In compliance with the requirement of accrual system of accounting,
 following standards have been set out and are being followed over the
 years -
 
 a) Freight Income is accounted for, generally when goods are delivered
 by the Company to customers. Direct expenses on transportation of goods
 are accounted for when hired lorries deliver the goods at destination
 and in case of Companys own trucks on completion of trip.
 
 b) Payments made to hired lorries at the time of commencement of trip
 for destination and freight received from customers in advance at the
 time of booking are charged to revenue as and when paid/received.
 
 c) In case of composite contract jobs all receipts are accounted for on
 the basis of completion of job or a distinct part thereof if so
 provided for in contract and in case of transportation jobs where
 progressive work bills are raised as per contracts, on the basis of
 such bills, as the case may be.
 
 d) Deductions made by parties including Tax Deducted at Source are
 accounted for in the year of actual deduction or communication, as the
 case may be, by the party.
 
 e) Income from dividend is recognized, when the right to receive such
 payment is established.
 
 f) Service Tax collected on freight income are included in the freight
 income.
 
 Having regard to size of operations and the nature and complexities of
 Companys business, in managements opinion the above are the
 reasonable standards of applying the accrual system of accounting as
 required by the law.
 
 II) Fixed Assets
 
 Fixed assets are stated at cost or at revalued amounts, as the case may
 be, less accumulated depreciation and impairment losses, if any. Cost
 comprises the purchase price, improvement cost thereto, and any
 attributable cost of bringing the asset to its working condition for
 its intended use.
 
 III) Borrowing Costs
 
 Financing costs, if incurred, relating to construction of fixed assets
 are also included to the extent they relate to the period till such
 assets are leady to be put to use.
 
 IV) Intangible Assets
 
 Costs relating to softwares and licenses, which are acquired, are
 capitalised and amortised on a straight line basis over their useful
 life.
 
 V) Investments
 
 Investments intended to be held for more than a year are classified as
 long-term investments, and carried at cost.  However, provision for
 diminution in value, other than temporary, has been recognized,
 wherever necessary.
 
 VI) Work-in-Progress/Stock-in-Trade
 
 a) Stock-in-Trade
 
 Inventories are stated at lower of cost or net realizable value. Cost
 is determined using the FIFO method and comprises of the purchase price
 including duties and taxes, freight in-ward and other expenditure
 directly attributable to the acquisition but excluding the trade
 discounts and other rebates. Provision is made for obsolete, slow-
 moving and damaged stock, wherever necessary.
 
 b) Work-in-Process
 
 Work in progress as and when arise (mainly expenditure relating to
 incomplete transportation job) are stated at estimated/actual cost.
 
 VII) Depreciation/Amortization
 
 Depreciation has been provided on historical cost and where revaluation
 of assets has been made on written up cost in the manner and as per
 Straight Line Method at rates prescribed in the Schedule-XIV of the
 Companies Act, 1956. An amount equivalent to the depreciation on such
 written up amount of assets has been transferred from Capital reserve
 due to revaluation of assets, and separately credited to the Profit &
 Loss Account. Premium paid on Leasehold properties is amortized based
 on their lease term.
 
 VIII) Foreign Currency Transaction
 
 a) Initial Recognition
 
 Foreign currency transactions are recorded in the reporting currency,
 by applying to the foreign currency amount the exchange rate between
 the reporting currency and the foreign currency at the date of the
 transaction.
 
 b) Conversion
 
 Foreign currency monetary items are reported using the closing rate.
 
 c) Exchange Differences
 
 Exchange differences arising on the settlement of monetary items at
 rates different from those at which they were initially recorded during
 the year, or reported in previous financial statements, are recognized
 as income or as expense in the year in which they arise.
 
 d) Forward Exchange Contracts not intended for trading or speculation
 purposes
 
 The premium or discount arising at the inception of forward exchange
 contracts is amortized ac expense or income over the life of the
 contract. Exchange differences on such contracts are recognized in the
 statement of profit and loss in the year in which the exchange rates
 change. Any profit or loss arising on cancellation or renewal of
 forward exchange contract is recognized as income or as expense for the
 year.
 
 IX) Retirement Benefit
 
 a) Provident Fund and Pension Fund are defined contribution schemes
 (Government scheme) and the contributions thereto are charged to the
 Profit & Loss Account of the year when the contributions to the
 respective funds are paid/due.
 
 b) Gratuity liability is Defined Benefit Obligation and is fully funded
 by way of contribution determined on the basis of an actuarial
 valuation made at the end of each financial year which is in turn
 funded with Life Insurance Corporation of India Limited in the form of
 a qualifying insurance policy. Actuarial gain/ losses, if any, are
 recognized in Statements of Profit & Loss.
 
 The Company has used the Projected Unit Credit Method to actually
 determine the present value of its defined benefit obligation and the
 related current service cost and where applicable, past service cost.
 
 X) Employees Stock Option Scheme
 
 The company follows accounting policies specified as per Securities &
 Exchange Board of India (Employee Stock Option Scheme and Employee
 Stock Purchase Scheme) Guidelines,1999.
 
 XI) Taxation & Deferred Tax
 
 Tax expense comprises both current and deferred taxes. Current tax is
 measured at the amount expected to be paid to the taxation authorities,
 using the applicable tax rates and tax laws. Deferred tax is recognized
 for the timing differences, subject to the consideration of prudence in
 respect of deferred tax assets and measured using the tax rates and tax
 laws enacted on the balance sheet date.
 
 Unrecognized deferred tax assets of earlier years are re-assessed and
 recognized to the extent that it has become reasonably certain that
 future taxable income will be available against which such deferred tax
 assets can be realized.
 
 Xil) Earning Per Share
 
 Basic & Diluted earnings per share are calculated by dividing the net
 profit or loss for the period attributable to equity shareholders by
 the weighted average number of equity shares outstanding during the
 period as per AS 20 issued by The Institute of Chartered Accountants of
 India.
 
 XIII) Petrol Pump at Pune
 
 The Companys petrol pump at Pune is being administered and operated
 under an agreement by a party where the Company is entitled to fixed
 monthly income and such party has to bear operating expenses including
 bad debts and losses, if any, besides making arrangements of funds.
 Such operating expenses are accounted for deriving cost of sales.
 
 XIV) Provisions & Contingencies
 
 Provisions are recognized for present obligation as a result of past
 events where it is probable that outflow of resources will be required
 to settle the obligation, and in respect of which a reliable estimate
 can be made at the balance sheet date.  These are reviewed at each
 balance sheet date and adjusted to reflect the current best estimates.
 Contingent Liabilities not provided for are disclosed in the notes.
 Contingent Assets are neither recognized nor disclosed in the financial
 statements.
 
 XV) Impairment of Assets (AS-28)
 
 The management has carried out an impairment test as per AS-28,
 Impairment of Assets, issued by the Institute of Chartered Accountants
 of India on all its fixed assets. As there was no impairment, no
 provision has been made.
 
 XVI) Interest in joint venture
 
 The Company has a 24% interest in the joint venture, Nissin ABC
 Logistics Pvt. Limited, incorporated in India, which is engaged in
 logistic service business.
 
 XVII) The company has used foreign exchange future contracts to hedge
 its exposure to movements in foreign exchange rates related to interest
 on foreign currency denominated loans.