Material Accounting Policies:
1. Property, Plant and Equipment
(PPE)
• Items of Property, Plant and
Equipment are valued at cost
of acquisition inclusive of
any other cost attributable
to bringing the same to
their working condition less
accumulated depreciation and
any accumulated impairment
losses.
• PPE retired from active use and
held for disposal are stated at
the lower of carrying amount
or net realizable value and
are shown separately in the
financial statements, the loss
determined, if any, is recognized
in the Profit & Loss Statement.
• In cases where receipts/scrutiny
of final bills of the contractors/
suppliers, settlement of the
rates to be paid for extra items
and price escalation etc. are
pending, the capitalization is
effected provisionally, based
on the value of work completed
as certified by the Project
Engineers. The difference, if any,
is proposed to be accounted for
in the year in which the final
bills are settled.
• Depreciation on PPE is provided
on pro-rata basis on the
Straight Line Method “over the
estimated useful life of the
PPE” as per Companies Act,
2013, and as assessed by the
management is as under:
2. Intangible Assets
Intangible Assets (Software) are
stated at their cost of acquisition
less accumulated amortisation and
accumulated losses. Intangible Assets
(Software), cost are amortized over a
period of legal right to use or 3 years,
whichever is earlier.
3. Impairment of assets
Assets subject to amortization/
depreciation are tested for impairment
provided that an event or change
in circumstances indicates that
their carrying amount might not be
recoverable. An impairment loss is
recognized in the amount by which
the asset's carrying amount exceeds its
recoverable amount. The recoverable
amount is the greater of an asset's fair
value less sale costs and value in use.
4. Investments in Subsidiaries &
Joint ventures
Investments in subsidiaries and joint
ventures are accounted at cost less
impairment losses, if any.
If the intention of the management
is to dispose the investment in near
future, it is classified as held for sale
and measured at lower of its carrying
amount and fair value less costs to sell.
5. Inventories
Stocks and stores including stock of
crockery, cutlery, glassware and linen,
etc., in hand are valued at cost on FIFO
basis or realizable value whichever is
less. Valuation of stock of crockery,
cutlery, glassware and linen, etc. in
circulation, items are to written off/
amortized as a total % of items in
circulation. Item wise amortization rate
is detailed below:
a. Crockery & Cutlery (Brass Items) -
20.00%
b. Crockery & Cutlery (Other Items) -
33.33%
c. Linen Items - 50.00%
6. Revenue Recognition
Revenue from contract with
customers
Revenue from contract with customers
is recognized when control of the
goods or services are transferred
to the customer at an amount that
reflects the consideration to which
the Company expects to be entitled in
exchange for those goods or services.
Revenue from contract with customers
is recognized to the extent it is probable
that the economic benefits will flow
to the Company and the revenue and
costs, if applicable, can be measured
reliably.
The Company recognise revenue for
a performance obligation satisfied
at point in time or over time after
reasonably measuring its progress
towards complete satisfaction of
the performance obligation, In case
where the outcome of a performance
obligation cannot be reasonably
measured but the Company expects to
recover the costs incurred in satisfying
the performance obligation, the
revenue is being recognised only to the
extent of the costs incurred until such
time that it can reasonably measure
the outcome of the performance
obligation.
In case of performance obligation
being satisfied over time, it is
measured by applying input method.
In the contracts where performance
obligation cannot be measured by input
method, the output method is applied,
which faithfully depict the Company's
performance towards complete
satisfaction of the performance
obligation.
Revenue is measured at the
transaction price that is allocated to
the performance obligation and it
excludes amounts collected on behalf
of third parties and is adjusted for
variable considerations like customer
loyalty programs discount and rebates.
If the Company performs by transferring
goods or services to a customer before
the customer pays consideration or
before payment is due, a contract
asset is recognized for the earned
consideration that is conditional. If a
customer pays consideration before
the Company transfers good or services
to the customer, a contract liability is
recognized when the payment is made
or the payment is due (whichever is
earlier). Contract liability is recognised
as revenue when the Company
performs under the Contract.
Revenue from sale of goods
Revenue from sale of goods at hotels
like food and beverages, goods at duty
free shops, tourist literature and other
publications are recognized at the
point in time when the control of goods
are transferred to the customers.
Revenue from rendering of services
Revenue from license fee is recognized
as a performance obligation satisfied
over time on monthly basis.
Revenue from room rent/rent of
banquet halls/lawn is recognized on
day to day basis.
Revenue from packaged tours and
transport services are recognized as a
performance obligation satisfied over
time and is recognized in proportion to
the services delivered.
Revenue from event management
is recognized as a performance
obligation satisfied at point in time on
the completion of the event.
Revenue from training fee,
Management services are recognized
as a performance obligation
satisfied over time as the customer
simultaneously receives and consumes
the benefit provided by the Company
and is recognized on a straight line
basis over the period of service.
Revenue from sale of show tickets
is recognized at the point in time on
satisfaction of performance obligation.
Revenue from projects (deposit works)
is being satisfied over time. After
contract inception, the transaction
price can change for various reasons.
Any subsequent change in the
transaction price is then allocated
to the performance obligations in
the contract on the same basis as at
contract inception. Consequently,
amounts allocated to a satisfied
performance obligation are recognised
as revenue, or as a reduction of
revenue, in the period in which the
transaction price changes. Estimate of
revenues, costs, or extent of progress
towards completion are revised if
circumstances change. Any resulting
increases or decreases in estimated
revenues or costs are recognized by
including it in profit or loss in the
period of the change, if the change
affects that period only or the period
of change and future periods, if the
change affects both.
Revenue from operation and
maintenance services in relation to
projects (deposit works) is being
satisfied over time as the customer
simultaneously receives and consumes
the benefit provided by the Company
and is recognized on a straight line
basis over the period of service.
Revenue from management fee from
subsidiaries is determined at year end
and is recognized as a performance
obligation satisfied at a point in time.
Interest income
Interest income is recognized using
Effective Interest rate method as other
income.
Dividend income
Dividends are recognized as other
income in profit or loss when the right
to receive payment is established.
Other income
Supplementary claims are accounted
for on acceptance of claims.
7. Employees' Benefits
Liabilities in respect of benefits to
employees are provided for as follows:
1. Short-term employee benefits:
Liabilities for wages and salaries,
including non-monetary 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 recognised in respect
of employees' services up to the
end of the reporting period and are
measured at the amounts expected
to be incurred when the liabilities
are settled. The liabilities are
presented as Short Term employee
benefit obligations in the balance
sheet.
ESI is provided on the basis of
actual liability accrued and paid to
authorities
2. Post-employment obligations:
i. Defined Benefit Plans:
Gratuity and Post-Retirement
Benefits Plans- The defined
benefit obligation is calculated
annually by actuary using the
projected unit credit method.
Re-measurement gains and
losses arising from experiences,
adjustments and changes in
actuarial assumptions are
recognised in the period in
which they occur, directly in
other comprehensive income.
The value of the defined benefit
obligation resulting from plan
amendments or curtailments
is recognised immediately in
profit or loss as past service
cost.
ii. Defined Contribution Plans:
Provident Fund - The Company
transfers provident fund
contributions to the trust
recognised for maintenance of
the fund. These are recognised
as and when they are due.
3. Other Long Term Employee
Benefits:
The liabilities for earned leave and
sick leave are not expected to be
settled wholly within 12 months
after the end of the period in which
the employees render the related
service. The Company measures
the expected cost of accumulating
compensated absences as the
additional amount expected to
be paid as a result of the unused
entitlement that has accumulated
at the end of the reporting period.
The benefits are discounted
using the market yields at the
end of the reporting period that
have terms approximating to the
terms of the related obligation.
Re-measurements as a result
of experience adjustments and
changes in actuarial assumptions
are recognised in profit or loss.
The obligations are presented as
current liabilities in the balance
sheet if the Company does not
have an unconditional right to
defer settlement for at least twelve
months after the reporting period,
regardless of when the actual
settlement is expected to occur.
8. Foreign Currency Translation/
Transaction
Transaction in foreign currencies is
recorded at the exchange rate prevailing
on the date of the transaction.
Foreign currency denominated
monetary assets and liabilities are
translated into the functional currency
at exchange rates in effect at the end
of each reporting period. Foreign
exchange gains or losses arising
from settlement and translations are
recognized in the statement of profit
and loss.
Non-monetary assets and non¬
monetary liabilities denominated
in a foreign currency and measured
at historical cost are translated at
exchange rate prevailing at the date of
transaction.
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