Home  »  Company  »  Intl. Travel Hou  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of International Travel House Ltd. Company

Mar 31, 2016

It is Corporate Policy Convention

to prepare financial statements in accordance with 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, 2013, as applicable.

Basis of Accounting

to prepare financial statements in accordance with the historical cost convention modified by revaluation of certain Fixed Assets as and when undertaken.

All assets and liabilities have been classified as current or noncurrent as per the Company’s normal operating cycle and other criteria set out in the Schedule III of the Companies Act, 2013 based on the nature of services and the time between the acquisition of assets for processing and their realization in cash and cash equivalents.

Fixed Assets

To state Fixed Assets at cost of acquisition inclusive of inward freight, duties and taxes and incidental expenses related to acquisition. Expenses capitalized also include applicable borrowing costs, if any.

To capitalize software where it is expected to provide future enduring economic benefits. Capitalization costs include license fees and costs of implementation / system integration services. The costs are capitalized in the year in which the relevant software is implemented for use.

To charge off as a revenue expenditure all up-gradation / enhancements unless they bring similar significant additional benefits. Depreciation

To calculate depreciation on Fixed Assets, Tangible and Intangible, in a manner that amortizes the cost of the assets after commissioning (or other amount substituted for cost), less its residual value, over their estimated useful lives, or useful lives specified in Schedule II of the Companies Act, 2013, by equal annual installments. Leasehold properties are amortized on straight line method over the period of the lease.

To amortize capitalized software costs over a period of five years.

Revaluation of Assets

As and when Fixed Assets are revalued, to adjust the provision for depreciation on such revalued Fixed Assets, where applicable, in order to make allowance for consequent additional diminution in value on considerations of age, condition and unexpired useful life of such Fixed Assets and to transfer to Revaluation Reserve the difference between the written up value of the Fixed Assets revalued and depreciation adjustment. Write back of revaluation reserve is done only when the asset is discarded / written off.

Impairment of Assets

To provide for impairment loss, if any, to the extent, the carrying amount of assets exceeds their recoverable amount. Recoverable amount is higher of an asset’s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

Impairment losses recognized in prior years are reversed when there is an indication that the impairment losses recognized no longer exist or have decreased. Such reversals are recognized as an increase in carrying amounts of assets to the extent that it does not exceed the carrying amounts that would have been determined (net of amortization or depreciation) had no impairment loss been recognized in previous years.

Investments

To state Current Investments at lower of cost and fair value; and Long Term Investments, at cost. Where applicable, provision is made to recognize a decline, other than temporary, in valuation of Long Term Investments.

Revenue Recognition

To recognize revenue i.e. the commission received from airlines (other than Productivity Linked Bonus, which is accounted when ascertainable and collection is certain), hotels etc., transport income and income on tours and other services (net of charges) are accounted for on completion of service net of trade discounts and taxes recovered from the customers.

Investment Income

To account for Income from Investments on an accrual basis, inclusive of related tax deducted at source. To account for Income from Dividends when the right to receive such dividends is established.

Proposed Dividend

To provide for Dividends (including income tax thereon) in the books of account as proposed by the Directors, pending approval at the Annual General Meeting.

Employee Benefits

To make regular monthly contributions to Provident Funds which are in the nature of defined contribution scheme and such paid / payable amounts are charged against revenue. The Provident Fund and Family Pension contributions are statutorily deposited with the Government.

To administer through duly constituted and approved independent trusts, Gratuity and Pension Funds which are in the nature of defined benefit schemes. To determine the liabilities towards such schemes, as applicable, and towards employee leave encashment and post Medical Benefits by an independent actuarial valuation as per the requirements of Accounting Standard - 15 on “Employee Benefits”. To determine actuarial gains or losses and to recognize such gains or losses immediately in the Statement of Profit and Loss as income or expense.

Lease Rentals

Lease Rentals are recognized as expense and charged to the statement of profit and loss on a straight-line basis over the term of the lease.

Taxes on Income

To provide Current tax as the amount of tax payable in respect of taxable income for the period, measured using the applicable tax rates and tax laws.

To provide deferred tax on timing differences between taxable income and accounting income subject to consideration of prudence, measured using the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date.

Not to recognize Deferred tax assets on unabsorbed depreciation and carry forward of losses unless there is virtual certainty that there will be sufficient future taxable income available to realize such assets.

Foreign Currency Transactions

To account for transactions in foreign currency at the exchange rate prevailing on the date of transactions. Gains / Losses arising on settlement of such transactions as also the translation of monetary items at period ends due to fluctuations in the exchange rates are recognized in the Statement of Profit and Loss.

Claims

To disclose claims against the Company not acknowledged as debts after a careful evaluation of the facts and legal aspects of the matter involved.

Segment Reporting

To identify segments based on the dominant source and nature of risks and returns and the internal organisation and management structure.


Mar 31, 2015

It is Corporate Policy Convention

To prepare financial statements in accordance with 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 CompaniesAct,20l3,as applicable.

Basis of Accounting

To prepare financial statements in accordance with the historical cost convention modified by revaluation of certain Fixed Assets as and when undertaken.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013 based on the nature of services and the time between the acquisition of assets forprocessingandtheirrealisation in cash and cash equivalents.

Change in Accounting Policy

Depreciation on FixedAssets

Till the year ended March 31,2014, Schedule XIV to the Companies Act, 1956, was the prescribed requirement on depreciation of FixedAssets. From the current year, Schedule XIV has been replaced by Schedule II to the CompaniesAct, 2013.

FixedAssets

To state FixedAssets at cost of acquisition inclusive of inward freight, duties and taxes and incidental expenses related to acquisition. Expenses capitalised also include applicable borrowing costs, if any.

To capitalise software where it is expected to provide future enduring economic benefits. Capitalisation costs include licence fees and costs of implementation / system integration services. The costs are capitalised in the year in which the relevant software is implemented for use.

To charge off as a revenue expenditure all up-gradation / enhancements unless they bring similar significant additional benefits.

Depreciation

To calculate depreciation on Fixed Assets,Tangible and Intangible, in a manner that amortises the cost of the assets after commissioning (or other amount substituted for cost), less its residual value, over their estimated useful lives, or useful lives specified in Schedule II of the Companies Act, 2013, by equal annual instalments. Leasehold properties are amortised on straight line method over the period of the lease.

To amortise capitalised software costs over a period of five years.

Revaluation ofAssets

As and when Fixed Assets are revalued, to adjust the provision for depreciation on such revalued Fixed Assets, where applicable, in order to make allowance for consequent additional diminution in value on considerations of age, condition and unexpired useful life of such Fixed Assets and to transfer to Revaluation Reserve the difference between the written up value of the Fixed Assets revalued and depreciation adjustment. Write back of revaluation reserve is done only when the asset is discarded / written off.

Impairment ofAssets

To provide for impairment loss, if any, to the extent, the carrying amount of assets exceeds their recoverable amount. Recoverable amount is higher of an asset''s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

Impairment losses recognised in prior years are reversed when there is an indication that the impairment losses recognised no longer exist or have decreased. Such reversals are recognised as an increase in carrying amounts of assets to the extent that it does not exceed the carrying amounts that would have been determined (net of amortisation or depreciation) had no impairment loss been recognised in previous years.

Investments

To state Current Investments at lower of cost and fair value; and Long-Term Investments, at cost. Where applicable, provision is made to recognise a decline, other than temporary, in valuation of Long-Term Investments.

Revenue Recognition

To recognize revenue i.e. the commission received from airlines (other than Productivity Linked Bonus, which is accounted when ascertainable and collection is certain), hotels etc., transport income and income on tours and other services (net of charges) are accounted for on completion of service net of trade discounts and taxes recovered from the customers.

Investment Income

To account for Income from Investments on an accrual basis, inclusive of related tax deducted at source.To account for Income from Dividends when the right to receive such dividends is established.

Proposed Dividend

To provide for Dividends (including income tax thereon) in the books of account as proposed by the Directors, pending approval attheAnnual General Meeting.

Employee Benefits

To make regular monthly contributions to Provident Funds which are in the nature of defined contribution scheme and such paid / payable amounts are charged against revenue. The Provident Fund and Family Pension contributions are statutorily deposited with the Government.

To administer through duly constituted and approved independent trusts, Gratuity and Pension Funds which are in the nature of defined benefit schemes. To determine the liabilities towards such schemes,as applicable and towards employee leave encashment and post medical benefits by an independent actuarial valuation as per the requirements of Accounting Standard - 15 on "Employee Benefits". To determine actuarial gains or losses and to recognise such gains or losses immediately in the Statement of Profit and Loss as income or expense.

Lease Rentals

Lease Rentals are recognised as expense and charged to the Statement of Profit and Loss on a straight-line basis over the term of the lease.

Taxes on Income

To provide Current Tax as the amount of tax payable in respect of taxable income for the period, measured using the applicable tax rates and tax laws.

To provide deferred taxon timing differences between taxable income and accounting income subject to consideration of prudence, measured using the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date.

Not to recognise deferred tax assets on unabsorbed depreciation and carry forward of losses unless there is virtual certainty that there will be sufficient future taxable income available to realise such assets.

Foreign Currency Transactions

To account for transactions in foreign currency at the exchange rate prevailing on the date of transactions. Gains / losses arising on settlement of such transactions as also the translation of monetary items at period ends due to fluctuations in the exchange rates are recognised in the Statement of Profit and Loss.

Claims

To disclose claims against the Company not acknowledged as debts aftera careful evaluation ofthefacts and legal aspects of the matter involved.

Segment Reporting

To identify segments based on the dominant source and nature of risks and returns and the internal organisation and management structure.


Mar 31, 2014

It is Corporate Policy

Convention

To prepare financial statements in accordance with 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.

Basis of Accounting

To prepare financial statements in accordance with the historical cost convention.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the revised Schedule VI to the Companies Act, 1956 based on the nature of services and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents.

Fixed Assets

To state Fixed Assets at cost of acquisition inclusive of inward freight, duties and taxes and incidental expenses related to acquisition. Expenses capitalised also include borrowing costs attributable to qualifying assets, if any.

To capitalise software where it is expected to provide future enduring economic benefits. Capitalisation costs include licence fees and costs of implementation/ system integration services. The costs are capitalised in the year in which the relevant software is implemented for use.

To charge off as a revenue expenditure all up-gradation/ enhancements unless they bring similar significant additional benefits.

Depreciation

To calculate depreciation on Fixed Assets Tangible and Intangible in a manner that amortises the cost of the assets after commissioning, over their estimated useful lives or, where specified, 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. Leasehold properties are amortised on Straight Line Method over the year of the lease.

To amortise capitalised software costs over a period of five years.

Impairment of Assets

To provide for impairment loss, if any, to the extent, the carrying amounts of assets exceed their recoverable amount. Recoverable amount is higher of an assets net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

Impairment losses recognised in prior years are reversed when there is an indication that the impairment losses recognised no longer exist or have decreased. Such reversals are recognised as an increase in carrying amounts of assets to the extent that it does not exceed the carrying amounts that would have been determined (net of amorti- sation or depreciation) had no impairment loss been recognised in previous years.

Investments

To state Current Investments at lower of cost and fair value; and Long-Term Investments, at cost. Where applicable, provision is made to recognise a decline, other than temporary, in valuation of Long-Term Investments.

Revenue Recognition

To recognise revenue i.e. the commission received from airlines (other than Productivity Linked Bonus, which is accounted when ascertainable and collection is certain), hotels etc., transport income and income on tours and other services (net of charges) are accounted for on completion of service net of service tax recovered from the customers.

Investment Income

To account for income from Dividends when the right to receive such dividends is established.

Proposed Dividend

To provide for Dividends (including income tax thereon) in the books of account as proposed by the Directors, pending approval at the Annual General Meeting.

Employee Benefits

To make regular monthly contributions to Provident Funds which are in the nature of defined contribution scheme and such paid/ payable amounts are charged to the Statement of Profit and Loss. The Provident Fund and Family Pension contributions are statutorily deposited with the Government.

To administer through duly constituted and approved independent trusts, Gratuity and Pension Funds which are in the nature of defined benefit schemes. To determine the liabilities towards such schemes, as applicable, and towards employee leave encashment and Post employment Medical Benefit by an independent actuarial valuation as per the requirements of Accounting Standard - 15 on Employee Benefits. To determine actuarial gains or losses and to recognise such gains or losses immediately in the Statement of Profit and Loss as income or expense.

Lease Rentals

Lease Rentals are recognised as expense and charged to the Statement of Profit and Loss on a straight-line basis over the term of the lease.

Borrowing Cost

Borrowing cost other than those directly attributable to the acquisition of a qualifying asset is recognised as an expense in the year in which they are incurred.

Taxes on Income

To provide Current tax as the amount of tax payable in respect of taxable income for the year, measured using the applicable tax rates and tax laws.

To provide deferred tax on timing differences between taxable income and accounting income subject to consider- ation of prudence, measured using the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date.

Foreign Currency Translation

To account for transactions in foreign currency at the exchange rate prevailing on the date of transactions. Gains/ losses arising out of fluctuations in the exchange rates are recognised in the Statement of Profit and Loss in the year in which they arise. To account for gains/ losses in the Statement of Profit and Loss on foreign exchange rate fluctua- tions relating to monetary items at the year end rates.

Claims

To disclose claims against the Company not acknowledged as debts after a careful evaluation of the facts and legal aspects of the matter involved.

Segment Reporting

To identify segments based on the dominant source and nature of risks and returns and the internal organisation and management structure.


Mar 31, 2013

It is Corporate Policy

Convention

To prepare financial statements in accordance with 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.

Basis of Accounting

To prepare financial statements in accordance with the historical cost convention.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the revised Schedule VI to the Companies Act, 1956 based on the nature of services and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents.

Fixed Assets

To state Fixed Assets at cost of acquisition inclusive of inward freight, duties and taxes and incidental expenses related to acquisition. Expenses capitalised also include borrowing costs attributable to qualifying assets, if any.

To capitalise software where it is expected to provide future enduring economic benefits. Capitalisation costs include licence fees and costs of implementation/ system integration services. The costs are capitalised in the year in which the relevant software is implemented for use.

To charge off as a revenue expenditure all up-gradation / enhancements unless they bring similar significant additional benefits.

Depreciation

To calculate depreciation on Fixed Assets and Intangible Assets in a manner that amortises the cost of the assets after commissioning, over their estimated useful lives or, where specified, 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. Leasehold properties are amortised on Straight Line Method over the period of the lease.

To amortise capitalised software costs over a period of five years.

Impairment of Assets

To provide for impairment loss, if any, to the extent, the carrying amounts of assets exceed their recoverable amount. Recoverable amount is higher of an assets net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

Impairment losses recognised in prior years are reversed when there is an indication that the impairment losses recognised no longer exist or have decreased. Such reversals are recognised as an increase in carrying amounts of assets to the extent that it does not exceed the carrying amounts that would have been determined (net of amortisation or depreciation) had no impairment loss been recognised in previous years.

Investments

To state Current Investments at lower of cost and fair value; and Long Term Investments, at cost. Where applicable, provision is made to recognise a decline, other than temporary, in valuation of Long Term Investments.

Revenue Recognition

To recognise revenue i.e. 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 net of service tax recovered from the customers.

Investment Income

To account for income from Dividends when the right to receive such dividends is established.

Proposed Dividend

To provide for Dividends (including income tax thereon) in the books of account as proposed by the Directors, pending approval at the Annual General Meeting.

Employee Benefits

To make regular monthly contributions to Provident Funds which are in the nature of defined contribution scheme and such paid/ payable amounts are charged to the statement of profit and loss. The Provident Fund and Family Pension contributions are statutorily deposited with the Government.

To administer through duly constituted and approved independent trusts, Gratuity and Pension Funds which are in the nature of defined benefit schemes. To determine the liabilities towards such schemes, as applicable, and towards employee leave encashment and Post employment Medical Benefit by an independent actuarial valuation as per the requirements of Accounting Standard - 15 (revised 2005) on Employee Benefits. To determine actuarial gains or losses and to recognise such gains or losses immediately in the statement of Profit and Loss as income or expense.

Lease Rentals

Lease Rentals are recognised as expense and charged to the statement of profit and loss on a straight-line basis over the term of the lease.

Borrowing Cost

Borrowing cost other than those directly attributable to the acquisition of a qualifying asset is recognised as an expense in the period in which they are incurred.

Taxes on Income

To provide Current tax as the amount of tax payable in respect of taxable income for the period, measured using the applicable tax rates and tax laws.

To provide deferred tax on timing differences between taxable income and accounting income subject to consideration of prudence, measured using the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date.

Foreign Currency Translation

To account for transactions in foreign currency at the exchange rate prevailing on the date of transactions. Gains/ losses arising out of fluctuations in the exchange rates are recognised in the statement of Profit and Loss in the period in which they arise. To account for gains/ losses in the Statement of Profit and Loss on foreign exchange rate fluctuations relating to monetary items at the year end rates.

Claims

To disclose claims against the Company not acknowledged as debts after a careful evaluation of the facts and legal aspects of the matter involved.

Segment Reporting

To identify segments based on the dominant source and nature of risks and returns and the internal organisation and management structure.


Mar 31, 2012

Convention

To prepare Financial Statements in accordance with 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.

Basis of Accounting

To prepare financial statements in accordance with the historical cost convention.

Change in Accounting Policy

During the year ended 31st March, 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the Company, for preparation and presentation of its financial statements. The adoption of revised Schedule

VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

Fixed Assets

To state Fixed Assets at cost of acquisition inclusive of inward freight, duties and taxes and incidental expenses related to acquisition. Expenses capitalised also include borrowing costs attributable to qualifying assets, if any.

To capitalise software where it is expected to provide future enduring economic benefits. Capitalisation costs include licence fees and costs of implementation/ system integration services. The costs are capitalised in the year in which the relevant software is implemented for use.

To charge off as a revenue expenditure all upgradation/ enhancements unless they bring similar significant additional benefits.

Depreciation

To calculate depreciation on Fixed Assets and Intangible Assets in a manner that amortises the cost of the assets after commissioning, over their estimated useful lives or, where specified, 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. Leasehold properties are amortised on Straight Line Method over the period of the lease being 3 to 5 years.

To amortise capitalised software costs over a period of five years.

Impairment of Assets

To provide for impairment loss, if any, to the extent, the carrying amount of assets exceed their recoverable amount. Recoverable amount is higher of an assets net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

Impairment losses recognised in prior years are reversed when there is an indication that the impairment losses recognised no longer exist or have decreased. Such reversals are recognised as an increase in carrying amounts of assets to the extent that it does not exceed the carrying amounts that would have been determined (net of amortisation or depreciation) had no impairment loss been recognised in previous years.

Investments

To state Current Investments at lower of cost and fair value; and Long Term Investments, at cost. Where applicable, provision is made to recognise a decline, other than temporary, in valuation of Long Term Investments.

Revenue Recognition

To recognise revenue i.e. 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 net of service tax recovered from the customers.

Investment Income

Investment income is recognized, when it is declared by the investee.

Proposed Dividend

To provide for Dividends (including income tax thereon) in the books of account as proposed by the Directors, pending approval at the Annual General Meeting.

Employee Benefits

To make regular monthly contributions to Provident Funds which are in the nature of defined contribution scheme and such paid/ payable amounts are charged to Statement of Profit and Loss. The Provident Fund and Family Pension contributions are statutorily deposited with the Government.

To administer through duly constituted and approved independent trusts, Gratuity and Pension Funds which are in the nature of defined benefit schemes. To determine the liabilities towards such schemes, as applicable, and towards employee leave encashment and Post employment Medical Benefit by an independent actuarial valuation as per the requirements of Accounting Standard - 15 (revised 2005) on Employee Benefits. To determine actuarial gains or losses and to recognise such gains or losses immediately in Statement of Profit and Loss Account as income or expense.

Lease Rentals

Lease rentals are recognised as expense on a straight-line basis over the term of the lease.

Borrowing Cost

Borrowing cost other than those directly attributable to the acquisition of a qualifying asset is recognised as an expense in the period in which they are incurred.

Taxes on Income

To provide current tax as the amount of tax payable in respect of taxable income for the period, measured using the applicable tax rates and tax laws.

To provide deferred tax on timing differences between taxable income and accounting income subject to consideration of prudence, measured using the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date.

Foreign Currency Translation

To account for transactions in foreign currency at the exchange rate prevailing on the date of transactions. Gains/ Losses arising out of fluctuations in the exchange rates are recognised in the Profit and Loss Account in the period in which they arise.

To account for gains/ losses in the Statement of Profit and Loss Account on foreign exchange rate fluctuations relating to monetary items at the year end rates.

Claims

To disclose claims against the Company not acknowledged as debts after an evaluation of the facts and legal aspects of the matter involved.

Segment Reporting

To identify segments based on the dominant source and nature of risks and returns and the internal organisation and management structure.


Mar 31, 2011

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.


Mar 31, 2010

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 Computer Software.

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 funds 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 end of each financial year.

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.

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 recognized, 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.

o. Derivative Instruments

Derivative contracts other than foreign exchange contracts outstanding at the year end are marked to market on a portfolio basis. Any loss arising on such contracts is provided for in the statement of Profit and Loss Account.

Find IFSC