Indage Restaurants and Leisure Ltd. कंपली की लेखा नीति

Mar 31, 2011

The financial statements are prepared under historical cost convention on 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 preparation of 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 that are prudent and reasonable. Management believes that the estimates used in preparation of the financial statements are reasonable and prudent. Future results could differ from these estimates. The significant accounting policies adopted in the presentation of the accounts are as under.

1.1. Fixed Assets:

Fixed assets are valued at cost less depreciation / amortization and impairment losses, if any. Cost includes expenses incidental to the installation of assets and attributable borrowing costs.

Deposits given for premises, where right to operate for more than three years exists are classified as long term deposits under Current Assets , as the same represents a long term right to occupy the Premises and operate the business.

1.2. Depreciation / Amortization:

Depreciation on fixed assets held / purchased at owned premises, vehicles and computers has been provided on straight-line basis in accordance with the provisions of Schedule XIV to Companies Act, 1956. Depreciation in respect of fixed assets except data processing equipment and vehicles held at Lease hold premises are provided on SLM basis at rates higher than Schedule XIV to Companies Act, 1956.

1.3. Transactions in Foreign Exchange:

Transactions in foreign exchange are recorded at the exchange rate prevailing on the date of the transaction.

1.4. Investments

Long term Investments are carried at cost. However, provision is made for diminution in value, other than temporary, on an individual basis.

Current Investments are carried at the lower of cost and fair value determined on a category wise basis. The earnings on investments are accounted when the company’s right to receive the payment is established. Interest on bank deposit is accounted on accrual basis.

1.5. Sales

Sales comprises of sale of rooms, food and beverages, allied services relating to restaurants& hotel operations, including net income from membership fees. Revenue is recognized when foods / drinks are supplied or served or services are rendered. Sales are inclusive of VAT and service tax.

1.6. Employee Retirement Benefits:

The Company’s contributions to recognized provident fund paid / payable during the year is recognised in the Profit & Loss Account as and when incurred.

1.7. Inventories

Inventories constitute food provisions, beer, wine, spirits and soft drinks. Inventories are carried at Cost (computed on first in first out basis) or Net Realisable Value, whichever is lower.

1.8. Taxes on Income:

a. 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 for in the same period to which the revenue and expenses relate.

b. 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 prevailing tax laws. The differences between the 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 timing differences is recognised as a deferred tax asset or deferred tax liability. The tax effect is calculated on accumulated timing differences at the end of the accounting year based on effective tax rates substantively enacted by the balance sheet date that would apply in the years in which timing difference is expected to reverse.

c. Deferred tax assets other than on unabsorbed depreciation or carried forward losses are recognised 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.

1.9. Impairment of Assets:

Impairment is ascertained as at each Balance Sheet date in respect of the Company’s fixed assets.

An impairment loss is recognised whenever the carrying amount of the asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and its value in use.

1.10. Arrangement for Restaurant and Hotel Operation and Management:

Besides its own activities the Company has taken management and operations of certain Hotels and Restaurants on ‘Revenue sharing basis’ under the Company’s own brands. All Revenues, Costs, Assets and Liabilities pertaining to those units under the revenue sharing arrangement are included in the financial statements and the share of revenue payable to other parties has been shown as expenditure in the Profit and Loss Account.

1.11. 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 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.

1.12. Assets taken on Lease:

a. In respect of finance lease arrangements, the assets are capitalized and depreciated. Finance charges are debited to the Profit & Loss Account of the year in which they are incurred.

b. Operating Lease payments are recognised as expenditure in the Profit & Loss Account on a straight line basis, representative of the time pattern of benefits received from the use of the assets taken on lease.

1.13. Borrowing Costs:

Interest and other borrowing costs are charged to revenue in the period in which they are paid.

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Mar 31, 2010

The financial statements are prepared under historical cost convention on 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 preparation of 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 that are prudent and reasonable. Management believes that the estimates used in preparation of the financial statements are reasonable and prudent. Future results could differ from these estimates. The significant accounting policies adopted in the presentation of the accounts are as under.

1.1. Fixed Assets:

Fixed assets are valued at cost less depreciation / amortization and impairment losses, if any. Cost includes expenses incidental to the installation of assets and attributable borrowing costs.

Deposits given for premises, where right to operate for more than three years exists are classified as long term deposits under Current Assets, as the same represents a long term right to occupy the Premises and operate the business.

1.2. Depreciation / Amortization:

Depreciation on fixed assets held / purchased at owned premises, vehicles and computers has been provided on straight-line basis in accordance with the provisions of Schedule XIV to Companies Act, 1956. Depreciation in respect of fixed assets except data processing equipment and vehicles held at Lease hold premises are provided on SLM basis at rates higher than Schedule XIV to Companies Act, 1956.

1.3. Transactions in Foreign Exchange:

Transactions in foreign exchange are recorded at the exchange rate prevailing on the date of the transaction.

1.4. Investments

Long term Investments are carried at cost. However, provision is made for diminution in value, other than temporary, on an individual basis.

Current Investments are carried at the lower of cost and fair value determined on a category wise basis. The earnings on investments are accounted when the companys right to receive the payment is established. Interest on bank deposit is accounted on accrual basis.

1.5. Sales

Sales comprises of sale of rooms, food and beverages, allied services relating to restaurants & hotel operations, including net income from membership fees. Revenue is recognized when foods / drinks are supplied or served or services are rendered. Sales are inclusive of VAT and service tax.

1.6. Employee Retirement Benefits:

The Companys contributions to recognized provident fund paid / payable during the year is recognised in the Profit & Loss Account as and when incurred.

1.7. Inventories

Inventories constitute food provisions, beer, wine, spirits and soft drinks. Inventories are carried at Cost (computed on first in first out basis) or Net Realisable Value, whichever is lower.

1.8. Taxes on Income:

a. 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 for in the same period to which the revenue and expenses relate.

b. 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 prevailing tax laws. The differences between the 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 timing differences is recognised as a deferred tax asset or deferred tax liability. The tax effect is calculated on accumulated timing differences at the end of the accounting year based on effective tax rates substantively enacted by the balance sheet date that would apply in the years in which timing difference is expected to reverse.

c. Deferred tax assets other than on unabsorbed depreciation or carried forward losses are recognised 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.

1.9. Impairment of Assets:

Impairment is ascertained as at each Balance Sheet date in respect of the companys fixed assets.

An impairment loss is recognised whenever the carrying amount of the asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and its value in use.

1.10. Arrangement for Restaurant and Hotel Operation and Management:

Besides its own activities the Company has taken management and operations of certain Hotels and Restaurants on Revenue sharing basis under the Companys own brands. All Revenues, Costs, Assets and Liabilities pertaining to those units under the revenue sharing arrangement are included in the financial statements and the share of revenue payable to other parties has been shown as expenditure in the Profit and Loss Account.

1.11. 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 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.

1.12. Assets taken on Lease:

a. In respect of finance lease arrangements, the assets are capitalized and depreciated. Finance charges are debited to the Profit & Loss Account of the year in which they are incurred.

b. Operating Lease payments are recognised as expenditure in the Profit & Loss Account on a straight line basis, representative of the time pattern of benefits received from the use of the assets taken on lease.

1.13. Borrowing Costs:

Interest and other borrowing costs are charged to revenue in the period in which they are paid.