i) Convention:
 
 The financial statements are prepared under the historical cost
 convention in accordance with applicable Accounting Standards and
 relevant requirements of the Companies Act. 1956.
 
 ii) Fixed Assets, Depreciation and impairment:
 
 a) Fixed Assets are stated at cost includes amounts added on
 revaluation, as reduced by and accumulated depreciation and impairment
 loss, if any.
 
 b) Depreciation on fixed assets is charged on straight line method as
 per schedule XIV to the Companies Act, 1956, except in case of vehicles
 where it is charged on the estimated life as technically assessed.
 Depreciation on addition is charged for half of the year irrespective
 of the date of additions. However, no depreciation is charged on the
 assets sold during the year.
 
 c) An asset is treated as impaired when the carrying cost of Assets
 exceeds its recoverable value.
 
 iii) Recognition of Income & Expenditure :
 
 In compliance with the requirements of Accrual System of Accounting,
 the following standards have been set out:
 
 a) Freight income is accounted when goods are delivered by the Company
 to Customers and unqualified acknowledgements are obtained from them.
 
 b) Direct expenses are accounted when hired vehicles deliver the goods
 to the Company at destination.
 
 c) 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 accounted for on actual basis.
 
 d) Payments received from Customers towards unsettled accounts are
 credited to freight income account as and when the dues are finally
 settled realised.
 
 e) Year-end liability in respect of claims for loss and damages is
 provided as calculated by claim recovery agents.
 
 f) Deduction made by parties towards Claims, Excess Charges, TDS etc.
 from bills raised by Company are accounted for in the year of actual
 deduction.
 
 g) In case of composite contract jobs, all receipts and outgoings in
 respect of job are accounted for on the basis of completion of jobs or
 distinct part thereof and in case of transportation jobs where work in
 progress bills are raised as per the contracts, on the basis of such
 bills.
 
 h) Having regard to the size of operation and the nature of
 complexities of company''s business, in management opinion, the above
 are the reasonable standard of applying accrual system of accounting as
 required by law.
 
 iv) Investments:
 
 Long-term investments are stated at cost. However, provision for
 diminution in value is made to recognise a decline other than temporary
 in the value of long term investments.
 
 v) Contingent Liabilities & Contingent Assets
 
 Contingent liabilities not provided for are disclosed by way of notes.
 Contingent Assets are neither accounted nor disclosed in the financial
 statements.