Notes to Accounts of Accuracy Shipping Ltd.

Mar 31, 2025

1.14 Provisions, Contingent Liabilities and Contingent
Assets

"Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result
of a past event, it is probable that the Company will
be required to settle the obligation, and a reliable
estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate
of the consideration required to settle the present
obligation at the end of the reporting period, taking
into account the risks and uncertainties surrounding
the obligation. When a provision is measured using the
cash flows estimated to settle the present obligation, its
carrying amount is the present value of those cash flows
(when the effect of the time value of money is material).
When some or all of the economic benefits required to settle

a provision are expected to be recovered from a third party,
a receivable is recognised as an asset if it is virtually certain
that reimbursement will be received and the amount of the
receivable can be measured reliably."

1.15 Fair value measurement

Fair value is the price that would be received to sell an asset
or settle a liability in an ordinary transaction between market
participants at the measurement date. The fair value of an
asset or a liability is measured using the assumption that
market participants would use when pricing an asset or a
liability acting in their best economic interest. The Company
used valuation techniques, which were appropriate in
circumstances and for which sufficient data were available
considering the expected loss/ profit in case of financial
assets or liabilities.

1.16 Operating Cycle

Based on the nature of activities of the Company and
the normal time between acquisition of assets and their
realisation in cash or cash equivalents, the Company has
determined its operating cycle as 12 months for the purpose
of classification of its assets and liabilities as current and
non-current.

1.17 Current and non Current classfication :

i. The assets and liabilities in the Balance Sheet are based on

current/ non - current classification. An asset as current
when it is:

1 Expected to be realised or intended to be sold or
consumed in normal operating cycle

2 Held primarily for the purpose of trading

3 Expected to be realised within twelve months
after the reporting period, or

4 Cash or cash equivalents unless restricted
from being exchanged or used to settle
a liability for at least twelve months
after the reporting period All other assets
are classified as non - current.

ii A liability is current when:

1. Expected to be settled in normal operating cycle

2. Held primarily for the purpose of trading

3. Due to be settled within twelve months after the
reporting period, or

4. There is no unconditional right to defer
the settlement of the liability for at
least twelve months after the reporting
period

All other liabilities are treated as non - current.
Deferred tax assets and liabilities are classified as non -
current assets and liabilities.

NOTE-2 CRITICAL AND SIGNIFICANT ACCOUNTING
JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

2.1 Critical estimates and judgements

The following are the critical judgements, apart from those
involving estimations that the management have made in
the process of applying the Company''s accounting policies
and that have the most significant effect on the amounts
recognized in the financial statements. Actual results may
differ from these estimates. These estimates and underlying
assumptions are reviewed on an ongoing basis. Revisions to
the accounting estimates in the period in which the estimate
is revised if the revision affects only that period, or in the
period of the revision and future periods if the revision affects
both current and future periods.

Useful lives of property, plant and equipment

Management reviews the useful lives of depreciable assets at
each reporting. As at March 31,2021 management assessed
that the useful lives represent the expected utility of the
assets to the Company. Further, there is no significant change
in the useful lives as compared to previous year.

Allowance for expected credit losses:

The expected credit allowance is based on the aging of the
days receivables are due and the rates derived based on past
history of defaults in the provision matrix.

Income taxes:

Significant judgements are involved in determining the
provision for income taxes, including amount expected to
be paid/recovered for uncertain tax positions.

2.2 Significant accounting judgements, estimates and
assumptions

The preparation of the company''s financial statements
requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities, and the accompanying
disclosures, and the disclosure of contingent liabilities.
Uncertainty about these assumptions and estimates could
result in outcomes that require a material adjustment to
the carrying amount of assets or liabilities affected in future
periods.

Judgements

In the process of applying the company''s accounting policies,
management has made the following judgements, which
have the most significant effect on the amounts recognised
in the standalone financial statements:

Determination of lease term & discount rate:

Ind AS 116 leases requires lessee to determine the lease term
as the non-cancellable period of a lease adjusted with any
option to extend or terminate the lease, if the use of such
option is reasonably certain. The company makes assessment
on the expected lease term on lease by lease basis and
thereby assesses whether it is reasonably certain that any
options to extend or terminate the contract will be exercised.
In evaluating the lease term, the company considers factor
such as any significant leasehold improvements undertaken
over the lease term, costs relating to the termination of lease
and the importance of the underlying to the company''s
operations taking into account the location of the underlying
asset and availability of the suitable alternatives. The lease
term in future period is reassessed to ensure that the
lease term reflects the current economic circumstances.
The discount rate is generally based on the incremental
borrowing rate specific to the lease being evaluated or for a
portfolio of leases with similar characteristics.

Estimates and assumptions

The key assumptions concerning the future and other key
sources of estimation uncertainty at the reporting date, that
have a significant risk of causing a material adjustment to
the carrying amounts of assets and liabilities within the
next financial year, are described below. The company
based on its assumptions and estimates on parameters
available when the financial statements were prepared.
Existing circumstances and assumptions about future
developments, however, may change due to market
changes or circumstances arising that are beyond the
control of the company. Such changes are reflected in the
assumptions when they occur.

Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash
generating unit exceeds its recoverable amount, which is the
higher of its fair value less costs of disposal and its value in
use. The fair value less costs of disposal calculation is based
on available data from binding sales transactions, conducted
at arm''s length, for similar assets or observable market prices
less incremental costs for disposing of the asset. The value in
use calculation is based on a Discounted Cash Flow model.
The cash flows are derived from the budget for the next five
years and do not include activities that the company is not
yet committed to or significant future investments that will
enhance the asset''s performance of the Cash Generating
Unit being tested. The recoverable amount is sensitive to
the discount rate used for the Discounted Cash Flow model
as well as the expected future cash-inflows and the growth
rate used for extrapolation purposes.

Taxes

Deferred tax assets are recognised for unused tax losses
to the extent that it is probable that taxable profit will
be available against which the losses can be utilised.
Significant management judgement is required to determine
the amount of deferred tax assets that can be recognised,
based upon the likely timing and the level of future taxable
profits together with future tax planning strategies.

Provision and contingent liability

On an ongoing basis, Company reviews pending
cases, claims by third parties and other contingencies.
For contingent losses that are considered probable,
an estimated loss is recorded as an accrual in financial
statements. Loss Contingencies that are considered possible
are not provided for but disclosed as Contingent liabilities
in the financial statements. Contingencies the likelihood of
which is remote are not disclosed in the financial statements.
Gain contingencies are not recognized until the contingency
has been resolved and amounts are received or receivable.

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Mar 31, 2024

1.14 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

1.15 Fair value measurement

Fair value is the price that would be received to sell an asset or settle a liability in an ordinary transaction between market participants at the measurement date. The fair value of an asset or a liability is measured using the assumption that market participants would use when pricing an asset or a liability acting in their best economic interest. The Company used valuation techniques, which were appropriate in circumstances and for which sufficient data were available considering the expected loss/ profit in case of financial assets or liabilities.

1.16 Operating Cycle

Based on the nature of activities of the Company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and noncurrent.

1.17 Current and non Current classfication :

i. The assets and liabilities in the Balance Sheet are based on current/ non - current classification. An asset as current when it is:

1. Expected to be realised or intended to be sold or consumed in normal operating cycle

2. Held primarily for the purpose of trading

3. Expected to be realised within twelve months after the reporting period, or

4. Cash or cash equivalents unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period

All other assets are classified as non - current.

ii. A liability is current when:

1. Expected to be settled in normal operating cycle

2. Held primarily for the purpose of trading

3. Due to be settled within twelve months after the reporting period, or

4. There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period

All other liabilities are treated as non - current.

Deferred tax assets and liabilities are classified as non - current assets and liabilities.

Note- 2 Critical and significant accounting judgements, estimates and assumptions

2.1 Critical estimates and judgements

The following are the critical judgements, apart from those involving estimations that the management have made in the process of applying the Company''s accounting policies and that have the most significant effect on the amounts recognized in the financial statements. Actual results may differ from these estimates. These estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to the accounting estimates in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Useful lives of property, plant and equipment

Management reviews the useful lives of depreciable assets at each reporting. As at March 31, 2021 management assessed that the useful lives represent the expected utility of the assets to the Company. Further, there is no significant change in the useful lives as compared to previous year.

Allowance for expected credit losses:

The expected credit allowance is based on the aging of the days receivables are due and the rates derived based on past history of defaults in the provision matrix.

Income taxes:

Significant judgements are involved in determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions.

2.2 Significant accounting judgements, estimates and assumptions

The preparation of the company''s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Judgements

In the process of applying the company''s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the standalone financial statements:

Determination of lease term & discount rate:

Ind AS 116 leases requires lessee to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The company makes assessment on the expected lease term on lease by lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the company considers factor such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of lease and the importance of the underlying to the company''s operations taking into account the location of the underlying asset and availability of the suitable alternatives. The lease term in future period is reassessed to ensure that the lease term reflects the current economic circumstances.

The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with similar characteristics.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The company based on its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the company. Such changes are reflected in the assumptions when they occur.

Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm''s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a Discounted Cash Flow model. The cash flows are derived from the budget for the next five years and do not include activities that the company is not yet committed to or significant future investments that will enhance the asset''s performance of the Cash Generating Unit being tested. The recoverable amount is sensitive to the discount rate used for the Discounted Cash Flow model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes.

Taxes

Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

Provision and contingent liability

On an ongoing basis, Company reviews pending cases, claims by third parties and other contingencies. For contingent losses that are considered probable, an estimated loss is recorded as an accrual in financial statements. Loss Contingencies that are considered possible are not provided for but disclosed as Contingent liabilities in the financial statements. Contingencies the likelihood of which is remote are not disclosed in the financial statements. Gain contingencies are not recognized until the contingency has been resolved and amounts are received or receivable.

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Mar 31, 2021

b. Terms/ Rights attached to Equity shares

The Company has only one class of equity shares having par value of Rs.10 per share Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential payments. The distribution will be in proportion to the number of equity shares held by the shareholders.

As per the records of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

Foreign currency term loan carries an interest rate ranging from 4.95% p.a.

- 7.75%. p.a. It is primarily secured against hypothecation of entire unencumbered movable fixed assets of the company, both present and future, and mortgage of the corporate office and other immovable properties of the company. It is collateralised against hypothecation of entire current assets of the company, both present and future. Additionally, personal immovable properties of the promoters of the company have been mortgaged against this facility. The promoters of the company have also provided their personal guarantee for this facility. Repayment Terms - 202122 - Rs. 18.28 Mn 2022-23 - Rs. 18.21 Mn 2023-24 - Rs. 12.26 Mn 2024-25 - Rs. 0.83 Mn

Vehicle finance loans are secured against hypothecation of vehicle financed by the Bank/NBFC and carry interest ranging from 9.00% to 10.00% p.a.and are repayable within a periods ranging from 4 to 5 years. Repayment Terms -2021-22 - Rs. 166.47 Mn 2022-23 - Rs. 158.98 Mn 2023-24 - Rs. 137.57 Mn 2024-25 - Rs. 54.18 Mn 2025-26 - Rs. 10.08 Mn

Term Loan from ICICI Bank Ltd. is Unsecured having fixed interest rate of 16% and is repayable within 36 months. Repayment Terms - 2021-22 - Rs. 0.65 Mn

During the year, the company has taken term loan under ECLGS scheme from Kotak Mahindra Bank Ltd., Axis Bank, HDFC Bank, ICICI Bank Ltd., Yes Bank, Tata Motors having interest ranging from 8.25% to 8.76% and

is repayable within a periods ranging from 4 to 5 years. Repayment Terms -2021-22 - Rs. 10.72 Mn 2022-23 - Rs. 33.52 Mn 2023-24 - Rs. 33.76 Mn 2024-25

- Rs. 33.76 Mn 2025-26 - Rs. 29.49 Mn.

Cash credit facility carries interest rate ranging from 8.50% p.a. - 9.10% p.a. payable at monthly intervals on the actual amount utilised, and is repayable on demand. It is primarily secured against hypothecation of entire current assets of the company, both present and future and collateralised against extended hypothecation of entire unencumbered movable fixed assets of the company, both present and future, extended mortgage of corporate office and other immovable properties of the company, and personal immovable properties of the promoters of the company. The promoters of the company have also provided their personal guarantee for this facility.

30) PREVIOUS PERIOD FIGURES

The figures for the previous year have been regrouped/rearranged as necessary to confirm to the current year''s presentation.

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Mar 31, 2018

1 Corporate Information

Accuracy Shipping Limited “ASL” or “the Company” is a Public Limited Company involved in providing third party logistics solutions. It offers customized and end-to-end logistics solutions and services including transportation, distribution, freight forwarding, clearing and forwarding service, custom house clearance, warehousing and value added services. The company was incorporated under the Companies Act, 1956 in the year 2008 as Accuracy Shipping Private Limited, subsequently in 2018 the company was converted into public limited company.

a. Terms/ Rights attached to Equity shares

The Company has only one class of equity shares having par value of Rs.10 per share Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential payments. The distribution will be in proportion to the number of equity shares held by the shareholders.

As per the records of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

Foreign currency term loan carries an interest rate ranging from 4.40% p.a. - 4.50%. p.a. It is primarily secured against hypothecation of entire unencumbered movable fixed assets of the company, both present and future, and mortgage of the corporate office of the company. It is collateralised against hypothecation of entire current assets of the company, both present and future. Additionally, personal immovable properties of the promoters of the company have been mortgaged against this facility. The promoters of the company have also provided their personal guarantee for this facility.

Vehicle finance loans are secured against hypothecation of vehicle financed by the Bank/NBFC and carry interest ranging from 8.50%-9.50% p.a.and are repayable within a periods ranging from 4 to 5 years.

Cash credit facility carries interest rate ranging from 9.70% p.a. - 10.95% p.a. payable at monthly intervals on the actual amount utilised, and is repayable on demand. It is primarily secured against hypothecation of entire current assets of the company, both present and future and collateralised against extended hypothecation of entire unencumbered movable fixed assets of the company, both present and future, extended mortgage of corporate office of the company, and personal immovable properties of the promoters of the company. The promoters of the company have also provided their personal guarantee for this facility.

2. Initial Public Offer

The Company had filed Draft Red Herring Prospectus (DRHP) dated March 12, 2018 with the EMERGE Platform of National Stock Exchange of India Limited under SEBI (Issue of Capital and Disclosure Requirements) Regulation 2009. The National Stock Exchange of India Limited approved the DRHP vide letter dated April 20, 2018. Subsequently, company has filed Red Herring Prospectus (RHP) with the Registrar of Companies, Ahmedabad on June 18, 2018 and pursuant to successful completion of bidding process, the company has got listed on Emerge platform of National Stock Exchange on June 22, 2018.

3. Previous period figures

The figures for the previous year have been regrouped/rearranged as necessary to confirm to the current year’s presentation.