CONTAINERWAY INTERNATIONAL LTD

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2013

 
Note-1 Background:

Containerway International Limited is a public company domiciled in India and listed on Kolkata and Delhi Stock Exchanges. The company is engaged into transportation business.

  Note-2  SIGNIFICANT ACCOUNTING POLICES

2.1     Basis of brparation of accounts:

The financial statements are brpared under historical cost convention in accordance with the applicable mandatory accounting standards specified in the Companies (Accounting Standards) Rules, 2006 notified by the Central Government in terms of Section 211(3C) of the Companies Act, 1956.

All assets and liabilities have been classified as current or non-current as per the company’s normal operating cycle and other criteria set out in Revised Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents, the croup has ascertained its operating cycle as 12 months for the purpose of current / noncurrent classification of assets and liabilities.

2.2    Revenue recognition:

       Income from services rendered is recognized as the service is performed and is booked based on agreements/ arrangements with the concerned parties.

Interest on investments is booked on a time proportion basis taking into account the amounts invested and the rate of interest.

2.3    Expenditure:

Expenses are accounted for on accrual basis and provision is made for all known losses and liabilities.

2.4    Impairment of fixed assets:

Impairment loss, if any, is provided to the extent, the carrying amount of assets exceeds their recoverable amount. Assessment is done at each balance sheet date as to whether there is any indication that and impairment loss recognized for an asset in prior accounting periods may no longer exist or may have decreased.

2.5    Loans and advances:

 Loans and Advances are stated after making adequate provisions for doubtful balances.

2.6    Provisions and contingent liabilities:

A provision is recognized when there is a brsent obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. Provision is not discounted to its brsent value and is determined based on the best estimate required to settle the obligation at the year-end date. These are reviewed at each year end date and adjusted to reflect the best current estimate.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company or a brsent obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

2.7    Current and deferred tax:

Provision is made for both current and deferred taxes. Provision for current tax is made at current rates based on assessable income. Deferred taxes are recognized for the future tax on components attributable to timing difference between the financial statement carrying amounts of existing assets and liabilities and their respective status. The effect on deferred taxes of a change in tax rates is recognized using tax rates and tax laws that have been enacted by the Balance Sheet date.

2.8    Retirement benefits:

Retirement benefits are accounted for at the time of payment.

2.9    Earnings per share:

Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

CONTAINERWAY INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2013 (Cont.)

 Contingent liability:

Estimated contingent liability on account of stock exchanges outstanding fee as on 31.03.2013 Rs. 4.75 lacs (Rs. 4.50 lacs brvious year)

 Related party disclosure:

A.    Enterprises where control exists:                                                      Nil

B.    Other related parties :

i)              Fellow subsidiaries                                                              Nil

ii)             Key management personnel                        

                                                                              S.L. Ganapathi

Jayashree Ganapathi

          Zoeb F. Raniwala                                   

iii)            Companies/firms where director(s) have significant influence:

Symatec Associates Pvt. Ltd.

NTL Logistics Plus India Pvt. Ltd.

Shelka Marketing Pvt. Ltd.

Iafrica Logistics Pvt. Ltd

ASLG Skill Development

Ganapathi Consultancy

C.    Disclosure of transaction with related party:

i)                     Key management personnel:                                          2012-13        2011-12

-       Expenses/liabilities paid on behalf of company              97,233       47,633   

-       Outstanding as at the year end                                 5,39,628      617,035    

-       Unsecured loan outstanding at the year end              1,899,790    1,899,790 

 Previous year figures

Previous year figures have been regrouped wherever necessary.

As Per Our Report of Even Date Attached                      For And on Behalf of the Board                        

For Batra Deepak & Associates                                                

(Formerly known as MAKS and Associates)                                                       

Chartered Accountants,                                                

Kapil Kumar Bhagirath                                               S. L. Ganapathi        Jayashree Ganapathi 

Partner                                                                      Director                    Director        

M. No.: 095639                                                 

Firm Regn. No.: 005408C                                                          

Place : Delhi                                         Date   : 20-08-2013                                           

Retirement benefits are accounted for at the time of payment.