Accounting Policies of Hemang Resources Ltd. Company

Mar 31, 2024

SIGNIFICANT ACCOUNTING POLICIES 30.1Basis of Preparation

a) In accordance with the notification issued by the Ministry of Corporate Affairs, the Company is required to prepare its Financial Statements as per the Indian Accounting Standards (''Ind AS'') prescribed under Section 133 of the Companies Act, 2013 read with rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 as amended by the Companies (Accounting Standards) Amendment Rules, 2016 with effect from1^stApril, 2017. Accordingly, the Company has prepared these Financial Statements which comprise the Balance Sheet as at 31^stMarch, 2023, the Statement of Profit and Loss, the Statement of Cash Flows and the Statement of Changes in Equity for the year ended 31^stMarch, 2024.

b) and a summary of the significant accounting policies and other explanatory information (together hereinafter referred to as "Financial Statements".

c) The financial statements of the Company are prepared in accordance with the Ind AS on the accrual basis of accounting. Whereas there was NO material difference in compliance of GAAP and Ind AS, management has continued recognition of the items that affects with IND AS in the financial statement at historical cost.

d) The financial statements are presented in Indian Rupees (''INR'') and all values are rounded to the nearest lakh, except otherwise indicated.

30.2 Use of estimates

The preparation of the financial statements 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.

30.3 Revenue Recognition:

a. Coal Trading:

Revenue from sale of coal is recognized on the basis of dispatches made to customers, which is considered as transfer of ownership and represents amount billed for goods sold excluding GST.

b. Revenue from sale of coal onHigh Seas basis is accounted for on the basis of date of agreement entered with the customers during the year.

c. Claims received for rejection/ quality in coal sold are netted off from sales amount, except for the claim related to the previous year which is shown under selling & distribution.

d. Other Income -Cargo Handling charges is the amount recovered in excess of the amount paid by the Company for the services in proportion of the quantity dispatched.

e. Dividend income is accounted when the right to receive it is established.

30.4 Fixed Assets& Capital work-in-progress:

a. Fixed Assets are stated at cost less accumulated depreciation except otherwise stated. Cost of Fixed assets are arrived at after including therein attributable expenses for bringing the respective assets to working condition.

b. The company does not have any Capital Work-in-Progress.

30.5 Depreciation:

Depreciation on Fixed Assets is provided using Straight Line Method. The Fixed Assets are depreciated over the useful life

prescribed in Schedule II of the Companies Act, 2013. Depreciable amount is calculated after considering 5% of original cost

as residual value. No Depreciation has been charged on Land held as Investment Property.

30.6 Inventories:

a. Imported Coal: At Cost (including Direct Expenses with specific identification method) or Market Price, whichever is lower.

b. Indigenous Coal: At Cost (including Direct Expenses) using FIFO Method or Market Price, whichever is lower.

c. Goods In Transit/ Unclear Stock: At Cost.

d. Land:Valued at Cost including Registration Expenses.

30.7 Retirement Benefits:

a. The Company has provided for value of unutilized leave due to employees at the end of the year.

b. The Company has taken Group Gratuity policy with the Life Insurance Corporation of India (LIC) for future payment of Gratuities calculated on the basis of actuarial Valuation and the premium paid on such policy has been charged to Profit & Loss Account.

30.8 Investment:

Investments which are readily realizable and intended to be held for not more than one year from the date on which such

investments are made, are classified as current investments. All other investments are classified as long-term investments.

Long term Investments are carried at cost. No provision has been made for diminution in the value of investments. The fair value of the investment in land which is valued at cost of Rs.8.98 lakhs could not be provided as valuation report not obtained in the recent years.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

30.9 Earning Per Share

Basic earnings per share is computed by dividing the Profit / (Loss) for the period after tax (including the post tax effect of extraordinary items, if any) attributable to equity shareholders after deducting preference dividends and any attributable tax thereto by the weighted average number of equity shares outstanding during the year.

30.10 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, highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

30.11 Foreign Currency Transaction:

a. Transaction in foreign currency is accounted for at the exchange spot rate on the date of transaction. Receivable and payables are translated at the closing rate of exchange prevailing on Balance Sheet date. The difference because of fluctuation in the rate of exchange is recognized in the Profit & Loss account.

b. Transactions covered by cross currency swaps and options contracts to be settled on future dates are recognized at the year-end rates of the underlying foreign currency. Effect arising of the swap contract is being adjusted on the date of settlement.

c. Transaction covered by Forward contracts to be settled on future date recognized at the Hedged Rate of the underlying foreign currency at the year end.

d. Premium & Bank Margin incurred on Forward contracts to be settled on future date are proportionately recognized at the year end.

30.12 Borrowing Costs:

Borrowing cost includes Interest, amortization of ancillary costs incurred in connection with the arrangement of borrowing to the extent related / attributed to the acquisition / construction of qualifying assets are capitalized up to the date when such assets are ready for its intended use. All other borrowing costs are charged to Profit & Loss account.

30.13 Lease

Lease, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased items, are classified as operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss on a straight line basis over the lease term.

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Mar 31, 2015

1.1 Basis of Preparation of Financial Statements:

The Financial Statements are prepared under the historical cost convention on ongoing concern basis in accordance with the Generally Accepted Accounting Principles in India to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 and the applicable provision of the Companies Act, 1956 and Companies Act 2013. The Company has followed the mercantile system of accounting and recognized income and expenditure on accrual basis. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

1.2 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.

1.3 Revenue Recognition:

a. Coal Trading:

Sale of coal has been recorded and recognized on the basis of dispatches made to customers, which is considered as transfer of ownership and represents amount billed for goods sold excluding Sales Tax/ VAT.

b. Revenue from High Seas Sales are accounted for on the basis of date of agreement entered with the customers during the year.

c. Further, Other Income received through cargo handling charges is the amount recovered in excess of the amount paid by the company for the services in Proportion of the quantity dispatched.

d. Dividend income is accounted when the right to receive it is established.

1.4 Fixed Assets & Capital work-in-progress:

a. Fixed Assets are stated at cost less accumulated depreciation except otherwise stated. Costs of Fixed assets are arrived at after including therein attributable expenses for bringing the respective assets to working condition.

b. The company does not have any Capital Work-in-Progress.

1.5 Depreciation:

Depreciation on Fixed Assets is provided using Straight Line Method. The Fixed Assets are depreciated over the useful life prescribed in Schedule II of the Companies Act, 2013. Depreciable amount is calculated after considering 5% of original cost as residual value. No Depreciation has been charged on Land held as Investment Property.

1.6 Inventories:

a. Imported Coal: At Cost (including Direct Expenses with specific identification method) or Market Price, whichever is lower.

b. Indigenous Coal: At Cost (including Direct Expenses) using FIFO Method or Market Price, whichever is lower.

c. Goods In Transit/ Unclear Stock: At Cost.

d. Land: Valued at Cost including Registration Expenses.

1.7 Retirement Benefits:

a. The Company has provided for value of unutilized leave due to employees at the end of the year.

b. In the opinion of the Board of Directors, Company does not fall under the purview of the retirement benefits like, Gratuity, Due to the fact that none of the employees completed 5 years service in the company and therefore no provision for the same is provided in the books.

1.8 Investment:

Non Current Investments are shown at Cost. No provision has been made for diminution in the value of investments.

1.9 Earnings Per Share

Basic earnings per share is computed by dividing the Profit / (Loss) for the period after tax (including the post tax effect of extraordinary items, if any) attributable to equity shareholders after deducting preference dividends and any attributable tax thereto by the weighted average number of equity shares outstanding during the year.

1.10 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, highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

1.11 Foreign Currency Transaction:

a. Transaction in foreign currency is accounted for at the exchange spot rate on the date of transaction. Receivable and payables are translated at the closing rate of exchange prevailing on Balance Sheet date. The difference because of fluctuation in the rate of exchange is recognized in the Profit & Loss account.

b. Transactions covered by cross currency swaps and options contracts to be settled on future dated recognized at the year-end rates of the underlying foreign currency. Effect arising of the swap contract is being adjusted on the date of settlement.

c. Transaction covered by Forward contracts to be settled on future date recognized at the Hedged Rate of the underlying foreign currency at the year end.

d. Premium & Bank Margin incurred on Forward contracts to be settled on future date are proportionately recognized at the year end.

1.12 Borrowing Costs:

Interest and other costs in connection with the borrowing of the funds to the extent related / attributed to the acquisition / construction of qualifying assets are capitalized up to the date when such assets are ready for its intended use. All other borrowing costs are charged to Profit & Loss account.

1.13 Provisions and Contingent Liabilities:

A provision is recognized when an enterprises has a present obligation as a result of past event; 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 are not discounted to present value and are determined based on best estimates 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 not provided for in the accounts and are disclosed by way of Notes.

1.14 Provision for Current and Deferred Tax:

Provision for current tax is made after taking into consideration benefits admissible under the provision of the Income Tax Act, 1961. Deferred Tax liabilities and assets are recognized at substantively enacted tax rates, subject to the consideration of prudence, on timing difference, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

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Mar 31, 2014

1.1 Basis of Preparation of Financial Statements:

The Financial Statements are prepared under the historical cost convention on ongoing concern basis in accordance with the Generally Accepted Accounting Principles in India to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 and the provision of the Companies Act, 1956. The Company has followed the mercantile system of accounting and recognized income and expenditure on accrual basis. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

1.2 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.

1.3 Revenue Recognition:

a. Coal Trading:Sale of coal has been recorded and recognized on the basis of dispatches made to customers, which is considered as transfer of ownership and represents amount billed for goods sold excluding Sales Tax/ VAT.

b. Revenue from High Seas Sales are accounted for on the basis of date of agreement entered with the customers during the year.

c. Further, Other Income received through cargo handling charges is the amount recovered in excess of the amount paid by the company for the services in Proportion of the quantity dispatched.

d. Dividend income is accounted when the right to receive it is established.

1.4 Fixed Assets & Capital work-in-progress:

a. The Company does not hold any Depreciable Asset. Costs of non-Depreciable Fixed assets are arrived at after including therein - attributable expenses for bringing the respective assets to working condition.

b. The company does not have any Capital Work-in-Progress.

1.5 Depreciation:

No Depreciation has been charged on Land held as Investment Property.

1.6 Inventories:

a. Imported Coal: At Cost (including Direct Expenses with specific identification method) or Market Price, whichever is lower.

b. Indigenous Coal: At Cost (including Direct Expenses) using FIFO Method or Market Price, whichever is lower.

c. Goods In Transit/ Unclear Stock: At Cost.

d. Land: Valued at Cost including Registration Expenses.

1.7 Retirement Benefits:

a. The Company has provided for value of unutilized leave due to employees at the end of the year.

b. In the opinion of the Board of Directors, Company does not fall under the purview of the retirement benefits like P.F., Gratuity etc and therefore no provision for the same is provided in the books.

1.8 Investment:

Non Current Investments are shown at Cost. No provision has been made for diminution in the value of investments.

1.9 Earning Per Share

Basic earnings per share is computed by dividing the Profit / (loss) for the period after tax (including the post tax effect of extraordinary items, if any) attributable to equity shareholders after deducting preference dividends and any attributable tax thereto by the weighted average number of equity shares outstanding during the year.

1.10 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, highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

1.11 Foreign Currency Transaction:

a. Transaction in foreign currency is accounted for at the exchange spot rate on the date of transaction. Receivable and payables are translated at the closing rate of exchange prevailing on Balance Sheet date. The difference because of fluctuation in the rate of exchange is recognized in the Profit & Loss account.

b. Transactions covered by cross currency swaps and options contracts to be settled on future dated recognized at the year-end rates of the underlying foreign currency. Effect arising of the swap contract is being adjusted on the date of settlement.

c. Transaction covered by Forward contracts to be settled on future date recognized at the Hedged Rate of the underlying foreign currency at the year end.

d. Premium & Bank Margin incurred on Forward contracts to be settled on future date are proportionately recognized at the year end.

1.12 Borrowing Costs:

Interest and other costs in connection with the borrowing of the funds to the extent related / attributed to the acquisition / construction of qualifying assets are capitalized up to the date when such assets are ready for its intended use. All other borrowing costs are charged to Profit & Loss account.

1.13 Provisions and Contingent Liabilities:

A provision is recognized when an enterprises has a present obligation as a result of past event; 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 are not discounted to present value and are determined based on best estimates 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 not provided for in the accounts and are disclosed by way of Notes.

1.14 Provision for Current and Deferred Tax:

Provision for current tax is made after taking into consideration benefits admissible under the provision of the Income Tax Act, 1961. Deferred Tax liabilities and assets are recognized at substantively enacted tax rates, subject to the consideration of prudence, on timing difference, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

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Mar 31, 2013

1.1 Basis of Preparation of Financial Statements:

The Financial Statements are prepared under the historical cost convention on ongoing concern basis in accordance with the Generally Accepted Accounting Principles in India to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 and the provision of the Companies Act, 1956. The Company has followed the mercantile system of accounting and recognized income and expenditure on accrual basis. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

1.2 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. 13 Revenue Recognition:

a. Coal Trading:

Sale of coal has been recorded and recognized on the basis of dispatches made to customers, which is considered as transfer of ownership and represents amount billed for goods sold excluding Sales Tax/ VAT.

b. Revenue from High Seas Sales are accounted for on the basis of date of agreement entered with the customers during the year.

c. Further, Other Income received through cargo handling charges is the amount recovered in excess of the amount paid by the company for the services in Proportion of the quantity dispatched.

d. Dividend income is accounted when the right to receive it is established.

1.4 Fixed Assets & Capital work-in-progress:

a. The Company does not hold any Depreciable Asset. Costs of non-Depreciable Fixed assets are arrived at after including therein - attributable expenses for bringing the respective assets to working condition.

b. The company does not have any Capital Work-in-Progress.

1.5 Depreciation:

No Depreciation has been charged on Land held as Investment Property.

1.6 Inventories:

a. Imported Coal: At Cost (including Direct Expenses with specific identification method) or Market Price, whichever is lower.

b. Indigenous Coal: At Cost (including Direct Expenses) using FIFO Method or Market Price, whichever is lower.

c. Goods In Transit/Unclear Stock: AtCost.

d. Land: Valued at Cost including Registration Expenses.

1.7 Retirement Benefits:

a. The Company has provided for value of unutilized leave due to employees at the end of the year.

b. In the opinion of the Board of Directors, Company does not fall under the purview of the retirement benefits like P.F., Gratuity etc and therefore no provision for the same is provided in the books.

1.8 Investment:

Non Current Investments are shown at Cost. No provision has been made for diminution in the value of investments.

1.9 Earning Per Share

Basic earnings per share is computed by dividing the Profit / (loss) for the period after tax (including the post tax effect of extraordinary items, if any) attributable to equity shareholders after deducting preference dividends and any attributable tax thereto by the weighted average number of equity shares outstanding during the year.

1.10 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, highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

1.11 Foreign Currency Transaction:

a. Transaction in foreign currency is accounted for at the exchange spot rate on the date of transaction. Receivable and payables are translated at the closing rate of exchange prevailing on Balance Sheet date. The difference because of fluctuation in the rate of exchange is recognized in the Profit & Loss account.

b. Transactions covered by cross currency swaps and options contracts to be settled on future dated recognized at the year-end rates of the underlying foreign currency. Effect arising of the swap contract is being adjusted on the date of settlement,

c. Transaction covered by Forward contracts to be settled on future date recognized at the Hedged Rate of the underlying foreign currency at the year end.

d. Premium & Bank Margin incurred on Forward contracts to be settled on future date are proportionately recognized at the year end.

1.12 Borrowing Costs:

Interest and other costs in connection with the borrowing of the funds to the extent related / attributed to the acquisition / construction of qualifying assets are capitalized up to the date when such assets are ready for its intended use. All other borrowing costs are charged to Profit & Loss account.

1.13 Provisions and Contingent Liabilities:

A provision is recognized when an enterprises has a present obligation as a result of past event; 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 are not discounted to present value and are determined based on best estimates 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 arenot provided for in the accounts andare disclosed by way ofNotes.

1.14 Provision for Current and Deferred Tax:

Provision for current tax is made after taking into consideration benefits admissible under the provision of the Income Tax Act, 1961. Deferred Tax liabilities and assets are recognized at substantively enacted tax rates, subject to the consideration of prudence, on timing difference, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

1.15 Preliminary Expenses / Deffered Revenue Expenditures

Preliminary Expenses / deferred revenue expenses have been written off in ten equal installments. (Also refer Notes to Accounts No. 2.2)

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Mar 31, 2012

1.1 Basis of Preparation of Financial Statements:

The Financial Statements are prepared under the historical cost convention on ongoing concern basis in accordance with the Generally Accepted Accounting Principles in India and the provision of the Companies Act, 1956. The Company has followed the mercantile system of accounting and recognized income and expenditure on accrual basis.

1.2 Revenue Recognition:

a. Coal Trading:

Sale of coal has been recorded and recognized on the basis of dispatches made to customers, which is considered as transfer of ownership and represents amount billed for goods sold excluding Sales Tax/ VAT.

b. Revenue from High Seas Sales are accounted for on the basis of date of agreement entered with the customers during the year.

c. Further, Other Income received through cargo handling charges is the amount recovered in excess of the amount paid by the company for the services in proportion of the quantity dispatched.

1.3 Fixed Assets & Capital work-in-progress:

a. The Company does not hold any Depreciable Asset. Costs of non-depreciable Fixed assets are arrived at after including therein - attributable expenses for bringing the respective assets to working condition.

b. The company does not have any Capital Work-in-Progress.

1.4 Depreciation:

No Depreciation has been charged on Land held as Fixed Assets.

1.6 Inventories:

a. Imported Coal: At Cost (including Direct Expenses with specific identification method) or Market Price, whichever is lower.

b. Indigenous Coal: At Cost (including Direct Expenses) using FIFO Method or Market Price, whichever is lower.

c. Goods In Transit: At Cost.

d. Land: Valued at Cost including Registration Expenses.

1.7 Retirement Benefits:

a. The Company has provided for value of unutilized leave due to employees at the end of the year.

b. In the opinion of the Board of Directors, Company does not fall under the purview of the retirement benefits like P.F., Gratuity etc and therefore no provision for the same is provided in the books.

1.8 Investment:

Long Term investments are shown at Cost. No provision has been made for diminution in the value of investments.

1.9 Foreign Currency Transaction:

a. Transaction in foreign currency is accounted for at the exchange spot rate on the date of transaction. Receivable and payables are translated at the closing rate of exchange prevailing on Balance Sheet date. The difference because of fluctuation in the rate of exchange is recognized in the Profit & Loss account.

b. Transactions covered by cross currency swaps and options contracts to be settled on future dated recognized at the year-end rates of the underlying foreign currency. Effect arising of the swap contract is being adjusted on the date of settlement.

1.10 Borrowing Costs:

Interest and other costs in connection with the borrowing of the funds to the extent related / attributed to the acquisition / construction of qualifying assets are capitalized up to the date when such assets are ready for its intended use. All other borrowing costs are charged to Profit & Loss account.

1.11 Provisions and Contingent Liabilities:

A provision is recognized when an enterprises has a present obligation as a result of past event; 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 are not discounted to present value and are determined based on best estimates 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 not provided for in the accounts and are disclosed by way of Notes.

1.12 Provision for Current and Deferred Tax:

Provision for current tax is made after taking into consideration benefits admissible under the provision of the Income Tax Act, 1961. Deferred Tax liabilities and assets are recognized at substantively enacted tax rates, subject to the consideration of prudence, on timing difference, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

1.13 Preliminary Expenses / Deferred Revenue Expenditures:

Preliminary Expenses / Deferred Revenue Expenditures have been written off in ten equal installments.

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Mar 31, 2011

01. Basis of Preparation of Financial Statements:

The Financial Statements are prepared under the historical cost convention on ongoing concern basis in accordance with the Generally Accepted Accounting Principles in India and the provision of the Companies Act, 1956. The Company has followed the mercantile system of accounting and recognized income and expenditure on accrual basis.

02. Revenue Recognition:

Coal Trading: Sale of coal has been recorded and recognized on the basis of dispatches made to customers, which is considered as transfer of ownership and represents amount billed for goods sold excluding Sales Tax/ VAT. High Seas Sales are accounted for on the basis of date of agreement entered with the customers during the year.

Further, Other Income received through cargo handling charges is the amount recovered in excess of the amount paid by the company for the services in Proportion of the quantity dispatched.

03. Fixed Assets:

A. Non Depreciable Assets: Fixed Assets have been valued at Cost.

B. Depreciable Assets: The Company does not have any depreciable assets.

04. Depreciation: No Depreciation has been charged on Land held as Fixed Assets.

05. Impairment of Assets: An Assets is treated as impaired when the carrying cost of an assets exceeds its recoverable value. An impairment loss is charged to Profit & Loss Account in the year in which an asset is identified as impaired. Since Company does not have Fixed Assets except Land, no provision has been made for impairment of assets.

06. Inventories: a. Imported Coal and Coking Coal: Valued at Cost (including Direct Expenses with specific identification method) or Market Price, whichever is lower.

b. Indigenous Coal: Valued at Cost or Market value, whichever is lower, using FIFO Method.

c. Land: Valued at Cost including Registration Expenses.

07. Retirement Benefits:

The Company has provided for value of unutilized leave due to employees at the end of the year. Further, in the opinion of the Board of Directors, Company does not fall under the purview of the retirement benefits like P.F., Gratuity etc and therefore no provision for the same is provided in the books.

08. Investment:

Long Term investments are shown at Cost. No provision has been made for diminution in the value of investments.

09. Foreign Currency Transaction:

Transaction in foreign currency is account for at the exchange spot rate on the date of transaction. Receivable and payables are translate at the closing rate of exchange prevailing on Balance Sheet date. The difference because of fluctuation in the rate of exchange is recognized in the Profit & Loss account.

10. Provisions and Contingent Liabilities:

A provision is recognized when an enterprises has a present obligation as a result of past event; 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 are not discounted to present value and are determined based on best estimates required to settle the obligation at the Balance Sheet date. There are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent Liabilities are not provided for in the accounts and are disclosed by way of Notes.

11 . Provision for Current Tax:

Provision for current tax is made after taking into consideration benefits admissible under the provision of the Income Tax Act, 1961. Deferred Tax liabilities and assets are recognized at substantively enacted tax rates, subject to the consideration of prudence, on timing difference, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

12. Preliminary Expenses / Deferred Revenue Expenditures:

Preliminary Expenses / Deferred Revenue Expenditures have been written off in ten equal installments.

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Mar 31, 2010

01. Basis of Preparation of Financial Statements:

The Financial Statements are prepared under the historical cost convention on ongoing concern basis in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956. The company has followed the mercantile system of accounting and recognizes income and expenditure on accrual basis.

02. Revenue Recognition: Coal Trading:

Sale of coal has been recorded and recognized on the basis of dispatches made to customers, which is considered as transfer of ownership and represents amount billed for goods sold excluding Sales Tax / VAT. High Seas Sales is accounted for on the basis of date of agreement entered with the customers during the year.

Further, Other Income received through cargo handling charges is the amount recovered in excess of the amount paid by the company for the services in proportion of the quantity dispatched.

03. Fixed Assets:

A. Non Depreciable Assets : Fixed Asset have been valued at cost.

B. Depreciable Assets : The Company does not have any depreciable asset.

04. Depreciation:

No Depreciation has been charged on Land

05. Impairment of Assets:

An Asset is treated as impaired when the carrying cost of an asset exceeds its recoverable value. An impairment loss is charged to Profit and Loss Account in the year in which an asset is identified as impaired. Since Company does not have any fixed assets expect land, no provision has been made for impairment of assets.

06. Valuation of Inventories

A. Land : Valued at cost including registration expenses.

B. Coal : Valued at cost of purchase.

07. Retirement Benefits:

The Company has provided for value of unutilized leave due to employees at the end of the year. Further, in the opinion of the Board of Directors, Company does not fall under the purview of the retirement benefits like P F, gratuity etc. and therefore no provision for the same is provided in the books.

08. Investment:

Long-term investments are shown at cost.

09. Foreign Currency Transaction:

Transactions in foreign currency are accounted for at the exchange spot rate on the date of the transaction. Year-end receivable and payables are translated at the year end rate of exchange. The difference on account of fluctuation in the rate of exchange is recognized in the profit and loss account.

10. Provisions and Contingent Liabilities:

A provisions is recognized when an enterprises has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligations, in respect of which a reliable estimate can be made. Provisions are not discounted to present value and are determined based on best estimates 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 not provided for in the accounts and are disclosed by way of Notes.

11 . Provision for Current and Deferred Tax:

Provision for current tax is made after taking into consideration benefits admissible under the provision of the Income Ta x Act, 1961. Deferred tax liabilities and assets is provided and/or reversed on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period. However no Deferred Tax Asset or Deferred Tax Liablility has been created or reversed during the year.

12. Preliminary Expenses/ Deferred Revenue Expenditure

Preliminary Expenses / Deferred Revenue Expenditure are written off in ten equal installments.