1.  Recognition of Income and Expenditure:
 
 a.  Income and expenditure are generally recognized on accrual basis in
 accordance with the applicable accounting standards and provision is
 made for all known losses and liabilities.
 
 b.  Freight income is accounted when goods are delivered by the company
 to customers, except in case of the Seaways Division where Freight
 income is accounted when the ship sails out of the port.
 
 c.  Freight expenses are accounted when hired vehicles deliver goods to
 the Company at destination.
 
 d.  Having regard to the size of operations and the nature and
 complexities of the Companys business, freight received/paid in
 advance is accounted as income/expense on payment.
 
 e.  Year-end liability in respect of claims for loss and damages is
 provided as calculated by claims recovery agents except in case of the
 Seaways Division where such liability is provided as calculated by the
 Companys claim department.
 
 2.  Gratuity:
 
 A provision for gratuity liability to employees is made on the basis of
 actuarial valuation and paid to the approved Gratuity Fund.
 
 3.  Depreciation:
 
 Depreciation is provided on straight-line method at rates specified in
 schedule XIV to the Companies Act, 1956 except for pallets and bins
 included under plant and machinery, the cost whereof are amortised over
 a period of five years from the date of purchase. Depreciation on
 additions/ deductions is calculated pro-rata from / to the month of
 addition / deduction. Individual assets whose actual cost does not
 exceed Rs. 5,000, except pallets and bins, are fully depreciated in the
 year of purchase.
 
 4.  Fixed Assets:
 
 a) Fixed Assets are stated at cost and/or at revaluation.
 
 b) Depreciation on the amount added to Fixed Assets on revaluation is
 adjusted by transfer of equivalent amount from capital reserve created
 on revaluation of fixed assets to Profit and Loss Account.
 
 5.  Investments Investments are stated at cost.
 
 6.  Inventories:
 
 Inventories are valued at lower of cost and net realisable value.
 
 7.  Foreign Exchange Transactions:
 
 a) All transactions in foreign currency are recorded at the rate of
 exchange prevailing on the dates when the relevant transactions take
 place.
 
 b) Monetary items in foreign currency at the year end are converted in
 Indian Currency at the year end rates. In terms of the amendments to
 Accounting Standard 11 on The Effects of Changes in Foreign Exchange
 Rates, exchange differences relating to long-term monetary items are
 dealt with in the following manner:
 
 i. Exchange differences relating to long-term monetary items, arising
 during the year, in so far as they relate to the acquisition of a
 depreciable capital asset are added to/ deducted from the cost of the
 asset and depreciated over the balance life of the asset.
 
 ii. In other cases such differences are accumulated in a Foreign
 Currency Monetary Item Translation Difference Account” and amortised
 over the balance life of the long-term monetary item, not beyond 31st
 March 2011.
 
 c) Any income or expense on account of exchange difference either on
 settlement or translation is recognised in the profit and loss account
 
 d) In respect of Forward Exchange contracts entered into to hedge
 foreign currency risks, the difference between the forward rate and
 exchange rate at the inception of the contract is recognised as income
 or expense over the life of the contract.
 
 8.  Taxation:
 
 Provision for tax is made for both current and deferred taxes.
 Provision for current income tax is made on the current tax rates based
 on assessable income. Provision for current income tax on income from
 shipping activities is made on the basis of deemed tonnage income of
 the Company.
 
 The company, except for its Seaways division, provides for deferred tax
 based on the tax effect of timing differences resulting from the
 recognition of items in the accounts and in estimating its current tax
 provision. The effect on deferred taxes of a change in tax rate is
 recognized in the year in which the change is effected.
 
 9.  Impairment of Assets:
 
 The company assesses at each Balance Sheet date whether there is any
 indication that any asset may be impaired and if such indication
 exists, the carrying value of such asset is reduced to its recoverable
 amount and a provision is made for such impairment loss in the profit
 and loss account.