NOTE NO. 1: Summary of Significant Accounting Policies
I. Company Overview
Sailani Tours N Travels Limited (formerly called Sailani Tours N Travels Private Limited) is a public
company domiciled in India and registered under the provisions of Companies Act 2013.The Company
is listed Bombay Stock Exchange under SME Platform on S1'1 July 2022
II. Basis of Preparation of Standalone Financial Statements
The standalone financial statements are prepared and presented under the historical cost convention
on accrual basis of accounting in accordance with generally accepted accounting principles in India
("Indian GAAP") and comply in all material respects with the mandatory Accounting Standards ("AS")
prescribed under Section 133 of the Companies Act, 2013 ("the Act") read with (the Companies
(Accounting Standards) Rules, 2021, and with the relevant provisions of the Act and pronouncements
of the Institute of Chartered Accountants of India (“ICAI"). The accounting policies have been
consistently applied by the Company and are consistent with those used in the previous year.
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 Act. Based on the nature of the work, the
Company has ascertained its operating cycle as up to twelve months for the purpose of current and
non-current classification of assets and liabilities.
The Standalone Financial Statements have been prepared in Indian Rupees (INR), which is also the
Company's functional currency. All financial information presented in INR has been rounded off to
nearest thousands as per requirements of Schedule III, unless otherwise stated.
III. Use of Estimates
The preparation of standalone financial statements is in conformity with generally accepted accounting
principles, which requires the management of the Company to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of liabilities at the date of the
standalone financial statements and the results of operations during the reporting periods. Although
these estimates are based upon management's best knowledge of current events and actions, actual
results could differ from those estimates Significant estimates used by management in the preparation
of these standalone financial statements include the estimates of the economic useful lives of the
property, plant and equipment, provisions for bad and doubtful debts and employee benefits. Any
revisions to accounting estimates are recognised prospectively.
IV. Property, Plant and Equipment
Property, plant and equipment (“PPE") are stated at cost, net of depreciation. The cost of an asset
comprises its purchase price and any cost directly attributable for bringing the asset to its working
condition and location for its intended use Subsequent expenditures, if any, related to an item of PPE
are added to its book value only if they increase the future benefits from existing asset beyond its
previously assessed standard of performance.
The cost of property, plant and equipment not ready for its intended use at each reporting date a
disclosed as capital work in progress. At the point when asset is operating at management intended
use, the cost of construction is transferred to appropriate category of property, plant and equipme
and deprecation commences.
Property, Plant and Equipment is derecognised on disposal or when no future benefits are expected f
Its use. Any gain or loss arising on derecognition of assets (calculated as the difference between the
net disposal proceeds and the carrying amount of the assets) is recognised in other income/expenses
in the statement of profit and loss in the year the asset us derecognised.
The cost of intangible assets not ready to use at the end of the reporting date are classified
intangible assets under development.
At the point when asset is operating at management intended use, the cost of construction
transferred to appropriate intangible assets and deprecation commences.
V. Depreciation and amortisation
Depreciation on Property, Plant and Equipment is determined using the Straight-Line Method on pr
rata basis based on the useful life of the asset as prescribed under Schedule II of the Companies Ac
2013.
VI. Foreign Currency Transactions
Foreign currency transactions are accounted for at the exchange rate prevailing on the date of tt
transaction. Exchange differences arising due to the differences in the exchange rate between tt
transaction date and the date of settlement of any monetary item is recognised in the statement
profit and loss.
Monetary assets and liabilities denominated in foreign currency are translated at the exchange ra
prevalent at the date of the balance sheet and resultant gain/loss, if any, is recorded as an income •
expense in the period in which they arise.
VII. Revenue Recognition:
a) Revenue is recognised on completion and availment of underlying service
b) Project in Progress is accounted on accrual basis
c) Interest income is recognised on a time proportionate basis taking into account the amou
outstanding and the rate applicable
VIII. Cash & Cash Equivalents:
Cash and cash equivalents comprise cash and deposit with banks. The Company considers all high
liquid investments at the time of purchase with a remaining maturity of three months or less and th
are readily convertible to known amounts of cash to be cash equivalents.
IX. Inventories:
Inventories are measured at cost and net realisable value whichever is lower.
X. Gratuity
Gratuity is accounted in books as per provisions of “Payment of Gratuity Act ,1972"
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XI. Taxes on Income:
Tax Expense comprises of current tax and deferred tax.
(a) Current tax ,
The tax expense comprises of current taxes and deferred taxes. Current tax is the amount of
income tax determined to be payable in respect of taxable income for a period as per the provisions
of the Income-tax Act, 1961 ("IT Acf).
(b) Deferred tax .
Deferred tax is the effect of timing differences between taxable income and accounting income that
originate in one period and are capable of reversal in one or more subsequent periods. Deferred
tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the
balance sheet date. Deferred tax assets are reviewed at each balance sheet date and
recognised/derecognised only to the extent that there is reasonable/ virtual certainty, depending
on the nature of the timing differences, that sufficient future taxable income will be available against
which such deferred tax assets can be realised.
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