a) ACCOUNTING POLICIES
 
 During the year ended 31 March 2012, the revised Schedule VI notified
 under the Companies Act 1956, has become applicable to the company, for
 preparation and presentation of its financial statements. Adoption of
 revised Schedule VI does not materially impact recognition and
 measurement principles followed for preparation of financial
 statements.
 
 However, it has significant impact on presentation and disclosures made
 in the financial statements. The company has also reclassified the
 previous year figures in accordance with the requirements applicable
 in the current year.
 
 b) USE OF ESTIMATES :
 
 The preparation of financial statements in conformity with Indian GAAP
 requires the management to make judgements, estimates and assumptions
 that affect the reported amounts of revenues, expenses, assets and
 liabilities and the disclosure of contingent liabilities, at the end
 of the reporting period. Although these estimates are based on the
 management''s best knowledge of current events and actions, uncertainty
 about these assumptions and estimates could result in the outcomes
 requiring a material adjustment to the carrying amounts of assets or
 liabilities in future periods.
 
 c) TANGIBLE FIXED ASSETS :
 
 Fixed Assets are stated at cost, less accumulated depreciation (other
 than ''Freehold Land'' where no depreciation is charged) and impairment
 loss, if any. Cost comprises the purchase price, including duties and
 other non-refundable taxes or levies any directly attributable cost of
 bringing the asset to its working condition and indirect costs
 specifically attributable to construction of a project or to the
 acquisition of a fixed asset.
 
 In the event of the same having been revalued, they are stated at the
 revalued figures. Expenditure relating to fixed assets is added to
 costs only when the same involved modification work whereby it
 increases the life of the assets. Fixed assets acquired from ships
 during the course of scrapping operation are capitalised at value
 estimated by the management.
 
 d) DEPRECIATION ON TANGIBLE ASSETS :
 
 I Depreciation is provided on the straight line method, pro-rata basis
 to the period of use, so as to write off the original cost of the asset
 over the remaining estimated useful life (as per technical evaluation
 by the Management at the time of acquisition) or at rates prescribed
 under the Schedule XIV to the Companies Act, 1956, whichever is higher,
 on the following basis :
 
 Tangibale Fixed Assets           Method           Estimated useful
 
 Factory Shed & Building          Straight line    Not Estimated
 
 Other Buildings                  Straight line    Not Estimated
 
 Plant & Machinery                Straight line    3 to 10 Years
 
 Furniture & Fixtures, 
 Office Equipments, etc           Straight line    5 Years
 
 Vehicle                          Straight line    4 Years
 
 Computers                        Straight line    3 Years
 
 Leasehold improvements           25% or the rate based on lease
                                  period, whichever is higher
 
 II No depreciation is provided for assets sold during the year whereas
 pro-rata depreciation is provided on assets acquired during the year.
 
 e) IMPAIRMENT OF ASSTES :
 
 The Company assesses on each balance sheet date whether there is any
 indication that an asset may be impaired. If any such indication
 exists, the Company estimates the recoverable amount of the asset. If
 such recoverable amount of the asset is less than its carrying amount,
 the carrying amount is reduced to its recoverable amount.  The amount
 so reduced is treated as an impairment loss and is recognised in the
 Statement of Profit and Loss, except in case of revalued assets, where
 it is first adjusted against the related balance in fixed assets
 revaluation reserve.
 
 If at the balance sheet date, there is an indication that a previously
 assessed impairment loss no longer exists, the recoverable amount is
 reassessed and the asset is carried at the recoverable amount subject
 to a maximum of depreciated historical cost.
 
 f) BORROWING COSTS :
 
 Borrowing costs that are directly attributable to the acquisition,
 construction/ development of a qualifying asset are capitalized as a
 part of cost of such asset. A qualifying asset is one that necessarily
 takes substantial period of time to get ready for its intended use.
 
 Costs in connection with borrowing of funds to the extent not directly
 related to the acquisition of fixed assets are amortised and charged to
 the Statement of Profit and Loss, over the tenure of the loan.
 
 g) INVESTMENTS:
 
 Investments, which are readily realizable and intended to be held for
 not more than one year from the date on which such investments are
 made, are classified as current investments. All other investments are
 classified as long-term investments.
 
 Investment in Partnership Firm as M/s. Jai Maa Durge Associates, as
 trade investment which shown at their book value at cost.
 
 h) VALUATION OF INVENTORIES :
 
 The weight of the ship purchased is accounted in terms of LDT of the
 ship at the time of its construction. Ascertaining of weight of ship at
 the time of purchase is not possible due to its nature and size. There
 is loss of weight on account of corrosion and other factors during the
 usage of the ship and its voyage for about 20 to 25 years.
 
 Inventory at the close of the year is ascertained by reducing the
 weight of the scrap sold together with the estimated wastage of the
 material.
 
 Stores & Spares are written off at the time of purchase itself and no
 inventory is maintained.
 
 The inventory is valued at cost.
 
 i) RECOGNITION OF INCOME AND EXPENDITURE :
 
 Revenue is recognised only when it can be reliably measured and it is
 reasonable to expect ultimate collection. Turnover include sale of
 goods, services, sales tax, service tax, excise duty and sales during
 trial run period, adjusted for discounts (net) , Value Added Tax and
 gain/loss corresponding hedge contracts.
 
 Dividend income is recognized when right to receive is established.
 Interest income is recognized on time proportion basis taking into
 account the amount outstanding and rate applicable.
 
 j) FOREIGN CURRENCY TRANSACTIONS :
 
 Purchase in respect of raw materials are accounted for on actual
 payment basis if the same are made before the year end and/or at the
 rate of foreign exchange booking are made. In all other cases, the
 purchases and also the liability in respect of said foreign exchange
 are stated as converted at the exchange rate prevalent at the last day
 of the financial year.
 
 k) EXCISE DUTY & CENVAT :
 
 Excise duty is chargeable on production but is payable on clearance of
 goods.  Accordingly excise duty on the goods manufactured by the
 company is accounted for at the time of their clearance. Excise duty
 payable is adjusted against the Cenvat credits, to the extent it is
 available and balance duty is paid and debited to Revenue.
 
 I) PROVISION FOR TAXATION :
 
 Tax expense comprises both current and deferred tax.
 
 Current income-tax is recognised at the amount expected to be paid to
 the tax authorities, using the tax rates and tax laws, enacted or
 substantially enacted as at the balance sheet date. Income from
 shipping activities is assessed on the basis of deemed tonnage income
 of the Company.
 
 Deferred income-tax is recognised on timing differences, between
 taxable income and accounting income which originate in one period and
 are capable of reversal in one or more subsequent periods only in
 respect of the non-shipping activities of the Company.  The tax effect
 is calculated on the accumulated timing differences at the year end
 based on tax rates and laws, enacted or substantially enacted as of the
 balance sheet date. Deferred Tax Assets are recognised and carried
 forward only to the extent that there is reasonable certainty that
 sufficient future taxable income will be available against which such
 Deferred Tax Assets can be realised.
 
 Minimum Alternate Tax (MAT) credit is recognised as an asset only when
 and to the extent there is convincing evidence that the company will
 pay normal income tax during the specified period.
 
 m) RETIREMENT BENEFITS:
 
 The management is of the opinion that since none of the employees of
 the company were in continuous service of more than five years, making
 provision of gratuity does not arise. The Management is also of the
 opinion that the payment of pension Act, is not applicable to the
 Company.
 
 n) EARNING PER SHARE :
 
 Basic 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. The
 weighted average number of equity shares outstanding during the period
 is adjusted for events such as bonus issue, bonus element in a rights
 issue, share split, and reverse share split (consolidation of shares)
 that have changed the number of equity shares outstanding, without a
 corresponding change in resources.
 
 For the purpose of calculating diluted earnings per share, the net
 profit or loss for the period attributable to equity shareholders and
 the weighted average number of shares outstanding during the period are
 adjusted for the effects of all dilutive potential equity shares.
 
 o) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS :
 
 A provision is recognized when the company has a present obligation as
 a result of past event, it is probable that an outflow of resources
 embodying economic benefits will be required to settle the obligation
 and - a reliable estimate can be made of the amount of the obligation.
 Provisions are not discounted to their present value and are determined
 based on the best estimate required to settle the obligation at the
 reporting date. These estimates are reviewed at each reporting date and
 adjusted to reflect the current best estimates.
 
 A contingent liability is a possible obligation that arises from past
 events whose existence will be confirmed by the occurrence or
 non-occurrence of one or more uncertain future events beyond the
 control of the company or a present obligation that is not recognized
 because it is not probable that an outflow of resources will be
 required to settle the obligation. A contingent liability also arises
 in extremely rare cases where there is a liability that cannot be
 recognized because it cannot be measured reliably. The company does not
 recognize a contingent liability but discloses its existence in the
 financial statements.
 
 Contingent assets are neither recognised nor disclosed in the financial
 statements.
 
 p) CASH & CASH EQUIVALENTS :
 
 For the purpose of presentation in the statement of cash flows, cash
 and cash equivalents include cash on hand, cash at bank and short-term
 fixed deposits with maturity period not more than three months.
 
 q) MEASUREMENT OF EBITDA :
 
 As permitted by the Guidance Note on the Revised Schedule VI to the
 Companies Act, 1956, the company has elected to present earnings before
 interest, tax, depreciation and amortization (EBITDA) as a separate
 line item on the face of the statement of profit and loss. The company
 measures EBITDA on the basis of profit/(loss) from current year
 operations. In its measurement, the company does not include
 depreciation and amortization expense, finance costs and tax expense.