a.  Basis of preparation:
 
 The financial statements are prepared in compliance with the applicable
 mandatory Accounting Standards issued by the Institute of Chartered
 Accountants of India (ICAI), applicable Accounting Policies in India
 and the relevant provisions of the Companies Act, 1956. The financial
 statements are prepared under the historical cost convention on accrual
 basis except stated otherwise.
 
 b.  Fixed Assets and Depreciation:
 
 i. All fixed assets are stated at cost of acquisition less accumulated
 depreciation and impairment losses. Buildings worth Rs.58,77,423/-
 included in Gross Block are revalued on the basis of the replacement
 value as at 30.06.1987 and the office premises worth Rs.2,48,44,368/-
 included in Gross Block are revalued on the basis of the replacement
 value as at 31.03.1993. They are stated at revalued figures less
 accumulated depreciation.
 
 ii.  Assets acquired on financial lease on or after April 1, 2001 are
 capitalised at their fair values.
 
 iii.  Depreciation / Amortisation
 
 Depreciation on all assets, including those revalued, and those valued
 at market price is provided under straight line method at the rates and
 in the manner prescribed under Schedule XIv to the Companies Act, 1956.
 
 iv. Depreciation on additions to assets or sale or disposal of assets
 is calculated on a pro-rata basis from / to the date of addition /
 deduction.
 
 v. Computer Software is amortised over a period of three years, being
 the economic useful life as estimated by the management.
 
 vi.  Cost of leasehold land is amortised over the residual period of
 the lease.
 
 vii. Assets taken on financial lease are depreciated over their useful
 life.
 
 c.  Impairment of Assets:
 
 Impairment loss is provided to the extent the carrying amount of assets
 exceeds their recoverable amount and the same is charged to the Profit
 and Loss Account in the year in which an asset is identified as
 impaired.
 
 d.  Investments:
 
 i. Investments are stated at cost as they are made with long-term
 perspective. Provision for diminution, if any, in value of investments
 is made to recognize a decline, other than temporary, in the value of
 the investment and valuation is done on global basis.
 
 ii.  Membership shares of a Co-operative Housing Society related to
 office premise are included under investments.
 
 iii.  Profit / Loss on sale of investments is computed on FIFO basis.
 
 e.  Income / Expenses:
 
 i. Revenue / Income and Cost / Expenditure are generally accounted on
 accrual basis as they are earned / incurred, except those with
 significant uncertainties.
 
 ii. Amounts recovered towards demurrage and delivery charges are
 accounted at the time when they are ultimately realised. Freight
 includes amount recoverable on undelivered consignments as certified by
 the management and recoveries for other allied services.
 
 iii.  Income on account of Co-Loading and Cargo division is recognized
 on booking of courier & cargo load.
 
 iv. Income from Money transfer business is accounted for when the
 remittance amount is paid to the receiving party.
 
 v.  Dividend income from investment is recognised as and when received.
 
 vi. Other incomes are accounted for on accrual basis except when the
 recovery is uncertain, it is accounted for on receipt basis.
 
 vii. Claims made against the Company are evaluated as to type thereof,
 period for which they are outstanding and appropriate provision made.
 Claims are stated net of recoveries from Insurance Companies and
 others.
 
 viii. Administrative and other expenses are stated net of recoveries
 wherever applicable.
 
 f.  Retirement Benefits (Staff Benefits):
 
 i. The Company has taken a policy with Life Insurance Corporation of
 India under the Group Gratuity Scheme to cover gratuity liability to
 the extent of Rs.10,00,000/- per employee and the premium is accrued on
 yearly basis.  Additional liability if any, in excess of Rs.10,00,000/-
 per Employee is provided for on payment basis in respect of gratuity
 entitlement.
 
 ii.  Leave encashment is accounted on the basis of actuarial valuation
 as at the close of the financial year.
 
 g.  Foreign Currency Transactions:
 
 i. Current Assets / Liabilities denominated in foreign currency are
 restated at the rates prevailing at the year end or at the rates at
 which forward cover has been booked, whichever is applicable.
 
 ii.  Difference, if any, on settlement / restatement is taken to Profit
 and Loss Account.
 
 h.  Taxes on Income:
 
 i.  Current tax is determined as the amount of tax payable in respect
 of taxable income for the year.
 
 ii. Deferred tax liabilities and assets are recognised at substantively
 enacted tax rates, subject to the consideration of prudence, on timing
 difference, being the difference between taxable income and accounting
 income that originate in one year and are capable of reversal in one or
 more subsequent years. Deferred tax assets are recognised and carried
 forward only to the extent there is a reasonable certainty that
 sufficient future taxable income will be available against such
 deferred tax and can be realised.
 
 i.  Provision and contingencies:
 
 A provision is recognized when the company has legal and constructive
 obligation as a result of a past event, for which it is probable that
 cash outfow will be required and a reliable estimate can be made of the
 amount of the obligation.  A contingent liability is disclosed when the
 company has possible or present obligation where it is not certain that
 an outfow of resources will be required to settle it. Contingent assets
 are neither recognized nor disclosed.