(a) Basis of Accounting
 
 The financial statements are prepared in accordance with the historical
 cost convention.
 
 (b) Fixed Assets and Depreciation / Amortisation
 
 (i) The gross block of fixed assets is stated at the purchase price of
 acquisition of such fixed assets including any attributable cost for
 bringing the asset to its working condition for its intended use.
 
 (ii) Depreciation on fixed assets is provided at the rates specified in
 Schedule XIV of the Companies Act, 1956 or the rates determined based
 on the useful lives of the assets as estimated by the management,
 whichever are higher. Depreciation is provided on Straight Line Method.
 The rates adopted for depreciation determined on the basis of useful
 lives of fixed assets are as follows:
 
 (c) (i) Foreign Currency Transactions
 
 All the monetary items denominated in foreign currency are valued at
 the Foreign Exchange Dealers Association of India (FEDAI) rate (except
 for Sri Lanka branch) and the exchange variations arising out of
 settlement/conversion at the FEDAI rate are recognised in the Profit
 and Loss Account.
 
 Monetary items of Sri Lanka branch are valued at closing rates obtained
 from Central Bank of Sri Lanka, as the daily buying and selling rates
 are set on rates obtained from them.
 
 Profit or loss on purchase and sale of foreign exchange by the company
 in its capacity as Authorised Foreign Exchange Dealer are accounted as
 a part of the revenue.
 
 (ii) Foreign Branch
 
 Monetary assets and liabilities are translated at the closing exchange
 rates.
 
 Non monetary assets are translated at the exchange rates prevailing on
 the date of the transaction.
 
 Revenue items except depreciation are translated at average rate.
 
 Depreciation is translated at the rates used for the translation of
 respective fixed assets.
 
 (d) Investments
 
 Long-term Investments are stated at cost. Provision is made to
 recognise a decline, other than temporary, in the value of Long-term
 Investments. Current Investments are stated at lower of cost or fair
 value.
 
 (e) Employee Benefits
 
 (i) Long-term Employee Benefits
 
 (a) Defined Contribution Plans
 
 The Company has Defined Contribution Plan for Post Employment Benefit
 in the form of Superannuation scheme.  Contributions to Superannuation
 scheme are charged to the Profit and Loss account as incurred. The
 contribution to Superannuation scheme are based on the premium
 contribution called for by Life Insurance Corporation of India (LIC)
 with whom the Company has entered into an agreement for its Indian
 operations.
 
 (b) Defined Benefit Plans
 
 The company has Defined Benefit Plan for Post Employment Benefit in the
 form of Gratuity. Contribution to gratuity is based on the premium
 contribution called for by the Life Insurance Corporation of India
 (LIC) with whom the company has entered into an agreement for its
 Indian operations. Any short fall/excess based on independent actuarial
 valuation is accounted for in the relevant period.
 
 The company has Defined Benefit Plan for Other Long Term Employee
 Benefit in the form of Provident Fund. Provident Fund contributions are
 made to a Trust administered by the Company. The interest rate payable
 to the members of the Trust shall not be lower than the statutory rate
 of interest declared by the Central Government under the Employees
 Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall,
 if any, shall be made good by the Company. Any short fall/excess based
 on independent actuarial valuation is accounted for in the relevant
 period.
 
 (ii) Short-term Employee Benefits
 
 As per the leave policy of the Company, liability for leave balance is
 treated as short term in nature. Provision towards short term accrued
 leave is made based on accumulated unutilised leave balances of
 employees on the payroll of the Company at the year- end.
 
 (iii) Employee benefits of Sri Lanka branch are provided for on the
 basis of the local laws.
 
 (f) Employee Stock Option Plan
 
 Stock options granted to the employees under the stock option schemes
 established after June 19, 1999 are evaluated as per the accounting
 treatment prescribed by Employee Stock Option Scheme and Employee Stock
 Purchase Scheme Guidelines, 1999 as amended from time to time, issued
 by Securities and Exchange Board of India. Accordingly the excess of
 market value of the stock options as on the date of grant over the
 exercise price of the options is recognized as deferred employee
 compensation and is charged to Profit and Loss account on graded
 vesting period of the options.
 
 (g) Revenue
 
 Revenue comprises of travellers cheques commissions and margins on
 foreign exchange transactions in the normal course of business as
 authorised dealers, net commissions earned on travel management,
 service agency charges including profit or loss in respect of tour and
 card product activities. In line with established international
 practice, the income arising from the buying and selling of foreign
 currencies (net of brokerages paid) is included on the basis of margins
 achieved, since inclusion on the basis of their gross value would not
 be meaningful and potentially misleading for use as an indicator of the
 level of the Company''s business.
 
 (h) Revenue Recognition
 
 Commission on tickets and service charges from customers are recognised
 on issue of the tickets. Incentive from airlines are accounted on the
 basis of tickets issued to sectors travelled.
 
 Revenue on foreign exchange transactions is recognised at the time of
 purchase and sale.
 
 Revenue on holiday packages is recognised on proportionate basis
 considering the actual number of days completed as at the year end to
 the total number of days for each tour.
 
 Revenue from other income is accounted on accrual basis.
 
 (i) Leases
 
 Assets acquired under finance lease arrangements are capitalised at the
 inception of the lease at the lower of the fair value and the present
 value of minimum lease payments and a liability is created for an
 equivalent amount. Lease rentals are allocated between the liability
 and the interest cost, so as to obtain a constant periodic rate of
 interest on the outstanding liability for each period. Lease rentals in
 respect of operating lease arrangements are charged to the Profit and
 Loss Account.
 
 (j) Taxes on Income
 
 Current tax is determined as the amount of tax payable in respect of
 estimated taxable income for the year.
 
 Deferred tax is recognised, subject to the consideration of prudence in
 respect of deferred tax assets, on timing differences, being the
 difference between taxable income and accounting income that originate
 in one year and are capable of reversal in one or more subsequent
 years.
 
 (k) Impairment of Assets
 
 At each Balance Sheet date, the Company assesses whether there is any
 indication that an asset may be impaired. If any such indication
 exists, management estimates the recoverable amount. If the carrying
 amount of the asset exceeds its recoverable amount an impairment loss
 is recognised in the Profit and Loss Account to the extent carrying
 amount exceeds recoverable amount.
 
 (l) Provision and Contingent Liabilities
 
 The Company creates a provision when there is a present obligation as a
 result of a past event that probably requires an outflow of resources
 and a reliable estimate can be made of the amount of the obligation. A
 disclosure for a contingent liability is made when there is a possible
 obligation or a present obligation that may, but probably will not,
 require an outflow of resources. Where there is possible obligation or
 at present obligation in respect of which the likelihood of outflow of
 resources is remote, no provision or disclosure is made.