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Accounting Policies of Jagsons Airlines Ltd. Company

Mar 31, 2015

1. Basis of preparation of Financial statements

The financial statements are prepared under the historical cost conversion, except for certain fixed assets which are revalued, in accordance with the generally accepted accounting principles in India and the provision of the Companies Act 1956.

2. Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenue and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized

3. Own Fixed Assets (Tangible)

Fixed: Assets are stated at cost. Depreciation of Fixed Assets is recognized in Accumulated Depreciation Account. All cost, includes financing cost till commencement of commercial production.

4. Depreciation and Amortization

Depreciation on fixed Assets is determined on the straight line method at the rate and the manner prescribed under the companies Act. 2013.

5. Foreign currency Transactions

Transactions denominated in foreign currencies are recorded dt the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.

Any Income or expense on account of exchange difference either on settlement or on translation is recognized in the Profit & Loss Account.

6. Investment

The Company does not have any kind of Investments at the end of the financial year as all the Investments have been sold out.

7. Inventories

The Company does not have any kind of Inventory during the current year.

8. Benefits to Employees

Short-Term benefits to employees are recognized as an expense at the undiscounted amount in the profit and loss account of the y, - in which the related service is rendered.

Post employment and other long-term benefits to employees are recognized as expenses in the profit and loss account for the year in which the related service is rendered.

Contribution to provideni fund is accounted on accrual basis. Provision for gratuity has been provided for on an arithmetical basis for eligible as per payment of Gratuity Act, 1972 and Leave encashment is accounted on the basis of actuarial valuation techniques. Actuarial gain and loss in respect of post employment and other long-term benefits are charged to Profit & Los Accounts.

12. Borrowing Cost

The Company did not borrow any amount during the financial year.

13. Provision For Deferred Tax

Deferred tax asset has been provided on the basis of tax computation for the year. Depreciation is the only a component of deferred tax assets and liabilities arising on account of timing difference.

14. Goodwill

Goodwill represents the difference between the consideration for the business and the fair value of the net assets.


Mar 31, 2014

1. Basis of preparation of Financial statements

The financial statements are prepared under the historical cost conversion, except for certain fixed assets which are revalued, in accordance with the generally accepted accounting principles in India and the provision of the Companies Act 1956.

2. Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenue and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized

3. Own Fixed Assets (Tangible)

Fixed Assets are stated at cost and includes amount added on revaluation, depreciation of Fixed Assets is recognized in Accumulated Depreciation Account. All cost, includes financing cost till commencement of commercial production. Adjustment arise due to foreign currency exchange rate variations attributable to the Fixed Assets are capitalized.

4. Own Fixed Assets (Capital Work in progress)

Capital work in progress is valued at cost incurred on the work processed till date and includes all the addition made during the current year of process.

5. Depreciation and Amortization

Depreciation on fixed Assets is determined on the straight line method at the rate and the manner prescribed under XIV to the companies Act. 1956.

6. Foreign currency Transactions

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.

Any Income or expense on account of exchange difference either on settlement or on translation is recognized in the Profit & Loss Account.

7. Investment

The Company does not have any kind of Investments at the end of the financial year as all the Investments have been sold out.

8. Inventories

The Company does not have any kind of Inventory during the current year.

9. Revenue Recognition

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection. Dividend Income is recognized when right to receive is established. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.

10. Benefits to Employees

Short-Term benefits to employees are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.

Post employment and other long-term benefits to employees are recognized as expenses in the profit and loss account for the year in which the related service is rendered.

Contribution to provident fund is accounted on accrual basis. Provision for gratuity has been provided for on an arithmetical basis for eligible as per payment of Gratuity Act, 1972 and Leave encashment is accounted on, the basis of actuarial valuation techniques. Actuarial gain and loss in respect of post employment and other long-term benefits are charged to Profit & Los Accounts.

12. Borrowing Cost

The Company did not borrow any amount during the financial year.

13. Provision For Deferred Tax

Deferred tax asset has been provided on the basis of tax computation for the year. Depreciation is the only a component of deferred tax assets and liabilities arising on account of timing difference.

14. Goodwill

Goodwill represents the difference between the consideration for the business and the fair value of the net assets.


Mar 31, 2013

1. Basis of preparation of Financial statements

The financial statements are prepared under the historical cost conversion, except for certain fixed assets which are revalued, in accordance with the generally accepted accounting principles in India and the provision of the Companies Act 1956.

2. Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenue and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized

3. Own Fixed Assets (Tangible)

Fixed Assets are stated at cost and includes amount added on revaluation, depreciation of Fixed Assets is recognized in Accumulated Depreciation Account. All cost, includes financing cost till commencement of commercial production. Adjustment arise due to foreign currency exchange rate variations attributable to the Fixed Assets are capitalized.

4. Own Fixed Assets (Capital Work in progress)

Capital work in progress is valued at cost incurred on the work processed till date and includes all the addition made during the current year of process.

5. Depreciation and Amortization

Depreciation on fixed Assets is determined on the straight line method at the rate and the manner prescribed under XIV to the companiesAct. 1956.

6. Foreign currency Transactions

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.

Any Income or expense on account of exchange difference.either on settlement or on translation is recognized in the Profit & Loss

Account.

7. Investment

The Company does not have any kind of Investments at the end of the financial year as all the Investments have been sold out.

8. Inventories

The Company does not have any kind of Inventory during the current year.

9. Revenue Recognition

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection. Dividend Income is recognized when right to receive is established. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.

10. Benefits to Employees

Short-Term benefits to employees are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.

Post employment and other long-term benefits to employees are recognized as expenses in the profit and loss account for the year in which the related service is rendered.

Contribution to provident fund is accounted on accrual basis. Provision for gratuity has been provided for on an arithmetical basis for eligible as per payment of Gratuity Act, 1972 and Leave encashment is accounted on the basis of actuarial valuation techniques.

Actuarial gain and loss in respect of post employment and other long-term benefits are charged to Profit & Los Accounts.

12. Borrowing Cost

The Company did not borrow any amount during the financial year.

13. Provision For Deferred Tax

Deferred tax asset has been provided on the basis of tax computation for the year. CTe''pYciSf ariQ§(fi&tfAly a component of deferred tax assets and liabilities arising on account of timing difference.

14. Goodwill

Goodwill represents the difference between the consideration for the business and the fair value of the net assets.


Mar 31, 2012

1. Basis of preparation of Financial statements

The financial statements are prepared under the historical cost conversion, except for certain fixed assets which are revalued, in accordance with the generally accepted accounting principles in India and the provision of the Companies Act 1956.

2. Own Fixed Assets (Tangible)

Fixed Assets are stated at cost and includes amount added on revaluation, depreciation of Fixed Assets is recognized in Accumulated Depreciation Account. All cost, includes financing cost till commencement of commercial production. Adjustment arise due to foreign currency exchange rate variations attributable to the Fixed Assets are capitalized.

3. Depreciation and Amortization

Depreciation on fixed Assets is determined on the straight line method at the rate prescribed under the Companies Act 1956 and in the manner prescribed in Schedule XIV to the companies Act. 1956.

4. Foreign currency Transactions

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.

Where exchange rate variation relates to acquisition of fixed assets is capitalized or adjusted to the carrying cost of such assets.

Any Income or expense on account of exchange difference either on settlement or on translation is recognized in the Profit & Loss Account.

5. Investment

Current Investments are held on a long term basis. And it carried at lower of cost and Quoted/fair value, computed category wise.

6. Inventories

Item of Inventories, stores/spares are valued at cost.

7. Retirement Benefits to Employees

Contribution to provident fund is accounted on accrual basis.

The provision for gratuity has been provided for on an arithmetical basis for eligible as per payment of Gratuity Act, 1972. Leave encashment is accounted on the basis of actuarial valuation.

8. Goodwill

Goodwill represents the difference between the consideration for the business and the fair value of the net assets.

9. Depreciation:-

Depreciation is calculated as per the rates given in company Act 1956. And the guidelines given in Accounting Standards 6 are followed.

10. Revenue Recognition:-

Revenue has been recognized following Accounting Standard 9. There is no pendency find in respect of the recognition of revenue.

11. Accounting of Fixed Assets:-

Fixed Assets are taken at historical cost and the detail of Gross Block, Net Block and Depreciation is made as per the Accounting Standard 10.

12. Effect of Change in Foreign Currency:-

Income arise due to changes in the rates of foreign currency has been booked following the Accounting Standard 11.

13. Segment Reporting

The company organized its business unit in two reportable segment shipping and port infrastructure. Accounting Standard 17 is duly followed in the process of maintaining the books of accounts of both the units.

Accounting policies are the same as described in significant accounting policies ofthe company.

14. Related Parties Disclosure:-

Accounting Standard 18 required transaction with related parties. During the year there were some transitions occurred with m/s Jagson Airlines limited, Pradeep Oil Corporationd and Jindal service station , shri J P Gupta is key managerial person in all these entities.

15. Deferred tax Liability

As per the direction of Accounting Standard 22, Deferred Tax Asset has been provided on the basis of tax computation for the year. Depreciation is the only a component of deferred tax assets and liabilities arising on account of timing difference. However provision for deferred tax is not considered in case of shipping income because the shipping income is non- taxable due to the provision of section 115 V to 115VZC of income tax act 1961.


Mar 31, 2010

A) Accounting Convention:

The financial statements are prepared under the historical cost convention. The company generally follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except otherwise stated.

b) Revenue/Expenditure:

I. Revenue from sale of tickets is recognized on the basis of actual booking

II. Expenses are accounted for on accrual basis and provisions are made for all known Liabilities.

c) Fixed Assets and Depreciation

I. Fixed Assets are stated at cost of acquisition less accumulated depreciation. I. Depreciation of Fixed Assets is provided on the Straight Line Method at the rates specified in Schedule XIV of the Companies Act, 1956 on prorata basis from the date of acquisition.

d) Long term Investments Investments are stated at cost.

e) Miscellaneous Expenditure

Pre-operative Expenses are to be amortized over a period of 10 years.

f) Retirement Benefits

Retirement Benefits wherever applicable is accounted for on valuation basis.

g) Foreign Currency Transactions

Transactions in Foreign Exchange are accounted for on the prevalent exchange rate on the date of transaction. Outstanding liability in foreign currency as on 31.3.2010 is shown at the exchange rate prevailing as on 31.3.2010

h) Deferred Revenue Expenses

Deferred revenue expenses are amortized over the life of the asset of the becoming operational/put to use.

 
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