SIGNIFICANT ACCOUNTING POLICIES

A. Basis of Preparation of Financial Statement

The financial statements are brpared under the historical cost convention, except for certain fixed assets which are revalued, in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 2013.

B. Use of Estimates

The brparation of financial statements require 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 revenues 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.

C. Own fixed Assets

Fixed Assets are stated at cost and includes amounts added on revaluation in certain cases determined in the year 1993.

D. Debrciation

Debrciation on fixed assets is provided on straight line method in the manner brscribed in Companies Act, 2013.

E. Foreign Currency Transactions

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

F. Investments Long Term Investments are stated at cost. However, in cases of quoted securities any changes of Market price are ignored considering the same to be temporary reversible in the long run.

G. Inventories

Items of inventories are measured at lower of cost and net realizable value, in conformity with AS-2. Cost of inventories comprises of cost of purchase.

H. Revenue Recognition

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operation includes Sale of goods, Services, Commission, Interest and Rent income. Sale of goods is recognized at the time of sale.

Service in relation to transportation business is recognized at the time of delivery of goods to the ultimate consignee. Commission in relation to Travel Division is recognized on the basis of ticket and package sold to the customer. The system has been changed from past years. In the past year Travel Division revenue has been shown on the basis of total turnover. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable. Rent income is recognized on monthly basis as per Rent agreement.

I. Employees Benefits

The company follows an actuarial valuation annually for the Gratuity accrual to its employees, wherein the incremental value of the liability ascertained at the year end is provided in the books. However during the current year in view of only 10 continuing employees & appointment of few new employees the actuarial valuation was not considered to be necessary and a reasonable estimation was made in respect of the same, over the certified amount as at 31/03/2004.

Whereas in respect of the dues of the employees discharged under voluntary separation scheme, implemented in Kolkata and various other branches, dues if any on gratuity a/c has been considered as a current liability wherein there shall be on further accrual over and above balance as ascertained on 31/03/2003.

J. Provision for Current and Deferred Tax

Due to brought forward and unabsorbed debrciation of the brvious years is so huge that the current year tax is nil but deferred tax liabilities is Rs 113500. But Provision for MAT tax is ascertained and the same is carried forward for future entitlement.

K. Provisions, Contingent Liabilities and Contingent Assets

The disputes and time barred obligations pending before the courts of law, has not been provided for in the books, since the Management is reasonably certain that such claims will not be sustained and are unlikely to have any further material implication on the financial conditions of the company. The estimated amount of such claims not acknowledged as debts aggregates to Rs. 25,80,000/- (Previous year 27, 10,000/-).

In respect of the damages imposed upon by the Provident Fund authorities for certain delay in depositing the monthly contributions, currently under review, the company reasonably believes that genuine grounds for such lapses exists, considering which substantial relief will be extended in favour of the company and as such the incidence of the liability is not readily ascertainable and hence are considered to be of contingent nature.

N. Earnings in Foreign Exchange

There had been foreign exchange outgo of EURO 4539.68 equivalent to Rs. 373776/- and USD 26787.81 equivalent to Rs 1633011.44 during the financial year 2014-2015.