssets:
The carrying values of assets / cash generating units at each Balance
Sheet date are reviewed for impairment of assets. If any indication of
such impairment exists, the recoverable amount of such assets is
estimated and impairment is recognised, if the carrying amount on these
assets exceeds their recoverable amount. The recoverable amount is the
greater of the net selling price and value in use. Value in use is
arrived at by discounting the future cash flowto their present value
based on an appropriate discount factor. When there is indication that
an impairment loss recognised for an asset in prior accounting periods
no longer exists or may have decreased, such reversal ofimpairment loss
is recognised.
(i) Transactions in Foreign Exchange:
Transactions in foreign currencies are accounted for at the prevailing
rates of exchange on the date of the transaction.
Monetary items denominated in foreign currencies, are restated at the
prevailing rates of exchange at the Balance Sheet date. All gains and
losses arising out of fluctuations in exchange rates are accounted for
in the Statement of Profit and Loss.
Exchangedifferences on forward exchange contracts, entered into for
hedging foreign exchange fluctuation riskin respect of an existing
asset/liability, are recognized in the Statement of Profit and Loss in
the reporting period in which the exchange rate changes. Premium /
Discount on forward exchange contracts is amortized over the period
ofthecontract.
(j) Borrowing Cost:
i. Interest and other borrowing costs, attributable to qualifying
assets are capitalised.
ii. Interest not attributable to qualifying assets is charged to the
Profit and Loss Account inthe year inwhich it is incurred.
iii. Debenture issue costs and the entire premium on redemption of
Debentures are adjusted against the Securities Premium Account in
accordance with the provision of Section 78 ofthe Companies Act, 1956.
iv. Other Borrowing Costs are charged to revenue account over the
tenure of the borrowing.
(k) Inventories:
Stock of food and beverages and operating supplies are carried at cost
or Market Value, whichever is lower as per AS-2.
Cost of inventories comprises of all costs of purchase and other costs
incurred in bringing the inventories to their present condition and
location. Cost of materials is determined by the FIFO method.
(l) Taxes on income:
(i) Income tax is computed in accordance with Accounting Standard
22-''Accounting for Taxes on Income (AS- 22), issued by the ICAI. Tax
expenses are accounted in the same period to which the revenue and
expenses relate.
(ii) Provision for current income tax is made on the tax liability
payable on taxable income after considering tax allowances, deductions
and exemptions determined in accordance with the prevailing tax laws.
The differences between taxable income and the net profit or loss
before tax for the year as per the financial statements are identified
and the tax effect of the deferred tax asset or deferred tax
liabilities recorded for timing differences, i.e. differences that
originate in one accounting period and reverse in another. The tax
effect is calculated on accumulated timing differences at the end ofthe
accounting year based on effective tax rates that would apply in the
years in which the timing differences are expected to reverse.
(iii) Deferred tax assets are recognized only if there is reasonable
certainty that they will be realized and are reviewed forthe
appropriateness of their respective carrying values at each balance
sheet date.
(m) Accounting for provisions, Contingent Liabilitiesand
ContingentAssets:
Provisions are recognized in terms of Accounting Standard 29-
''Provisions, Contingent Liabilities and Contingent Assets'' (AS-29),
issued by the ICAI., when there is a present legal or statutory
obligation as a result of past events, where it is probable that there
will be outflow of resources to settle the obligation and when a
reliable estimate of the amount of the obligation can be made.
Contingent Liabilities are recognized only when there is a possible
obligation arising from past events due to occurrence or non-
occurrence of one or more uncertain future events not wholly within the
control of the Company or where any present obligation cannot be
measured in terms of future outflow of resources or where a reliable
estimate ofthe obligation cannot be made. Obligations are assessed on
an ongoing basis and only those having a largely probable outflow of
resources are provided for.
Contingent Assets are not recognized in the financial statements.
(n) Earningsper Share:
The Company reports basic and diluted Earnings per Share (EPS) in
accordance with Accounting Standard 20 on Earnings per Share. Basic EPS
is computed by dividing the net profit or loss for the year
attributable to equity shareholders by the weighted average number of
equity shares outstanding during the year. Diluted EPS is computed by
dividing the net profit or loss forthe year attributable to equity
shareholders by the weighted average number of equity shares
outstanding during the year as adjusted for the effects of all dilutive
potential equity shares, except where the results are anti-dilutive.
Mar 31, 2013
The financial statements are prepared under historical cost convention
on an accrual basis and comply with the Accounting Standards (AS)
issued by the Institute of Chartered Accountants of India(ICAI),
referred to in Section 211(3C) ofthe Companies Act, 1956. The
significant accounting policies adopted in the presentation ofthe
Accounts are as under:
(a) Accounting Conventionand Revenue Recognition:
The Financial statements have been prepared in accordance with
historical cost convention except for such fixed assets which are
revalued. Both the income and expenditure items are recognized
onaccrual basis.
(b) Retirement Benefits:
The Company has not obtained Actuarial valuation towards gratuity as
per Accounting Standard  15 (Employee Benefits). However
Managementofthe Companyisproviding provision for gratuityon estimation
basis.
(c) Fixed Assets:
Fixed assets are statedatcost of acquisition and subsequent
improvements thereto, inclusiveoftaxes, freight, and other incidental
expenses related to acquisition, improvements and installation, except
in case of revaluation of fixed assets where it is stated at revalued
amount. Interest during construction period on loans to finance fixed
assets is capitalized as per AS-10.
(d) Depreciation:
Depreciation on fixed assets other than land is provided under the
straight-line method at the rates and in the manner specifiedinSchedule
XIVtothe Companies Act, 1956,asexisting on that date as per AS-6.
(e) TransactionsinForeign Exchange:
Sales made in foreign currency are converted at the prevailing
applicable exchange rate. Gain/loss arising out of the
fluctuationinexchange rate isaccounted for on realization.
Paymentsmade in foreign currency are convertedatthe applicable rate
prevailingon thedateof remittanceas perAS-11.
(f) Borrowing Cost:
Borrowing cost that is attributable to the acquisition/ construction of
fixed assets is capitalized as part of the cost of respective assets as
per AS-16.
(g) Inventories:
Stock of food and beverages and operating supplies are carried at cost
or Market Value, whichever is lower as per AS-2.
(h) Taxesonincome:
(i) Income tax is computed in accordance with Accounting Standard
22-''Accounting for Taxes on Income (AS- 22), issued by the ICAI. Tax
expenses are accounted in the same period to which the revenue and
expenses relate.
(ii) Provision for current income tax is made on the tax liability
payable on taxable income after considering tax allowances, deductions
and exemptions determined in accordance with the prevailing tax laws.
The differences between taxable income and the net profit or loss
before tax for the year as per the financial statements are identified
and the tax effect of the deferred tax asset or deferred tax
liabilities recorded for timing differences, i.e. differences that
originate in one accounting period and reverse in another. The tax
effect iscalculated on accumulated timing differences atthe end of the
accounting year based on effective tax rates that would apply in the
years in which the timing differences are expectedtoreverse.
(iii) Deferred tax assets are recognized only if there is reasonable
certainty that they will be realized and are reviewed for the
appropriatenessoftheir respective carrying values at each balance sheet
date.
(i) Accounting for provisions, Contingent Liabilities and Contingent
Assets:
Provisions are recognized intermsof Accounting Standard 29 Â
''Provisions, Contingent Liabilities and Contingent Assets'' (AS-29),
issued by the ICAI., when there is a present legal or statutory
obligation as a result of past events, where it is probable that there
will be outflow of resources to settle the obligation and when a
reliable estimate of the amountofthe obligation can be made.
Contingent Liabilities are recognized only when there is a possible
obligation arising from past events due to occurrence or non-
occurrence of one or more uncertain future events not wholly within the
control of the Company or where any present obligation cannot be
measured in terms of future outflow of resources or where a reliable
estimate of the obligation cannot be made. Obligations are assessed on
an ongoing basis and only those having alargely probable outflow of
resources are provided for.
Contingent Assets are not recognized in the financial statements.
(j) Earnings per Share:
The earning considered in ascertaining the earning per share comprises
net profit after tax. The number of shares used in computing basic
earning per share is the weighted average number of shares outstanding
during the year as per AS-20.
Mar 31, 2012
The financial statements are prepared under historical cost convention
on an accrual basis and comply with the Accounting Standards (AS)
issued by the Institute of Chartered Accountants of India (ICAI),
referred to in Section 211 (3C) of the Companies Act, 1956. The
significant accounting policies adopted inthe presentation of the
Accounts are as under:
(a) Accounting Convention and Revenue Recognitions:
The Financial statements have been prepared in accordance with
historical cost convention except for such fixed assets which are
revalued. Both the income and expenditure items are recognized on accrual
basis.
(b) Retirement Benefits:
The Company has not obtained Actuarial valuation towards gratuity as
per Accounting Standard -15 (Employee Benefits). However
Management of the Company is providing provision for gratuity on
estimation basis.
(c) Fixed Assets:
Fixed assets are stated at cost of acquisition and subsequent
Improvements there to, inclusive of taxes, freight, and other incidental
expenses related to acquisition, improvements and installation, except
in case of revaluation of fixed assets where it is stated at revalued
amount. Interest during construction period on loans to finance fixed
assets is capitalized as per AS-10.
(d) Depreciation:
Depreciation on fixed assets other than land is provided under the
straight-line method at the rates and in the manner specified in
Schedule XIV to the Companies Act, 1956, as existing on that date as
perAS-6.
(e) Transactions in Foreign Exchange:
Sales made in foreign currency are converted at the prevailing
applicable exchange rate. Gain /loss arising out of the fluctuations in
exchange rate is accounted for on realization.
Payment made in foreign currency are converted at the applicable rate
prevailing on the date of remittance as per AS-11.
(f) Borrowing Cost
Borrowing cost that is attributable to the acquisition /construction of
fixed assets is capitalized as part of the cost of respective assets as
per AS -16.
(g) Inventories:
Stock of food and beverages and operating supplies are carried at cost
or Market Value, whichever is lower as per AS -2.
(h) Taxes on income:
(i) Income tax is computed in accordance with Accounting Standard 22 -
'Accounting for Taxes on Income (AS- 22), issued by the ICAI. Tax
expenses are accounted in the same period to which the revenue and
expenses relate.
(ii) Provision for current income tax is made on the tax liability
payable on taxable income after considering tax allowances, deductions
and exemptions determined in accordance with the prevailing tax laws.
The differences between taxable income and the net profit or loss
before tax for the year as per the financial statements are identified
and the tax effect of the deferred tax asset or deferred tax
1iabilities recorded for timing differences, i.e. differences that
originate in one accounting period and reverse in another. The tax
effect is calculated on accumulated timing differences at the end of
the accounting year based on effective tax rates that would apply in
the years in which the timing differences are expected to reverse.
(iii) Deferred tax assets are recognized only if there is reasonable
certainty that they will be realized and are reviewed
for the appropriateness of the irrespective carrying values at
each balance sheet date.
(i) Accounting for Provisions, Contingent Liabilities and Contingent
Assets
Provisions are recognized in terms of Accounting Standard 29 Ã
'Provisions, Contingent Liabilities and Contingent Assetsà (As-29),
issued by the ICAI., when there is a present legal or statutory
obligation as a result of past events, where it is probable that there
will be outflow of resources to settle the obligation and when a
reliable estimate of the amount of the obligation can be made.
Contingent Liabilities are recognized only when there is a possible
obligation arising from past events due to occurrence or non-occurrence
of one or more uncertain future events not wholly within the control of
the Company or where any present obligation cannot be measured in terms
of future outflow of resources or where a reliable estimate of the
obligation cannot be made. Obligations are assessed on an ongoing basis
and only those having a largely probable outflow of resources are
provided for.
Contingent Assets are not recognized in the financial statements.
(j) Earnings per Share:
The earning considered in ascertaining the earning per share comprises
net profit after tax. The number of shares used in computing basis
earning per share is the weighted average number of shares outstanding
during the year asperAS-20.
Mar 31, 2011
The financial statements are prepared under historical cost convention
on an accrual basis and comply with the Accounting Standards (AS)
issued by the Institute of Chartered Accountants of India (ICAI),
referred to in Section 211 (3C) of the Companies Act, 1956. The
significant accounting policies adopted in the presentation of the
Accounts are as under:
(a) Accounting Convention and Revenue Recognitions:
The Financial statements have been prepared in accordance with
historical cost convention except for such fixed which are revalued.
Both the income and expenditure items are recognized on accrual basis.
(b) Retirement Benefits:
Staff benefits arising out of retirement /death, comprising of
contributions to Provident Fund, Superannuation & Gratuity Schemes,
accrued Leave Encashable and other post-separation benefits are
accounted for on the basis of contribution to the schemes, or an
independent actuarial valuation as the case may be as per AS-15.
(c) Fixed Assets:
Fixed assets are stated at cost of acquisition and subsequent
improvements thereto, inclusive of taxes, freight, and other incidental
expenses related to acquisition, improvements and installation, except
in case of revaluation of fixed assets where it is stated at revalued
amount. Interest during construction period on loans to finance fixed
assets is capitalized as per AS-10.
(d) Depreciation:
Depreciation on fixed assets other than land is provided under the
straight-line method at the rates and in the manner specified in
Schedule XIV to the Companies Act, 1956, as existing on that date as
per AS-6.
(e) Transactions in Foreign Exchange:
Sales made in foreign currency are converted at the prevailing
applicable exchange rate. Gain /loss arising out of the fluctuations in
exchange rate is accounted for on realization.
Payment made in foreign currency are converted at the applicable rate
prevailing on the date of remittance as per AS-11.
(f) Borrowing Cost
Borrowing cost that is attributable to the acquisition /construction of
fixed assets is capitalized as part of the cost of respective assets as
per AS-16.
(g) Inventories:
Stock of food and beverages and operating supplies are carried at cost
or Market Value, whichever is lower as per AS-2.
(h) Taxes on income:
(i) Income tax is computed in accordance with Accounting Standard 22 -
'Accounting for Taxes on Income (AS-22), issued by the ICAI. Tax
expenses are accounted in the same period to which the revenue and
expenses relate.
(ii) Provision for current income tax is made on the tax liability
payable on taxable income after considering tax allowances, deductions
and exemptions determined in accordance with the prevailing tax laws.
The differences between taxable income and the net profit or loss
before tax for the year as per the financial statements are identified
and the tax effect of the deferred tax asset or deferred tax
1iabilities recorded for timing differences, i.e. differences that
originate in one accounting period and reverse in another. The tax
effect is calculated on accumulated timing differences at the end of
the accounting year based on effective tax rates that would apply in
the years in which the timing differences are expected to reverse.
(iii) Deferred tax assets are recognized only if there is reasonable
certainty that they will be realized and are reviewed for the
appropriateness of their respective carrying values at each balance
sheet date.
(i) Accounting for Provisions, Contingent Liabilities and Contingent
Assets
Provisions are recognized in terms of Accounting Standard 29 Ã
'Provisions, Contingent Liabilities and Contingent Assets' (AS-29),
issued by the ICAI., when there is a present legal or statutory
obligation as a result of past events, where it is probable that there
will be outflow of resources to settle the obligation and when a
reliable estimate of the amount of the obligation can be made.
Contingent Liabilities are recognized only when there is a possible
obligation arising from past events due to occurrence or non-occurrence
of one or more uncertain future events not wholly within the control of
the Company or where any present obligation cannot be measured in terms
of future outflow of resources or where a reliable estimate of the
obligation cannot be made. Obligations are assessed on an ongoing basis
and only those having a largely probable outflow of resources are
provided for.
Contingent Assets are not recognized in the financial statements.
(j) Earnings per Share:
The earning considered in ascertaining the earning per share comprise
net profit after tax. The number of shares used in computing basis
earning per share is the weighted average number of shares outstanding
during the year as per AS-20.
Mar 31, 2010
The financial statements are prepared under historical cost convention
on an accrual basis and comply with the Accounting Standards (AS)
issued by the Institute of Chartered Accountants of India (ICAI),
referred to in Section 211 (3C) of the Companies Act, 1956. The
significant accounting policies adopted in the presentation of the
Accounts are as under:
(a) Accounting Convention and Revenue Recognitions:
The Financial statements have been prepared in accordance with
historical cost convention except for such fixed which are revalued.
Both the income and expenditure items are recognized on accrual basis.
(b) Retirement Benefits:
Staff benefits arising out of retirement /death, comprising of
contributions to Provident Fund, Superannuation & Gratuity Schemes,
accrued Leave Encashabje and other post- separation benefits are
accounted for on the basis of contribution to the schemes, or an
independent actuarial valuation as the case may be.
(c) Fixed Assets:
Fixed assets are stated at cost of acquisition and subsequent
improvements thereto, inclusive of taxes, freight, and other incidental
expenses related to acquisition, improvements and installation, except
in case of revaluation of fixed assets where it is stated at revalued
amount. Interest during construction period on loans to finance fixed
assets is capitalized.
(d) Depreciation:
Depreciation on fixed assets other than land is provided under the
straight-line method at the rates and in the manner specified in
Schedule XIV to the Companies Act, 1956, as existing on that date.
(e) Transactions in Foreign Exchange:
Sales made in foreign currency are converted at the prevailing
applicable exchange rate. Gain /loss arising out of the fluctuations
in exchange rate is accounted for on realization.
Payment made in foreign currency are converted at the applicable rate
prevailing on the date of remittance.
(f) Borrowing Cost
Borrowing cost that is attributable to the acquisition /construction of
fixed assets is capitalized as part of the cost of respective assets.
(g) Inventories:
Stock of food and beverages and operating supplies are carried at cost
or Market Value, whichever is lower.
(h) Taxes on income:
(i) Income tax is computed in accordance with Accounting Standard 22 -
Accounting for Taxes on Income (AS-22), issued by the ICAI. Tax
expenses are accounted in the same period to which the revenue and
expenses relate.
(ii) Provision for current income tax is made on the tax liability
payable on taxable income after considering tax allowances, deductions
and exemptions determined in accordance with the prevailing tax laws.
The differences between taxable income and the net profit or loss
before tax for the year as per the financial statements are identified
and the tax effect of the deferred tax asset or deferred tax
liabilities recorded for timing differences, i.e. differences that
originate in one accounting period and reverse in another. The tax
effect is calculated on accumulatedtiming differences at the end of
the accounting year based on effective tax rates that would apply in
the years in which the timing differences are expected to reverse.
(iii) Deferred tax assets are recognized only if there is reasonable
certainty that they will be realized and are reviewed for the
appropriateness of their respectivecarrying values at each balance
sheet date.
(I) Accounting for Provisions, Contingent Liabilities and Contingent
AssetsProvisions are recognized in terms of Accounting Standard 29 Ã
Provisions, Contingent Liabilities and Contingent Assets (AS-29),
issued by the ICAI., when there is a present legal or statutory
obligation as a result of past events, where it is probable that there
will be outflow of resources to settle the obligation and when a
reliable estimate of the amount of the obligation can be made.
Contingent Liabilities are recognized only when there is a possible
obligation arising from past events due to occurrence or non-occurrence
of one or more uncertain future events not wholly within the control of
the Company or where any present obligation cannot be measured in terms
of future outflow of resources or where a reliable estimate of the
obligation cannot be made. Obligations are assessed on an ongoing basis
and only those having a largely probable outflow of resources are
provided for.
Contingent Assets are not recognized in the financial statements.
(j) Earnings per Share:
The earning considered in ascertaining the earning per share comprise
net profit after tax. The number of shares used in computing basis
earning per share is the weighted average number of shares outstanding
during the year.
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