1.  Basis of Accounting
 
 The financial statements are prepared under the historical cost
 convention, on the accrual basis of accounting and in conformity with
 Generally Accepted Accounting Principles in India, Accounting Standards
 as notified by the Companies (Accounting Standards) Rules, 2006 and the
 other relevant provisions of the Companies Act, 1956.
 
 2.  Use of Estimates
 
 The preparation of financial statements in conformity with Generally
 Accepted Accounting Principles requires the management to make
 estimates and assumptions that affect the reported balances of assets
 and liabilities as of the date of the financial statements and reported
 amounts of income and expenses during the period.  The management
 believes that the estimates used in the preparation of financial
 statements are prudent and reasonable.
 
 3.  Fixed Assets
 
 a) Fixed assets are stated at cost less accumulated depreciation.
 
 b) Cost includes cost of acquisition or construction including
 attributable borrowing cost, duties and other incidental expenses
 related to the acquisition of the asset.
 
 c) Operating costs and other incidental costs including initial stores
 and spares of newly acquired vessels till the port of frst loading are
 included in the cost of the respective vessels.
 
 d) Exchange differences arising on repayment of foreign currency loans
 and year end translation of foreign currency liabilities relating to
 acquisition of depreciable assets are, following option given by
 notification of Ministry of Corporate Affairs (MCA) dated. March 31,
 2009, adjusted to carrying cost of the respective fxed assets.
 
 e) Individual fxed assets costing up to Rs. 25,000 are fully written
 off.
 
 4.  Depreciation
 
 a) Depreciation on all the vessels is computed on Straight Line Method
 so as to write off the original cost as reduced by the
 expected/estimated scrap value over the balance useful life of the
 vessels or the rates as prescribed under the Schedule XIV of the
 Companies Act, 1956, whichever are higher. The said higher rate ranges
 from 5% to 9% of the original cost of the vessel.
 
 b) Depreciation on all assets other than vessels is computed on the
 Written Down Value method in the manner and at the rates prescribed
 under schedule XIV of the Companies Act, 1956.
 
 c) On additions made to the existing vessels depreciation is provided
 for the full year over the remaining useful life of the ships.
 
 d) Depreciation on furniture, fxtures and electrical fttings installed
 at offce premises taken on lease is provided over the initial period of
 lease.
 
 5.  Capital work in Progress
 
 All expenditure, including advances given to contractors and borrowings
 cost incurred during the vessel acquisition period, are accumulated and
 shown under this head till the vessel is put to commercial use.
 
 6.  Retirement and Disposal of Ships
 
 a) profits on sale of vessels are accounted for on completion of sale
 thereof.
 
 b) Assets which are retired from active use and are held for disposal
 are stated at the lower of their net book value or net releasable
 value.
 
 7.  Inventories
 
 Bunker and Lubes on vessels are valued at lower of cost and Net
 Realisable Value ascertained on First in First out basis.
 
 8.  Investments
 
 a) Investments are classified into Long Term and Current investments.
 
 b) Long Term Investments are stated at cost of acquisition and related
 expenses. Provision for diminution, if any, in the value of such
 investments is made to recognise a decline, other than of a temporary
 nature.
 
 c) Current Investments are stated at cost of acquisition including
 incidental / related expenses or at fair value as at March 31 2011,
 whichever is less and the resultant decline, if any, is charged to
 revenue.
 
 d) Investment in shares of subsidiaries outside India is stated at cost
 by converting at the rate of exchange at the time of their acquisition.
 
 9.  Incomplete voyages
 
 Incomplete voyages represent freight received and direct operating
 expenses on voyages which are not complete as at the Balance Sheet
 date.
 
 10.  Borrowing Costs
 
 Borrowing costs incurred for the acquisition of vessels are capitalized
 till frst loading of cargo, only if the time gap between date of
 Memorandum of Agreement and Date when vessel is ready for use is more
 than three months.
 
 Incidental expenses related to borrowing are amortized over the term of
 the said borrowings.
 
 11.  Revenue Recognition
 
 a) Income on account of freight earnings is recognised in all cases
 where loading of the cargo is completed before the close of the year.
 All corresponding direct expenses are also provided.
 
 b) Where loading of the cargo is not completed before the close of the
 year, revenue is not recognised and the corresponding expenses are
 carried forward to the next accounting year.
 
 c) Income from charter hire and demurrage are recognised on accrual
 basis.
 
 d) Income from services is accounted on accrual basis as per the terms
 of the relevant agreement.
 
 e) Dividend on investments is recognised when the right to receive the
 same is established.
 
 f) Insurance claims are accounted on accrual basis when there is a
 reasonable certainty of the realisability of the claim amount.
 
 12.  Foreign Exchange Transactions
 
 a) Monetary Current assets and liabilities denominated in foreign
 currency outstanding at the end of the year are valued at the rates
 prevalent on that date.
 
 b) Exchange differences arising on Long Term Foreign Currency Monetary
 (LTFCM) items are, following option given by notification of MCA dated
 March 31, 2009, treated in the following manner:
 
 i. In respect of borrowings relating to or utilized for acquisition of
 depreciable capital assets, the same is adjusted to the cost of the
 relevant capital asset and depreciated over the balance life of the
 said capital asset.
 
 ii. In other cases, the same is accumulated in a ''Foreign Currency
 Monetary Item Translation Difference Account''. The amount so
 accumulated in this account is amortized over the balance period of
 such assets / liabilities or March 31, 2011, whichever is earlier.
 
 c) Differences in translation of other monetary assets and liabilities
 and realised gains and losses on foreign currency transactions are
 recognised in the profit and Loss Account.
 
 d) Exchange differences arising on long term foreign currency loans
 given to non integral foreign operations is accumulated in Foreign
 Currency Fluctuation Reserve. On disposal of investment, the balance in
 the reserve is transferred to profit and loss account.
 
 e) Contracts in the nature of foreign currency swaps, are converted at
 the exchange rate prevailing as on March 31, 2011 and the profits or
 loss thereon are charged to the profit and Loss account.
 
 f) Differences on account of swap contracts for interest payable in
 foreign currency are accounted on accrual basis and the profit or loss
 thereon charged to the profit and Loss account.
 
 13.  Employees Benefts
 
 a) Short – term employee benefts
 
 All employee benefts payable wholly within twelve months of rendering
 the service are classified as short term employee benefts. Benefts such
 as salaries, wages, performance incentives, etc. are recognised at
 actual amounts due in the period in which the employee renders the
 related service.
 
 b) Post – employment benefts
 
 i.  Defned Contribution Plans
 
 Payments made to defned contribution plans such as Provident Fund are
 charged as an expense as they fall due.
 
 ii.  Defned Beneft Plans
 
 The cost of providing beneft i.e. gratuity is determined using the
 Projected Unit Credit Method, with actuarial valuation carried out as
 at the balance sheet date. Actuarial gains and losses are recognised
 immediately in the profit and Loss Account.
 
 c) Other Long – term employee benefts
 
 i. Other Long – term employee beneft viz. leave encashment is
 recognised as an expense in the profit and loss account as and when it
 accrues. The company determines the liability using the Projected Unit
 Credit Method, with actuarial valuation carried out as at the balance
 sheet date. The actuarial gains and losses in respect of such beneft
 are charged to the profit and loss account.
 
 14.  Lease Accounting
 
 a) In respect of operating lease agreements entered into by the Company
 as a lessee, the lease payments are recognised as expense in the profit
 and loss account over the lease term.
 
 b) In respect of operating lease agreement entered into by the Company
 as a lessor, the initial direct costs are recognised as expenses in the
 year in which they are incurred.
 
 15.  Earning per share:
 
 The company reports basic and diluted earnings per share (EPS) in
 accordance with Accounting Standard – 20.  The Basic EPS has been
 computed by dividing the income available to equity shareholders by the
 weighted average number of equity shares outstanding during the
 accounting year. The diluted EPS have been computed using the weighted
 average number of equity shares and dilutive potential equity shares
 outstanding at the end of the year.
 
 16.  Provision for Taxation :
 
 a) The company has opted for the Tonnage Tax scheme and provision for
 tax has been accordingly made under the relevant provisions of the
 Income Tax Act, 1961.
 
 b) Tax on incomes on which the Tonnage Tax is not applicable is
 provided as per other provisions of the Income Tax Act, 1961.
 
 c) Deferred tax resulting from timing differences, if any, between book
 and tax profits for income other than that covered under Tonnage Tax
 scheme is accounted for under the liability method, at the current rate
 of tax, to the extent that the timing differences are expected to
 reverse in future.
 
 17.  Impairment of assets
 
 The Company reviews the carrying values of tangible and intangible
 assets for any possible impairment at each balance sheet date.
 Impairment loss, if any, is recognized in the year in which impairment
 takes place.
 
 18.  Provisions and Contingent Liabilities:
 
 Provisions are recognized in the accounts in respect of present
 probable obligations, the amount of which can be reliably estimated.
 Contingent Liabilities are disclosed in respect of possible obligations
 that arise from past events but their existence is confrmed by the
 occurrence or non occurrence of one or more uncertain future events not
 wholly within the control of the Company.
 
 19.  Premium on redemption of Bonds / Debentures
 
 Premium on redemption of bonds / debentures is adjusted against
 Securities Premium Account.