1 SIGNIFICANT ACCOUNTING POLICIES
Company Overview
NatureWings Holidays Limited was incorporated on 19th December, 2018. Formerly, known as Naturewings Holidays Private
Limited which was converted into NATUREWINGS HOLIDAYS LIMITED and Registered office of the Company is located
at DGK-417, DLF Galleria, 4th floor, New Town, Action Area-1, Kolkata-700156, West Bengal. NatureWings is dedicated to
providing high-quality tourism services to individuals seeking a very specialized and curated leisure holiday experience. The
company specializes in Himalayan territories like Bhutan, Nepal, Himachal, Kashmir, Ladakh, Sikkim, Darjeeling, Arunachal &
Meghalaya and caters to the luxury travelers from all across India seeking different types of leisure holidays, such as family
vacations, adventure tours, cultural tours, wildlife tours, etc.
2 Basis of Preparation of Financial Statements
(a) The financial statements are prepared in accordance with Generally Accepted Accounting Principles (Indian GAAP) under the
historical cost convention on accrual basis and on principles of going concern. The accounting policies are consistently applied by
the Company.
(b) The financial statements are prepared to comply in all material respects with the Accounting Standards specified under section
133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and provisions of Companies Act, 2013.
(c) The preparation of the financial statements requires estimates and assumptions to be made that affect the reported amounts of
assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the
reporting period.
2.1 a) Use of Estimates
The preparation of the financial statements in conformity with generally accepted accounting principles in India requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during
the reporting period. The Company's most significant estimates include those on the useful life of assets, deferred taxes and
provision for taxes. Management believes that the estimates used in the preparation of the financial statements are prudent and
reasonable. Actual results could differ from these estimates. Appropriate changes in estimates are made as management becomes
aware of changes in circumstances surrounding the estimates.
b) Going Concern
Accordingly, these financial statements have been prepared on a going concern basis i.e. the assets and liabilities are recorded on
the basis that the Company will be able to realize its assets and discharge its liabilities in the normal course of the business.
c) Current-Non-Current classification
Assets
An asset is classified as current when it satisfies any of the following criteria:
a. it is expected to be realised in, or is intended for sale or consumption in, the company's normal operating cycle;
b. it is held primarily for the purposes of being traded;
c. it is expected to be realised within 12 months after the reporting date; or
d. it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after
the reporting date.
Current assets include the current portion of non-current financial assets. All other assets are classified as non-current
Liabilities
A liability is classified as current when it satisfies any of the following criteria:
a. it is expected to be settled in the company's normal operating cycle;
b. it is held primarily for the purposes of being traded;
c. it is due to be settled within 12 months after the reporting date; or
d. the company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting
date.
Current liabilities include the current portion of non-current financial liabilities.
All other liabilities are classified as non-current.
d) Property, Plant and Equipment
Property, plant and equipment are stated at cost less accumulated depreciation. Cost includes all incidental costs related to
acquisition and installation, other pre-operative costs and interest on borrowed funds, if any, used to finance the acquisitions of
fixed assets and is capitalized up to the date the assets are ready for commercial use.
Depreciation is provided over the estimated useful life of the assets using written down value method. The rates of depreciation
used are those which have been calculated as per the method specified in Schedule II of the Companies Act, 2013. The new
Companies Act prescribes that the asset should be written off over its useful life as estimated by the management and provides the
indicative useful lives for the different class of assets. Other assets are depreciated over their balance useful life.
The useful life as per Schedule II for the different category of assets recognized in the books as under :
1. Furniture & Fixtures - 10 years
2. Computers - 3 years
3. Vehicle - 8 years
4. Building - 60 years
e) Impairment of assets
The carrying values of assets / cash generating units at each balance sheet date are reviewed for impairment if any indication of
impairment exists.
If the carrying amount of the assets exceed the estimated recoverable amount, an impairment is recognized for such excess
amount. The impairment loss is recognized as an expense in the statement of profit and loss, unless the asset is carried at revalued
amount, in which case any impairment loss of the revalued asset is treated as a revaluation decrease to the extent a revaluation
reserve is available for that asset.
When there is indication that an impairment loss recognized for an asset (other than a revalued asset) in earlier accounting periods
no longer exists or may have decreased, such reversal of impairment loss is recognized in the Statement of Profit and Loss, to the
extent the amount was previously charged to the Statement of Profit and Loss. In case of revalued assets such reversal is not
recognized.
f) Revenue Recognition
Revenue/income are recognised generally when services to the customer is completed. Expenditure is accounted for when related
service to the customer is completed. Lease rent paid for hotel booking have been booked to expenditure either on occupancy by
customer or on completion of agreement. Income from Commission and interest on investment have been recognised on accrual
basis.
g) Provision for Current and Deferred Tax
Current Tax: Provisions for Current Tax is made at the current rate of tax after taking into consideration benefits admissible
under the provisions of the Income Tax Act, 1961.
Deferred Tax: Deferred tax resulting from "timing difference" between book and taxable profit is accounted for using the tax
rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognised
and carried forward only to the extent that there is a reasonable certainty that the assets will be realised in future.
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