2.1 Basis of accounting and brparation of consolidated financial statements:

The consolidated financial statements of the Company and its subsidery (together the 'Group') have been brpared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013 and the relevant provisions of the Companies Act, 2013 ("the Act"), as applicable. The consolidated financial statements of the Group are brpared under the historical cost convention using the accrual method of accounting. The accounting policies adopted in the brparation of the consolidated financial statements are consistent with those followed in the brvious year.

All assets and liabilities have been classified as current or non-current as per the Group's normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Group has determined its operating cycle as twelve months for the purpose of current - non-current classification of assets and liabilities.

2.2 Principles of consolidation:

The consolidated financial statements relate to Juniper Hotels Private Limited (the 'Company') and its subsidiary company. The consolidated financial statements have been brpared on the following basis:

The financial statements of the subsidiary company used in the consolidation are drawn upto the same reporting date as that of the Company i.e., March 31, 2016.

The financial statements of the Company and its subsidiary company have been combined on a line-by-line basis by adding together like items of assets, liabilities, income and expenses, after eliminating intra-group balances, intra-group transactions and resulting unrealised profits or losses, unless cost cannot be recovered.

The excess of cost to the Group of its investments in the subsidiary company over its share of equity of the subsidiary company at the date on which the investment in the subsidiary company is made, is recognised as 'Goodwill' being an asset in the consolidated financial statements and is tested for impairment on annual basis. On the other hand, where the share of equity in the subsidiary company as on the date of investment is in excess of cost of investments of the Group, it is recognised as 'Capital Reserve' and shown under the head 'Reserves and Surplus', in the consolidated financial statements.

Goodwill arising on consolidation is not amortised but tested for impairment.

Following subsidiary company has been considered in the brparation of the consolidated financial statements:

Sr. No.	Name of the entity	Relationship	Ownership held b y	% of Holding and voting power either directly or indirectly through subsidiary as at March 31, 2016
1	Mahima Holding Private Limited	Subsidiary Company	Juniper Hotels Private Limited	100%

The consolidated financial statements have been 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 separate financial statements.

Juniper Hotels Private Limited (CIN No.U55101MH1985PTC152863)  was incorporated on September 16, 1985. The Company is engaged in the business of hospitality (Hotels).  As at March 31, 2016, the Company has two operating hotels, namely Grand Hyatt, located at Santacruz East, Mumbai and Hyatt Regency Ashram Road, Ahmedabad and it is coming up with one more five Star hotel in New Delhi.

2.3 Use of Estimates:

The brparation of consolidated financial statements in conformity with the generally accepted accounting principles requires the Management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the consolidated financial statements and the results of operations for the reporting period. Although these estimates are based upon the Management's best knowledge of current events and actions, actual results could differ from these estimates. Any change in such estimates is recognised prospectively.

2.4 Fixed Assets:

Tangible Assets

Fixed assets are stated at cost (or revalued amounts, as the case may be), less accumulated debrciation and impairment loss, if any. Cost comprises the purchase price and costs attributable for bringing the asset to its working condition for its intended use. Borrowing costs relating to acquisition of fixed assets which take substantial period of time to get ready for their intended use are also included to the extent they relate to the period till such assets are ready to be put to use for their intended purpose.

Fixed assets acquired and put to use for project purpose are capitalised and debrciation thereon is included in the project cost till the project is ready for its intended use.

Fixed assets retired from active use and held for sale are stated at the lower of their net book value and net realisable value and are disclosed separately.

Capital Work in Progress

Projects under which tangible fixed assets are not yet ready for their intended use are carried at cost, comprising direct costs, related incidental expenses and attributable interest.

Intangible Assets

Intangible Assets are stated at their cost of acquisition, less accumulated amortisation and impairment losses. An intangible asset is recognised, where it is probable that future economic benefits attributable to the asset will flow to the enterprise and where its cost can be reliably measured.

2.5 Debrciation / Amortisation:

Debrciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value.

Debrciation on tangible fixed assets of the Company and its subsidiary has been provided on the straight line method as per the useful life brscribed in Schedule II to the Companies Act, 2013 except in respect of the following categories of assets, in whose case the life of the assets has been assessed as under based on technical advice, 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. :

Tangible Assets	Useful Life
Building	61 Years
Plant and Equipment	10 Years
Electrical Installations	9 Years
Equipments	5 Years
Furniture and Fixtures	5 Years
Data Processing Equipment	3 Years
Vehicles	3 Years
Intangible Assets
Computer Software	3 Years

Amortisation of Assets not owned by the Company

Cost of road constructed by the Company is amortised over 5 years.

Assets costing Rs. 5,000/- or less are fully debrciated in the year of capitalisation.

2.6 Impairment of Assets:

The carrying amount of assets is reviewed at each Balance Sheet date to identify if there is any indication of impairment based on internal / external factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of an asset's net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their brsent value at the weighted average cost of capital.

2.7 Expenditure on New Projects:

All cost including finance cost till commencement of operations of the New Project is capitalised. Indirect expenditure incurred during the construction period is capitalised as part of the indirect construction cost to the extent to which the expenditure is indirectly related to construction or is incidental thereto. Other indirect expenditure incurred during the construction period which is neither related to the construction activity nor incidental thereto is charged to the Consolidated Statement of Profit and Loss.

2.8 Investments:

Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried 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 such investments.

2.9 Operating Lease:

Leases where the leasor effectively retains substantially all the risks and benefits of ownership over the lease term are classified as operating lease. Lease rental income / expenses in respect of operating leases is recognised in the Consolidated Statement of Profit and Loss on a straight line basis over the lease term.

2.10 Inventories:

Inventories are valued as follows:

a) Wines, Liquor, Beverages, Stores and Spares and Others Lower of cost determined on weighted average basis and net realisable value.

b) Operating Supplies Operating Supplies are originally recognised at cost and then written off over a period of 12 months. Valuation as at year-end is at amortised cost.

2.11 Revenue Recognition:

(i) Revenue comprises income by way of room charges, sale of food and beverages and allied services relating to Hotel operations and is recognised net of taxes and discounts.

Revenue is recognised upon rendering of services on an accrual basis.

(ii) Revenue from leave and license arrangement of retail mall is recognised on an accrual basis in accordance with the terms of relevant agreement.

(iii) Interest income is recognised on a time proportion basis, taking into account the amount outstanding and the rate applicable.

(iv) Dividend income is recognised when the Company's right to receive payment is established by the Balance Sheet date.

(v) To the extent of any unreasonability about the expectation of ultimate collection at the time of performance, the recognition of revenue is postponed.

2.12 Foreign Currency Transaction:

(a) 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 foreign currency on the date of transaction.

(b) Conversion:

Foreign currency monetary items are reported at Balance Sheet date using the year end rates. 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 transactions.

(c) Exchange Difference:

Exchange differences arising on the settlement of monetary items or on reporting monetary items of the Group at rates different from those at which they were initially recorded during the year, or reported in brvious consolidated financial statements, are recognised as income or as expense in the year in which they arise.

The Group has exercised the option as per the Companies (Accounting Standards) Amendments Rules, 2006. As per the option, exchange differences related to long term foreign currency monetary items so far as they relate to the acquisition of debrciable capital asset are capitalised and debrciated over the useful life of the asset and in other cases, are transferred to Foreign Currency Monetary Item Translation Difference Account and amortised over the balance period of such long term assets/liabilities.

2.13 Employee benefits:

Employee benefits includes provident fund, employee state insurance scheme, gratuity fund and compensated absences

(i) Defined Contribution Plan:

The Group's contribution to provident fund, employees state insurance scheme and labour welfare fund is considered as Defined Contribution Plan and is charged as expense based on the amount of contribution required to be made and when services are rendered by the employees.

(ii) Defined Benefit Plan:

For Defined Benefit Plan in the form of gratuity fund 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 the Consolidated Statement of Profit and Loss in 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 retirement benefit obligation recognised in the Consolidated 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 schemes.

Short-term employee benefits:

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised during the year when the employees render the service. These benefits include performance incentive and compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the related service.

The cost of short-term compensated absences is accounted as under:

(a) in case of accumulated compensated absences, when employees render the services that increase their entitlement of future compensated absences; and

(b) in case of non-accumulating compensated absences, when the absences occur.

Long-term employee benefits:

Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related service are recognised as a liability at the brsent value of the defined benefit obligation as at the Balance Sheet date less the fair value of the Plan assets out of which the obligations are expected to be settled.

2.14 Income Tax:

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates and the provisions of the Income tax Act, 1961 and other applicable tax laws.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets are recognised for timing differences of items other than unabsorbed debrciation and carry forward losses only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. However, if there are unabsorbed debrciation and carry forward of losses and items relating to capital losses, deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that there will be sufficient future taxable income available to realise the assets. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each balance sheet date for their realisability.

At each Balance Sheet date, the Group re-assesses unrecognised deferred tax assets. It recognises unrecognised 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 realised.

The Group offsets deferred tax assets and deferred tax liabilities, and advance income tax and provision for tax, if it has a legally enforceable right and these relate to taxes in income levies by the same governing taxation laws.

Current and deferred tax relating to items directly recognised in reserves are recognised in reserves and not in the Consolidated Statement of Profit and Loss.

2.15 Interest and Finance charges:

Finance Charges include origination fees with respect to funds mobilised by the Group. The above charges are amortised over the tenure of such borrowings.

2.16 Earnings Per Share:

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of dilutive potential equity shares.

2.17 Cash and Cash Equivalents (for the purposes of Consolidated Cash Flow Statement):

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short term balances (with an original maturity of three months or less from date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of change in value.

2.18 Consolidated Cash Flow Statement:

The Consolidated Cash Flow Statement is brpared by the indirect method set out in Accounting Standard 3 on Cash Flow Statements and brsents the cash flows by operating, investing and financing activities of the Group.

Cash and cash equivalents brsented in the Consolidated Cash Flow Statement consist of cash on hand, cheques on hand and unencumbered bank balances.

2.19 Borrowing Costs:

Borrowing costs include interest, amortisation of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Consolidated Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset upto the date of capitalisation of such asset are added to the cost of the assets. Capitalisation of borrowing costs is suspended and charged to the Consolidated Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.

2.20 Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognised when the Group has a brsent legal or constructive obligation as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation, and in respect of which a reliable estimate can be made. Provisions are reviewed at each Balance Sheet date and adjusted to reflect current best estimates. A contingent liability is disclosed unless the possibility of an outflow of resources embodying the economic benefits is remote. Contingent Assets are neither recognised nor disclosed in the consolidated financial statements.

2.21 Service Tax Input Credit:

Service tax input credit is accounted for in the books in the period in which the underlying service received is accounted and when there is reasonable certainty in availing / utilising the credits.

- Employee Benefits:

Defined benefit plans:

The following table summarises the components of net benefits expense recognised in the Statement of Profit and Loss and amounts recognised in the Balance Sheet for the respective plans:

I. The principal assumptions used in determining gratuity obligations for the Company's plans are shown below:

Particulars	As At	As At
	March 31, 2016	March 31, 2015
Mortality	LIC(2006-08) Ultimate	LIC(2006-08) Ultimate
Discount Rate	7.70%	7.80%
Rate of increase in compensation
-Corporate Office	6.00%	6.00%
-Operations	7.00%	7.00%
Rate of return (expected) on plan assets	No Plan Assets	No Plan Assets
Withdrawal rates:
-Corporate Office	2.00%	2.00%
-Operations	18% for age 20-39 and 5% thereafter	18% for age 20-39 and 5% thereafter

(b) Defined Contribution Plan:

Amount recognised as an expense and included in Note 25 - Contribution to Provident and other Funds - Rs. 26,813,845  (Previous year Rs. 22,957,641). Expected rate of return: The expected rate of return is determined after taking into consideration average uniform return over the period of the scheme.

The Group is engaged in the business of Hospitality (Hotels). Hence, all activities undertaken by the Company are incidental to the main business segment. There is no separate reportable business segment as per Accounting Standard 17 "Segment Reporting".