1.    Corporate Information Lemon Tree Hotels Limited (the company) is a public company domiciled in India. The Company owns and manages chain of hotels, motels, resorts, restaurants, etc. under the brand name of Lemon Tree Hotel, Lemon Tree Premier and Red Fox Hotel. 2.          Basis of Preparations  The financial statements of the Group have been brpared in accordance with generally                     accepted accounting principles in India (Indian GAAP). The Group has brpared these financial statements to comply in all material respects with the accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules 2014. The accounting policies adopted in the brparation of financial statements are consistent with those of brvious year, except for the change in accounting policy explained below. The financial statements of the Group have been brpared in accordance with generally accepted accounting principles in India (Indian GAAP). The Group has brpared these financial statements to comply in all material respects with the accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules 2014. The accounting policies adopted in the brparation of financial statements are consistent with those of brvious year, except for the change in accounting policy explained below. Summary of significant accounting policies (a)    Change in accounting policies The Group has adopted component accounting as required under Schedule II to the Companies Act, 2013 from 1 April 2015. The Group was brviously not identifying components of tangible assets separately for debrciation purposes; rather, a single useful life/ debrciation rate was used to debrciate each item of property, plant and equipment. Due to application of Schedule II to the Companies Act, 2013, the Group has changed the manner of debrciation for its tangible assets. Now, the Group identifies and determines cost of each component/ part of the asset separately, if the component/ part has a cost which is significant to the total cost of the asset and has useful life that is materially different from that of the remaining asset. These components are debrciated separately over their useful lives; the remaining components are debrciated over the life of the principal asset. The Group has used transitional provisions of Schedule II to adjust the impact of component accounting arising on its first application. If a component has zero remaining useful life on the date of component accounting becoming effective, i.e., 1 April 2015, its carrying amount, after retaining any residual value, is charged to the statement of profit and loss. The carrying amount of other components, i.e., components whose remaining useful life is not nil on 1 April 2015, is debrciated over their remaining useful lives. The Group has also changed its policy on recognition of cost of major inspection/ overhaul. Earlier Group used to charge such cost of major inspection/ overhaul directly to statement of profit and loss, as incurred. On application of component accounting, the major inspection/ overhaul is identified as a separate component of the asset at the time of purchase of new asset and subsequently. The cost of such major inspection/ overhaul is debrciated separately over the period till next major inspection/ overhaul. Upon next major inspection/ overhaul, the costs of new major inspection/ overhaul are added to the asset's cost and any amount remaining from the brvious inspection/ overhaul is derecognized. There is no material impact on the change of the aforesaid accounting policy of the Group.
(b)	Principles of Consolidation
	The Consolidated Financial Statements relates to the Group. In the brparation of these Consolidated Financial Statements, investments in subsidiarieshave been accounted for in accordance with Accounting Standard (AS) 21 Consolidated Financial Statements. The Consolidated Financial Statements are brpared on the following basis:- (i)   Subsidiary companies are consolidated on a line-by-line basis by adding together the book values of the like items of assets, liabilities, income and expenses after eliminating all significant intra-group balances and intra-group transactions and also unrealized profits or losses, except where cost cannot be recovered. The results of operations of a subsidiary are included in the consolidated financial statements from the date on which the parent subsidiary relationship came into existence.
	(ii)   The difference between the cost to the Group of investment in Subsidiaries and the  proportionate share in the equity of the investee company as at the date of acquisition/ step up acquisition of stake is recognized in the consolidated financial statements as Goodwill or Capital Reserve, as the case may be. Goodwill arising on consolidation is tested for impairment at the Balance Sheet date. (iii)   Minorities interest in net profits of consolidated subsidiaries for the period is identified and adjusted against the income in order to arrive at the net income attributable to the shareholders of the Group. Their share of net assets is identified and brsented in the Consolidated Balance Sheet separately.  Where accumulated losses attributable to the minorities are in excess of their equity, in the absence of the contractual obligation on the minorities, the same is accounted for by the holding company. (iv ) Change in effective interest in net assets of the Company in its subsidiary on partial                deemed disposal of subsidiary is accounted for as per the hybrid entity method. Adjustment is considered in initially recognised goodwill to the extent of reduction in shareholding in the subsidiary. Remaining amount is accounted as gain / loss on deemed disposal in capital reserve. (v)   As far as possible, the consolidated financial statements are brpared using uniform accounting policies for like transactions and other events in similar circumstances and are brsented, to the extent possible, in the same manner as the Company's stand alone financial statements.                                (vi) The financial statements of the entities used for the purpose of consolidation are drawn up to same reporting date as that of the Company i.e. year ended March 31, 2016.
(c)	Use of estimates
	The brparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the managements best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.
(d)	Tangible fixed assets
	Fixed assets are stated at cost net of accumulated debrciation and impairment losses if any. The Cost comprises the purchase price borrowing cost if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for its intended use. Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its brviously assessed standard of performance. All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the Statement of Profit and Loss for the period during which such expenses are incurred. The company adjusts exchange differences arising on translation/ settlement of long-term foreign currency monetary items pertaining to the acquisition of a debrciable asset to the cost of the asset and debrciates the same over the remaining life of the asset. In accordance with MCA circular dated August 9, 2012, exchange differences adjusted to the cost of fixed assets are total differences, arising on  long-term foreign currency monetary items pertaining to the acquisition of a debrciable asset, for the period.  In other words, the company does not differentiate between exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost and other exchange difference. Gains or losses arising from derecognition of fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the Statement of Profit and Loss when the asset is derecognized.
(e)	Intangible assets
	Software is stated at cost of acquisition and includes all attributable costs of bringing the software to its working condition for its intended use.
(f)	Debrciation / Amortisation on fixed assets
	Debrciation on fixed assets is provided on Straight Line Method over its economic useful live of fixed assets as estimated by the management which is in line with corresponding useful life brscribed under Schedule II of the Companies Act, 2013, whichever is higher. Fixed Assets Useful life considered (SLM) Useful life as per Schedule II Plant & Machinery 15 Year 15 Year Building* 60 Years 60Years Electrical installations and fittings 10 Years 10 Years Office Equipments 5 Years 5 Years Furniture and Fixtures 10 Years 10 Years Vehicles 8 Years 8 Years Computers 3 Years 3 Years Softwares 3 Years 3 Years * Building on leasehold land is debrciated over the primary lease period or useful life whichever is lower. From April 1, 2014, Schedule II of the Companies Act, 2013 hadbecome applicable to the Group. Accordingly, in the brvious year the Group had revised the estimated useful life of its assets from rates brscribed under Schedule XIV of the Companies Act, 1956 to the rates and useful life brscribed under Scehdule II of Companies Act,2013. The written down value of fixed assets as at April 1, 2014 is being debrciated on prospective basis at the rate/useful life brscribed under Schedule II of the Companies Act, 2013. This change in accounting estimate had resulted in increase in debrciation & amortization expenses and correspondingly increase in loss (before tax) for the brvious year by Rs 161,781,025.
(g)	Impairment of tangible & intangible assets
	The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the assets recoverable amount. An assets recoverable amount is the higher of an assets or cash-generating units (CGU) net selling price and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or group of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their brsent value using a br-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining net selling price, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used. After impairment, debrciation is provided on the revised carrying amount of the asset over its remaining useful life.
(h)	Investments
	Investments whichare readily realisable and intended to be held for not more than a year from the date on which investment are made are classified as current investments. All other investments are classified as long-term investments. On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. If an investment is acquired, or partly acquired, by the issue of shares or other securities, the acquisition cost is the fair value of the securities issued. If an investment is acquired in exchange for another asset, the acquisition is determined by reference to the fair value of the asset given up or by reference to the fair value of the investment acquired, whichever is more clearly evident.The cost of the bonus units is added to the cost of the original units to determine the average cost. Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in the value of the investments. On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.
(i)	Leases Where the company is lessee Finance leases, which effectively transfer to the Company substantially all the risks and benefits incidental to ownership of the leased item, are capitalized at the inception of the lease term at the lower of the fair value of the leased property and brsent value of minimum lease payments. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognized as finance costs in the statement of profit and loss. Lease management fees, legal charges and other initial direct costs of lease are capitalized. Leases (other than land), where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss on a straight-line basis over the lease term. Where the company is the lessor Leases in which the company transfers substantially all the risks and benefits of ownership of the asset are classified as finance leases. Assets given under finance lease are recognized as a receivable at an amount equal to the net investment in the lease. After initial recognition, the company apportions lease rentals between the principal repayment and interest income so as to achieve a constant periodic rate of return on the net investment outstanding in respect of the finance lease. The interest income is recognized in the statement of profit and loss. Initial direct costs such as legal costs, brokerage costs, etc. are recognized immediately in the statement of profit and loss. Leases in which the company does not transfer substantially all the risks and benefits of ownership of the asset are classified as operating leases. Assets subject to operating leases are included in fixed assets. Lease income on an operating lease is recognized in the statement of profit and loss on a straight-line basis over the lease term. Costs, including debrciation, are recognized as an expense in the statement of profit and loss. Initial direct costs such as legal costs, brokerage costs, etc. are recognized immediately in the statement of profit and loss.
(j)	Stamp duty on registration of lease agreement
	Stamp duties payable to local authorities on registration of lease agreements, are recognised as brpaid expense and charged off to Statement of Profit and Loss on an equitable basis over the lease term.
(k)	Conversion charges for land obtained over lease
	Conversion charges payable to local authorities on conversion of use of industrial plot for hotel purposes, are recognised as brpaid expense and charged off to Statement of Profit and Loss on an equitable basis over the lease term.
(l)	Inventories
	Stock of food & beverages, stores and operating supplies are valued at lower of cost and net realisable value. Cost is determined on a first in first out basis. Net realisable value is the estimated selling price in the ordinary course of business less estimated cost of completion  and estimated costs necessary to make sale.
(m)	Revenue recognition
	Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized: Rooms, Restaurant, Banquets and Other Services Revenue from guest accommodation is recognized on a day to day basis after the guest checks into the Hotels and are stated net of allowances. Sale of food and beverage are recognized at the points of serving these items to the guests. Incomes from other services are recognized as and when services are rendered. The company collects service tax, value added taxes (VAT) and luxury tax on behalf of the government and, therefore, these are not economic benefits flowing to the company. Hence, they are excluded from revenue. Shortfall of billing over revenue as at the year-end is carried in financial statement as accrued revenue separately.
	Interest Interest Incomeis recognised on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Dividends Dividend Incomeis recognised when the Groups right to receive payment is established by the reporting date. Management Fee Revenue from management services comprises fixed & variable income. Fixed income is recognised pro-rata over the period of the contract as and when services are rendered. Variable income is recognised on an accrual basis in accordance with the terms of the relevant agreement. Export Benefits Under the Served from India Scheme introduced by Government of India, an exporter of service is entitled to certain export benefits on foreign currency earned. The export benefits are accounted for in the year of export, whenever there is certainty of its realization.
(n)	Foreign currency translation
	Foreign currency transactions and balances (i)Initial Recognition Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction. (ii)Conversion Foreign currency monetary items are retranslatedusing the exchangerate brvailing at the reporting date.Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.Non-monetary items which are measuredat fair value or other similar valuation denominated in a foreign currency are translatedusing the exchange rate at the date when such value was determined. (iii)Exchange Differences The company accounts for exchange differences arising on translation/ settlement of foreign currency monetary items as below: 1.Exchange differences arising on long-term foreign currency monetary items related to acquisition of a fixed asset are capitalized and debrciated over the remaining useful life of the asset. 2. Exchange differences arising on other long-term foreign currency monetary items are accumulated in the Foreign Currency Monetary Item Translation Difference Account and amortized over the remaining life of the concerned monetary item. 3. All other exchange differences are recognized as income or as expenses in the period in which they arise. (iv) Forward exchange contracts entered into to hedge foreign currency risk of an existing asset/ liability The brmium or discount arising at the inception of forward exchange contract is amortized and recognized as an expense/ income over the life of the contract. Exchange differences on such contracts, except the contracts which are long-term foreign currency monetary items, are recognized in the statement of profit and loss in the period in which the exchange rates change. Any profit or loss arising on cancellation or renewal of such forward exchange contract is also recognized as income or as expense for the period. Any gain/ loss arising on forward contracts which are long-term foreign currency monetary items is recognized in accordance with paragraph (iii)(1) and (iii)(2).
(o)	Retirement and other employee benefits
	I i. Retirement benefits in the form of Provident Fund (contributed to the Regional PF Commissioner) is a defined contribution scheme and the contributions are charged to the statement of profit and loss of the year when the contributions to the respective funds are due.  ii.Retirement benefits in the form of Superannuation Fund is a defined contribution scheme and the contributions are charged to the statement of profit and loss of the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective trusts. iii.       Gratuity liability is defined benefit obligations. Gratuity liability of employees is accounted for on the basis of Companys contribution of brmium on policy taken from Life Insurance Corporation of India. Provision is made for shortfall, if any, in the contribution made as compared to the actuarial valuation of the gratuity liability on projected unit credit method at the close of the year. iv.                 Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-term employee benefit. The company measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date. v.                   The company treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee benefit for measurement purposes. Such long-term compensated absences are provided for based on the actuarial valuation using the projected unit credit method at the year-end. Actuarial gains/losses are immediately taken to the statement of profit and loss and are not deferred. The company brsents the entire leave as a current liability in the balance sheet, since it does not have an unconditional right to defer its settlement for 12 months after the reporting date. Where Company has the unconditional legal and contractual right to defer the settlement for a period beyond 12 months, the same is brsented as non-current liability.
	vi.                 Actuarial gains / losses are immediately taken to statement of profit and loss and are not deferred.
(p)	Income taxes
	Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Deferred income taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date. Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the company has unabsorbed debrciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits. In the situations where the company is entitled to a tax holiday under the Income-tax Act, 1961 enacted in India or tax laws brvailing in the respective tax jurisdictions where it operates, no deferred tax (asset or liability) is recognized in respect of timing differences which reverse during the tax holiday period, to the extent the companys gross total income is subject to the deduction during the tax holiday period. Deferred tax in respect of timing differences which reverse after the tax holiday period is recognized in the year in which the timing differences originate. However, the company restricts recognition of deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax assets can be realized. For recognition of deferred taxes, the timing differences which originate first are considered to reverse first. At each reporting date, the company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax asset to the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax assets can be realized. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set-off current tax assets against current tax liabilities and the deferred tax assets and deferred taxes relate to the same taxable entity and the same taxation authority.
	Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current tax. The company recognizes MAT credit available as an asset only to the extent that there is convincing evidence that the company will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. In the year in which the company recognizes MAT credit as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income-tax Act, 1961, the said asset is created by way of credit to the statement of profit and loss and shown as MAT Credit Entitlement. The company reviews the MAT credit entitlement asset at each reporting date and writes down the asset to the extent the company does not have convincing evidence that it will pay normal tax during the specified period.
(q)	Earnings Per Share
	Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting brference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events of bonus issue; bonus element in a rights issue to existing shareholders; share split; and reverse share split (consolidation of 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 are adjusted for the effects of all dilutive potential equity shares.
(r)	Provisions
	A provision is recognised when an enterprise has a brsent obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, and  areliable estimate can be made of the amount of obligation. Provisions are not discounted to theirbrsent value and are determined based on best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each balance sheet date and adjusted to reflect the current best estimates.
(s)	Cash and Cash equivalents
	Cash and cash equivalents for the purpose of cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.
(t)	Employee Stock Compensation Cost
	Employees (including senior executives) of the company receive remuneration in the form of share based payment transactions, whereby employees render services as consideration for equity instruments (equity-settled transactions). In accordance with the Guidance Note on Accounting for Employee Share-based Payments, the cost of equity-settled transactions is measured using the intrinsic value method and recognized, together with a corresponding increase in the Stock options outstanding account in reserves. The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the companys best estimate of the number of equity instruments that will ultimately vest. The expense or credit recognized in the statement of profit and loss for a period rebrsents the movement in cumulative expense recognized as at the beginning and end of that period and is recognized in employee benefits expense. Where the terms of an equity-settled transaction award are modified, the minimum expense recognized is the expense as if the terms had not been modified, if the original terms of the award are met. An additional expense is recognized for any modification that increases the total intrinsic value of the share-based payment transaction, or is otherwise beneficial to the employee as measured at the date of modification.
(u)	Borrowing Costs
	Borrowing cost includes interest and amortization of ancillary costs incurred in connection with the arrangement of borrowings. Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. Ancillary borrowing cost such as processing fee/loan arrangement fees are amortized over the term of the loan. All other borrowing costs are expensed in the period they occur.

(v)          Segment Reporting

As the Groups business activity falls within a single primary business segment Hoteliering business within India, the disclosure requirements of Accounting Standard (AS-17) Segment Reporting issued under Companies (Accounting Standard) Rules, 2006 is not applicable.

The Group operates primarily in India and there is no other significant geographical segment.

(w)         Amalgamation Accounting

                The company treats an amalgamation in the nature of merger if it satisfies all the following criteria:

i. All the assets and liabilities of the transferor company become, after amalgamation, the assets and liabilities of the transferee company.

ii. Shareholders holding not less than 90% of the face value of the equity shares of the transferor company (other than the equity shares already held therein, immediately before the amalgamation, by the transferee company or its subsidiaries or their nominees) become equity shareholders of the transferee company.

iii. The consideration for amalgamation receivable by those equity shareholders of the transferor company who agree to become shareholders of the transferee company is discharged by the transferee company wholly by the issue of equity shares, except that cash may be paid in respect of any fractional shares.

iv. The business of the transferor company is intended to be carried on, after the amalgamation, by the transferee company.

The transferee company does not intend to make any adjustment to the book values of the assets and liabilities of the transferor company, except to ensure uniformity of accounting policies.

All other amalgamations are in the nature of purchase.

The Group accounts for all amalgamations in the nature of merger using the pooling of interest method. The application of this method requires the company to recognize any non-cash element of the consideration at fair value. The company recognizes assets, liabilities and reserves, whether capital or revenue, of the transferor company at their existing carrying amounts and in the same form as at the date of the amalgamation. The balance in the statement of profit and loss of the transferor company is transferred to the general reserveor as may be specified by court. The difference between the amount recorded as share capital issued, plus any additional consideration in the form of cash or other assets, and the amount of share capital of the transferor company is adjusted in reserves.

(x)          Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a brsent obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements.

(y)          Provision for Loyalty Programmes

Loyalty Programme reward points are provided for based on actuarial valuation. A provision is recognized for such programmes based upon excepted usage of reward points by the members, as estimated by actuarial valuation.

(z)           Measurement of EBITDA

As permitted by the Guidance Note, the Group has elected to brsent earnings before interest, tax, debrciation and amortization (EBITDA) as a separate line item on the face of the statement of profit and loss. The Group measures EBITDA on the basis of profit/ (loss) from continuing operations. In its measurement, the Group does not include debrciation and amortization expense, interest income, finance costs and tax expense.

35. Gratuity and other post retirement benefit plans:

	The Company has a defined benefit gratuity plan. Gratuity (being administered by a Trust) is computed as 15 days salary, for every completed year of service or part thereof in excess of 6 months. The benefit vests on the employee completing 5 years of service. The Gratuity plan for the Company is a defined benefit scheme where annual contributions are deposited to a Gratuity Trust Fund established to provide gratuity benefits. The Trust Fund has taken a Scheme of Insurance, whereby these contributions are transferred to the insurer. The Company makes provision of such gratuity asset/ liability in the books of accounts on the basis of actuarial valuation as per the Projected unit credit method. Plan assets also include investments and bank balances used to deposit brmiums until due to the insurance company. The following tables summarise the components of net benefit expense recognised in the profit and loss account and the funded status and amounts recognised in the balance sheet for the respective plans:
	Statement of Profit and Loss Net employee benefit expense (recognised in Employee Cost) For the year ended March 31, 2016 For the year ended March 31, 2015 Current service cost 3,087,594 2,881,128 Interest cost on benefit obligation 1,858,675 1,727,108 Expected return on plan assets (1,109,805) (1,011,638) Net actuarial loss recognised in the year (322,801) 47,189 Net benefit expense 3,513,663 3,643,787 Actual return on plan assets 990,153 1,043,235
	Balance sheet Details of provision for Gratuity As at As at March 31, 2016 March 31, 2015 Present Value of Defined benefit obligation 26,319,206 23,931,536 Fair value of plan assets (11,919,790) (12,331,172) 14,399,416 11,600,364 Less: Unrecognised past service cost - - Plan liability 14,399,416 11,600,364
	Changes in the brsent value of the defined benefit obligation are as follows: For the year ended March 31, 2016 For the year ended March 31, 2015 Defined benefit obligation as at April 1, 2015 23,874,709 19,836,549 Interest cost 1,858,675 1,727,108 Current service cost 3,087,594 2,881,128 Benefits paid (2,059,319) (592,035) Actuarial loss/ (gain) on obligation (442,453) 78,786 Defined benefit obligation as at March 31,2016 26,319,206 23,931,536
	Changes in the fair value of plan assets are as follows: For the year ended March 31, 2016 For the year ended March 31, 2015 Fair value of plan assets as at April 1, 2015 12,331,172 11,561,580 Expected return 1,109,805 1,011,638 Contributions by employer 478,716 210,012 Benefits paid (1,880,251) (483,655) Actuarial loss/ (gain) (119,652) 31,597 Fair value of plan assets as at March 31, 2016 11,919,790 12,331,172
	The major categories of plan assets as a percentage of the fair value of total plan assets are as follows: For the year ended March 31, 2016 For the year ended March 31, 2015 % % Investments with insurer 100 100 The principal plan asset consists of a scheme of insurance taken by the Trust, which is a qualifying insurance policy. Break down of individual investments that comprise the total plan assets is not supplied by the Insurer.
	The principal assumptions used in determining gratuity benefit obligations for the Company’s plans are shown below: For the year ended March 31, 2016 For the year ended March 31, 2015 % % Discount rate 7.30 to 7.70 7.70 to 7.80 Expected rate of return on plan assets 8.35 9.00 Increase in Compensation cost 5.00 5.00 Employee turnover 26.00 26.00 The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. The Company’s expected contribution to the fund in the next year is not brsently ascertainable and hence, the contribution expected to be paid to the plan during the annual period beginning after the balance sheet date as required by para 120 (o) of the Accounting Standard – 15 (Revised) on Employee benefits are not disclosed. Amounts for the current and brvious four periods are as follows:
	March 31,2016 March 31,2015 March 31,2014 March 31,2013 March 31,2012 Defined benefit obligation 26,367,968 23,931,536 20,054,046 17,801,058 11,340,385 Plan assets 12,008,348 12,288,491 11,561,580 10,936,298 9,821,387 Surplus / (deficit) (14,310,858) 11,600,364 8,492,466 (6,864,760) (1,518,998) Experience adjustments on plan liabilities - (loss)/gain 776,640 1,097,718 653,214 (3,720,900) (568,874) Experience adjustments on plan assets - (loss)/gain (119,652) 30,411 (31,425) (9,006) (19,933)

37. Segment Reporting

Hoteliering  business is the Group’s only business segment and domestic operations is the only geographical segment and hence disclosure of segment wise information is not applicable under Accounting Standard 17 – “Segment Reporting