Accounting Policies of Ace Tours Worldwide Ltd. Company

Mar 31, 2015

1. Basis of Accounting:

The financial statements have been prepared and presented under the historical cost convention by following mercantile system of accounting and in accordance with normally accepted accounting principles generally accepted in India and comply with the mandatory Accounting Standards issued by The Institute of Chartered Accountants of India.

2. Figures have been rounded off to the nearest rupee. Previous years figures have been regrouped and rearranged wherever necessary to confirm with the current year's figures.

3. Sales and purchases are recorded off net off returns, rate difference, discount etc.

4. The balance of sundry debtors, deposits, loans & advances and sundry creditors are subject to confirmation however, the directors have certified the respective balances.

5. Retirement Benefits to Employee's:

The contribution made by the company to employee's benefit funds remitted to statutory authority is charged to revenue.

6. Borrowing Cost:

The total borrowing cost of the company is Rs. 4.76 lacs out of which Rs. Nil has been capitalized, being interest upto date of put to use of asset and balance of Rs. 4.76 has been debited to the profit and loss account. (Previous year Rs. 101.78 lacs debited to Pre & P Expenses account.

7. Segment Reporting:

The company has only one business segment and geographical segment and therefore, there is no separate reportable segment as per AS -1 7.

8. Related Party Disclosure :

The Related Party Disclosure as required by Accounting Standard - Related party Disclosure (AS-1 8), issued by The Institute of Chartered Accountants of India is as under.

(A) RELATIONSHIPS

(i) Key Management Personnel:

(a) Raju Jashwantlal Choksi

(b) Bharat Jashwantlal Choksi

(c) Mayank Anilbhai Choksi

(d) Rajendra Kundanlal Desai

(e) Prachi Viranchi Shukla

(ii) Relatives of Key Management Personnel:

(a) Jayesh Jashwantal Choksi

(b) Mala Rajubhai Choksi

(c) Nileshaben Bharatbhai Choksi

(d) Anil Jashwantlal Choksi

(e) Suhagini Jayesh Choksi

(f) Rekhaben Anilbhai Choksi

10. Contingent Liability :No Contingent liabilities.

(iii) There are no restrictions on production activity of the company, as it is a de-licensed industry.

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Mar 31, 2014

Significant accounting policies adopted in the preparation and the presentation of the accounts are stated as under. These accounting policies adopted by the company are as per standard accounting practices prescribed by the Institute of Chartered Accountants of India.

(a) Basis of Accounting:

The financial statements have been prepared in accordance with Generally Accepted Accounting Principles (GAAP) in India and presented under the historical cost convention on accrual basis of accounting to comply with the accounting standards prescribed in the Companies (Accounting Standards) Rules, 2006 and with the relevant provisions of the Companies Act, 1956.

(b) Use of Estimates:

The preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of income and expenses during the period.

A. Fixed Assets :

Fixed assets are stated at cost less accumulated depreciation. Cost comprises the purchase price and other attributable cost for bringing the asset to working condition for its intended use.

B. Depreciation:

Depreciation is provided on Written down Value Method at the rates and in the manner prescribed by Schedule XIV of the Companies Act, 1956. Depreciation has been provided on pro-rata basis, with reference to the date of addition.

C. Inventories:

There is no closing stock.

D. Revenue recognition:

Revenue on tour and travels is recognized when the services are rendered substantially and no significant uncertainties exist about the final collection of payment.

Dividend income is recognized when the right to receive payment is established.

Interest income is recognized on a time proportion basis taking into account the amount outstanding and interest rate applicable.

E. Retirement Benefits:

Provident Fund and E.S.I is a defined contribution scheme and the contribution wherever required by the statue are charged to the Profit & Loss Accounts.

F. Borrowing cost:

Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of such assets. All other borrowing costs are recognized as expense in the year in which they are incurred.

F. Impairment:

At Balance Sheet date, an assessment is done to determine whether there is any indication of impairment in the carrying amount of the Company''s assets. If any such indication exists, the asset''s recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount.

G. Accounting For Taxes on Income:

Provision for taxation for the year comprises of current tax and deferred tax.

i. Current tax is the amount of Income Tax ascertained on the basis of assessable profit computed in accordance with the provision of Income Tax Act, 1961.

ii. Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. The working of deferred tax assets/ liabilities is not considered for the period under consideration as these financial statements have been prepared for period ending on 31st March, 2014 and the same shall be considered as at year end report.

H. Intangible Assets:

The Balance of Advertisement Branding is classified and clarified as per the Management Representation Letter and according to the management, the same shall be written off in next financial year on settlement of contract with Bennett Coleman & Co Limited.

Others intangible assets are amortized over their useful life.

I Miscellaneous Expenditure:

Miscellaneous expenditure is amortized over a period of 5 years.

J Provisions, Contingent Liabilities and Contingent Assets:

Provision is recognized when there is a present obligation as a result of a past event that probably required an outflow of resources and a reliable estimate can be made of the amount of the obligation. Disclosure for 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. No provision is recognized or disclosure for contingent liability is made when there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote. Contingent Assets is neither recognized nor disclosed in the financial statements.

K. Previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever consider necessary to make them comparable with the current years figure.