1 Company Overview and Material Accounting Policies
Company Overview
The Company is a Public Limited Company listed on the Bombay Stock Exchange (BSE). The company is engaged in the businesses of travel and travel related services,
working as travel agent and tour operator, Cargo business and enganged in Foreign Exchange business having its registered office at 1st Floor, Naik Building, Opp. Don
Bosco High School, Mahatma Gandhi Road, Panaji North, Goa - 403 001.
Basis of Preparation of Financial Statement
a. Compliance with Ind-AS
These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) on accrual basis under the historical cost convention and the provisions
of the Companies Act 2013 (‘'the Act) The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules,
2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016
The Company has adopted alt the Ind AS standards
Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard
requires a change in the accounting policy hitherto in use.
h. Historical Cost Convention
The financial statements have been prepared on a historical cost basis, except for the following:
1) Certain financial assets and liabilities that are measured at fair value;
2) Assets held for sale - measured at lower of carrying amount or fair value less cost to sell;
3) Defined benefit plans - plan assets measured at fair value;
c. Operating Cycle
All assets and liabilities have been classified as current or non-current as pet the Company’s normal operating cycle (Twelve Months) and other criteria set out in the
Schedule III to the Act.
d. Rounding of amounts
Ail amounts disclosed in the Financial Statements and Notes have been rounded off to the nearest lakhs as per the requirement of Schedule III, unless otherwise stated.
e. Use of estimates
Preparation of the financial statements in conformity with Ind AS requires management to make estimates and assumptions that could affect the accounting policies and
Ihe reported amounts of assets and liabilities, the disclosures of contingent assets, liabilities, revenues and expenses during the reported periods. Actual results could differ
from those estimates. Appropriate changes in estimates are reflected in financial statements in the period in which changes are made and, if material, their effects are
disclosed in the notes to the financial statements.
2 Summary of Significant Accounting Policies
(i) Property, plant and equipment
The Company has applied for the one time transition exemption of considering the carrying cost on the transition date i e. April t, 2016 as the deemed cost under IND AS.
Hence, regarded thereafter as historical cost
Freehold land is carried at cost All other items of property, plant and equipment are stated at cost less depreciation and impairment, if any. Historical cost includes
expenditure that is directly attributable to the acquisition of the items
Subsequeni costs are included in the asset’s canying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits
associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate
asset is derecognised when replaced All other repairs and maintenance ate charged to the Statement of Profit and Loss during the reporting peiiod in which they are
incurred.
(ii) Depreciation methods, estimated useful lives and residual value
Depreciation is provided on Written Down Value Method over the estimated useful lives of assets.
(iii) Revenue Recognition
Revenue is measured based on transaction price, which is the consideration paid for services. Revenue is recognised upon tranfer of control of promised services to
customers in an amount that reflects the consideration which the company expects to receive in exchange for those sevices. Revenue from rendering of services is net of
indirect taxes and discounts,
(a) Income from Operations
The Company earns revenue from travel and related services and financial services
(i) Financial Services
It Comprise of income arising from the buying and selling of foreign currencies on ther net margins earned, commission on sale of foreign currency denominated prepaid
cards, incentives earned in relation to these cards. Revenue from financial services are recognized by reference to the time of services rendered.
(ii) Travel and Related Services
It comprises of leisure tours packages within India and outside india along with travel related services viz travel insurance and visa services, Revenue on leisure
tours/holiday's packages are recognized on the completion of the performance obligation which is on the date of departure of the tour. It also includes income from the sale
of airline tickets which is recognized as an agent on the basis of net commission earned, at the time of issuance of tickets, as the company doen not assume any
performance obligation post the confirmation of the issuance of an airline ticket to the cutomer performance obligations under the schemes are achieved,
(iii) Rental Income
Income from other sources is mainly comprised of Rental income which is accounted on accrual basis.
(iv) Income from Cargo
Revenue is recognized only when risk and rewards incidental to ownership are transferred to the customer; it can reliably measure to expect ultimate collection, Revenue
from operations includes collection on account of freight, servises, adjusted for discount (net).
(iv) Investments
(i) Investments in subsidiaries, joint ventures and associates
Investments in subsidiaries, joint ventures and associates are recognised at cost as per Ind AS 27
(ii) Investments and other financial assets
The Company classifies its financial assets in the following measurement categories:
(a) Those to be measured subsequently at fair value (either through other comprehensive income, or through the Statement of Profit and Loss).
(b) Those measured at amortised cost
Profit or Loss on sale of long-term investments is arrived at after deducting the average carrying amount of the total holding of investments on the date of sale
(v) Financial instruments
Financial assets and financial liabilities are initially measured at fair value except trade receivables that are recognized at Transaction price, including any
amount collected on behalf of third parties. Transaction costs that are directly attributable to the acquisition of financial assets and financial liabilities
(other than financial assets and financial liabilities measured at fair value through profit or loss) arc added to or deducted from the fair value on initial
recognition of such financial assets and financial liabilities.
Financial Assets
Financial assets carried at amortised cost
A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash
flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding.
Financial assets at lair value through other comprehensive income
A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both
collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that ate solely
payment of principal and interest on the principal amount outstanding
Financial assets at fair value through statement of profit and loss
A financial asset which is not classified in any of the above categories is subsequently adjusted for fair value through the statement of profit and loss.
Financial liabilities
Financial liabilities are subsequently carried at amortised cost using the effective interest method. For trade and other payables maturing within one year from the balance
sheet date, the carrying amounts are recorded at transaction value
Derecognition of Financial Instruments
The Company derecognises a financial asset when the contractual rights to the cash flow from the financial asset expires or it transfers the financial asset and (he financial
asset qualifies for derecognition under Ind AS 109. A financial liability or part of financial liability is derecognised from the Company's Balance Sheet when the
obligation mentioned in the contract is discharged or cancelled or expires.
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a. Noii-financial assets
Intangible assets and property, plant and equipment
Intangible assets and property, plant and equipment are evaluated (or recoverability whenever events or changes in circumstances indicate that their carrying amounts may
not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e., the higher of the fair value less cost to sell and the value-in-use) is determined on
an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is
determined for the Cash Generating Unit (CGU) to which the asset belongs.
If such assets are considered to be impaired, the impairment to be recognised in the statement of profit and loss is measured at the amount by which the canying value of
the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in the statement of profit and loss if there has been a change in the
estimate used to determine the recoverable amount. The canying amount of the asset is increased to its revised recoverable amount, provided that this amount does not
exceed the carrying amount that would have been determined (net off any accumulated amortisation or depreciation) had no impairment loss been recognised for the asset
in prior years.
b. Financial Assets:
The Company recognises loss allowance for Financial Assets which are not adjusted for Fair Value through the Statement of Profit and Loss The amount of expected credit
loss (or reversal) that requires an adjustment is treated as an impairment gain or loss in the statement of profit and loss
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