a.  Accounting Convention
 
 Financial statements are prepared in accordance with the historical
 cost convention and applicable Accounting Standards in India. A summary
 of important accounting policies is set out below. The financial
 statements have also been prepared in accordance with relevant
 presentational requirements of the Companies Act, 1956.
 
 b.  Fixed Assets
 
 To state Fixed Assets at cost of acquisition inclusive of inward
 freight, duties and taxes and incidental expenses related to
 acquisition, less accumulated depreciation and impairment losses, if
 any.
 
 Intangible Assets represent cost of acquired and developed Computer
 Softwares.
 
 c.  Depreciation / Amortisation
 
 Depreciation is calculated on Fixed Assets in a manner that amortises
 the cost of the assets after commissioning, over their estimated useful
 lives or lives based on the rates specified in Schedule XIV to the
 Companies Act, 1956, whichever is lower, by equal annual installments.
 Commercial and non-commercial vehicles are being depreciated at the
 rate of 20% which is higher than the rates specified in Schedule XIV.
 Assets individually costing Rs.5,000/- or less are fully depreciated in
 the year of purchase. Leasehold Improvements are amortised over lease
 period or economic useful life whichever is shorter.
 
 Software Costs are amortised over a period of five years or useful
 life, whichever is lower.
 
 d.  Employee Benefits
 
 i. Retirement benefits in the form of Provident Fund is a defined
 contribution scheme and the contributions are charged to the Profit and
 Loss Account of the year when the contributions to the respective fund
 are due. There are no other obligations other than the contribution
 payable to the respective fund.
 
 ii. Gratuity Liability, Post Employment Medical Benefit Liability and
 Pension Benefit Liability are defined benefit obligations and are
 provided for on the basis of an actuarial valuation on projected unit
 credit method made at the Balance Sheet date.
 
 iii. Short term compensated absences are provided for based on
 estimates. Long term compensated absences are provided for based on
 actuarial valuation. The actuarial valuation is done as per projected
 unit credit method at the Balance Sheet date.
 
 iv.  Actuarial gains / losses are immediately taken to Profit and Loss
 Account and are not deferred.
 
 e.  Revenue Recognition
 
 For services rendered to clients, the commission received from airlines
 (other than Productivity Linked Bonus, which is accounted when
 ascertainable), hotels etc., transport income and income on tours and
 other services (net of charges) are accounted for on completion of
 service.
 
 f.  Foreign Currency Transactions
 
 To record transactions in foreign currencies at the exchange rates
 prevailing on the date of the transaction.  Monetary Liabilities /
 Assets on account of foreign currency are converted at the exchange
 rates prevailing as at the end of the year. Exchange differences are
 appropriately dealt with in the Profit and Loss Account.
 
 g.  Investment Income
 
 Investment income is recognised, when it is declared by the investee.
 
 h.  Investments
 
 To state Current Investments at lower of cost and fair value and Long
 Term Investments at cost. Where applicable, provision is made where
 there is a diminution, other than temporary, in valuation of Long Term
 Investments.
 
 i.  Proposed Dividend
 
 To provide for Dividends as proposed by the Board of Directors in the
 books of account, pending approval at the Annual General Meeting.
 
 j.  Borrowing Cost
 
 Borrowing costs attributable to the acquisition or construction of a
 qualifying asset is capitalised as part of the cost of the asset. Other
 borrowing costs are recognised as an expense in the period in which
 they are incurred.
 
 k.  Taxation
 
 To provide and determine current tax as the amount of tax payable in
 respect of taxable income for the period.
 
 To provide and determine fringe benefit tax as the amount of tax
 payable in respect of taxable fringe benefits for the period.
 
 To provide and recognise deferred tax on timing differences between
 taxable income and accounting income subject to consideration of
 prudence.
 
 Not to recognise entire deferred tax assets on unabsorbed depreciation
 and carry forward of losses unless there is virtual certainty supported
 by convincing evidence that there will be sufficient future taxable
 income available to realise such assets.
 
 l.  Operating Leases
 
 Lease Rentals are recognised as expense on a straight-line basis over
 the term of the lease.
 
 m.  Segment Reporting
 
 To identify segments based on the dominant source and nature of risks
 and returns and the internal organisation and management structure.
 
 n.  Provisions
 
 A provision is recognised when an enterprise has a present obligation
 as a result of past event; it is probable that an outflow of resources
 will be required to settle the obligation, in respect of which a
 reliable estimate can be made. Provisions are not discounted to its
 present value and are determined based on best estimate required to
 settle the obligation at the Balance Sheet date.