(d) Revenue recognition

Revenue is recognised at an amount that reflects the
consideration to which the Company expects to be
entitled in exchange for transferring the promised 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 variable consideration on account of
discounts and schemes offered by the company as part
of the contract.

Income from operations

Rooms, Food and Beverage & Banquets: Revenue is
recognised at the transaction price that is allocated to
the performance obligation. Revenue includes room
revenue, food and beverage sale and banquet services
which is recognised once the rooms are occupied, food
and beverages are sold and banquet services have been
provided as per the contract with the customer.

Space and shop rentals: Rentals basically consists
of rental revenue earned from letting of spaces for
retails and office at the properties. These contracts for
rentals are generally of short-term in nature. Revenue
is recognized in the period in which services are being
rendered.

Other Allied services: In relation to laundry income,
communication income, health club income, airport
transfers income and other allied services, the revenue
has been recognized by reference to the time of service
rendered.

Management and Operating fees: Management
fees earned from hotels managed by the Company
are usually under long-term contracts with the hotel
owner. Under Management and Operating Agreements,
the Company's performance obligation is to provide
hotel management services and a license to use the
Company's trademark and other intellectual property.

Management and incentive fee is earned as a percentage
of revenue and profit and are recognised when earned
in accordance with the terms of the contract based on
the underlying revenue, when collectability is certain
and when the performance criteria are met. Both are
treated as variable consideration.

Membership Fees: Membership fee income majorly
consists of membership fees received from the loyalty

program and Chamber membership fees. In respect of
performance obligations satisfied over a period of time,
revenue is recognised at the allocated transaction price
on a time-proportion basis.

Loyalty program: The Company is a co-partner in
a loyalty programme, which is administered by a
third party. This program provides a material right to
customers, in the form of award points, on eligible
spends. The promise to provide the discount through
award points to the customer is therefore a separate
performance obligation. The points so earned by
such customers are accumulated and have a fixed
redemption price. The revenues related to award points
pertaining to the Company is deferred and a contract
liability is created at the time of initial sales basis the
points awarded to the customer and the likelihood of
redemption, as evidenced by the Company's historical
experience. On redemption or expiry of such award
points, revenue is recognised at pre-determined rates.

Contract balances

a) Contract assets

A contract asset is the right to consideration in
exchange for goods or services transferred to the
customer. 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 recognised for the earned
consideration that is conditional.

b) Contract liabilities

A contract liability is the obligation to transfer
services to a customer for which the Company
has received consideration from the customer. If a
customer pays consideration before the Company
transfers goods or services to the customer, a
contract liability is recognised when the payment
is made. Contract liabilities are recognised as
revenue when the Company performs under the
contract (refer note 34(iii) for details on contract
liabilities recognised by the Company).

(e) Employee Benefits

i. Short-term-Employment Benefits:

Short-term employee benefits are expensed as
the related services are provided. A liability is
recognised for the amount expected to be paid if
the Company has a present legal or constructive
obligation to pay this amount as a result of
past service provided by the employee and the
obligation can be estimated reliably.

ii. Post-Employment Benefits:

Defined contribution plans

A defined contribution plan is a post-employment
benefit plan under which an entity pays fixed
contributions into a separate entity and will have
no legal or constructive obligation to pay further
amounts.

a) Provident and Family pension fund

The eligible employees of the Company are
entitled to receive post-employment benefits
in respect of provident and family pension
fund, in which both the employees and the
Company make monthly contributions at
a specified percentage of the employee's
eligible salary (currently 12% of employee's
eligible salary). The contributions are made
to the provident fund managed by the trust
set up by the Company, or to the Regional
Provident Fund Commissioner (RPFC) which
are charged to the Statement of Profit and
Loss as incurred.

In respect of contribution to RPFC, the
Company has no further obligations beyond
making the contribution, and hence, such
employee benefit plan is classified as Defined
Contribution Plan. In respect to contribution
to provident fund managed by the trust set up
by the Company refer (c) Provident Fund Trust
below.

b) Superannuation

The Company has a defined contribution plan
for eligible employees, wherein it annually
contributes a sum equivalent to a defined
percentage of the eligible employee's annual
basic salary to a fund administered by the
trustees. The Company recognises such
contributions as an expense in the year
in which the corresponding services are
received from the employee.

Defined benefit plans

The Company operates various defined benefit
plans, which requires contributions to be made
to a separately administered fund. The cost of
providing benefits under the defined benefit
plan is determined using the projected unit credit
method and is performed by a qualified actuary.

a) Gratuity Fund

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 obligation determined as aforesaid less
the fair value of the plan assets is reported
as a liability or asset as of the reporting date.
Actuarial gains and losses are recognised
immediately in Other Comprehensive Income
and reflected in retained earnings and will not
be reclassified to the Statement of Profit and
Loss.

b) Post-Retirement Pension Scheme and
Medical Benefits

The Company has funded and unfunded
Pension schemes, which guarantee a
minimum pension to retired whole time
directors, and categories of employees, and
unfunded post-employment medical benefits
to qualifying employees. Actuarial gains and
losses are recognised immediately in Other
Comprehensive Income and reflected in
retained earnings and will not be reclassified
to the Statement of Profit and Loss.

c) Provident Fund Trust

In respect of contribution to the trust set up by
the Company, since the Company is obligated
to meet interest shortfall, if any, with respect
to covered employees, such employee benefit
plan is classified as Defined Benefit Plan.

iii. Other Long-term Employee Benefits -

The Company provides for encashment of leave
or leave with pay subject to certain rules. The
employees are entitled to accumulate leave
subject to certain limits for future encashment/
availment. The Company makes provision for
compensated absences based on an independent
actuarial valuation carried out at the end of the
year. Actuarial gains and losses are recognised in
the Statement of Profit and Loss.

(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
(refer note no. 2(n)). All other repair and maintenance
costs are recognised in profit or loss as incurred. First
time issues of operating supplies for a new hotel
property, consisting of linen and chinaware, glassware
and silverware (CGS) are capitalised and depreciated
over their estimated useful life.

Subsequent expenditure relating to property, plant and
equipment is capitalised 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 the 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 part "C" of 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.

date and the effect of any changes in estimates are
accounted for on a prospective basis.

An item of property, plant and equipment is
derecognised 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 recognised in the Statement of Profit
and Loss. Proportionate depreciation is charged for the
addition and disposal of an item of property, plant and
equipment made during the year.

For transition to Ind AS, the Company has elected to
continue with the carrying value of all of its property,
plant and equipment recognised as of April 1, 2015
(transition date) measured as per the previous GAAP
and use that carrying value as its deemed cost as of the
transition date.

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 include cost of acquired software
and designs, and cost incurred for development of the
Company's website and certain contract acquisition
costs. Intangible assets are initially measured at
acquisition cost including any directly attributable
costs of preparing the asset for its intended use and
are carried at cost less accumulated amortisation and
accumulated impairment losses.

Expenditure on projects which are not yet ready for
intended use are carried as intangible assets under
development.

Intangible assets with finite lives are amortised over
their estimated useful life and assessed for impairment
whenever there is an indication that the intangible asset
may be impaired. Intangible assets with indefinite useful
lives are tested for impairment at least annually, and
whenever there is an indication that the asset may be
impaired. The estimated useful life used for amortising
intangible assets is as under:

arising from de-recognition of an intangible asset,
measured as the difference between the net disposal
proceeds and the carrying amount of the asset, and are
recognised in the Statement of Profit and Loss when the
asset is derecognised.

For transition to Ind AS, the Company has elected to
continue with carrying value of all of its intangible assets
recognised as of April 1, 2015 (transition date) measured
as per the previous GAAP and use that carrying value as
its deemed cost as of the transition date.

(h) Leases

On inception of a contract, the Company assesses
whether it contains a lease. A contract contains a
lease when it conveys the right to control the use of
an identified asset for a period of time in exchange
for consideration. The right to use the asset and the
obligation under the lease to make payments are
recognised in the Company's statement of financial
position as a right-of-use asset and a lease liability.

Right-of-Use Assets

The right-of-use asset recognised at lease
commencement includes the amount of lease liability
recognised, initial direct costs incurred, and lease
payments made at or before the commencement
date, less any lease incentives received. Right-of-use
assets are depreciated over the shorter of the asset's
estimated useful life and the lease term. Right-of-use
assets are also adjusted for any re-measurement of
lease liabilities and are subject to impairment testing.
Residual value is reassessed annually.

Lease Liabilities

The lease liability is initially measured at the present value
of the lease payments to be made over the lease term.
The lease payments include fixed payments (including 'in¬
substance fixed' payments) and variable lease payments
that depend on an index or a rate, less any lease incentives
receivable, and payments of penalties for terminating the
lease, if the lease term reflects the exercise of an option
to terminate the lease. 'In-substance fixed' payments are
payments that may, in form, contain variability but that,
in substance, are unavoidable. The lease payments also
include the exercise price of a purchase option reasonably
certain to be exercised by the Company. In calculating the
present value of lease payments, the Company uses its
incremental borrowing rate at the lease commencement
date if the interest rate implicit in the lease is not readily
determinable.

The lease term includes periods subject to extension
options which the Company is reasonably certain to
exercise and excludes the effect of early termination

options where the Company is reasonably certain that
it will not exercise the option.

After the commencement date, the amount of lease
liabilities is increased to reflect the accretion of interest
and reduced for lease payments made. In addition, the
carrying amount of lease liabilities is re-measured if there
is a modification, a change in the lease term, a change in
the 'in-substance fixed' lease payments or as a result of
a rent review or change in the relevant index or rate.

Variable Lease

Variable lease payments that do not depend on an index
or a rate are recognised as an expense in the period over
which the event or condition that triggers the payment
occurs.

Short-term leases and leases of low-value assets

The Company has opted not to apply the lease
accounting model to intangible assets, leases of
low-value assets or leases which have a lease term of
12 months or less and don't contain purchase option.
Costs associated with such leases are recognised as an
expense on a straight-line basis over the lease term.

(i) Impairment of assets

Assets that are subject to amortisation are reviewed
for impairment periodically including 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. Where the asset
does not generate cash flows that are independent from
other assets, the company estimates the recoverable
amount of the cash-generating unit to which the asset
belongs. When a reasonable and consistent basis
of allocation can be identified, corporate assets are
also allocated to individual cash-generating units, or
otherwise they are allocated to the smallest group
of cash-generating units for which a reasonable and
consistent allocation basis can be identified.

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 recognised 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 recognised for the asset (or cash-generating
unit) in prior years. A reversal of an impairment loss is
recognised immediately in the Statement of Profit and
Loss to the extent that it eliminates the impairment loss
which has been recognised for the asset in prior years.

(j) Foreign Currency Translation

The functional currency and presentation 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.

Subsequent Recognition

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.

(k) Inventories

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 realisable 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.

(l) Income Taxes

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 recognised in the
Statement of Profit and Loss, except when they relate
to items that are recognised in Other Comprehensive
Income or directly in equity, in which case, the current and
deferred tax are also recognised in Other Comprehensive
Income or directly in equity, respectively.

(i) Current tax:

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.

(ii) Deferred tax:

Deferred income tax is recognised using the
balance sheet approach. Deferred 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 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 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 utilised. The carrying amount of deferred tax
assets is reviewed at each reporting date.

Deferred tax liabilities and assets are measured
at the tax rates that are expected to apply in the
period in which the liability is settled or the asset
realised, 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.

Current and deferred tax are recognised in profit
or loss, except when they relate to items that are
recognised 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.