Accounting Policies of Destiny Logistics & Infra Ltd. Company

Mar 31, 2025

B. Significant Accounting Policies:

a. Basis of preparation of financial statements:

• The financial statements have been prepared under the historical cost convention and on an accrual
basis, unless otherwise stated.

• These financial statements have been prepared to comply in all material respects with the applicable
Accounting Standards prescribed under section 133 of the Companies Act, 2013, (''the 2013 Act'') read
with the Rule 7 of the Companies (Accounts) Rules, 2014 the provisions of the 2013 Act (to the extent
notified and applicable).

As required by Schedule 111 of the Companies Act, 2013, the company has classified assets and
Liabilities into current and non-current based on the operating cycle. The operating cycle of the
Company has been considered as 12 months.

b. Use of estimates:

The preparation of financial statements in conformity with generally accepted accounting principles
Requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent liabilities at the date of the financial statements and the
results of operations during the reporting period. Although these estimates are based upon
management''s best knowledge of current events and actions, actual results could differ from these
estimates. Any revision to the accounting estimates is recognized prospectively in the current and
future periods.

c. Revenue Recognition:

Sales are recognized at the point of dispatch of goods when the substantial risks and rewards of
ownership in the goods are transferred to the buyer as per the terms of the contract and are net of
returns. Sales are stated net of trade discounts and sales taxes. Revenue in respect of Services is
recognized as per work done and approved during the year.

d. Inventories:

The Inventory consists of Stock of Consumables store the valuation of which is made at Cost or Net
Realizable value whichever is lower as specified in Accounting Standard — 2, Valuation of Inventory.

e. Property Plant & Equipment:

Tangible Fixed Assets are stated at cost less accumulated depreciation. The cost of acquisition
comprises of Purchase price inclusive of duties, taxes, incidental expenses etc, up to the date the
assets are ready for intended use.

f. Intangible Assets

Intangible assets are recorded at the consideration paid for acquisition of such assets and are carried
at cost less accumulated amortization and impairment.

g. Capital Work in Progress

Capital work-in-progress comprises the cost of fixed assets that are not yet ready for their intended
use at the reporting date.

h. Depreciation and Amortization:

Depreciation on property, plant and equipment has been provided on SLM method on pro-rata basis
over the useful life prescribed in schedule Il to the Companies Act, 2013 or value assessed by the
management after considering residual value. Depreciation for assets purchased / sold during a period
is proportionately charged. Intangible assets are amortized over their respective individual estimated
useful lives on a straight-line basis, commencing from the date the asset is available to the Company
for its use. The Company has considered the useful life of assets same as prescribed under the
Companies Act, 2013.

i. Borrowing Cost:

Borrowing costs attributable to acquisition and construction of assets are capitalized as part of the
cost of such assets up to the date when such assets are ready for intended use and other borrowing
cost are charged to profit and loss account.

j. Foreign Currence Transaction and balances

Foreign-currency-denominated monetary assets and liabilities are translated at exchange rates in
effect at the Balance Sheet date. The gains or losses resulting from such translations are included in
the Statement of Profit and Loss. Non-monetary assets and non-monetary liabilities denominated in
a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the
date of transaction. Revenue, expense and cash-flow items denominated in foreign currencies are
translated using the exchange rate in effect on the date of the transaction.

k. Retirement and other Employee Benefits

Short-term employee benefits are recognized as expenditure at the undiscounted value in the Profit
and Loss account of the year in which the related service is rendered. Provision for Gratuity is
determined with reference to AS-15 "Employees Benefits". The provision has been made based on the
report/certificate received from Life Insurance Corporation. The Report is prepared as per the
actuarial valuation which is based on certain assumptions about the future experience of the scheme.

l. Taxes on Income:

Current Tax: Current tax is determined as the amount of tax payable in respect of taxable Income for
the year. Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives rise to future
economic benefits in the form of tax credit against future income tax liability, is recognized as an asset
in the Balance Sheet if there is convincing evidence that the Company will pay normal tax and the
resultant asset can be measured reliably.

Deferred Tax: differences that result between the profit considered for income taxes and the profit as
per the financial statements are identified, and thereafter, a deferred tax asset or deferred tax liability
is recorded for timing differences, namely the differences that originate in one accounting period and
reverse in another, based on the tax effect of the aggregate amount of timing difference. The tax
effect is calculated on the accumulated timing differences at the end of an accounting period based
on enacted or substantively enacted regulations. Deferred tax assets are recognized only if here is
virtual certainty supported by convincing evidence that sufficient future taxable income will be
available against which such deferred tax asset can be realized.

m. Impairment of Assets:

Management periodically assesses whether there is an indication that an asset may be impaired.
Impairment occurs where the carrying value exceeds the recoverable value of the assets and its
eventual disposal. impairment loss, if any, is charged to profit and loss account in the year in which as
asset is identified as impaired. The impairment loss recognized in prior periods is reversed if there has
been a increase in estimate of recoverable amount, provided that the carrying amount after reversal
would not exceed the Carrying amount would have been if impairment loss is not recognized in prior
period.

n. Earnings per Share (EPS):

The earnings considered in ascertaining the company''s EPS comprises the net profit for the period
after tax attributable to equity shareholders. The number of shares used in computing basic EPS is the
average number of shares outstanding during the year. Diluted earnings per share is computed by
dividing the profit after tax by the weighted average number of equity shares considered for deriving
basic earnings per share and also the weighted average number of equity shares that could have been
issued upon conversion of all dilutive potential equity shares.

o. Cash and Cash Equivalents:

Cash and cash equivalents comprise cash at bank and in hand and short-term investments with an
original maturity of three months or less.

p. Cash Flow Statement:

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

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Mar 31, 2024

NOTE: 1. SIGNIFICANT ACCOUNTING POLICIES

This note provides a list of the significant accounting policies adopted in the preparation of these. standalone financial statements. These Policies have been consistently applied to all the years presented, unless otherwise stated.

(i) Basis of Preparation

The Standalone financial statements for the period ended 31st March, 2024 comply in all material aspects with Indian Accounting Standards (Ind AS) notified under section 133 (the Act) [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act.

(ii) Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are inclusive of net of returns, trade allowances, rebates, value added taxes, goods and service tax and amounts collected on behalf of third parties.

The Company recognizes revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company''s activities. The company bases its estimates on historical results, taking into consideration the type of customer, the type of transactions and the specifics of each arrangement.

The Company recognises revenue when significant risk and rewards pertaining to ownership of goods get transferred from Seller to buyer.

(iii) Property, Plant & Equipment

Freehold land is carried at historical cost. All other items of property, plant and equipment are, stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in asset''s carrying amount or recognised at a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the group and the cost of the item measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.

(iv) Inventories

Inventories are valued at the lower of the cost & estimated net realizable value. Cost of Inventories is computed on a FIFO basis. Finished goods & Work in Progress include costs of conversion & other costs incurred in bringing the inventories to their present location & condition. Proceeds in respect of sale of Raw Material/ Stores are credited to the respective heads. Obsolete, Defective & unserviceable stocks are duly provided for.

(v) Sales

a) Sale of goods are recognized on dispatches from factory or go-down or on directly on a consignment basis to customers or to customers, excluding of Goods and Service Tax and are net of Trade Discount.

b) Waste resulting during process is partly sold and partly used in reprocess.

(vi) Foreign Currency Transactions

Transactions denominated in foreign currencies are recorded at the exchange rates prevailing on the date of transaction.

All exchange differences arising on settlement and conversion on foreign currency transaction are included in the statement of profit and loss, except in cases where they relate to the acquisition of fixed assets, in which case they are adjusted in the cost of the corresponding assets.

In respect of transactions are covered by forward exchange contracts, the difference between the forward rate and the exchange rate at the date of transaction is recognized as income or expense at the time of maturity date, except where it related to fixed assets, in which case it is adjusted in the cost of the corresponding assets.

(vii) Provisions

Provisions for legal claims, service warranties, volume discounts and returns are recognized when the company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.

Where there are number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

The measurement of provision for restructuring includes only direct expenditure arising from the restructuring, which are both necessarily entailed by the restructuring and not associated with the ongoing activities of the company.

(viii) Amount due to Micro, Small and Medium Enterprise

(i) Based on information available with the company in respect of MSME (as defined in the Micro, Small and Medium Enterprises Development Act, 2006) there are no delays in payment of dues to such enterprise during the year.

(ii) The identification of Micro, Small and Medium Enterprise Suppliers as defined under "The Micro, Small and Medium Enterprises Development Act, 2006" is based on the information available with the management. As Certified by the management, the amounts overdue as on March 31, 2024 to Micro, Small and Medium Enterprises on account of principal amount together with interest, aggregate to Rs. Nil

(ix) Cash Flow Statement

The Cash flow statement is prepared in accordance with the Indian Accounting Standard (Ind AS) -7 "Statement of Cash Flows" using the indirect method for operating Activities.

(x) Cash & Cash Equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash in hand, deposits held at call with financial institutions, other short-term, highly liquid investment with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts.

(xi) Trade Receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method wherever necessary.

(xii) Offsetting Financial Liabilities

F inancial assets and liabilities are offset and the net amount is reported in balance sheet where there is legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the assets and settle the liability simultaneously.

(xiii) Trade & Other Payables

These amounts represent liabilities for goods and services provided to the group prior to the end of financial year which are unpaid. The amounts are unsecured and are usually paid within 90 days of recognition, Trade and other payables are presented as current liabilities unless, payment is not due within 12 months after the reporting period. They are recognised initially at the fair value and subsequently measured at account mortised cost using the effective interest method.

(xiv) Related Party Disclosures Names of related parties and description of relationship:
Details of Related Parties (As identified by the management)
Name of Related Parties	Description of Relationship
Key Management Personnel	Designation
Jugal Kishore Bhagat	Director
Rekha Bhagat	Managing Director
Mithilesh Kumar Jha	Director
Mustafa Rangwala	Company Secretary
Prasenjit Biswas	Chief Financial Officer
Dynamic Services & Security Ltd.	Sister Concern
Dynamic Food Supplier	Prop. Rekha Bhagat
Dynamic Construction	Prop. Rekha Bhagat
Mehai Technology Limited	Sister Concern
Unique Floriculture Projects Limited	Sister Concern
Ashvika Fashion Pvt. Ltd.	Sister Concern

(xv) In the opinion of the board of Directors, Current Assets, Loans and Advances, are at value of realization equivalent to the amount at which they are stated in the Balance Sheet. Adequate provisions have been made in the accounts for all the known liabilities.

(xvi) The Balance of sundry creditors, sundry debtors and Loans and Advances are unsecured considered good and reconciled with subsequent transactions and/or confirmations are obtained.

(xvii) Previous year''s figures have been regrouped/reclassified wherever necessary to compare with current year''s figures.

(xviii) As informed to us, there are no contingent labilities as on Balance Sheet date.

(xix) As certified by the company that it was received written representation from all the directors, that companies in which they are directors had not defaulted in terms of section 164(2) of the companies Act, 2013, and the representation from directors taken in Board that Director is not disqualified from being appointed as Director of the company.

(xx) Contributed Equity

Equity shares are classified as equity.

(a) Earnings per Share

Basic earnings per share is calculated by dividing:

-the profit attributable to the owners group

-by the weighted average number of equity shares outstanding during the year.