(iv) Material Accounting Policies:(a) Revenue recognition:(i) Income from operations
Revenue from operations is accounted on accrual, is net of indirect taxes, returns and discounts. Revenue is measured at the fair
value of the consideration received or receivable. Revenue comprises of sale of rooms, food and beverages and allied services.
Rentals basically consists of rental revenue earned from letting of residential and commercial spaces. Revenue for rental is
recognised in the period in which services are being rendered.
(ii) Interest:
Interest income is accrued on a time proportion basis using the effective interest rate method.
(b) Property, Plant and Equipment:
Property, plant and equipment are initially recorded at cost. Cost includes the acquisition cost or the cost of construction, 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.
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured
reliably.
On transition to Ind AS, the Company has elected to continue with the carrying value of all property, plant and equipment recognised
as at 1st April, 2016 measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and
equipment.
(c) Investment Property:
Investment Property are initially measured at cost, including transaction cost. Subsequent to initial recognition, Investment property
are carried at cost less accumulated depreciation and accumulated impairment loss, if any.
Investment Property are derecognised either when they have disposed of or when they are permanently withdrawn from use and no
future economic benefit is expected from the disposal. The difference between the net disposal proceeds and the carrying amount of
the asset is recognized in the Statement of Profit and Loss in the period of derecognising.
Transfers to or from investment property is made when and only when there is a change in use.
On transition to Ind AS, the company has elected to continue with the carrying value of all its investment properties recognised as of
April 1,2016 measured as per previous GAAP and use that carrying value as its deemed cost as of the transition date.
(d) Intangible Assets:
Intangible assets are stated at cost less accumulated amortisation and impairments, if any. An intangible asset is recognised if it is
probable that the expected future economic benefits that are attributable to the asset will flow to the Company and its cost can be
measured reliably.
On transition to Ind AS, the company has elected to continue with the carrying value of all its intangible assets recognised as of April
1,2016 measured as per previous GAAP and use that carrying value as its deemed cost as of the transition date.
(e) Capital WIP
Capital work-in-progress comprises the cost of property, plant and equipment that are not yet ready for their intended use on the
reporting date and materials at site net of impairment if any.
(f) Depreciation and Amortisation:
The Company depreciates its property, plant and equipment and investment property over the useful life in the manner prescribed in
Schedule II of the Companies Act, 2013 under straight line method except as under:
(i) Based on technical evaluation, the useful life of continuous process plant other than windmill has been estimated as 15 years
(on a single shift basis) and that of motor boat 6 years.
(ii) Depreciation on additions / deletions during the year are provided on pro-rata basis. Assets purchased / installed during the
year costing less than Rs. 5,000 each are fully depreciated.
(iii) Building constructed on leasehold land are depreciated at the applicable rate on the assumption that the lease would be
renewed in the normal course. Improvements in the owned building are depreciated over the period of 10 years.
(iv) Leasehold improvement are depreciated over the expected period of the lease.
(v) Computer Software and website is amortised in six years and other intangible assets are amortised in five years.
The useful lives of assets and residual values are reviewed at the Balance Sheet date and the effects of any changes in estimates
are accounted for on a prospective basis.
Depreciation /amortisation is not provided on non-current assets held for sale or part of the disposal group from the date of such assets
are classified as held for sale or part of disposal group.
Depreciation is not recorded on capital work-in-progress until construction and installation are complete and the asset is ready for its
intended use.
(g) Investments in subsidiaries:
Investment in a subsidiary is a long-term investment and is carried at cost. On transition to Ind AS, previous GAAP carrying amount as
on that date, i.e. April 1,2016 is considered as cost.
(h) Inventories:
Stock of food and beverages, stores and operating supplies are stated ‘at cost or net realisable value, whichever is lower'. Cost
comprise fair value of consideration paid including duties and taxes (other than those refundable), cost of conversion and other costs
in bringing the inventories to their present location and condition computed under weighted average cost method. Due allowance is
estimated and made for defective and obsolete items, wherever necessary.
(i) Employee benefits:(i) Short-term benefits:
The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by
employees is recognised during the period when the employee renders the service.
(ii) Post-employment obligations
The Company operates the following post-employment schemes:
(a) The Company makes annual contributions to gratuity fund which is a defined benefit plan.
The liability or asset recognised in the balance sheet in respect of gratuity plans is the present value of the defined
benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is
calculated annually by actuaries using the projected unit credit method. The net interest cost is calculated by applying the
discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in
employee benefit expense in the Statement of Profit and Loss. Remeasurement gains and losses arising from experience
adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other
comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance
sheet.
(b) Defined contribution plans such as provident fund are charged to the Statement of Profit and Loss as and when incurred.
(j) Borrowing Costs:
Borrowing costs that are directly attributable to the acquisition and construction of qualifying assets are capitalised. A qualifying asset
is an asset that necessarily takes substantial period of time to get ready for its intended use.
Interest cost for the borrowings is computed under effective interest method.
Foreign exchange difference relating to foreign currency borrowings regarded as an adjustment to borrowing cost to the extent not
capitalised is disclosed under finance cost.
(k) Taxation:
(i) Provision for current taxation has been made in accordance with the Income Tax laws applicable to the assessment year
considering the taxable income of both continued and discontinued operations.
(ii) Deferred tax is recognized on timing difference being the difference between taxable incomes and accounting income that
originates in one period and is capable of reversal in one or more subsequent periods. Where there is unabsorbed depreciation,
or carry forward losses, deferred tax assets are recognised only if there is virtual certainty of realisation of such assets.
(l) Impairment of assets:
The carrying amounts of assets are reviewed at each balance sheet date, to assess any indication of impairment. If any such indication
exists, the recoverable amount of such assets is estimated. An impairment loss is recognized wherever the carrying amount of the
assets exceed its recoverable amount. The recoverable amount is greater of the net selling price or value in use. In assessing value in
use, the estimated future cash flows are discounted to their present value, based on an appropriate discounting factor.
After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful life. A previously
recognized impairment loss is increased or reversed depending on changes in circumstances. However, the carrying value after
reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.
(m) Foreign currency transaction:
Foreign currency transactions are recorded at the rates of exchange prevailing on the date of the transactions.
The monetary assets and liabilities in foreign currency as at balance sheet date are translated at rates prevailing at the year-end and
the resultant net gains or losses are recognized as income or expense in the year in which they arise.
(n) Leases :
The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to
control the use of an identified asset for a period of time in exchange for consideration.
The Company determines the lease term as the non-cancellable period of a lease, together with both periods covered by an option to
extend the lease if the Company is reasonably certain to exercise that option; and periods covered by an option to terminate the lease
if the Company is reasonably certain not to exercise that option. In assessing whether the Company is reasonably certain to exercise an
option to extend a lease, or not to exercise an option to terminate a lease, it considers all relevant facts and circumstances that create
an economic incentive for the Company to exercise the option to extend the lease, or not to exercise the option to terminate the lease.
The Company revises the lease term if there is a change in the non-cancellable period of a lease.
Company as a lessee
The Company's leases assets mainly comprise buildings. The Company assesses whether a contract contains a lease, at inception of
a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time
in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified assets, the Company
assesses whether: (i) the contact involves the use of an identified asset (ii) the Company has substantially all of the economic benefits
from use of the asset through the period of the lease and (iii) the Company has the right to direct the use of the asset.
As a lessee, the Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right of-use asset
is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before
the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset
or to restore the underlying asset or the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease
term. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements
of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date,
discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the incremental borrowing rate.
Generally, the Company uses incremental borrowing rate as the discount rate.
Lease payments included in the measurement of the lease liability comprise the fixed payments, including in-substance fixed payments;
The lease liability is measured at amortised cost using the effective interest method.
The Company has used number of practical expedients when applying Ind AS 116 - Short-term leases, leases of low-value assets and
single discount rate.
The Company has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12
months or less, leases of low-value assets and lease where term of the lease is already expired and not yet renewed. The Company
recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.
Variable lease payments that do not depend on an index or a rate are recognised as expenses in the period in which the event or
condition that triggers the payment occurs.
Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments are presented as follows in
the Company's statement of cash flows:
• short-term lease payments, payments for leases of low-value assets and variable lease payments that are not included in the
measurement of the lease liabilities are presented within cash flows from operating activities;
• payments for the interest element of recognised lease liabilities are included in ‘interest paid' within cash flows from operating
activities; and
• payments for the principal element of recognised lease liabilities are presented within cash flows from financing activities.
As practical expedient of Ind AS 116 “Leases”, the company has considered Covid-19-related rent concessions not to be lease
modification, hence the income towards rent concession is recognised in “Other Income” in the statement of profit and loss account.
Company as a lessor
Leases for which the Company is a lessor is classified as finance or operating lease. Leases in which the Company does not transfer
substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. Rental income arising is
accounted for on a straight-line basis over the lease terms. Initial direct costs incurred in negotiating and arranging an operating lease
are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income.
(o) Government Grants/Incentives:
Government grants/incentives that the Company is entitled to on fulfilment of certain conditions, but are available to the Company only
on completion of some other conditions, are recognised as income at fair value on completion of such other conditions.
Grants/incentives that the Company is entitled to unconditionally on fulfilment of certain conditions, such grants/incentives are
recognised at fair value as income when there is reasonable assurance that the grant/incentive will be received.
(p) Income from Joint Development Agreement (JDA):
Income from JDA is accounted under percentage of completion method (POCM) as per the Guidance Note on Accounting for Real
Estate Transactions. Balance cost of land and other expense related to JDA is grouped under Assets held for sale.
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