Shreyas Shipping

1) The following change in accounting policies has been made during the
 year.
 
 The Company has exercised the option provided by the Notification dated
 31st March, 2009 issued by Ministry of Corporate Affairs under new Para
 46 of Accounting Standard 11 The effect of changes in foreign exchange
 rates to capitalize / adjust the foreign 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. The option has been exercised in respect
 of foreign currency loans pertaining to vessels which were in operation
 as at 31s March, 2009.  Depreciation will be provided on these
 adjustments over the balance period of the assets.
 
 The net exchange gain of Rs. 7,32,65,433 which had been credited to
 Profit and Loss Account of the previous year ended 31sl March 2008 has
 been reduced from the cost of the capital assets and debited to General
 reserve. Corresponding reduction in depreciation for the previous year
 of Rs. 26,86,741 has been debited to Depreciation reserve and credited
 to General Reserve.
 
 Depreciation of Rs. 37,79,988 has been provided less in the current
 year on account of the above adjustment to reserves.  The exchange loss
 of Rs. 19,03,47,754 in current year has been added to the cost of fixed
 asset and credited to Profit and Loss Account
 
 Had this option not been exercised, the profit for the year would have
 been lower to the extent of Rs. 19,41,27,742 and fixed assets would
 have been lower by Rs. 12,35,49,050.
 
 2) Pursuant to the announcement issued by the Institute of Chartered
 Accountants of India on 28th March, 2008, the Company had early adopted
 Accounting Standard 30 (Financial Instruments) on a limited basis from
 the year 2007-08 to account for derivatives to the extent that the
 adoption does not conflict with existing mandatory accounting standards
 and other authoritative pronouncements, Companies Act and other
 regulatory requirements. Due to this change, a notional loss of Rs.
 10,75,25,147/- (net) was taken to the Hedging Reserve account (recouped
 from General Reserve) in the previous year. During the year all these
 derivative contracts have been unwound and resultant loss /gain has
 been charged to Profit and Loss Account. Consequently provision of Rs.
 10,75,25,147 has been reverted to General Reserve.
 
 3 The Companys Subsidiary, Haytrans (India) Limited has made a loss of
 Rs. 1,60,29,035/- for the year ended 31st March, 2009 and has a
 negative net worth of Rs. 2,13,77,987/- as on 31st March, 2009. In view
 of the long term plans for the Company, the diminution in value is
 considered as temporary and hence no provision is made.
 
 4 a) The exceptional item in the previous year was on account of
 provision for wage arrears to crew in terms of National Maritime Board
 Agreement dated 17th February, 2008 for the year 2006-2007 and
 2007-2008.
 
 5 Disclosures as required by AS 15 revised (2005) on Employee
 benefits.:
 
 (A) Gratuity Benefits
 
 (a) Description of the Gratuity Plan:
 
 The Company provides for gratuity, a defined benefit retirement plan
 covering eligible employees. Gratuity plan provides for a lump sum
 payment to employees on retirement / death / incapacitation/termination
 of employment, of amounts that are based on salaries and tenure of the
 employees.
 
 6. Accounting for Lease
 
 The Company has taken Vehicles on Cancelable Operating Lease and the
 lease rental of Rs. 15,69,616/- (Rs.1,051,400/-) is charged to the
 Profit and Loss Account.
 
 7.  Related Party Transactions (Refer Annexure I)
 
 8.  Details of Purchases and Sales of Investments (Schedule -5) (
 Refer Annexure II)
 
 9.  Previous years figures have been regrouped/recast wherever
 necessary to conform to the current years classifications.