(i) Accounting basis and convention
 
 The Financial Statements are prepared under the historical cost
 convention on accrual and going concern basis and materially comply
 with Accounting Standards (AS) as mandated by Rule 3 of the Companies
 (Accounting Standards) Rules, 2006.
 
 The preparation of financial statements requires the Management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities (including contingent liabilities) as of the date of
 financial statements and the reported income and expenses during the
 reporting period. The Management believes that the estimates used in
 preparation of the financial statements are prudent and reasonable.
 Future results could differ from these estimates.
 
 (ii) Fixed Assets
 
 Fixed Assets are stated at cost of acquisition less accumulated
 depreciation. Cost of acquisition is inclusive of freight, duties,
 levies and any directly attributable cost of bringing the assets to
 their working condition for intended use.
 
 When assets are retired or otherwise disposed off, the cost of such
 assets and the related accumulated depreciation are removed from the
 accounts. Any profit or loss on retirement or other disposal is
 reflected in the profit and loss account.
 
 (iii) Depreciation
 
 In respect of fleet, the amount determined by charging the cost reduced
 by residual value as technically assessed equally over the expected
 useful life of the fleet or depreciation at the rate prescribed (5%)
 under the Schedule XIV to the Companies Act, 1956 which ever is higher,
 is provided as depreciation.
 
 Depreciation of Fixed Assets except software has been provided on
 straight line method on pro-rata basis at the rates and in the manner
 prescribed in Schedule XIV to the Companies Act, 1956.
 
 In respect of software, Depreciation is provided at 33.33% on straight
 line method, which is higher than the rate prescribed in schedule XIV
 to the Companies Act, 1956.
 
 Depreciation on leasehold improvements is provided on the basis that
 the leases would be renewed consistent with past practice.
 
 Depreciation has been provided prospectively, where the cost of
 depreciable asset has undergone change due to following :
 
 (a) Increase / decrease in Long term foreign currency liability on
 account of exchange fluctuations.
 
 (b) Additions and major improvements forming an integral part of an
 asset.
 
 (c) Assets individually costing Rs. 5000 or less are depreciated in full
 in the year of acquisition.
 
 (iv) Investments
 
 Long term Investments are stated at cost. Diminution in the value of
 investments, other than temporary in nature, is provided for.
 
 Current investments are valued at cost or net realizable value
 whichever is lower.
 
 (v) Inventories
 
 Inventories are valued at lower of Cost or Net Realisable Value. The
 cost is determined under First in First out formula.
 
 (vi) Foreign Exchange Transactions
 
 a) Transactions in foreign currencies are recorded at standard exchange
 rates prevailing in the respective fortnight of the relevant
 transactions. The realized exchange gains or losses are recognized in
 the Profit and Loss Account.
 
 b) The exchange differences on repayment / translation of foreign
 currency liabilities contracted for acquisition of fixed assets from a
 country outside India were added to / deleted from the cost of the
 relevant fixed assets in terms of Schedule VI to the Companies Act 1956
 upto 31st March, 2007.
 
 c) The exchange differences arising on reporting of long term foreign
 currency monetary items (including those arising on settlement), in so
 far as they relate to acquisition of depreciable capital assets are
 adjusted to the cost of the capital asset, with effect from 1st April
 2007, in terms of Ministry of Corporate affairs Notification dated 31st
 March, 2009 relating to Accounting Standard 11.
 
 d) Other Monetary Assets and Liabilities denominated in foreign
 currency are translated at the year end exchange rates. The resultant
 gain or loss on such translation is recognised in the Profit and Loss
 Account.
 
 e) In respect of forward exchange contracts covering either Companys
 earnings or payments (other than firm commitments and highly probable
 forecast transactions), the premium or discount arising at the
 inception of the contract is amortised as expense or income over the
 life of the contract. Exchange differences on such a contract are
 recognised in the statement of profit and loss in the reporting period
 in which the exchange rates change. Any profit or loss arising on
 cancellation or renewal of such a forward exchange contract is
 recognised as income or as expense for the period.
 
 (vii) Derivatives:
 
 Derivatives are accounted as follows based on a limited early adoption
 of AS-30 to the extent not in conflict with legal provisions and other
 Accounting Standards:
 
 a) Fair value hedges are marked to market and the notional Loss or Gain
 is accounted in the Profit and Loss account.
 
 b) Cash flow hedges are marked to market and the notional loss or gain
 is taken to Hedging reserve account.
 
 c) Other derivatives are marked to market and the notional losses or
 gains are booked in the Profit and Loss account.
 
 (viii) Revenue Recognition
 
 a) All Income and expenditure are accounted for, on accrual basis other
 than interest on overdue bills.
 
 b) Operating Earnings represent the value of charter hire and freight
 earnings. Freight income is recognized once the ship calls on the port
 of delivery.
 
 c) Income and Expenses relating to unfinished leg of the voyage as at
 the date of Balance Sheet are carried forward and included under
 Current Liabilities and Current Assets respectively. Expenses
 aggregated under unfinished leg of voyages include fixed and semi-fixed
 ship operating costs.
 
 d) Stores and Spares (other than lube oils and victualling) are charged
 off to Profit and Loss Account, on receipt.
 
 e) The revenue in respect of the duty free import licenses, under
 Served From India Scheme, is recognized as income in the books of
 account when and to the extent there is no significant uncertainty as
 to their ultimate realization.
 
 f) Interest on deposits of surplus funds in recognised on time
 proportion basis.
 
 (ix) Dry Dock / Special Survey expenses
 
 Major Improvements / Upgradation included in dry dock expenditure are
 capitalized as part of cost of ship. Other dry dock / Special Survey
 expenses are charged to Profit and Loss account as and when incurred.
 
 (x) Asset Impairment
 
 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 recognised in the year in which impairment
 takes place.
 
 (xi) Assets Impairment Reserve:
 
 Considering that Shipping is cyclical and capital intensive, the Board,
 if so required in its judgment, sets aside a portion of Net Profits to
 Asset Impairment Reserve which will be utilized when an impairment loss
 arises.
 
 (xii) Employee Benefits
 
 The Company has a defined Contribution plan for shore employees for
 provident fund and contributions made to the relevant authorities under
 this scheme are charged to the Profit and Loss account. Company has no
 other obligation except the monthly contributions.
 
 Company has defined benefit plans for shore employees namely gratuity
 and leave encashment and compensated absence, the liability for which
 is provided based on actuarial valuation determined under Projected
 Unit Credit method.  Contributions under gratuity scheme are made to
 Life Insurance Corporation of India (LIC) in accordance with the terms
 of the policy taken under their Group Gratuity Scheme.
 
 Actuarial gains / losses comprise experience adjustments and the effect
 of changes in actuarial assumptions and are recognised immediately in
 Profit and Loss account as Income / Expense.
 
 Any other termination benefits are recognised as expenses immediately
 on the basis of actual expenses.
 
 In respect of Floating staff, Provident fund and Gratuity contributions
 are made to Seamens Provident Fund and Seafarers Welfare Fund Society
 respectively. No Gratuity is payable in respect of officers who are on
 contract with the Company. Company has no further obligation except the
 monthly contributions.
 
 (xiii) Borrowing Costs:
 
 Borrowing costs that are directly attributable to the acquisition /
 construction of the underlying qualifying fixed assets are capitalised
 as a part of the respective asset up to the date of acquisition /
 completion of construction.
 
 (xiv) Provisions and Contingent liabilities
 
 Provisions are recognised when there is a present obligation as a
 result of past events where it is probable that there will be outflow
 of resource to settle the obligation and when a reliable estimate of
 the amount of the obligation can be made. When any such present
 obligation can not be measured or where a realistic estimate of the
 obligation can not be made, contingent liabilities are recognised.
 
 Contingent liabilities are also recognised when there is a possible
 obligation arising from past events due to occurrence or non-occurrence
 of one or more future events not wholly within the control of the
 company.
 
 (xv) Taxation
 
 The Company has opted for Tonnage Tax and Current Tax is the aggregate
 of Tonnage Tax for shipping income and income tax on non-shipping
 income. In view of Company opting for Tonnage Tax, no provision is made
 for deferred tax.