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Accounting Policies of Shahi Shipping Ltd. Company

Mar 31, 2015

I Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013. The financial statements have been prepared on accrual basis under the historical cost convention except for accounting for bonus, leave encashment and receipt of insurance claims which are accounted on cash basis.

All the assets and liabilities have been classified as current or non-current as per Company's operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. The Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.

II Use Of Estimates

The preparation of financial statements in conformity with Indian GAAP requires judgements,estimates and assumptions to be made that affect the reported amount of assets and liabilities ,disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period .Difference between the actual and estimates are recognised in the period in which the results are known/ materialised.

III Tangible Assets and Depreciation

Tangible Assets are stated at cost of acquisition including interest during construction period if any, less accumulated depreciation.

Depreciation on the Fixed Assets added /disposed off /discarded during the year is provided on pro rata basis with reference to the day of addition / disposal/discarding .

Depreciation is provided on the Written Down Value Method . Depreciation is provided based on useful life of the assets as prescribed in Schedule II of the Companies Act 2013 except assets costing Rs. 5000/- or less are fully depreciated in the year of purchase.

IV Investments

All Investments are considered as long term Investments and are stated at cost.

V Foreign currency transactions and translations

The difference in translation of all other monetary assets and liabilities and realised gains and losses on other foreign currency transactions are recognized in the Profit and Loss Account.

VI Revenue Recognition

Income from operation of vessel hire charges on time charter and spot charter are recognised on completed voyage basis and are recorded net off Service Tax . In certain cases, time charter hire charges are billed at a composite rate, which includes reimbursement of incidental expenses.

Dividend income is recognised when the right to receive payment is established .

Interest Income is recognised on a time proportion basis taking into account the amount outstanding and the interest rate applicable.

VII Retirement and other Employee Benefit

Company's contribution to Employees Provident Fund and Employees State Insurance are being charged to the Profit & Loss Account. Liability for gratuity in case of shore staff is determined on accrual basis and is provided in the books of accounts. In case of crew members, gratuity is accounted on cash basis.

VIII Treatment Of Major Repairs

Major repairs including survey expenses carried out on vessels are written off to revenue in the year the expenses are incurred.

IX Stores & Spares

Stores & Spares purchased are directly issued to the Vessels and the values of such purchases are charged to the Revenue and are included in Repairs and Maintenance Account.

X Current & Deffered Tax

Tax expense for the period, comprising Current Tax and Deferred Tax are included in the determination of the net profit or loss for the period.

Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the taxation laws prevailing in India.

Deferred tax is recognised for all the timing differences, subject to the consideration of prudence in respect of deferred tax assets. Deferred tax assets are recognised and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

Deferred Tax assets and liabilities are measured using the tax rates and tax laws that have been enacted by the Balance Sheet date. At each Balance Sheet date, the company re-assesses unrecognized deferred tax assets, if any.

XI Borrowing Costs

Borrowing Costs attributable to acquisition and construction of qualifying assets are capitalised as a part of the cost of such assets up to the date when such assets are ready for its intended use. Other borrowing costs are charged to the statement of profit and loss in the period in which they are incurred.

XII Provisions & Contingent Liabilities

Provision is recognised in the accounts when there is a present obligation as a result of past event(s)and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made. Contingent Liabilities are disclosed unless the possibility of outflow of resources is remote.

XIII Cash Flow Statement

Cash Flows has been prepared using the indirect method , whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature ,any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the company are segregated.


Mar 31, 2014

I. Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention except for accounting for bonus, leave encashment and receipt of insurance claims which are accounted on cash basis.

II. Tangible Assets

Tangible Assets are stated at cost of acquisition including interest during construction period. If any, less accumulated depreciaion.

III. Depreciation

(i) Depreciation is provided on the Written Down Value Method at rates specified in the Schedule XIV of the Companies Act, 1956.

(ii) Depreciation on addition to Assets and sale of Assets is calculated pro-rata, from the date of such addition and up to the date of such sale respectively.

(iii) Cost of lease-hold land is amortised over the period of lease.

IV. Investments

All Investments are considered as long term Investments and are stated at cost.

V. Foreign currency transactions and translations

The difference in translation of all other monetary assets and liabilities and realised gains and losses on other foreign currency transactions are recognized in the Profit and Loss Account.

VI. Revenue Recognition

Income from operation consists of vessel hire charges on time charter and spot charter basis and are recorded net off Service Tax . In certain cases, time charter hire charges are billed at a composite rate, which includes reimbursement of incidental expenses.

VII. Retirement Benefits

Company''s contribution to Employees Provident Fund and Employees State Insurance are being charged to the Profit & Loss Account. Liability for gratuity in case of shore staff is determined on accrual basis and is provided in the books of accounts. In case of crew members, gratuity is accounted on cash basis.

VIII. Treatment Of Major Repairs

Major repairs including survey expenses carried out on vessels are written off to revenue in the year the expenses are incurred. However, in the opinion of the management if such expenses carry a long benefit and in the nature of capital expenditure, the same are added to the cost of the respective vessels.

IX. Stores & Spares

Stores & Spares purchased are directly issued to the Vessels and the values of such purchases are charged to the Revenue and are included in Repairs and Maintenance Account.

X. Current & Deffered Tax

Tax expense for the period, comprising Current Tax and Deferred Tax are included in the determination of the net profit or loss for the period.

Current tax is measured at the amount expected to be paid to tha tax authorities in accordance with the taxation laws prevailing in India.

Deferred tax is recognised for all the timing differences, subject to the consideration of prudence in respect of deferred tax assets. Defferred tax assets are recognised and carried forward only to the extent that there is a reasonable certainity that sufficient future taxable income will be available against which such deferred tax assets can be realised.

Deferred Tax assets and liablities are measured using the tax rates and tax laws that have been enacted by the Balance Sheet date. At each Balance Sheet date, the company re-assesses unrecognized deferred tax assets, if any.


Mar 31, 2013

I Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally. Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention except for accounting for bonus, leave encashment and receipt of insurance claims which are accounted on cash basis.

II Tangible Assets

Tangible Assets are stated at cost of acquisition including interest during construction period. If any, less accumulated depreciation.

III Depreciation

(i) Depreciation is provided on the Written Down Value Method at rates specified in the Schedule XIV of the Companies Act,''1956.

(ii) Depreciation on addition to Assets and sale of Assets is calculated pro-rata, from the date of such addition and up to the date of such sale respectively.

(iii) Cost of lease-hold land is amortised over the period of lease.

IV investments

All Investments are considered as long term Investments and are stated at cost.

V Foreign currency transactions and translations

The difference in translation of all other monetary assets and liabilities and realised gains and losses on other foreign currency transactions are recognized in the Profit and Loss Account.

VI Revenue Recognition

Income from operation consists of vessel hire charges on time charter and spot charter basis and are recorded net off Service Tax. In certain cases, time charter hire charges are billed at a composite rate, which includes reimbursement of incidental expenses.

VII Retirement Benefits

Company''s contribution to Employees Provident Fund and Employees State Insurance are being charged to the Profit & Loss Account. Liability,for gratuity in case of shore staff is determined on accrual basis and is provided in the books of accounts. In case of crew members, gratuity is accounted on cash basis.

VIII Treatment Of Major Repairs

Major repairs including survey expenses carried out on vessels are written off to revenue in the year the expenses are incurred. However, in the opinion of the management jf such expenses carry a long benefit and in the nature of capital expenditure, the same are added to the cost of the respective vessels.

IX Stores & Spares ...

Stores & Spares purchased are directly issued to the Vessels and the values of such purchases are charged to the Revenue and are included in Repairs and Maintenance Account. /

X Current & Deffered Tax

Tax expense for the period, comprising Current Tax and Deferred Tax are included in the determination of the net profit or loss for the period.

Current tax is measured at the amount expected to be paid to tha tax authorities in accordance with the taxation laws prevailing in India.

Deferred tax is recognised for all the timing differences, subject to the consideration of prudence in respect of deferred tax assets. Defferred tax assets are recognised and carried forward only to the extent that there is a reasonable certainity that sufficient future taxable income will be available against which such deferred tax assets can be realised.

'' Deferred Tax assets and liablities are measured using the tax rates and tax laws that have been enacted by the Balance Sheet date. At each Balance Sheet date, the company re-assesses unrecognized deferred tax assets, if any.


Mar 31, 2012

I Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention except for accounting for bonus, leave encashment and receipt of insurance claims which are accounted on cash basis.

II Tangible Assets

Tangible Assets are stated at cost of acquisition including interest during construction period. If any, less accumulated depreciation.

III Depreciation

(i) Depreciation is provided on the Written Down Value Method at rates specified in the Schedule XIV of the Companies Act, 1956.

(ii) Depreciation on addition to Assets and sale of Assets is calculated pro-rata, from the date of such addition and up to the date of such sale respectively.

(iii) Cost of lease-hold land is amortised over the period of lease.

IV Investments

All Investments are considered as long term Investments and are stated at cost.

V Foreign currency transactions and translations

The difference in translation of all other monetary assets and liabilities and realised gains and losses on other foreign currency transactions are recognized in the Profit and Loss Account.

VI Revenue Recognition

Income from operation consists of vessel hire charges on time charter and spot charter basis. In certain cases, time charter hire charges are billed at a composite rate, which includes reimbursement of incidental expenses.

VII Retirement Benefits

Company's contribution to Employees Provident Fund and Employees State Insurance are being charged to the Profit & Loss Account. Liability for gratuity in case of shore staff is determined on accrual basis and is provided in the books of accounts. In case of crew members, gratuity is accounted on cash basis.

VIII Treatment Of Major Repairs

Major repairs including survey expenses carried out on vessels are written off to revenue in the year the expenses are incurred. However, in the opinion of the management if such expenses carry a long benefit and in the nature of capital expenditure, the same are added to the cost of the respective vessels.

IX Stores & Spares

Stores & Spares purchased are directly issued to the Vessels and the values of such purchases are charged to the Revenue and are included in Repairs and Maintenance Account.

X Current & Deffered Tax

Tax expense for the period, comprising Current Tax and Deferred Tax are included in the determination of the net profit or loss for the period.

Current tax is measured at the amount expected to be paid to tha tax authorities in accordance with the taxation laws prevailing in India.

Deferred tax is recognised for all the timing differences, subject to the consideration of prudence in respect of deferred tax asset*. Defferred tax assets are recognised and carried forward only to the extent that there is a reasonable eertajpity that sufficient future taxable income will be available against which such deferred tax assets can be realised.

Deferred Tsp as jjpand liablities are measured using the tax rates and tax laws that have been enacted by the Balance Sh^pt daifcJMsach Balance Sheet date, the company re-assesses unrecognized deferred tax assets, if any.


Mar 31, 2010

1. Method of Accounting:

The accounts are prepared under historical cost convention and are based on the accrual basis of accounting except that liability for bonus, leave encashment and receipt of insurance claims, which are accounted on cash basis.

2. Fixed Assets:

Fixed assets are stated at cost of acquisition including interest during construction period, if any, less accumulated depreciation.

3. Capital Work in Progress and Advances for Capital Goods:

Capital work-in-progress and Advances for capital goods includes advances for projects and advances for capital goods.

4. Depreciation:

(i) Depreciation is provided on the Written Down Value Method at rates specified in the Schedule XIV of the Companies Act, 1956

(ii) Depreciation on addition to Assets and sale of Assets is calculated pro-rata, from the date of such addition and up to the date of such sale respectively.

(iii) Cost of lease-hold land is amortised over the period of lease.

5. Investments:

All Investments are considered as long term Investments and are stated at cost.

6. Foreign Exchange Transaction:

Loan 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.

Government of India, Ministry of Corporate Affairs vide notification No. GSR 225 (E) dated 31st March 2009 issued Companies ( Accounting Standards) Amendment Rules, 2009 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 assets and depreciated over the balance life of the assets and in other cases it is accumulated in Foreign Currency Monetary items Translation Difference Account and amortised over balance period of such long term liability but not beyond 31st March,2011.

Current assets and current liabilities are converted at the rate prevailing on the Balance Sheet date and the net results is taken into Profit & Loss Account.

7. Revenue Recognition:

Income from operation consists of vessel hire charges on time charter and spot charter basis. In certain cases, time charter hire charges are billed at a composite rate, which includes reimbursement of incidental expenses.

8. Retirement Benefits:

Companys contribution to Employees Provident Fund and Employees State Insurance are being charged to the Profit & Loss Account. Liability for gratuity in case of shore staff is determined on accrual basis and is provided in the books of accounts. In case of crew members, gratuity is accounted for on cash basis.

9. Treatment of major repairs:

Major repairs including survey expenses carried out on vessels are written off to revenue in the year the expenses are incurred. However, in the opinion of the management if such expenses are carry a long term benefit and in the nature of a capital expenditure, the same are added to the cost of the respective vessels.

10. Stores & Spares:

Stores & Spares purchased are directly issued to the Barges and the values of such purchases are charged to the Revenue and are included in Repairs and Maintenance Account.

11. Taxes on Income

Provision for current tax is made, based on tax payable under Income Tax Act 1961.The Company provides for Deferred Tax Liability which arises due to the timing difference between accounting income & taxable income.

 
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