NOTES TO FINANCIAL STATEMENTS FOR

1. SIGNIFICANT ACCOUNTING POLICIES :

The accounts have been brpared on historical cost convention under mercantile system of accounting and generally complies with mandatory accounting standards.

a. Fixed Assets :

Fixed Assets are stated at cost of acquisition inclusive of inward freight, duties and taxes and incidental expenses related to acquisition. In respect of major projects involving construction, related br-operational expenses form part of the value of the assets capitalized.

b. Debrciation :

Debrciation is provided based on useful life of the assets as specified in Schedule II to the Companies Act, 2013.

c. Impairment of Assets :

The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal / external factors. An impairment loss will be recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is 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 the brsent value. A brviously recognized impairment loss is further provided or reversed depending on changes in circumstances.

d. Investments :

i. Current Investments are stated at lower of cost and fair value.

ii. Long Term Investments are stated at cost. However, provision for diminution is made to recognize a decline, other than temporary in the value of the investments.

e. Inventories :

i. To value inventories of provisions, food supplies, crockery, cutlery, glassware, beverage, stores and operational supplies at cost on Weighted Average Method. Cost includes freight and other incidental expenses.

ii. To charge to revenue the value of crockery, cutlery and glassware at the time of first issue.

f. Miscellaneous Expenditure :

To amortise the brliminary expenses and other deferred revenue expenditure over a period of 10 years.

g. Foreign Currency Transactions :

i. Transactions in foreign currencies are accounted at the average exchange rate brvailing on the date of transaction.

ii. To account for gain or loss on foreign exchange rate fluctuations relating to assets and liabilities as at the date of the Balance Sheet at the convertible rate of exchange brvailing on that date.

EAR ENDED MARCH 31, 2015

iii. To account for all exchange differences arising from foreign currency transactions in the Profit and Loss Account.

h. Revenue Recognition :

i. Room revenue is recognized on actual occupancy and is net off, of cost of complimentary airport pick-up and drop.

ii. Food and Beverage at the point of supply.

iii. Other services on rendering such services.

iv. Sale of electricity generated from Wind Turbine Generators is recognized on the basis of electricity units metered and invoiced.

i. Employee Benefits :

i. Provident Fund :

The Company contributes to the statutory provident fund of the Regional Provident Fund Commissioner, in accordance with Employees Provident Fund and Miscellaneous Provisions Act, 1952. The plan is a defined contribution plan and contribution paid or payable is recognized as an expense in the period in which the employee renders service.

ii. Gratuity :

Gratuity is a post employment benefit and is a defined benefit plan. The liability recognized in the balance sheet rebrsents the brsent value of the defined benefit obligation at the balance sheet date less the fair value of plan assets together with adjustments for unrecognized actuarial gains or losses and past service costs. Independent actuaries using the projected unit credit method calculate the defined benefit obligation annually.

iii. Leave Encashment :

Provision for unavailed leave to the credit of the employees as at the end of the year is made on the basis of the actuarial valuation.

j. Taxation :

Current Tax is determined as the amount of tax payable in respect of taxable income for the period.

Deferred Tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and capable of reversal in one or more subsequent periods.

Deferred Tax assets are not recognized on unabsorbed debrciation and carry forward of losses unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1. Previous year's figures have been regrouped/ rearranged wherever necessary.