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

Accounting Policies of Mahasagar Travels Ltd. Company

Mar 31, 2014

1 Basis of Prepration:

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under historical cost convention on accural basis. These financial Statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C) [Companies (Accounting Standards) Rules, 2006, as amended] and other relevant provisions of the Companies Act, 1956.

2 Use of Estimates:

The preparation of financial statements, In conformity with generally accepted accounting principles, requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reporting period.

3 Fixed assets

Fixed Assets are stated at cost of acquisition / construction inclusive of freight, duties, taxes and incidental expenses, Major repairing, body building Expenses and new Vehicle Finance charges and less net consideration of Sales proceeding.

4 Depreciation

Fixed Assets are stated at cost less depreciation. The Company computes depreciation of all fixed assets using Written Down Value method as prescrived under Schedule XIV of the Companies Act, 1956. Cost include all expenses incurred to bring the assets to its present location and condition.

5 Investment:

Long term investments are stated at cost less provision for the dimuation other than temporary, if any, in the value of such investmentss. In respect of unquoted long term investment made by the Company, Company has made Investment in the shares at face value. In the opinion of Board of Directors it will be realized in the ordinary course of business and no provision is required.

6 Valuation of Inventory:

Closing stock of consumable is valued at cost price. Closing stock of Petroleum division is valued at cost price. Consumption or usage of Inventory like Tyres, Battries and spare parts for Travel Business has been accounted in Direct Expenses as Opening Inventory Add Purchase less Closing Inventory.

7 Revenue Recognization:

To recognize revenue i.e. Travles Income , luggage income are accounted for on completion of service inclusive of service tax. Other revenue i.e. Interest on Deposits, Sale of Petroleum Division of stock is recognize on accural basis.

8 Retirement Benefits:

Contribution to provident fund and ESI are paid as a percentage of Salary/Wages.

9 Accounting for Taxes on Income:

Provision for MAT Tax has been made as per rules applicable. Differed Tax resulting from timing difference between book and tax profits is accounted for under the liability method, at the current rate of tax, to the extent that the timing differences are expected reverse. Deferred tax assets are recognized and carried forward only if there is a reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective caring values at each balance sheet date.

10 Borrowing Cost

Borrowing Cost directly attributed to the acquisition of Vehicles are capitalized as part of the cost of that asset.

12 Provisions, Contingent liabilities and Contingent Assets:

A provision is recognize when Company has its present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Contingent liabilities are not recognized in the financial statments. A contingent Assets is neither recognize nor disclosed in the financial staments.

13 In the opinion of the Board of Directors, the current assets, loans and advances have a value on realisation, atleast equal to the amount stated in the Balance Sheet. In the opinion of Board of Directors, current Assets, Loans and Advances are considered good and recoverable in cash or in kind and will be realised in the ordinary course of business and board confirms provisions for all known liabilities are made adequately.

14 Claims made by the company with general insurance company arising out of accident of bus at different times out of which some are pending for settlement by the insurance company. Amount incurred ( Net of insurance claims ) on accidents of bus are charged to Profit & Loss Account.

15 No any Foreign Exchange has been earned nor spent during the year. No any Foreign Expenditure has been made.

16 Based on the information available with the management, the Company does not owe any sum to a small-scale industrial undertaking as defined in clause (i) of section 3 of the Industries (Development and Regulation Act), 1951.

17 The company had acquired assets (Referred in Schedule " 10 (1) " Majewadi Gate work - shop through execution of Memorandum of Understanding and paid part of the payment towards the acquisition of such assets.

18 Figures have been regrouped in order to comply with the requirment of Revised Schedule VI.

19 The Segment Report Of Mahasagar Travels Ltd. And its division of Petroleum has been prepared in accordance with Accounting Standard 17 "Segment Reporting" issued by The Institute of Chartered Accountants of India.

20 Differed Taxation

The management, as a matter of prudence has not recognized net deferred tax assets in respect of unabsorbed/carried forward balances of period up to 31st March, 2014.

21 (i) Parties where control exist

NIL

(ii) Other parties with whom the company has entered into transaction in normal course of Business during the year.


Mar 31, 2012

1 System of Accounting

The financial statements of the company are prepared in accordance with The mercantile system and historical cost basis and confirm to the statutory provisions and accepted accounting practices prevailing in the country except as otherwise stated below. 2 Basis of Accounting All Income and Expenditure items having a material bearing on the financial statements are recognised on accrual basis. 3 Fixed assets

Fixed Assets are stated at cost of acquisition / construction inclusive of freight, duties, taxes and incidental expenses, Major repairing, body building Expenses and new Vehicle Finance charges and less net consideration of Sales proceeding.

4 Depreciation

Company has provided depreciation on fixed assets on WDV method. As Opening WDV Block add Purchase Cost, Less net Sales consideration of assets sold.

5 Investment:

Investment shown in Balance Sheet is valued at cost basis.

6 Valuation of Inventory:

Closing Stock of Tyers & Other Spares Materials are valued at cost basis . Petroleum Stock is valued at cost price.

7 Travel, Luggage Income and Petroleum Income

Travel & Luggage income as well as petroleums division''s income are accounted on accrual basis.

8 Retirement Benefits:

Contribution to provident fund and ESI are paid as a percentage of Salary/Wages.

9 Accounting for Taxes on Income:

Provision for MAT Tax has been made as per rules applicable. Differed Tax resulting from timing difference between book and tax profits is accounted for under the liability method, at the current rate of tax, to the extent that the timing differences are expected reverse. Deferred tax assets are recognized and carried forward only if there is a reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective caring values at each balance sheet date.

10 Borrowing Cost

Borrowing Cost directly attributed to the acquisition of Vehicles are capitalized as part of the cost of that asset.

11 Miscellaneous Expenditure :

Preliminary and share issue expenses of the company has been written off over a period of ten years from the year of commencement of commercial activities, During the current year it is Nil.

12 Consumption of Inventory

Consumption or usage of Inventory like Tyres, Battries and spare parts for Travel Business has been accounted in Direct Expenses as Opening Inventory Add Purchase less Closing Inventory.


Mar 31, 2011

1 System of Accounting

The financial statements of the company are prepared in accordance with The mercantile system and historical cost basis and confirm to the statutory provisions and accepted accounting practices prevailing in the country except as otherwise stated below.

2 Basis of Accounting

All Income and Expenditure items having a material bearing on the financial statements are recognized on accrual basis.

3 Fixed assets

Fixed Assets are stated at cost of acquisition / construction inclusive of freight, duties, taxes and incidental expenses, Major repairing, body building Expenses and new Vehicle Finance charges and less net consideration of Sales proceeding.

4 Depreciation

Company has provided depreciation on fixed assets on WDV method. As Opening WDV Block add Purchase Cost, Less net Sales consideration of assets sold.

5 Investment:

Investment shown in Balance Sheet is valued at cost basis.

6 Valuation of Inventory:

Closing Stock of Tiers & Other Spares Materials are valued at cost basis . Petroleum Stock is valued at cost price.

7 Travel. Luggage Income and Petroleum Income

Travel & Luggage income as well as petroleum division's income are accounted on accrual basis.

8 Retirement Benefits:

Contribution to provident fund and ESI are paid as a percentage of Solaria/ages.

9 Accounting for T axes on Income:

Provision for MAT has been made as per rules applicable. Differed Tax resulting from timing difference between book and tax profits is accounted for under the liability method, at the current rate of tax, to the extent that the timing differences are expected reverse. Deferred tax assets are recognized and carried forward only if there is a reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective caring values at each balance sheet date.

10 Borrowing Cost

Borrowing Cost directly attributed to the acquisition of Vehicles are capitalized as part of the cost of that asset.

11 Miscellaneous Expenditure:

Preliminary and share issue expenses of the company has been written off over a period of ten years from the year of commencement of commercial activities, During the current year it is Nil.

12 Consumption of Inventory

Consumption or usage of Inventory like Tires, Batteries and spare parts for Travel Business has been accounted in Direct Expenses as Opening Inventory Add Purchase less Closing Inventory.


Mar 31, 2010

1 System of Accounting

The financial statements of the company are prepared in accordance with The mercantile system and historical cost basis and confirm to the statutory provisions and accepted accounting practices prevailing in the country except as otherwise stated below.

2 Basis of Accounting

All Income and Expenditure items having a material bearing on the financial statements are recognised on accrual basis.

3 Fixed assets

Fixed Assets are stated at cost of acquisition / construction inclusive of freight, duties, taxes and incidental expenses, Major repairing, body building Expenses and new Vehicle Finance charges and less net consideration of Sales proceeding.

4 Depreciation

Company has provided depreciation on fixed assets on WDV method. As Opening WDV Block add Purchase Cost, Less net Sales consideration of assets sold.

5 Investment:

Investment shown in Balance Sheet is valued at cost basis.

6 Valuation of Inventory:

Closing Stock of Tiers & Other Spares Materials are valued at cost basis . Petroleum Stock is valued at cost price.

7 Travel, Luggage Income and Petroleum Income

Travel & Luggage income as well as petroleum''s division''s income are accounted on accrual basis.

8 Retirement Benefits:

Contribution to provident fund and ESI are paid as a percentage of Salary/Wages.

9 Accounting for Taxes on Income:

No provision for Income Tax is made due to Loss as per the Income Tax Act, 1961. Provision for MAT has been made as per rules applicable. Differed Tax resulting from timing difference between book and tax profits is accounted for under the liability method, at the current rate of tax, to the extent that the timing differences are expected reverse. Deferred tax assets are recognized and carried forward only if there is a reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective caring values at each balance sheet date.

10 Borrowing Cost

Borrowing directly attributed to the acquisition of Vehicles are capitalized as part of the cost of that asset.

11 Miscellaneous Expenditure :

Preliminary and share issue expenses of the company has been written off over a period often years from the year of commencement of commercial activities. During the current year it is Nil.

12 Consumption of Inventory

Consumption or usage of Inventory like Tyres, Batteries and spare parts for Travel Business has been accounted in Direct Expenses as Opening Inventory Add Purchase less Closing Inventory.

 
Subscribe now to get personal finance updates in your inbox!