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Accounting Policies of International Travel House Ltd. Company

Mar 31, 2017

A. Corporate Information

International Travel House Limited (‘the Company’) commenced its operations in 1981 and is engaged in the business of providing travel related services to corporate travelers in India and abroad. The Company is a public limited company incorporated, domiciled and listed in India and the Company has its registered office at T2, Community Centre, Sheikh Sarai, Phase I, New Delhi 110017, India.

The financial statements are authorized for issue in accordance with a resolution of the Directors on 22nd April, 2017.

B. Basis of Preparation of Financial Statements

a) Statement of Compliance

These financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under section 133 of the Companies Act, 2013 read together with the Companies (Indian Accounting Standards) Rules, 2015 as amended by the Companies (Indian Accounting Standards) (Amendment) Rules, 2016 and are the first financial statements the Company has prepared in accordance with IndAS. Details of the exceptions and optional exemptions availed by the Company and principal adjustments along with related reconciliations are detailed in Note 36 (First Time Adoption).

For the periods up to and including the year ended 31st March, 2016, the Company prepared its financial statements in accordance with accounting standards notified under the section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).

b) Basis of Preparation

The financial statements are prepared in accordance with the historical cost convention except for certain items which are measured at fair values.

The financial statements are presented in INR (Indian Rupees), which is also the Company’s functional currency.

A summary of significant accounting policies is set out below:

c) Operating Cycle

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 Schedule III to the Companies Act, 2013 and Ind AS 1 - Presentation of Financial Statements based on the nature of services and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents.

C. Summary of Significant Accounting Policies

(i) Property, Plant and Equipment

Property, Plant & Equipment are stated at historical cost less accumulated depreciation and impairment charges, if any.

Property, Plant & Equipment are stated at cost of acquisition or construction less accumulated depreciation and impairment, if any. For this purpose, cost includes deemed cost which represents the carrying value of property, Plant and Equipment recognized as at 1st April, 2015 measured as per the previous GAAP

Cost is inclusive of inward freight, duties and taxes and incidental expenses related to acquisition. Expenses capitalized also include applicable borrowing costs for qualifying assets, if any. Subsequent costs are included in the assets carrying amount only when it is probable that future economic benefits associated with the item will be realized. All other repairs and maintenance costs are charged to the Statement of Profit and Loss as incurred.

Items of Property, Plant and Equipment are depreciated in a manner that amortizes the cost of the assets after commissioning (or other amount substituted for cost), on a straight line basis, less its residual value, over their useful lives as specified in Schedule II of the Companies Act, 2013.

Property, Plant and Equipment residual values and useful lives are reviewed, and adjusted if necessary, periodically including at each Balance Sheet date. Such changes are treated as change in accounting estimates.

Property, Plant and Equipment are subject to review for impairment if triggering events or circumstances indicate that this

is necessary. Impairment loss, if any, to the extent the carrying amount of these assets exceed their recoverable amount is charged off to the Statement of Profit and Loss as it arises.

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 accumulated depreciation) had no impairment loss been recognized in previous years.

(ii) Intangible Assets

Intangible assets with finite useful lives are measured at cost less accumulated amortization and accumulated impairment losses, if any, carrying value of intangible assets includes deemed cost which represents the carrying value of intangible assets recognized as at 1st April, 2015 measured as per the previous GAAP. Software is capitalized 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 and is amortized across a period not exceeding 5 years. All other up gradation / enhancements are charged to the Statement of Profit and Loss, unless they bring similar significant additional benefits.

(iii) Foreign Currencies

Transactions in foreign currencies are initially recorded by the Company at the functional currency spot rates at the date the transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date. Differences arising on settlement or translation of monetary items are recognized in Statement of Profit and Loss.

(iv) Financial Instruments Financial Assets

Financial assets are initially measured at fair value. Transaction costs that are directly attributable to the acquisition of financial assets (other than financial assets measured at fair value through profit or loss) are added to or deducted from the fair value on initial recognition of such financial assets.

For purposes of subsequent measurement, financial assets are classified as:

-Debt instruments at amortized cost

-Those measured at Fair Value through Profit or Loss (FVTPL)

A financial asset (or, where applicable, a part of a financial asset) is primarily derecognized when the contractual rights to receive cash flows from the asset have expired or it transfers the financial asset and the transfer qualifies for de-recognition under Ind AS 109.

Financial Liabilities

All financial liabilities are classified as financial liabilities at fair value through profit or loss, loans and borrowings or payables as appropriate.

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.

Loans and Receivables

Loans and Receivables are non derivative financial asset with fixed or determinable payments that are not quoted in an active market. Trade receivables and loans are initially measured at transaction value, which is the fair value. As most of the loans and receivables of the Company are current in nature, subsequent measurement is at cost less appropriate allowance for credit losses. Where significant, noncurrent loans and receivables are accounted for at amortized cost using effective interest rate method less appropriate allowance for credit losses.

Impairment Financial Assets

The Company assesses at each balance sheet date whether a financial asset or a group of financial assets is impaired. Impairment losses are recognized in the profit or loss where there is an objective evidence of impairment based on reasonable and supportable information that is available without undue cost or effort. For financial assets measured at amortized cost, account receivable expected credit losses are measured at an amount equal to the 12 month expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.

Offsetting Financial Instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously.

Fair Value of Financial Instruments

In determining the fair value of its financial instruments, the Company uses methods and assumptions that are based on market conditions and risks existing at each reporting date. The method used to determine fair value include available quoted market prices. The method of assessing fair value result in general approximation of value, and such value may never actually be realized.

(v) Revenue Recognition

The Company provides travel services to corporate travelers in India and abroad. The revenue from rendering these services (other than Productivity Linked Bonus, which is accounted when ascertainable and collection is certain) is recognized in the income statement by reference to the stage of completion. Stage of completion is measured by reference to time elapsed to date as a percentage of total time.

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured and collection is certain. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government.

Revenue from all services i.e. commission received from airlines, hotel reservation, tour & packages and other related services is recognized on net basis except for transport income for which the revenue is recognized on gross basis.

Other Income: Other income comprises interest income, dividend income, gain from fair valuation/ sale of mutual fund investments, and gain on sale of property, plant and equipment. Interest income from financial assets is recognized in Statement of Profit and Loss using the effective interest method. Dividend income is recognized in Statement of Profit and Loss only when the Company’s right to receive payments is established and the amount of dividend can be measured reliably.

(vi) Dividend to Equity Holders

Interim dividend (including income tax thereon) are recognized in the financial statements in the period in which the related dividends are actually paid or, in respect of the Company’s final dividend (including income tax thereon) for the year, when the same are approved by the shareholders.

(vii) retirement and Other Employee Benefits

The Company make contributions to both defined benefit and defined contribution schemes. The defined benefit schemes are mainly administered through duly constituted and approved independent Trusts.

Provident Fund contributions are in the nature of defined contribution scheme. The provident fund is deposited with the Government and recognized as expense.

The Company also operates defined benefit pension, medical and gratuity plans. The cost of providing benefits under the defined benefit obligation is calculated by independent actuary using the projected unit credit method. Service costs and net interest expense or income is reflected in the statement of profit and loss. Gain or Loss on account of re-measurements are recognized immediately through Other Comprehensive Income in the period in which they occur.

The employees of the Company are entitled to compensated leave for which the Company records the liability based on actuarial valuation computed under projected unit credit method. These benefits are unfounded.

(viii) Employee Share-Based Payments

The cost of employee share-based compensation is recognized based on fair value of the options granted under the applicable Stock Option Scheme to employees in the Company.

The Company records this cost as share based payment expense under employee benefits expense, together with a corresponding increase in equity, over the vesting / service period, net of reimbursements if any.

(ix) Leases

Leases are recognized as a finance lease whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating lease.

Lease payments under operating leases are recognized as an expense in the Statement of Profit and Loss. Where relevant, straight lining of lease rentals is done across the term of the lease.

(x) Taxes on Income Current Income Tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date together with any adjustment to tax payable in respect of previous years.

Current income tax relating to items recognized outside profit or loss is recognized outside profit or loss [either in Other Comprehensive Income (OCI) or in equity]. Current tax items are recognized in correlation to the underlying transaction either in OCI or directly in equity

Deferred Tax

Deferred tax is provided on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognized for all taxable temporary differences and deferred tax assets are recognized for all deductible temporary differences to the extent it is probable that future taxable profits will be available against which deductible temporary differences can be utilized. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss (either OCI or in equity). Deferred tax items are recognized in correlation to the underlying transaction either in OCI or directly in equity.

(xi) Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

The expense relating to a provision is presented in the Statement of Profit and Loss, net of any reimbursement.

Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources would be required to settle the obligation, the provision is reversed.

(xii) Contingent Liabilities

Claims against the Company not acknowledged as debts are disclosed after a careful evaluation of the facts and legal aspects of the matter involved.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

2 Use of Estimates and Judgments

The preparation of financial statements in conformity with Ind AS requires management to make estimates, judgments and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the year. A discussion on the critical accounting judgments and key sources of estimation uncertainty is detailed below. Accounting estimates could change from period to period. Actual results could differ from those estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or they are recognized in the period of the revision and future periods if the revision affects both current and future periods.

Judgments in Applying Accounting Policies

In the process of applying the Company’s accounting policies, management has made the following judgments, which have the most significant effect on the amounts recognized in the financial statements:

Estimates and Assumptions

The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below.

(a) Useful Lives of Property, Plant and Equipment and Intangible Assets:

As described in the significant accounting policies, the Company reviews the estimated useful lives of property, plant and equipment and intangible assets at the end of each reporting period.

(b) Actuarial Val uation

The present value of the gratuity, medical and pension are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

(c) Claims, Provisions and Contingent Liabilities:

The Company has ongoing litigations with various regulatory authorities and third parties. Where an outflow of funds is believed to be probable and a reliable estimate of the outcome of the dispute can be made based on management’s assessment of specific circumstances of each dispute and relevant external advice, management provides for its best estimate of the liability. Such accruals are by nature complex and can take number of years to resolve and can involve estimation uncertainty. Information about such litigations is provided in notes to the financial statements.


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.

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