Notes to Accounts of Duke Offshore Ltd.

Mar 31, 2016

1. 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 relevant provisions of the Companies Act, 2013. The financial statements have been prepared on accrual basis under the historical cost convention except for categories of fixed assets which are revalued.

2. Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialize.

3. Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

4. Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

5. Depreciation

Depreciation is provided on the straight-line method based on the estimated useful life of the assets as prescribed in Schedule II of the Companies Act, 2013. Depreciation on additions to fixed assets is charged on pro-rata basis in the year of purchase.

6. Revenue Recognition

Income/Expenditure is accounted for on accrual basis. Revenue from chartering of vessels is accounted on accrual basis. Dividend income is recognized when right to receive is established. Interest income is accounted on accrual basis.

7. Fixed Assets

Fixed assets are carried at cost less accumulated depreciation/amortization and impairment losses, if any. The cost of fixed assets comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the asset ready for its intended use, other incidental expenses and interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use.

8. Foreign Currency Transactions

Transactions in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction.

9. Investments

Long-term investments (excluding investment properties), are carried individually at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary. Current investments are carried individually, at the lower of cost and fair value.

10. Employee Benefits

Employee benefits include Provident Fund and long term service awards. In case of Provident Fund the contributions are made to the Regional Provident Fund Office.

11. Earnings per share.

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the number of equity shares outstanding at the end of the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares.

12. Taxes on Income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognized as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

Deferred tax is recognized on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted as at the reporting date. Deferred tax liabilities are recognized for all timing differences. Deferred tax assets are recognized for timing differences of items other than unabsorbed depreciation and carry forward losses only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realized. However, if there is unabsorbed depreciation and carry forward of losses, deferred tax assets are recognized only if there is virtual certainty that there will be sufficient future taxable income available to realize the assets. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each balance sheet date for their reliability.

13. Impairment of Assets

The carrying values of assets / cash generating units at each balance sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognized, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognized for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognized in the Statement of Profit and Loss, except in case of revalued assets.

14. Provision for Contingencies

A provision is recognized when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes. Contingent assets are not recognized in the financial statements.

The company has not recognized Rs. 14,52,975/- which is due to Income Tax department for the F.Y 2002-03 as company has sought waiver of these penal interest from the office of Income Tax Appellate Tribunal Range 10(1), Mumbai.

15 : Deferred tax liabilities (Net)

In compliance Accounting Standard - 22 issued by the Institute of Chartered Accountants of India, the company has recognized in these Financial Statements Deferred Tax Assets and Liabilities for future Tax implication attributed to the timing differences that results between the profits offered for the Income Tax and the Profit as per Financial Statements.

The Deferred Tax Assets and Liabilities are measured as per the tax rates / laws that have been enacted by the Balance Sheet Date.

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Mar 31, 2015

II Schedules Forming part of Notes on Accounts

Note 1: Deferred tax liabilities (Net)

In compliance Accounting Standard - 22 issued by the Institute of Chartered Accountants of India, the company has recognised in these Financial Statements Deferred Tax Assets and Liabilities for future Tax implications attributable to the timing differences that result between the profits offered for the Income Tax and Profit as perthe Financial Statements.

The Deferred Tax Assets and Liabilities are measured as perthe tax rates / laws that have been enacted by the Balance Sheet Date.

Note: 2 Related Party Disclosures Key Management Personnel (KMP)

Sr. No. Name Designation

1 Mr. Avik G. Duke Chairman & Managing Director

2 Mr. Suresh Pawar Director

3 Mr. Pramod Patekar Independent Director

4 Cmde. Alan Quadras Independent Director

5 Mrs. Harshika Kataria Independent Director

6 Mr. Sujay N. Kanatawala Independent Director

Transactions with related parties during the year. Disclosure in respect of transactions that are more than 10% of the same type with related parties during the year.

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Mar 31, 2014

Note 1 : Deferred tax liabilities (Net)

In compliance Accounting Standard - 22 issued by the Institute of Chartered Accountants of India, the company has recognised in these Financial Statements Deferred Tax Assets and Liabilities for future Tax implications attributable to the timing differences that result between the profits offered for the Income Tax and Profit as per the Financial Statements.

The Deferred Tax Assets and Liabilities are measured as per the tax rates / laws that have been enacted by the Balance Sheet Date.

Transactions with related parties during the year: Disclosure in respect of transactions that are more than 10% of the same type with related parties during the year.

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Mar 31, 2012

These financial statements have been prepared in accordance with the Accounting Standards as prescribed by the Institute of Chartered Accountants of India and referred to in section 211(3) (c) of the Companies Act 1956. Significant accounting policies adopted in the presentation of the accounts are:

CHANGE IN ACCOUNTING POLICY

During the year ended 31st March, 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the company, for the preparation and presentation of its financial statement. The adoption of revised schedule VI does not impact recognition and measurement principles followed for preparation of financial statement. However, it has significant impact on presentation and disclosure made in financial statement. The company has also reclassified the previous year figures in accordance with the requirement applicable in the current year.

Note 1: Deferred tax liabilities(Net)

In compliance Accounting Standard - 22 issued by the Institute of Chartered Accountants of India, the company has recognised in these Financial Statements Deferred Tax Assets and Liabilities for future Tax implications attributable to the timing differences that result between the profits offered for the Income Tax and Profit as per the Financial Statements.

Note 2: Other Current Liabilities

* Refund of Application Money Received for allotment of shares is due to one of the shareholder Rs. 6,000/-

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Mar 31, 2010

1. CONFIRMATION

Some of the Balances in respect of amounts receivable and payable to certain parties are subject to conformation and reconciliation thereof from the respective parties.

2. OUTSTANDING PAYMENT TO MICRO & SMALL ENTERPRISES:

The Company initiated the process of identifying Micro Small and Medium Enterprises (MSME) by requesting vendors for confirmation to the letters circularized by it. As no response have been received up to now, from the vendors to whom request were made, it is considered that there are no dues/ payments to SMEs for the current year. Accordingly, disclosure as envisaged in part I of Schedule VI of the Companies Act,1956 is not applicable which has been relied upon by the auditors.

3. CONTINGENT LIABILITY AND OTHER COMMITMENT:

a) Claim against the company not acknowledged as debts Rs. 14,52,975/- (P.Y. Rs. 27,49,462/-) consist of Income Tax Dues for the financial year 2002-03, for which the Company has sought waiver of the penal interest from the office of Chief Commissioner of Income Tax Range 10 (1), Mumbai.

b) The Company has not made Compliance of AS-15 issued by the ICAI with regard to provision for Gratuity amounting to Rs. 17,50,000/- dues payable to employees as the same is accounted as and when due for payment. Accordingly the profit of the company to that extent has been overstated and liability was understated.

4. RELATED PARTY DISCLOSURE

(A) Key Management Personnel

(i) Mr. George Duke- CEO

(ii) Mr. Avik Duke - Managing Director

(iii) Mr. Suresh Pawar - Director

(iv) Mr. Prood Patehekar - Independent Director

(iii) CMDE. Alan - Independent Director

5. DEFERRED TAX ASSET/(LIABLITY)

In compliance with Accounting Standard-22 issued by the Institute of Chartered Accountants of India, the company has recognized in these Financial Statements Deferred tax Assets/Liabilities for future tax implications attributable to the timing differences that result between the profits offered for the Income Tax and the profit as per the financial statements.

Signatures to Schedule 1 to 15 forming an integral part of Balance Sheet and Profit & Loss Account for the Year ended March 31, 2010. As per our Report of even date attached