Notes to Accounts of Mahasagar Travels Ltd.

Mar 31, 2024

SEGMENT INFORMATION: i) Description of Segments:

IND AS 108 establishes standards for the way that public business enterprises report information about operating segments and related disclosures about products, Services, geographical area etc. The company is predominatly providing passenger transport service. Company is having two petrol pump at Junagadh. Following are the financial details of segment.

5) Provision has been made for Taxation Amount Of Rs. 600000 for the current fainancial year 2023-24 in the Book of Accounts.

6) Interhead change has been made for depreciation amount to the tune of Rs.52223.88 between Building at Sukhpur and Plot of Land at Sukhpur in the Schedule of Fixed Asstes (Travels Division).

SIGNIFICANT ACCOUNTING POLICIES:

1) Statement of Compliance:

The financial statements of the Company have been prepared in accordance with Indian Accounting Standard ("Ind AS") notified under the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016 read with section 133 of the Companies Act, 2013.

2) Basis of preparation and presentation:

The financial statements have been prepared on accrual basis under the historical cost convention method.

3) Use of estimates and judgments:

The preparation of financial statements in conformity with Ind AS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amount of assets and liabilities, revenues and expenses and disclosure of contingent liabilities. Such estimates and assumptions are based on management''s evaluation of relevant facts and circumstances as on the date of financial statements. The actual outcome may diverge from these estimates.

Estimates and assumptions are reviewed on a periodic basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

4) Property plant & equipments:

Land and buildings held for use in the production or supply of goods or services, or for administrative purposes, are stated at cost less accumulated depreciation and accumulated impairment losses. Freehold land is not depreciated.

Property, plant and equipment are carried at cost less accumulated depreciation and impairment losses, if any. The cost of property, plant and equipment comprises its purchase price/ acquisition cost, net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the asset ready for its intended use, other incidental expenses and interest on borrowings attributable to acquisition of qualifying property, plant and equipment up to the date the asset is ready for its intended use.

Three offices held at Rajkot is transferred to Investment property. Those offices are held for the purpose of earning rental income from such offices. WDV at 01.04.2016 was considered as deemed cost of the assets.

5) Investment property:

Investment properties are properties held to earn rentals and/or for capital appreciation. Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured in accordance with Ind AS 16''s requirements for cost model.

An investment property is derecognised upon disposal or when the investment property is permanently

withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of the property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period in which the property is derecognised

6) Depreciation:

Depreciable amount for assets is the cost of an asset, or other substituted for cost, less its estimated residual value. The company depreciates property, plant and equipment over the estimated useful life prescribed in Schedule II to the 2013 Act on a straight line basis from the date assets are ready for intended use.

7) Provisions and contingencies:

Provision: provision is recognised when the Company has a present obligation as a result of past events and 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.

Contingent liabilities: Contingent liabilities are not recognised but are disclosed in notes to accounts. Contingent Assets: Contingent asset is neither recognized nor disclosed in balance sheet.

8) Taxation:

Current tax: The current tax is based on taxable profit for the year. Taxable profit differs from ''profit before tax'' as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is highly probable that future economic benefit associated with it will flow to the Company.

9) Revenue recognition

To recognize revenue i.e. Travels Income, luggage income are accounted for on accrual basis. Other revenue i.e. Interest on Deposits, Sale of Petroleum Division of stock is recognize on accural basis.

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Mar 31, 2014

1. Contingent Liability not provided for:

Commitment. Contingent liabiltv & Other Guarantee:

a) Commitment: Nil Nil

b) Contingent liabilities:

(I) Income Tax matter under Appeal* 6,508,160.00 6,508,160.00

(II) Service Tax Demand# 18,871,086.00 0.00

C) Other Gurantee: Nil Nil

* Based on the decisions of the Appellate authorities and the interpretations of other relevant provisions, the Company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made

# In respect of Service Demand( inclusive of penalty ), on the basis of advice received, the management is of the view that the amount is likely to be deleted or get reduced substantially.

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Mar 31, 2013

1 Figures have been regrouped in order to comply with the requirment of Revised Schedule VI.

2 In respect of unquoted long term investment made by the Company, Company has made Investment in the shares at face value. In the opinion of Board of Directors it will be realized in the ordinary course of business and no provision is required.

3 No any Loans & Advances made u/s. 301.

4 In the opinion of the Board of Directors, the current assets, loans and advances have a value on realisation, atleast equal to the amount stated in the Balance Sheet. In the opinion of Board of Directors, current Assets, Loans and Advances are considered good and recoverable in cash or in kind and will be realised in the ordinary course of business and board confirms provisions for all known liabilities are made adequately.

5 Claims made by the company with general insurance company arising out of accident of bus at different times, are pending for settlement by the insurance company. Amount incurred ( Net of insurance claims ) on accidents of bus are charged to Profit & Loss Account.

6 Based on the information available with the management, the Company does not owe any sum to a small-scale industrial undertaking as defined in clause (i) of section 3 of the Industries (Development and Regulation Act), 1951.

7 Closing Stock of Tyres & Other Materials are valued at cost basis. Stock of Petroleum Business are valued at Cost Basis.

8 No any Foreign Exchange has been earned nor spent during the year. No any Foreign Expenditure has been made.

9 The company had acquired assets (Referred in Schedule " 4 " ) Majewadi Gate work – shop through execution of Memorandum of Understanding and paid part of the payment towards the acquisition of such assets.

10 The Segment Report Of Mahasagar Travels Ltd. And its division of Petroleum has been prepared in accordance with Accounting Standard 17 "Segment Reporting" issued by The Institute of Chartered Accountants of India.

11 Differed Taxation

The management, as a matter of prudence, has not recognized net deferred tax assets in respect of unabsorbed/carried forward balances of period up to 31st March, 2013.

12 (i) Parties where control exist NIL

(ii) Other parties with whom the company has entered into transaction in normal course of Business during the year.

(1) Associates (i) Mahashakti Tours & Travels Pvt Ltd (ii) New shakti travels (iii) Noble Creators

(2) Key Management Personal: Bhagchand G. Sukhvani - Managing Director

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Mar 31, 2012

1 Figures have been regrouped in order to comply with the requirment of Revised Schedule VI.

2 In respect of unquoted long term investment made by the Company, Company has made Investment in the shares at face value. In the opinion of Board of Directors it will be realized in the ordinary course of business and no provision is required.

3 No any Loans & Advances made u/s. 301.

4 In the opinion of the Board of Directors, the current assets, loans and advances have a value on realisation, atleast equal to the amount stated in the Balance Sheet. In the opinion of Board of Directors, current Assets, Loans and Advances are considered good and recoverable in cash or in kind and will be realised in the ordinary course of business and board confirms provisions for all known liabilities are made adequately.

5 Claims made by the company with general insurance company arising out of accident of bus at different times, are pending for settlement by the insurance company. Amount incurred ( Net of insurance claims ) on accidents of bus are charged to Profit & Loss Account.

6 Based on the information available with the management, the Company does not owe any sum to a small-scale industrial undertaking as defined in clause (i) of section 3 of the Industries (Development and Regulation Act), 1951.

7 Closing Stock of Tyres & Other Materials are valued at cost basis. Stock of Petroleum Business are valued at Cost Basis.

8 No any Foreign Exchange has been earned nor spent during the year. No any Foreign Expenditure has been made.

9 The company had acquired assets (Referred in Schedule "4" ) Majewadi Gate work – shop through execution of Memorandum of Understanding and paid part of the payment towards the acquisition of such assets.

10 The Segment Report Of Mahasagar Travels Ltd. And its division of Petroleum has been prepared in accordance with Accounting Standard 17 "Segment Reporting" issued by The Institute of Chartered Accountants of India.

11 Differed Taxation

The management, as a matter of prudence, has not recognized net deferred tax assets in respect of unabsorbed/carried forward balances of period up to 31st March, 2012.

12 (i) Parties where control exist

NIL

(ii) Other parties with whom the company has entered into transaction in normal course of Business during the year.

(1) Associates

(i) Mahashakti Tours & Travels Pvt Ltd

(ii) New shakti travels

(iii) Noble Creators

(2) Key Management Personal:

Bhagchand G. Sukhvani - Managing Director

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Mar 31, 2011

1 Figures have been regrouped / Rearrange wherever required.

2 In respect of unquoted on term investment made by the Company, Company has made Investment in the shares at face value. In we opinion of Board of Directors it will be realized in the ordinary course of business and no provision is required.

3 No any Loans & Advances made u/s. 301.

4 In the opinion of the Board of Directors, the current assets, loans and advances have a value on realization, at least equal to the amount stated in the Balance Sheet. In the opinion of Board of Directors, current Assets, Loans and Advances are considered good and recoverable in cash or in kind and will be realized in the ordinary course of business and board confirms provisions for all known liabilities are made adequately.

5 Claims made by the company with general insurance company arising out of accident of bus at different times, are pending for settlement by the insurance company. Amount incurred ( Net of insurance claims ) on accidents of bus are charged to Profit & Loss Account.

6 Based on the information available with the management, the Company does not owe any sum to a small-scale industrial undertaking as defined in clause (i) of section 3 of the Industries (Development and Regulation Act), 1951.

7 Closing Stock of Tyros & Other Materials are valued at cost basis. Stock of Petroleum Business are valued at Cost Basis.

8 No any Foreign Exchange has been earned nor spent during the year. No any Foreign Expenditure has been made.

9 The company had acquired assets (Referred in Schedule “ 4 ”) Majewadi Gate work - shop through execution of Memorandum of Understanding and paid part of the payment towards the acquisition of such assets. The management of the company informs us that final sale deed in favor of the company will be executed in due course.

10 Differed Taxation

The management as a matter of prudence, has not recognized net deferred tax assets in respect of unabsorbed / carried forward balances of period up to 31st March, 2011.

List of Related Parties transaction :

(i) Parties where control exist NIL

(ii) Other parties with whom the company has entered into transaction in normal course of Business during the year.

(1) Associates

(i) Mahashakti Tours & Traveis Pvt Ltd

(ii) New shakti Travels

(2) Key Management Personal:

Bhagchand G. Sukhvani - Managing Director

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Mar 31, 2010

1 Figures have been regrouped / Rearrange wherever required.

2 In respect of unquoted long term investment made by the Company, Company has made Investment in the shares at face value. In the opinion of Board of Directors it will be realized in the ordinary course of business and no provision is required.

3 No any Loans & Advances made u/s. 301.

4 In the opinion of the Board of Directors, the current assets, loans and advances have a value on realisation, at least equal to the amount stated in the Balance Sheet. In the opinion of Board of Directors, current Assets, Loans and Advances are considered good and recoverable in cash or in kind and will be realised in the ordinary course of business and board confirms provisions for all known liabilities are made adequately

5 Claims made by the company with general insurance company arising out of accident of bus at different times, are pending for settlement by the insurance company. Amount incurred ( Net of insurance claims ) on accidents of bus are charged to Profit & Loss Account.

6 Based on the information available with the management, the Company does not owe any sum to a small-scale industrial undertaking as defined in clause (i) of section 3 of the Industries (Development and Regulation Act), 1951.

7 Closing Stock of Tyres & Other Materials are valued at cost basis. Stock of Petroleum Business are valued at Cost Basis.

8 No any Foreign Exchange has been earned nor spent during the year. No any Foreign Expenditure has been made.

9 The company had acquired assets (Referred in Schedule " 4 ") Majewadi Gate work - shop through execution of Memorandum of Understanding and paid part of the payment towards the acquisition of such assets. The management of the company informs us that final sale deed in favor of the company will be executed in due course.

10 The Segment Report Of Mahasagar Travels Ltd. And its division of Petroleum has been prepared in accordance with Accounting Standard 17 "Segment Reporting" issued by The Institute of Chartered Accountants of India.

11 Differed Taxation

In view of the continuing losses, till last year the management, as a matter of prudence, has not recognized net deferred tax assets in respect of unabsorbed/carried forward balances of period up to 31st March, 2010 and for the loss as per Income tax act for the current year.

List of Related Parties transaction :

(i) Parties where control exist - NIL

(ii) Other parties with whom the company has entered into transaction in normal course of Business during the year.

(1) Associates

(i) Mahashakti Tours & Travels Pvt Ltd

(ii) New shakti Travels

(2) Key Management Personal:

Bhagchand G. Sukhvani - Managing Director