(a) CONVENTION
 
 The accounts are prepared under the historical cost convention and as a
 going concern. Fixed assets are included at the cost incurred at the
 date of acquisition.
 
 (b) FOREIGN EXCHANGE TRANSACTIONS
 
 Loans in foreign currency from banks and financial institutions for
 acquisition of fixed assets are converted at the rate of exchange
 prevailing on the date of Balance Sheet. However, where there are
 outstanding forward cover contracts, loans are translated at the rate
 under the said covers.
 
 Government of India, Ministry of Corporate Affairs vide Notification
 No.GSR 225(E) dated 31 st March, 2009 issued Companies (Accounting
 Standards) Amendment Rules 2009 as amended on 1 1 th May, 201 1, with
 effect from Accounting Year commencing on or after 7th December, 2006.
 
 In terms of the notification referred above, exchange differences
 arising on reporting of long term foreign currency loans, so far as
 they relate to acquisition of depreciable capital assets, is added to
 or deducted from the cost of the asset and depreciated over the balance
 life of the asset and in other cases it is accumulated in a Foreign
 Currency Monetary Items Translation Difference Account and amortized
 over balance period of such long term liability but not beyond 31st
 March, 2012. Current assets and current liabilities are converted at
 the rate prevailing on the Balance Sheet date and the net result is
 taken into Profit & Loss account.
 
 Gains or Losses on other foreign exchange transactions during the year
 are credited / debited to Profit & Loss Account.
 
 (c) IMPAIRMENT OF ASSETS
 
 The Company reviews the carrying values of tangible assets for any
 possible impairment at each balance sheet date. Impairment loss, if
 any, is recognised in the year in which impairment takes place.
 
 (d) CAPITALISATION OF EXPENSES
 
 i) Interest and other expenses incurred on amounts borrowed for the
 company''s expansion programme are carried forward and allocated to the
 cost of assets acquired.
 
 ii) In addition operating costs of newly acquired ships till the first
 load port or commencement of first commercial voyage in case of
 offshore assets are added to the cost of assets. These expenses include
 initial bunkers, stores, spares, interest, floating staff salaries and
 wages, travelling of personnel and other incidental expenses.
 
 (e) DEPRECIATION
 
 Depreciation is provided on ships on straight line basis at the rates
 provided in Schedule XIV to the Companies Act, 1956, or such higher
 rates as have been determined by technical evaluation of the balance
 useful life for each ship. Depreciation on other assets is provided on
 the written down value method at the rates specified in Schedule XIV to
 the Companies Act, 1956.
 
 (f) TREATMENT OF MAJOR REPAIRS
 
 All major repairs including special survey expenses carried out on
 vessels are written off to the revenue in the year of incurring the
 expenses. However, where such expenses are of the nature of capital
 expenses, the same are added to the cost of the vessel concerned.
 
 (g) LEASE RENTALS AND BAREBOAT CHARTER EXPENSES
 
 Assets acquired under finance lease from 1st April, 2001 are accounted
 in accordance with Accounting Standard 19 issued by the Institute of
 Chartered Accountants of India. Similarly assets given on long term
 bare boat charter basis is considered as finance lease for the purpose
 of accounts.
 
 (h) STORES AND SPARES
 
 Stores and spares purchased are directly issued to ships and the values
 of such purchases are charged to the expenses account as consumed.
 
 (i) REVENUE RECOGNITION
 
 Income from time and voyage charters is recorded on the basis of rates
 contracted with charterers. For voyages in progress at the year end,
 the estimated net earnings are divided proportionately over the total
 number of days taken to complete the voyage and credit is taken for the
 net earnings falling within the accounting period.
 
 Claims receivable on account of Insurance are accounted for to the
 extent the Company is reasonably certain of the ultimate collection.
 
 (j) EMPLOYEE BENEFITS
 
 For defined benefit plans, in case of shore staff and ships'' officers
 on Company''s roster, the cost of providing benefits is determined using
 the projected unit credit method, with actuarial valuations being
 carried out at each balance sheet date. Actuarial gains and losses are
 recognized in full in the profit and loss account for the period in
 which they occur.
 
 In the case of ships'' crew members, gratuity is accounted for on cash
 basis and is insignificant in value.
 
 (k) PROVISION FOR DOUBTFUL DEBTS/ADVANCES
 
 Specific provisions for doubtful debts are made by provisions charged
 to current revenue. The determination of the balance of the provision
 is based on evaluation of individual advances.
 
 (l) SHARE ISSUE EXPENSES
 
 The Company follows the practice of adjusting expenses in connection
 with the issue of shares/ convertible debentures against share premium.
 
 (m) CONTINGENT LIABILITIES
 
 The following are considered as contingent liabilities by the company
 and disclosed by way of Notes to the accounts: -
 
 i) Guarantees executed by the company''s bankers.
 
 ii) Demands received from statutory authorities but not accepted by the
 company.
 
 iii) Claims against the company not acknowledged as debts.
 
 iv) Estimated amount of contracts remaining to be executed on capital
 account and not provided for.
 
 v) Corporate guarantee issued by the company on behalf of associate
 companies.