(i) Basis of Accounting:
 
 The Financial Statements are prepared to comply in all material aspects
 with all the applicable accounting principles in India, the Accounting
 Standards notified under Section 211 (3C) of the Companies Act, 1956, of
 India (the Act) and the relevant provisions of the Act.
 
 (ii) Fixed Assets and Depreciation/ Amortisation:
 
 (a) Fixed Assets are stated at cost of acquisition or construction less
 accumulated depreciation / amortisation. The Company capitalises all
 costs relating to the acquisition, installation and construction of
 fixed assets, including interest on borrowed funds used to finance the
 construction and acquisition of fixed assets, up to the date when the
 assets are ready for commercial use.
 
 (b) Depreciation on additions / deletions to fixed assets is calculated
 on pro-rata basis from the month of such additions / deletions. The
 Company provides depreciation on straight-line method at the rates
 specified under Schedule XIV (revised) to the Act or based on useful
 life whichever is higher, except for:
 
 - Leasehold land, which is being amortised over the lease period;
 
 - Rail Siding, which is being amortised over a period of twenty years
 based on useful life estimated by the Management;
 
 - Reach Stackers (included in Yard Equipments), to be transferred to
 maintenance operator, are being depreciated over a period of seven
 years;
 
 - Upfront fees of Punjab Conware''s Container fireight Station (CFS),
 is being amortised over the balance period of the Operations and
 Management Agreement of the CFS with effect from July 1, 2007 (balance
 life as on March 31, 2011 is 10 years and 10 months); and
 
 - Additions / construction of Building, Electrical Installations,
 Furniture and Fixtures and Office Equipments at Punjab Conware CFS are
 being amortised over the balance period of the Operations and
 Management Agreement of the CFS with effect from July 1, 2007.
 
 (c) Assets individually costing less than Rs. 5,000 are fully
 depreciated in the year of acquisition / construction.
 
 (d) Consideration is given at each Balance Sheet date to determine
 whether there is any indication of impairment of the carrying amount of
 the fixed assets. If any indication exists, an asset''s recoverable
 amount is estimated. An impairment loss is recognised whenever the
 carrying amount of an asset exceeds the recoverable amount. The
 recoverable amount is the greater of the net selling price and value in
 use.  In assessing value, the estimated future cash flows are discounted
 to their present value based on an appropriate discount factor.
 
 (iii) Borrowing Cost:
 
 Borrowing costs directly attributable to the acquisition / construction
 of an asset are apportioned to the cost of the fixed assets up to the
 date on which the asset is put to use / commissioned.
 
 iv) Investments:
 
 Investments are classified into long-term and current investments.
 Long-term investments are stated at cost, except where there is a
 diminution in value other than temporary, in which case the carrying
 value is reduced to recognise the decline. Current investments are
 stated at the lower of cost and fair value.
 
 (v) Foreign Currency Transactions:
 
 Transactions in foreign currencies are recognised at the prevailing
 exchange rates on the transaction date.  Realised gains and losses on
 settlement of foreign currency transactions are recognised in the profit
 and Loss Account. Foreign currency monetary assets and monetary
 liabilities at the year-end are translated at the year-end exchange
 rates, and the resultant exchange difference is recognised in the profit
 and Loss Account.
 
 (vi) Employment benefits:
 
 (a) Defined Contribution Plan
 
 The Company has Defined Contribution plans for post employment benefits
 namely Provident Fund and Pension Scheme which are recognised by the
 Income Tax Authorities and administered through appropriate
 authorities.
 
 The Company contributes to a Government administered Provident Fund and
 Pension Scheme and has no further obligation beyond making its
 contribution.
 
 The Company''s contribution to the above funds is charged to revenue
 every year.
 
 (b) Defined benefit Plan
 
 The Company has a Defined benefit Plan comprising of Gratuity Fund. The
 liability for the Defined benefit plan is provided on the basis of an
 actuarial valuation carried out by an independent actuary as at the
 Balance Sheet date. The actuarial valuation method used by independent
 actuary for measuring the liability is the Projected Unit Credit
 Method.
 
 The gratuity scheme is funded through Comprehensive Gratuity Policy -
 cum - Group Term Life Insurance Policy from Tata AIG Life Insurance
 Company Limited, except for employees of Punjab Conware''s CFS, the
 operations wherein are taken over by the Company under Operations and
 Management Agreement.
 
 Termination benefits are recognised as an expense as and when incurred.
 
 Actuarial gains and losses comprise experience adjustments and the
 effects of changes in actuarial assumptions and are recognised
 immediately in the profit and Loss Account as income or expense.
 
 (c) Other Employee benefits
 
 The employees of the Company are entitled to leaves as per the leave
 policy of the Company. The liability with respect to unutilised leave
 balances is provided based on an actuarial valuation carried out by an
 independent actuary as at the Balance Sheet date.
 
 (vii) Revenue Recognition:
 
 (a) Income from Container Handling and Repair and Service Charges is
 recognised on delivery of the container / cargo. Income from Ground
 Rent is recognised for the period the container is lying in the
 Container fireight Station / Inland Container Depot. However, in case of
 long standing containers, the Income from Ground Rent is not accrued
 for a period beyond 60 days on a consistent basis as per the prevailing
 business practice.
 
 (b) Income from auction sales is generated when the Company auctions
 long-standing cargo that has not been cleared by customs. Revenue and
 expenses for Auction Sales are recognised when auction is completed
 after necessary approvals from appropriate authorities are obtained.
 Auction Sales include recovery of the cost incurred in conducting
 auctions, custom duties on long-standing cargo and accrued ground rent
 and handling charges relating to long-standing cargo. Surplus, out of
 auctions, if any, after meeting all expenses and the actual ground
 rent, is credited to a separate account ‘Auction Surplus'' and is shown
 under the head ‘Current Liabilities and Provisions''. Unclaimed Auction
 Surplus, if any, in excess of one year is written back as ‘Income'' in
 the following financial year.
 
 (viii) Taxes on Income:
 
 (a) Current Taxation
 
 The Current Tax is determined as the amount of tax payable with respect
 to taxable income for the year as per The Income Tax Act, 1961, of
 India.
 
 (b) Deferred Taxation
 
 Deferred Tax is recognised, subject to the consideration of prudence on
 timing differences, being the difference between taxable income and
 accounting income that originate in one period and are capable of
 reversal in one or more subsequent periods. Deferred Tax assets are not
 recognized unless there are timing differences, the reversal of which
 will result in sufficient income or there is virtual certainty that
 sufficient future taxable income will be available against which such
 deferred tax asset can be realized. Deferred Tax is not recognised on
 timing differences, which would arise and are expected to be reversed
 during the period of tax holiday.
 
 (c) Minimum Alternate Tax Credit
 
 Minimum Alternate Tax (MAT) paid in accordance with tax laws, which
 give rise to future economic benefits in the form of adjustment of
 future tax liability, is recognised as an asset only when, based on
 convincing evidence, it is probable that the future economic benefits
 associated with it will fow to the Company and the assets can be
 measured reliably.
 
 (ix) Employees'' Stock Option Scheme:
 
 Stock Options granted to the employees under stock option schemes are
 evaluated as per the accounting treatment prescribed by Employees Stock
 Option Scheme and Employee Stock Purchase Scheme Guidelines, 1999
 issued by the Securities and Exchange Board of India (SEBI).
 Accordingly, the excess of the fair value of the stock option as on the
 date of grant of options is charged to the profit and Loss Account on
 straight- line-method over the vesting period of the options. The fair
 value of the options is measured on the basis of an independent
 valuation performed or the market price with respect to stock options
 granted.
 
 (x) Provision for doubtful debts
 
 The provision for doubtful debts reflects the Management''s best estimate
 of probable losses inherent in the accounts receivable balance. The
 Management primarily determines the allowance based on the aging of
 accounts receivable balances and historical write-off experience, net
 of recoveries.
 
 (xi) Provisions and Contingent Liabilities
 
 Provisions are recognised when the Company has a legal and constructive
 obligation as a result of a past event, for which it is probable that a
 cash outflow will be required and a reliable estimate can be made of the
 amount of the obligation.
 
 Contingent liabilities are disclosed when the Company has a possible
 obligation or a present obligation and it is probable that a cash
 outflow will not be required to settle the obligation.