All amounts in Rupees unless otherwise stated.

37	Employee Benefits
					31st March 2016	31st March 2015
	(a)	Post Employment Defined Contribution Plans
		Amount recognised in the Statement of Profit and Loss
		Contribution to Provident fund and pension fund			2,97,64,616	2,75,73,476
					2,97,64,616	2,75,73,476

(b) Post Employment Defined Benefit Plans
Gratuity (Funded)
The Company provides for Gratuity, a defined benefit post employment plan covering eligible employees and has a Trust Fund in this connection under group administration plan. As per the scheme, the Gratuity Trust Fund managed by the HDFC Standard Life Insurance makes payments to vested employees at retirement, death, incapacitation or termination of employment, of an amount equivalent to the last drawn eligible salary for fifteen days for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service. However, the condition of such vesting is not applicable in the event of retirement at / after normal retirement date and early retirement owing to ill health /death. Liabilities with regard to the Gratuity Plan have been determined by actuarial valuation as set out in Note 2(L) above, based upon which, the Company makes contribution to the Gratuity Fund.
The following Table sets forth the particulars in respect of the aforesaid Gratuity Fund of the Company for the year ended 31st March, 2016:

(i)	Reconciliation of Opening and Closing balances of the Present Value of the
	Defined Benefit Obligation				31.03.2016	31.03.2015
	Present Value of Obligation at the beginning of the year				6,74,24,778	6,12,51,845
	Current Service Cost				67,34,196	60,90,011
	Interest Cost				49,72,921	46,70,258
	Actuarial (Gains)/ Losses				(24,02,833)	11,59,881
	Benefits Paid				(1,05,26,527)	(57,47,217)
	Present Value of Obligation at the end of the year				6,62,02,535	6,74,24,778

(ii)	Reconciliation of Opening and Closing balances of the Fair Value of Plan
	Assets			31.03.2016	31.03.2015
	Fair Value of Plan Assets at the beginning of the year			5,26,55,156	4,89,03,337
	Expected Return on Plan Assets			47,38,968	44,01,301
	Actuarial Gains/ (Losses)			(10,34,997)	(2,265)
	Contributions			6,95,000	51,00,000
	Benefits Paid			(1,05,26,527)	(57,47,217)
	Fair Value of Plan Assets at the end of the year			4,65,27,600	5,26,55,156
(iii)	Reconciliation of the Present Value of the Defined Benefit Obligation and
	the Fair Value of Plan Assets			31.03.2016	31.03.2015
	Present Value of Obligation at the end of the year			6,62,02,535	6,74,24,778
	Fair Value of Plan Assets at the end of the year			4,65,27,600	5,26,55,156
	Assets/ (Liabilities) recognised in the Balance Sheet			(1,96,74,935)	(1,47,69,622)
(iv)	Expense recognised in the Statement of Profit and Loss			31.03.2016	31.03.2015
	Current Service Cost			67,34,196	60,90,011
	Interest Cost			49,72,921	46,70,258
	Expected Return on Plan Assets			(47,38,968)	(44,01,301)
	Actuarial (Gains)/ Losses			(13,67,836)	11,62,146
	Total Expense recognised*			56,00,313	75,21,114

* Recognized under Contribution to Gratuity Funds in Note 28

(v)	Category of Plan Assets:				31.03.2016	31.03.2015
	Fund with HDFC Standard Life				4,65,27,600	5,26,55,156

					31st March 2016	31st March 2015
(vi)	Actual Return on Plan Assets				37,03,971	43,99,036
(vi)	Principal Actuarial Assumptions				31.03.2016	31.03.2015
	Discount Rate				8.00%	8.00%
	Salary Escalation				5.00%	5.00%
	Inflation Rate				5.00%	5.00%
	Expected Return on Asset				9.00%	9.00%

(vii)	Amount recognised in current year and brvious four years
		31st March 2016	31st March 2015	31st March 2014	31st March 2013	31st March 2012
	Present Value of the Plan Obligation as at the end of the year	6,62,02,535	6,74,24,778	6,12,51,845	5,97,44,285	5,28,26,546
	Fair Value of Plan Assets as at the end of the year	4,65,27,600	5,26,55,156	4,89,03,337	5,27,00,546	5,33,53,935
	Surplus / (Deficit) as at the end of the year	(1,96,74,935)	(1,47,69,622)	(1,23,48,508)	(70,43,739)	5,27,389
	Actuarial Gain/(Loss) on Plan Assets	(10,34,997)	(2,265)	(3,97,538)	5,48,682	1,79,680
	Effect of changes in Actuarial Assumptions	-	-	-	-	54,08,123
	Experience Adjustments on Plan Assets [(Gain)/loss]	10,34,997	4,91,298	3,97,538	(5,48,682)	(5,00,889)
	Actuarial (Gain)/ Loss on Obligation	(24,02,833)	11,59,881	(12,34,533)	24,51,273	27,93,827
	Effect of changes in Actuarial Assumptions	-	29,34,988	(32,27,105)	20,76,582	6,80,569
	Experience Adjustments on Plan Obligation [(Gain)/ loss]	(24,02,833)	(17,75,107)	19,92,572	3,74,691	(26,14,296)

The estimate of future salary increases takes into account inflation, seniority, promotion and other relevant factors.
The expected return on plan assets is determined after taking into consideration composition of the plan assets held, assessed risks of asset management, historical results of the return on plan assets, the Company's policy for plan asset management and other relevant factors.

2. L. Employee Benefits :
i) Short-term Employee Benefits :
The undiscounted amount of Short-term Employee Benefits (i.e. benefits falling due within one year after the end of the period in which the employers render the related service) expected to be paid in exchange for the services rendered by employees is recognised during the period when employee renders the service.

ii) Post Employment Benefit Plans :
Contributions under Defined Contribution Plans payable in keeping with the related schemes are recognised as expenses for the year.
For Defined Benefit Plans, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at each Balance Sheet date. Actuarial gains and losses are recognised in full in the Statement of Profit and Loss for the period in which they occur. Past Service cost is recognised immediately to the extent that the benefits are already vested, and otherwise is amortised on a straight-line basis over the average period until the benefits become vested. The post employment benefit obligation recognised in the Balance Sheet rebrsents the brsent value of the defined benefit obligation as adjusted for unrecognised past service cost , and as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the brsent value of available refunds and reductions in future contributions to the scheme.

iii) Other Long term Employee Benefits (Unfunded) :
The cost of providing long-term employee benefits is determined using Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial gains and losses and past service cost are recognised immediately in the Statement of Profit and Loss for the period in which they occur. Other long term employee benefit obligation recognised in the Balance Sheet rebrsents the brsent value of related obligation.

Apeejay Surrendra Park Hotels Limited (the 'Company') is a public limited company domiciled in India, incorporated in India under the provisions of the Companies Act, 1956 (the Act). The Company is primarily engaged in the business of owning, operating and managing hotels, a chain of seven hotels across various locations in India. Its shares are not listed on any stock exchanges.

Summary of significant accounting policies 

A. Basis of brparation of financial statements : 
These financial statements have been brpared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis, except for certain tangible assets, which are being carried at revalued amounts. Pursuant to section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rule 2014, till the standards of accounting or any addendum thereto are brscribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply. Consequently, these financial statements have been brpared to comply in all material aspects with accounting standards notified under section 211(3C) of the Companies Act 1956 [Companies (Accounting Standards) Rules 2006, as amended] and other relevant provisions of the Companies Act, 2013(the Act). 
All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Schedule III to the Act. Based on the nature of services rendered and other criteria set out in Schedule III, the Company has ascertained it's operating cycle as twelve months for the purpose of current - non current classification of assets and liabilities. 

B Fixed Assets : 
(a) Tangible Assets
Tangible Assets are stated at cost inclusive of borrowing cost, where applicable and adjustments for exchange differences referred to in note 2G, below, net of accumulated debrciation and impairment losses, if any; other than certain leasehold land and building, which are stated at revalued amount, net of accumulated debrciation and impairment losses, if any. Cost comprises cost of acquisition, construction including non refundable taxes/duties, freight and other incidental expenses related to acquisition/construction and installation. Subsequent expenditure related to fixed assets are added to its book value only if they increase the future benefit from the existing asset beyond its brviously assessed standard of performance.

(b) Intangible Assets
Intangible Assets are stated at cost of acquisition net of accumulated amortisation and accumulated impairment losses, if any. Cost comprises cost of acquisition including non refundable taxes/duties, freight and other incidental expenses related to acquisition and installation. Subsequent expenditure is capitalised only when it increases the future economic benefits from the specific asset to which it relates.

(c) Capital Work-in-progress
Capital Work-in-progress are stated at cost and inclusive of broperative expenses, project development expenses etc. as appropriate.

C Debrciation/Amortisation on Fixed Assets : 
i) Debrciation is provided prorata basis on straight line method based on estimated useful lives of tangible fixed assets where applicable, in keeping with the provisions of Schedule II to the Act with the exception of the following items where estimated useful lives have been determined to be longer than the lives specified in Schedule II based on technical evaluation carried out by the Company's expert.
Asset Useful Life
Plant & Machinery and Electrical Installation 20 Years
Furniture & Fixtures 15-20 Years
Building (other than those specified below) 100 Years
a. Debrciation on certain Buildings (Construction on leasehold spaces) is charged dependent on the remaining tenure of lease on SLM.
b. Debrciation on buildings situated at Navi Mumbai is charged dependent on the remaining term of the primary lease period on SLM.
ii) Debrciation on Computer Software and Brand Design is charged on SLM over a period of 5 years.

iii) Leasehold Land is amortised under Straight Line Method over the term of the primary lease period.

D Impairment : 
The carrying amounts of fixed assets and capital work in progress are reviewed at each balance sheet date in accordance with Accounting Standard 28 on 'Impairment of Assets' brscribed by Companies (Accounting Standards) Rules, 2006 to determine whether there is any indication of impairment. If any such indication exists, the assets recoverable amounts are estimated at each reporting date. An impairment loss is recognised whenever the carrying amount of an asset or the cash generating unit of which it is a part exceeds the corresponding recoverable amount. Impairment losses are recognised in the Statement of Profit and Loss. An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined net of debrciation or amortization, if no impairment loss had been recognised. 

E Investments : 
Long Term/Non Current Investments are stated at cost less write down for any diminution, other than temporary, in carrying amount. Current Investments i.e. investments which are expected to be liquidated within one year are valued at lower of cost and fair value. 

F Inventories : 
Inventories are valued at lower of cost and net realisable value. The costs are ascertained under first in first out formula. 

G Transactions in foreign currency : 
Initial Recognition 
On initial recognition, all foreign currency transactions are recorded at exchange rates brvailing on the date of the transaction. 
Subsequent Recognition 
At the reporting date, foreign currency non-monetary items carried in terms of historical cost are reported using the exchange rate at the date of transactions. 

All monetary assets and liabilities (other than long term) in foreign currency are restated at closing exchange rate at the end of accounting period. With respect to long-term foreign currency monetary items, from April 1, 2011 onwards, the Company has adopted the following policy: 

(i) Foreign exchange difference on account of a debrciable asset, is adjusted in the cost of debrciable asset, which would be debrciated over the balance life of the asset;
(ii) In other cases, the foreign exchange difference is accumulated in a Foreign Currency Monetary Item Translation Difference Account, and amortised over the balance period of such long term asset/liability.

A monetary asset or liability is termed as a long-term foreign currency monetary item, if the asset or liability is exbrssed in a foreign currency and has a term of 12 months or more at the date of origination of the asset or liability. 
Exchange differences on restatement of all monetary items (other than long term) are recognised in the Statement of Profit and Loss. 

H Derivative Instruments : 
The Company uses derivative financial instruments such as forward exchange contracts, currency swaps, interest rate swap, option etc. to hedge its risks associated with foreign currency fluctuations and movements in interest rates relating to the underlying transactions, highly probable forecast transactions and firm commitments. 
In respect of Forward Exchange Contracts with underlying transactions, the brmium or discount arising at the inception of such contract is amortised as expense or income over the life of contract. Other Derivative contracts outstanding at the Balance Sheet date are marked to market and resulting loss, if any, is recognized for in the Statement of Profit and Loss. 
Any profits or losses arising on cancellation of derivative instruments are recognised as income or expenses for the period. 

I Revenue : 
Revenue from hospitality services is recognised in the period in which the services are rendered. Revenue from Shop Rentals, Management Fee etc. included under "Other Operating Revenue" is recognised on accrual basis as per terms of contract. 

J Other Income : 
Other income (such as interest, rent etc) is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable. 
Dividend income is recognised when the right to receive dividend is established. 
Other items are recognised on accrual basis 

K Borrowing Costs : 
Borrowing costs attributable to the acquisition and construction of qualifying assets are added to the cost up to the date when such assets are ready for their intended use. Other borrowing costs are recognised as expense in the period in which these are incurred. 

L Employee Benefits : 
i) Short-term Employee Benefits :
The undiscounted amount of Short-term Employee Benefits (i.e. benefits falling due within one year after the end of the period in which the employers render the related service) expected to be paid in exchange for the services rendered by employees is recognised during the period when employee renders the service. 

ii) Post Employment Benefit Plans :
Contributions under Defined Contribution Plans payable in keeping with the related schemes are recognised as expenses for the year. 
For Defined Benefit Plans, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at each Balance Sheet date. Actuarial gains and losses are recognised in full in the Statement of Profit and Loss for the period in which they occur. Past Service cost is recognised immediately to the extent that the benefits are already vested, and otherwise is amortised on a straight-line basis over the average period until the benefits become vested. The post employment benefit obligation recognised in the Balance Sheet rebrsents the brsent value of the defined benefit obligation as adjusted for unrecognised past service cost , and as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the brsent value of available refunds and reductions in future contributions to the scheme. 

iii) Other Long term Employee Benefits (Unfunded) :
The cost of providing long-term employee benefits is determined using Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial gains and losses and past service cost are recognised immediately in the Statement of Profit and Loss for the period in which they occur. Other long term employee benefit obligation recognised in the Balance Sheet rebrsents the brsent value of related obligation. 

M Provisions and Contingent Liabilities : 
Provisions 
Provisions are recognised when there is a brsent obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the brsent obligation at the balance sheet date and are not discounted to its brsent value. 
Contingent Liabilities 
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the company or a brsent obligation that arises from past events where it is either not probable that an outflow of resource will be required to settle or a reliable estimate of amount cannot be made. 

N Taxation : 
Current Tax is determined as the amount of tax payable in respect of taxable income for the period based on applicable tax rates and laws. Deferred Tax is recognised, subject to the consideration of prudence, in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods and is measured using tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are reviewed at each Balance Sheet date to re-assess realisation. 
Current tax assets and current tax liabilities are offset when there is 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. Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off assets and liabilities rebrsenting current tax and where the deferred tax assets and the deferred tax liabilities relate to taxes on income levied by the same governing taxation laws. 
Minimum Alternative Tax Credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. Such asset is reviewed at each Balance Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer a convincing evidence to the effect that the Company will pay normal income tax during the specified period. 

O Cash and Cash Equivalents : 
In the cash ?ow statement, cash and cash equivalents includes cash in hand, demand deposits with banks, other short-term highly liquid investments with original maturities of three months or less. 

P Earnings Per Share : 
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining the Company’s earnings per share is the net profit for the period after deducting brference dividends and any attributable tax thereto for the period. The weighted average number of equity shares outstanding during the period and for all periods brsented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares, that have changed the number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares. 

Q Leases : 
As a lessee:- 
Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as Operating Leases. Payments made under Operating leases are charged to the Statement of Profit and Loss on a straight-line basis over the period of the lease. 

As a lessor:- 
The Company has leased certain tangible assets and such leases where the Company has substantially retained all the risks and rewards of ownership are classified as operating leases. Lease income on such operating leases are recognized in the Statement of Profit and Loss on a straight line basis over the lease term which is rebrsentative of the time pattern in which benefit derived from the use of the leased asset is diminished. Initial direct costs are recognized as an expense in the Statement of Profit and Loss in the period in which they are incurred.