a.  Method of Accounting
 
 The financial statements are prepared as per historical cost convention
 on accrual basis and comply with the provisions of the Companies Act,
 1956, the generally accepted accounting principles in India and the
 applicable accounting standards.
 
 b.  Use of Estimates:
 
 The preparation of financial statements requires estimates and
 assumptions to be made that affect the reported amount of the assets
 and liabilities on the date of the financial statements and the
 reported amount of revenues and expenses during the reporting period.
 Difference between the actual results and estimates are recognised in
 the period in which the results are known/materialised.
 
 c.  Turnover
 
 In line with generally accepted accounting practices, turnover
 comprises of net commissions earned on travel management, service
 agency charges including margins in respect of tour and tour related
 services, commissions/ margins earned on foreign exchange transactions
 in the normal course of the business as Authorised Dealer and
 Franchisees signup fees. The income arising from the buying and selling
 of foreign currencies has been included on the basis of margins
 achieved.
 
 d.  Revenue Recognition
 
 In accordance with the Company''s accounting policy followed
 consistently, commissions/income arising from tours and related
 services is accounted after netting off all direct expenditures
 relating thereto. Income from buying and selling of foreign currencies
 is accounted on net basis as stated in (c) above. All revenues are
 accounted when there is reasonable certainty of its ultimate
 collection.
 
 e.  Expenditure
 
 All general business expenditure is accounted in the year in which it
 is incurred. All direct tour related expenses including advertisement
 expenses for specific tour are accounted in the year in which the tours
 are undertaken.
 
 f.  Fixed Assets
 
 Fixed Assets are stated at cost, less accumulated depreciation. Costs
 include all costs relating to acquisition and installation of fixed
 assets. Intangible assets represent Software, Video Shoots and
 Trademarks stated at cost less accumulated amortisation and impairments
 losses, if any.
 
 g.  Depreciation
 
 Depreciation on fixed assets is provided on the written down value
 method at the rates prescribed under Schedule XIV to the Companies Act,
 1956. Intangible assets are amortised over a period of five to ten
 years, being the expected period of use. The leasehold land is
 depreciated over the lease period. Leasehold improvements are
 depreciated over the lease period or at the rates prescribed for
 Furniture in Schedule XIV to the Companies Act, 1956, whichever is
 higher.
 
 h.  Impairment of assets
 
 An asset is treated as impaired when the carrying cost of asset exceeds
 its recoverable value. An impairment loss is charged to the Profit and
 Loss Account in the year in which an asset is identified as impaired.
 The impairment loss recognised in prior accounting period is reversed
 if there has been change in the estimate of recoverable amount.
 
 i.  Investments
 
 Long-term investments are valued at cost. Provision for diminution in
 value of investments is made, if the diminution is of a nature other
 than temporary. Current investments are valued at the lower of cost and
 market value.
 
 j.  Inventory
 
 Inventory represents stock of foreign currencies, which have been
 valued at lower of cost and realisable value as at the year-end.
 
 k.  Employee Retirement Benefits
 
 a.  Short term employee benefits are recognised as an expense at the
 undiscounted amount in the profit and loss account of the year in which
 the related service is rendered.
 
 b.  Post employment and other long term employee benefits are
 recognised as an expense in the profit and loss account for the year in
 which the employee has rendered services. The expense is recognised at
 the present value of the amounts payable determined using actuarial
 valuation techniques. Actuarial gains and losses in respect of post
 employment and other long term benefits are charged to the profit and
 loss account.
 
 l.  Foreign Currency Transactions
 
 a.  Transactions denominated in foreign currencies are recorded at spot
 rates / average rates.
 
 b.  Monetary items denominated in foreign currencies at the year end
 are restated at year end rates.
 
 c.  Non monetary foreign currency items are carried at cost.
 
 d.  In respect of branches, which are integral foreign operations, all
 transactions are translated at rates prevailing on the date of
 transaction or that approximates the actual rate on the date of
 transaction. Branch monetary assets and liabilities are restated at the
 year end rates.
 
 e.  Any income or expense on account of exchange difference either on
 settlement or on translation is recognised in the profit and loss
 account.
 
 m.  Accounting for taxes on Income
 
 Provision for current tax is made, based on the tax payable under the
 relevant statute.
 
 Deferred tax on timing differences between taxable income and
 accounting income is accounted for, using the tax rates and the tax
 laws enacted or substantially enacted as on the balance sheet date.
 Deferred tax assets are recognised only to the extent that there is a
 reasonable certainty of its realisation.
 
 n.  Provision, Contingent Liabilities and Contingent Assets :
 
 Provisions involving substantial degree of estimation in measurement
 are recognised when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent Liabilities are not recognised but are disclosed in the
 notes. Contingent Assets are neither recognised nor disclosed in the
 financial statements.