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Accounting Policies of Sical Logistics Ltd. Company

Mar 31, 2016

I Basis of preparation of financial statements:

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 (''Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI).

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

ii 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.

iii Fixed Assets:

Fixed assets are stated at cost, less accumulated depreciation and impairment loss, if any. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

Other assets including the additions subsequent to revaluation are shown at cost, which includes capitalization of pre-operative expenses and net of CENVAT credit availed wherever applicable.

iv Borrowing Cost:

Borrowing costs are capitalized as part of qualifying fixed assets wherever it is possible that they will result in future economic benefits. Other borrowing costs are expensed.

v Depreciation:

Depreciation is provided at the rates prescribed under Schedule II of the Companies Act, 2013 with 5% salvage value.

a) Method of Depreciation:

i) Port handling equipments at Ennore Port and Chennai Port are written off over the period of BOT Scheme/ Berth

Reservation Scheme on Straight-line method;

ii) Assets of Transportation & Warehousing divisions which are depreciated at straight-line method;

iii) Assets of logistics division are depreciated at written down value method.

b) Depreciation on certain premises are provided on composite cost where it is not possible to segregate the land cost.

c) Assets costing less than Rs.5000 are fully depreciated.

vi Investments (Long Term):

Investments in shares are stated at cost, net of permanent diminution in value wherever necessary.

vii Inventories:

a) Stores and Spares used for running of trucks and other machineries valued at lower of cost and net realizable value .

b) Loose tools are valued after writing off certain percentage of cost.

viii Excise Duty:

CENVAT credit on materials purchased and on input services used for providing output services are taken into account at the time of purchase/payment and CENVAT credit on purchase of capital items wherever applicable are taken into account as and when the assets are installed, to the credit of respective purchase and assets accounts. The CENVAT credits so taken are utilized for payment of service tax on output services provided. The unutilized CENVAT credit is carried forward in the books.

ix Revenue Recognition:

Revenue is recognized on accrual method on rendering of services.

x Foreign Currency transactions:

Foreign Currency transactions are recorded in the books at the rates prevailing on the date of transaction.

Foreign currency monetary items as on balance sheet date are translated at exchange rate in effect at the Balance Sheet date, The gains or losses from such transactions are included in the statement of profit and loss.

Any exchange gain or loss arising out of restatement of "Long Term Foreign Currency Monetary Item" is transferred to foreign currency translation reserve account and amortized to P&L over the term of loan as per AS-11(R) issued by the Central Government vide their notification no G.S.R 225(E) Dt. 31st March 2009.

The Foreign Currency Monetary Item shall be classified as "Short Term Foreign Currency Monetary Item" when it is expected to be realized within twelve months after the reporting date. On such reclassification of long term foreign currency monetary item into short term foreign currency monetary item, the relevant balance in foreign currency translation reserve account is recognized in profit and loss account.

xi Retirement Benefits:

Short term employee benefits are charged off at the undiscounted amount in the year in which the related service is rendered.

Post employment and other long term employee benefits are charged off in the year in which the employee has rendered service. The amount charged off is recognized at the present value of the amounts payable determined using actuarial valuation method. Actuarial gains and losses in respect of post employment and other long term benefits are charged to Statement of Profit and Loss.

xii Contingent Liabilities & Provisions:

All known liabilities of material nature have been provided for in the accounts except liabilities of a contingent nature, which have been disclosed at their estimated value in the notes on accounts in accordance with Accounting Standard- 29. As regards Provisions, it is only those obligations arising from past events existing independently of an enterprise''s future actions that are recognized as provisions.

xiii Segment Reporting:

The accounting policies adopted for Segment reporting are in line with the Accounting Standard-17. The Company is primarily engaged in providing integrated logistics services which is considered as single business segment in terms of segment reporting as per AS 17. There being no services rendered outside India there are no separate geographical segments to be reported on.

xiv Discontinuing Operations:

There are no discontinuing operations that have been reported in the current year financials and thus disclosure as per Accounting Standard – 24 is not applicable.

xv Impairment of Assets:

The Company recognizes impairment of all assets other than the assets, which are specifically excluded under Accounting Standard-28 on Impairment of Assets after comparing the asset''s recoverable value with its carrying amount in the books. In case the carrying amount exceeds recoverable value, impairment losses are provided for.

The company has introduced a policy of measuring impairment of its goodwill on an annual basis. While testing for impairment the company shall pay heed to market prospects, company profitability, EPS and performance indicators in determining the same. Any upward movement in goodwill shall not be considered on account of prudence.

xvi Deferred Taxes:

a. Current Tax is determined in accordance with the Provisions of Income Tax Act, 1961.

b. Deferred tax is recognized for all the timing differences. Deferred tax assets are recognized when considered prudent.

iv) The Company has only one class of share viz Equity shares which are fully paid up. All equity shares rank Pari-Passu with respect to payment of dividend and the repayment of capital.

v) No Shares are reserved for issue under options and contracts/ commitments for the sale of shares/ disinvestment.

During the period of 5 years immediately preceding the Balance Sheet date with 31st March 2016, no shares were allotted for consideration pursuant to contracts without receiving cash or issue of any bonus shares or has not bought back any shares.

vi) No securities convertible into equity/ preference shares were issued by the company.

vii) There are no shares for which calls remain unpaid.

Debenture redemption reserve has been created in accordance with the provisions of Rule 18(7) of the Companies (Share Capital and Debenture) Rules 2014 as amended from time to time.

a. Details of Security or secured longt erm borrowings

(i) Non-convertible Debentures

The Company had raised a sum of Rs.100 crores through issue of 1000 Nos. Secured listed 12.75% Non-convertible debentures of

Rs.10 lakh each against the security of Dredger belonging to the subsidiary company viz Norsea Offshore India Ltd and assets procured out of funds received through ING Vysya Bank ( now Kotak Mahindra Bank Ltd) term loan of Rs.20 Crores. The NCDs are listed in NSE. The purpose of issue of NCDs were for taking up the existing term loan and shoring up of long term net working capital for its ongoing contracts. IDBI Trusteeship Services Ltd has been appointed as the debenture trustees. Debentures are redeemable in two installments i.e. 50% in September 2017 and balance 50% in September 2018.

(ii) Bank of Baroda

The company has taken term Loan of Rs 75 Crores during the FY 2014-15 against security of certain Immovable properties (Land) for carrying CAPEX and other expenditure for work orders awarded from Neyveli Lignite Corporation Limited and Mahanadi Coal fields Limited, with a moratorium period of 9 months. Loan is repayable in step up 16 quarterly installments.

(iii) ING Vysya Bank (now Kotak Mahindra Bank Ltd)

The company has taken a term loan of Rs.20 Crores during the FY 2012-13 to meet its capital expenditure requirements against security of movable fixed assets to be funded out of the loan amount with a moratorium period of 12 months. Loan is repayable in 12 equal quarterly installments.

(iv) IDBI Bank Ltd

The company has taken a term loan of Rs. 72 Crores during the FY 2013-14 for paying off its existing debt and to meet its normal capital expenditure/ other corporate purposes against security of first charge on Ennore project assets and receivables and collateral security of immovable properties. Loan is repayable in 94 equal monthly installments.

(v) The Karur Vysya Bank

The company has taken a term loan of Rs. 20 Crores during the FY 2013-14 for general corporate purposes against security of exclusive charge in the form of mortgage of certain specific immovable properties situated at Mumbai, Jamnagar, Bhavnaghar and Kolkatta, with a moratorium period of 12 months. Loan is repayable in 12 equal Quarterly installments.

(vi) Inducing Bank

The company has taken a term loan of Rs 20 Crores during the FY 2013-14 against security of pari-passu charge on the Ennore Project Assets. Loan is repayable in 84 equal Monthly installments

(vii) Canara Bank

The company has taken a secured term loan of Rs. 40 Crores during FY 2013-14 and Rs 10 Crores in FY 2014-15 against security of pari pasu second charge over current assets and movable fixed assets of the company along with Bank of Baroda who has the first charge over the assets with a moratorium period of 12 months. Loan is repayable in 16 equal quarterly installments.

(viii) SREI Equipment Finance Ltd

The loan is secured by a charge on the purchased assets - Pay loaders, Excavators, Compactor and Motor Grader.

(ix) Sundaram Finance Ltd

The loan is secured by a charge on the purchased assets - Trucks, pay loaders and tippers.

(x) Tata Finance Ltd

The loan is secured by a charge on the purchased assets - Trucks, pay loaders and tippers.

(xi) Daimler Finance Ltd

The loan is secured by a charge on the purchased assets - Trucks, pay loaders and tippers.

(xii) South Indian Bank Ltd

The company has taken a term loan of Rs. 50 Crores during the FY 2015-16 to meet its capital expenditure requirements against security of movable Fixed assets to be funded out of the loan amount, with a moratorium period of 12 months. Loan is repayable in 12 equal Quarterly installments.

(xiii) YES Bank Limited

The company has taken a term loan of Rs. 130 Crores during the FY 2015-16 to meet its capital expenditure requirements against security of fixed and current assets, with a moratorium period of 6 months. Loan is repayable in 18 Quarterly installments.

(xiv) Cholamandalam Investment & Finance Co Ltd

The loan is secured by a charge on the purchased assets - Trucks and tankers

(xv) YES Bank Limited

The loan is secured by a charge on the purchased assets - Dozers

(xvi) Axis Bank Limited

The loan is secured by a charge on the purchased assets - Diesel Tankers and Excavators


Mar 31, 2015

I Basis of preparation of financial statements:

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 ('Act') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI).

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

ii 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.

iii Fixed Assets:

Fixed assets are stated at cost, less accumulated depreciation and impairment loss, if any. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

Other assets including the additions subsequent to revaluation are shown at cost, which includes capitalization of pre- operative expenses and net of CENVAT credit availed wherever applicable.

iv Borrowing Cost:

Borrowing costs are capitalized as part of qualifying fixed assets wherever it is possible that they will result in future economic benefits. Other borrowing costs are expensed.

v Depreciation:

Depreciation is provided at the rates prescribed under Schedule II of the Companies Act, 2013 with 5% salvage value. The useful life and rate of depreciation followed are as follows-

Method of Depreciation

a) Depreciation on certain premises are provided on composite cost where it is not possible to segregate the land cost.

b) Assets costing less than Rs. 5000 are fully depreciated.

vi Investments (Long Term):

Investments in shares are stated at cost, net of permanent diminution in value wherever necessary.

vii Inventories:

a) Stores and Spares used for running of trucks and other machineries valued at lower of cost and net realizable value .

b) Loose tools are valued after writing off certain percentage of cost.

viii Excise Duty:

CENVAT credit on materials purchased and on input services used for providing output services are taken into account at the time of purchase/payment and CENVAT credit on purchase of capital items wherever applicable are taken into account as and when the assets are installed, to the credit of respective purchase and assets accounts. The CENVAT credits so taken are utilized for payment of service tax on output services provided. The unutilized CENVAT credit is carried forward in the books.

ix Revenue Recognition:

Revenue is recognized on accrual method on rendering of services.

x Foreign Currency transactions:

Foreign Currency transactions are recorded in the books at the rates prevailing on the date of transaction.

Foreign currency monetary items as on balance sheet date are translated at exchange rate in effect at the Balance Sheet date, The gains or losses from such transactions are included in the statement of profit and loss.

Any exchange gain or loss arising out of restatement of "Long Term Foreign Currency Monetary Item" is transferred to foreign currency translation reserve account and amortized to P&L over the term of loan as per AS-11(R) issued by the Central Government vide their notification no G.S.R 225(E) Dt. 31st March 2009.

The Foreign Currency Monetary Item shall be classified as "Short Term Foreign Currency Monetary Item" when it is expected to be realized within twelve months after the reporting date. On such reclassification of long term foreign currency monetary item into short term foreign currency monetary item, the relevant balance in foreign currency translation reserve account is recognized in profit and loss account.

xi Retirement Benefits:

Short term employee benefits are charged off at the undiscounted amount in the year in which the related service is rendered. Post employment and other long term employee benefits are charged off in the year in which the employee has rendered service. The amount charged off is recognized at the present value of the amounts payable determined using actuarial valuation method. Actuarial gains and losses in respect of post employment and other long term benefits are charged to Statement of Profit and Loss.

xii Contingent Liabilities & Provisions:

All known liabilities of material nature have been provided for in the accounts except liabilities of a contingent nature, which have been disclosed at their estimated value in the notes on accounts in accordance with Accounting Standard- 29. As regards Provisions, it is only those obligations arising from past events existing independently of an enterprise's future actions that are recognized as provisions.

xiii Segment Reporting:

The accounting policies adopted for Segment reporting are in line with the Accounting Standard-17. The Company is primarily engaged in providing integrated logistics services which is considered as single business segment in terms of segment reporting as per AS 17. There being no services rendered outside India there are no separate geographical segments to be reported on.

xiv Discontinuing Operations:

There are no discontinuing operations that have been reported in the current year financials and thus disclosure as per Accounting Standard – 24 is not applicable.

xv Impairment of Assets:

The Company recognizes impairment of all assets other than the assets, which are specifically excluded under Accounting Standard-28 on Impairment of Assets after comparing the asset's recoverable value with its carrying amount in the books. In case the carrying amount exceeds recoverable value, impairment losses are provided for.

The company has introduced a policy of measuring impairment of its goodwill on an annual basis. While testing for impairment the company shall pay heed to market prospects, company profitability, EPS and performance indicators in determining the same. Any upward movement in goodwill shall not be considered on account of prudence.

xvi Deferred Taxes:

a. Current Ta x is determined in accordance with the Provisions of Income Tax Act, 1961.

b. Deferred tax is recognized for all the timing differences. Deferred tax assets are recognized when considered prudent.


Mar 31, 2014

1. Method of Accounting

The financial statements have been prepared under the historical convention on an accrual basis of accounting in accordance with generally accepted accounting principles notified under section 211(3C) of the Companies Act,1956 and the relevant provisions thereof except in the case of certain fixed assets which were revalued as stated below:

2. Fixed Assets

Fixed assets are stated at cost, less accumulated depreciation and impairment loss, if any. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

Other assets including the additions subsequent to revaluation are shown at cost, which includes capitalization of pre- operative expenses and net of CENVAT credit availed wherever applicable. With regard to assets acquired under hire purchase, the cost of the assets are capitalized while the annual charges are charged to revenue.

3. Borrowing Cost

Borrowing costs are capitalized as part of qualifying fixed assets wherever it is possible that they will result in future economic benefits. Other borrowing costs are expensed.

4. Depreciation

Depreciation is consistently provided at the rates prescribed under Schedule XIV of the Companies Act, 1956 on the following methods:

a) Assets of logistics division are depreciated at written down value method except assets of transportation & warehousing divisions which are depreciated at straight-line method. Port handling equipments at Ennore Port and JD V are written off over the period of BOT Scheme/ Berth Reservation Scheme

b) Depreciation on certain premises are provided on composite cost where it is not possible to segregate the land cost.

c) Assets costing less than Rs.5000 are fully depreciated.

5. Investments (Long Term) Investments in shares are stated at cost, net of permanent diminution in value wherever necessary.

6. Inventories

a) Stores and Spares used for running of trucks and other machineries valued at lower of cost and net realizable value .

b) Loose tools are valued after writing off certain percentage of cost.

7. Excise Duty

CENVAT credit on materials purchased and on input services used for providing output services are taken into account at the time of purchase/payment and CENVAT credit on purchase of capital items wherever applicable are taken into account as and when the assets are installed, to the credit of respective purchase and assets accounts. The CENVAT credits so taken are utilized for payment of service tax on output services provided. The unutilized CENVAT credit is carried forward in the books.

8. Revenue Recognition

Revenue is recognized on their accrual upon completion of services. Expenditure incurred on incomplete services are included under "Advances Recoverable".

9. Foreign Currency transactions

Foreign currency transactions are recorded in the books at the rates prevailing on the date of transaction.

Foreign currency monetary items as on balance sheet date are translated at exchange rate in effect at the Balance sheet date. The gains or losses from such transactions are included in the Statement of Profit and loss. Out of the total exchange difference of Rs.665.84 lakhs arose on reporting of long term foreign currency monetary items as on Balance sheet date, Rs.225.61 lakhs included in the Statement of profit and loss and balance of Rs. 440.23 lakhs transferred to Foreign Currency Translation Reserve Account as per AS-11(R) issued by the Central Government vide their notification no G.S.R 225(E) Dt. 31st March 2009.

10. Retirement Benefits

Short term employee benefits are charged off at the undiscounted amount in the year in which the related service is rendered.

Post employment and other long term employee benefits are charged off in the year in which the employee has rendered service. The amount charged off is recognised at the present value of the amounts payable determined using actuarial valuation method. Actuarial gains and losses in respect of post employment and other long term benefits are charged to Statement of Profit and Loss.

11. Contingent Liabilities & Provisions

All known liabilities of material nature have been provided for in the accounts except liabilities of a contingent nature, which have been disclosed at their estimated value in the notes on accounts in accordance with Accounting Standard- 29. As regards Provisions, it is only those obligations arising from past events existing independently of an enterprise''s future actions that are recognized as provisions.

12. Segment reporting

The accounting policies adopted for Segment reporting are in line with the Accounting Standard-17. The Company is primarily engaged in providing integrated logistics services which is considered as single business segment in terms of segment reporting as per AS 17. There being no services rendered outside India there are no separate geographical segments to be reported on.

13. Discontinuing Operations

There are no discontinuing operations that have been reported in the current year financials and thus no disclosure as per Accounting Standard – 24 is applicable.

14. Impairment of Assets

The Company recognizes impairment of all assets other than the assets, which are specifically excluded under Accounting Standard-28 on Impairment of Assets after comparing the asset''s recoverable value with its carrying amount in the books. In case the carrying amount exceeds recoverable value, impairment losses are provided for.

The company has introduced a policy of measuring impairment of its goodwill on an annual basis. While testing for impairment the company shall pay heed to market prospects, company profitability, EPS and performance indicators in determining the same. Any upward movement in goodwill shall not be considered on account of prudence.

15. Deferred Taxes

a. Current Tax is determined in accordance with the provisions of Income Ta x Act, 1961.

b. Deferred tax is recognized for all the timing differences. Deferred tax assets are recognized when considered prudent.

a) 93,20,003 Equity Shares Of Rs.10 Each were allotted as fully paid up as per the earlier schemes of Amalgamation

b) 98,60,910 Equity Shares of Rs.10 Each were Allotted as fully paid up to the share holders of 3,45,13,195, 1% Preference Shares on 1/4/1997 in terms of Special resolution passed by the shareholders on 9/12/1996

c) 47,61,908 Equity shares of Rs.10 each were alloted as fully paid up by way of bonus shares by capitalisation of Securities premium.

* Debenture redemption reserve has been created in accordance with Section 117C of the Companies Act, 1956 and Proviso 2(iii) of Ministry of Corporate Affairs Circular No 04/2013 dtd 11.02.2013 in respect of public issue of 12.75% Secured Listed Non Convertible Debentures to ING VYSYA Bank Ltd

a. Details of Security for secured long term borrowings

(i) Non-convertible Debentures

The Company had raised a sum of Rs.100 crores through issue of 1000 Nos. Secured listed 12.75% Non-convertible debentures of Rs.10 lakh each against the security of Dredger belonging to the subsidiary company viz Norsea Offshore India Ltd and assets procured out of funds received through ING Vysya Bank term loan of Rs.20 Crores. The NCDs are listed in NSE. The purpose of issue of NCDs were for taking over the existing term loan and shoring up of long term net working capital for its ongoing contracts. IDBI Trusteeship Services Ltd has been appointed as the debenture trustees. Debentures are redeemable in two installments i.e 50% in September 2017 and balance 50% in September 2018.

(ii) The Ratnakar Bank Ltd

The company has taken Long term Loan of Rs 75 Crores against security of certain Immovable properties (Land), during the FY 2012-13 with a moratorium period of 24 months. Loan is repayable in 8 equal quarterly installments after the moratorium period.

(iii) ING Vysya Bank

The company has taken a term loan of Rs. 20 Crores during the FY 2012-13 to meet its capital expenditure requirements against security of movable Fixed assets to be funded out of the loan amount, with a moratorium period of 12 months. Loan is repayable in 12 equal Quarterly installments.

(iv) IDBI Bank Ltd

The company has taken a term loan of Rs. 72 Crores during the current FY 2013-14 for paying off its existing debt and to meet its normal capital expenditure/ other corporate purposes against security of first charge on Ennore project assets and receivables and collateral security of immovable properties situated at Madhavaram, Chennai and Mumbai. Loan is repayable in 94 equal monthly installments.

(v) The Karur Vysya Bank

The company has taken a term loan of Rs. 20 Crores during the current FY 2013-14 for general corporate purposes against security of exclusive charge in the form of mortgage of certain specific immovable properties situated at Mumbai, Jamnagar, Bhavnaghar and Kolkatta, with a moratorium period of 12 months. Loan is repayable in 12 equal Quarterly installments.

(vi) IndusInd Bank

The company has taken a term loan of Rs 20 Crores during the current FY 2013-14 against security of second charge on the Ennore Project Assets. Loan is repayable in 84 equal Monthly installments

(vii) Canara Bank

The company has taken a secured medium term loan of Rs. 40 Crores during the current FY 2013-14 against security of pari pasu second charge over current assets and movable fixed assets of the company with a moratorium period of 12 months alongwith Bank of Baroda who has the first charge over the assets. Loan is repayable in 16 equal quarterly installments.

(viii) SREI Equipment Finance Ltd

Secured loan of Rs 10 Crores was taken in the year 2011 to finance purchase of Pay-loaders and Tippers at Chennai port. The same is secured by a charge on the purchased assets.

15.2 Working capital facility is secured by composite hypothecation of entire raw materials, stock in process, stores and spares, packing material, finished goods, Plant & Machinery etc and Book debts & Trade Advances of the company both present and future as well as Equitable Mortgage of certain immovable properties.


Mar 31, 2013

1. Method of Accounting

The financial statements have been prepared under the historical convention on an accrual basis of accounting in accordance with generally accepted accounting principles notified under section 211 (3C) of the Companies Act, 1956 and the relevant provisions thereof except in the case of certain fixed assets which were revalued as stated below:

2. Fixed Assets

Fixed assets are stated at cost, less accumulated depreciation and impairment loss, if any. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

Other assets including the additions subsequent to revaluation are shown at cost, which includes capitalization of pre- operative expenses and net of CENVAT credit availed wherever applicable.

With regard to assets acquired under hire purchase, the cost of the assets are capitalized while the annual charges are charged to revenue.

3. Borrowing Cost

Borrowing costs are capitalized as part of qualifying fixed assets wherever it is possible that they will result in future economic benefits. Other borrowing costs are expensed.

4. Depreciation

Depreciation is consistently provided at the rates prescribed under Schedule XIV of the Companies Act, 1956 on the following methods:

a) Assets of logistics division at written down value method except assets of transportation & warehousing divisions at straight-line method. Port handling equipments at Ennore Port and J D V are written off overthe period of BOT Scheme.

b) Depreciation on certain premises are provided on composite cost where it is not possible to segregate the land cost.

c) Assets costing less than Rs.5000 are fully depreciated.

5. Investments (Long Term)

Investments in shares and debentures are stated at cost, net of permanent diminution in value wherever necessary.

6. Inventories

a) Stores and Spares used for running of trucks and other machineries valued at lower of cost and net realizable value.

b) Loose tools are valued after writing off certain percentage of cost.

7. Excise Duty

CENVAT credit on materials purchased and on input services used for providing output services are taken into account at the time of purchase/payment and CENVAT credit on purchase of capital items wherever applicable are taken into account as and when the assets are installed, to the credit of respective purchase and assets accounts. The CENVAT credits so taken are utilized for payment of service tax on output services provided. The unutilized CENVAT credit is carried forward in the books.

8. Revenue Recognition

Revenue is recognized on their accrual as stated below.

i. Net earnings on completion of service.

ii. Other services on completion of services.

iii. Expenditure incurred on incomplete services are included under "Advances Recoverable".

9. Foreign Currency transactions

Foreign currency transactions are recorded in the books at the rates prevailingon the date of transaction.

Foreign currency monetary items as on balance sheet date are translated at exchange rate in effect at the Balance sheet date. The gains or losses from such transactions are included in the Statement of Profit and loss. Out of the total exchange difference of Rs.384.67 lakhs arose on reporting of long term foreign currency monetary items as on Balance sheet date, Rs 130.48 lakhs included in the Statement of profit and loss and balance of Rs. 254.19 lakh transferred to Foreign Currency Translation Reserve Account as per AS-11 (R) issued by the Central Government vide their notification no G.S.R 225(E) Dt. 31st March ,2009.

10. Retirement Benefits

Short term employee benefits are charged off at the undiscounted amount in the year in which the related service is rendered.

Post employment and other long term employee benefits are charged off in the year in which the employee has rendered service. The amount charged off is recognised at the present value of the amounts payable determined using actuarial valuation method. Actuarial gains and losses in respect of post employment and other long term benefits are charged to Statement of Profit and Loss.

11. Contingent Liabilities & Provisions

All known liabilities of material nature have been provided for in the accounts except liabilities of a contingent nature, which have been disclosed at their estimated value in the notes on accounts in accordance with Accounting Standard- 29. As regards Provisions, it is only those obligations arising from past events existing independently of an enterprise''s future actions that are recognized as provisions.

12. Segment reporting

The accounting policies adopted for Segment reporting are in line with the Accounting Standard-17. The Company is primarily engaged in providing integrated logistics services which is considered as single business segment in terms of segment reporting as per AS 17. There being no services rendered outside India there are no separate geographical segments to be reported on.

13. Discontinuing Operations

There are no discontinuing operations that have been reported in the current year financials, thus no disclosure as per Accounting Standard - 24.

14. Impairment of Assets

The Company recognizes impairment of all assets other than the assets, which are specifically excluded under Accounting Standard-28 on Impairment of Assets after comparing the asset''s recoverable value with its carrying amount in the books. In case the carrying amount exceeds recoverable value, impairment losses are provided for.

The company has introduced a policy of measuring impairment of its goodwill on an annual basis. While testing for impairment the company shall pay heed to market prospects, company profitability, EPS and performance indicators in determining the same. Any upward movement in goodwill shall not be considered on account of prudence.

15. Deferred Taxes

a. Current Tax is determinedinaccordance with the Income Tax Act, 1961.

b. Deferred tax is recognized for all the timing differences. Deferred tax assets are recognized when considered prudent.


Mar 31, 2012

1 Method of Accounting:

The financial statements have been prepared under the historical convention on an accrual basis of accounting in accordance with generally accepted accounting principles notified under section 211(3C) of the Companies Act,1956 and the relevant provisions thereof except in the case of certain fixed assets which were revalued as stated below:

2 Fixed Assets

Fixed assets are stated at cost, less accumulated depreciation and impairment loss, if any .Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

Other assets including the additions subsequent to revaluation are shown at cost, which includes capitalization of pre- operative expenses and net of CENVAT credit availed wherever applicable.

With regard to assets acquired under hire purchase, the cost of the assets are capitalized while the annual charges are charged to revenue.

3 Borrowing Cost

Borrowing costs are capitalized as part of qualifying fixed assets wherever it is possible that they will result in future economic benefi ts. Other borrowing costs are expensed.

4 Depreciation

Depreciation is consistently provided at the rates prescribed under Schedule XIV of the Companies Act, 1956 on the following methods:

a Assets of logistics division at written down value method except assets of transportation & warehousing divisions at straight-line method. Port handling equipments are written off over the period of BOT Scheme.

b Depreciation on certain premises are provided on composite cost where it is not possible to segregate the land cost.

c Assets costing less than Rs.5000 are fully depreciated.

5 Investments (Long Term)

Investments in shares and debentures are stated at cost, net of permanent diminution in value wherever necessary. Cost includes interest attributable to funds borrowed for acquisition of investments.

6 Inventories

a Stores and Spares used for running of trucks and other machineries valued at lower cost and net realizable value. b Loose tools are valued after writing off certain percentage of cost.

7 Excise Duty

CENVAT credit on materials purchased for production and on input services used for providing output services are taken into account at the time of purchase/payment and CENVAT credit on purchase of capital items wherever applicable are taken into account as and when the assets are installed, to the credit of respective purchase and assets accounts. The CENVAT credits so taken are utilized for payment of service tax on output services provided. The unutilized CENVAT credit is carried forward in the books.

8 Revenue Recognition

a Revenue is recognized and expenses are accounted on their accrual with necessary provisions for all known liabilities and losses.

b Service Income:

i Net earnings on voyage/contracts on completion.

ii Other services on completion of services and billed.

iii Expenditure incurred on incomplete voyages and contracts are included under "Advances Recoverable".

9 Foreign Currency transactions

Foreign currency transactions are recorded in the books at the rates prevailing on the date of transaction.

Foreign currency monetary items as on balance sheet date are translated at exchange rates in effect at the Balance sheet date. The gains or losses from such transactions are included in the Profit and Loss account. Out of the total exchange difference of Rs 741.61 lakh arose on reporting of long term foreign currency monetary items as on Balance sheet date, Rs 82.40 lakh included in Profit and loss account and balance of Rs 659.21 lakh transferred to Foreign Currency Translation Reserve Account as per AS-11(R) issued by the Central Government vide their notification no G.S.R 225(E) Dt. 31 March 2009.

10 Retirement Benefits

Short term employee Benefits are charged off at the undiscounted amount in the year in which the related service is rendered.

Post employment and other long term employee Benefits are charged off in the year in which the employee has rendered service. The amount charged off is recognised at the present value of the amounts payable determined using actuarial valuation method. Actuarial gains and losses in respect of post employment and other long term Benefits are charged to Profit and Loss Account.

11 Contingent Liabilities & Provisions

All known liabilities of material nature have been provided for in the accounts except liabilities of a contingent nature, which have been disclosed at their estimated value in the notes on accounts in accordance with Accounting Standard-29. As regards Provisions, it is only those obligations arising from past events existing independently of an enterprise's future actions that are recognized as provisions.

12 Segment reporting

The accounting policies adopted for Segment reporting are in line with the Accounting Standard-17.

13 Discontinuing Operations

Discontinuing Operations have been recognized and disclosed as per Accounting Standard-24.

14 Impairment of Assets

The Company recognizes impairment of all assets other than the assets, which are specifically excluded under Accounting Standard-28 on Impairment of Assets after comparing the asset's recoverable value with its carrying amount in the books. In case the carrying amount exceeds recoverable value, impairment losses are provided for.

The company has introduced a policy of measuring impairment of its goodwill on an annual basis. While testing for impairment the company shall pay heed to market prospects, company Profitability, EPS and performance indicators in determining the same. Any upward movement in goodwill shall not be considered on account of prudence.

15 Deferred Taxes

a Current Tax is determined in accordance with the Income tax Act, 1961.

b Deferred tax is recognized for all the timing differences. Deferred tax assets are recognized when considered prudent.

 
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