A. Basis of Accounting: The Financial Statements are prepared under
historical cost conventions, on accrual basis of accounting and in
accordance with the applicable mandatory Accounting Standards as
notified by the Companies (Accounting Standards) Rules 2006 and the
relevant provisions of the Companies Act, 1956.
B. Use of Estimates: The preparation of financial statements requires
management to make certain estimates and assumptions that affect the
amount reported in the financial statements and notes thereto.
Differences between actual results and estimates are recognised in the
period they materialise.
C. Fixed Assets: Fixed Assets are recorded at Cost inclusive of Inward
Freight, Duties, Taxes and Incidental Expenses related to acquisition
of the Assets. Leasehold Premises are carried forward at cost.
D. Depreciation: Depreciation on Fixed Assets has been provided on the
written down value method at the rates specified in Schedule XIV of the
Companies Act, 1956, except in case of leasehold building, which is
amortized over the period of lease. No Depreciation has been provided
on Leasehold Premises.
E. Impairment: Impairment loss, if any, is provided to the extent, the
carrying amount of assets exceeds their recoverable amount.
F. Intangible Assets: Goodwill has been amortized over 20 years.
G. Investments: Long term Investments are recorded in the books at
cost inclusive of all expenses incidental to acquisition thereof. Long
term Investments are stated at cost, provision for decline in value,
other than temporary is made to recognize such decline. Current
Investments are valued at lower of cost or market value/net asset
H. Inventories: Stock in trade is valued at cost or net realizable
value whichever is lower. Cost includes direct expenses such as
freight, taxes etc. Stock is valued on first-in-first-out basis.
I) Sales includes sales of goods & merchandise and includes value added
tax wherever applicable.
II) Export sales in foreign currency are accounted at the exchange rate
prevailing on the date of the Bill of Lading.
III) Sales in foreign currencies are converted in to Indian Rupees at
the exchange rate ruling on the date of the transactions.
J. Employees Benefits:
i). Defined Contribution Plan
Employees Benefits in the Provident Fund, Family Pension Fund and ESIC
which are defined contribution schemes, are charged to the Profit and
Loss Account of the year when contribution accrue.
ii). Defined Benefit Plan
Annual Contribution towards Gratuity Liability is funded with the Life
Insurance Corporation of India in accordance with their Gratuity scheme
and is absorbed in the accounts. The Company does not retain any
obligation to pay further amounts if insurer does not pay all future
employee benefits so the plan is not treated as defined benefit plan.
No provision is made for encashment of unavailed leave payable on
retirement of employees.
Current Tax is determined as the amount of tax payable in respect of
taxable income for the period computed in accordance with relevant
provisions of Income Tax, 1961.
Deferred tax assets are recognised only to the extent there is
reasonable certainty of realisation in future.
L. Contingent Liabilities: Contingent Liabilities are not provided
for, till the same are crystallised.
M. Traveling Agency Business:
I) Commission and discount on airlines tickets is accounted on basis of
completion of fortnightly sales.
II) In case of cancellation of tickets, the commission and discount
refundable is accounted only on final acceptance by the airlines.