Accounting Policies of DRS Cargo Movers Ltd. Company

Mar 31, 2025

2. Significant accounting policies

(a) Basis of preparation:

These financial statements have been prepared on going concern basis in accordance with the
Generally Accepted Accounting Principles in India ("Indian GAAP") to comply with the Accounting
Standards specified under Section 133 of the Companies Act, 2013,read with (companies
(Accounting Standards), Rules 2021, as amended. The financial statements have been prepared
under the historical cost convention on accrual basis.

(b) Use of estimates:

The preparation of the financial statements in conformity with the generally accepted accounting
principles requires that the management makes estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent liabilities as of the date of
the financial statements, and the reported amount of revenues and expenses during the reported
period, actual results could differ from those estimates.

(c) Borrowing Cost:

Borrowing costs that are attributable to the acquisition, construction or production of qualifying
assets are capitalized as part of the cost of such assets. A qualifying asset is an asset that
necessarily takes a substantial period of time to get ready for its intended use. All other borrowing
costs are recognized as expense in the year in which they are incurred.

(d) Inventories:

Packing material is valued at cost at FIFO method and valued at lower of cost and net realisable
value.

(e) Revenue recognition:

Revenue is measured at the fair value of the consideration received or receivable. The company
recognizes sales at the point of dispatch of goods to the customer. Sales are net of discounts,
sales tax, excise duty and returns. Revenue from sales is based on the price specified in the sales
contracts, net of all expected discounts and returns in relation to sales made until the end of the
year.

(f) Depreciation:

Depreciation is provided using the straight line method over the useful life of the assets as
prescribed under Schedule II of the Companies Act, 2013. Depreciation is charged on a pro-rata
basis for assets purchased / sold during the year.

(g) Property, Plant and Equipment:

Property, Plant and Equipment are stated at cost less accumulated depreciation and impairment
losses. Cost comprises all direct expenses incurred to bring an asset to working condition for its
intended use. Cost also includes financing costs relating to specific borrowing(s) attributable to
the acquisition or construction of Property, Plant and Equipment.

(h) Taxes on Income:

a) Taxation is provided for under the tax payable method, whereby all income taxes devolving
upon the company are provided for, after considering all eligible allowances and rebates. Any
claims by the Revenue Authorities against the Company are evaluated as regards the
likelihood of their crystallizing into a liability. Accordingly, the claims are quantified to the
extent accurately determinable and provision recorded or disclosure made depending on the
assessment of such likelihood.

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

(i) Earnings per share:

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable
to equity shareholders (after deducting attributable taxes) by the weighted average number of
equity shares outstanding during the Year.

(j) Employee Benefits:

a) Retirement benefits in the form of Provident Fund are defined contribution scheme and
contributions in respect of such scheme are recognized in the books of account.

b) Gratuity liability is a defined benefit obligation and provided on the basis of independent
actuarial valuation on projected unit credit method made at the end of the year.

---

Mar 31, 2024

(B) Significant accounting policies

(a) Basis of preparation

The financial statements of the Company have been prepared on historical cost basis and its
compliance with the mandatory Accounting Standards as prescribed under section 133 of the
Companies (Accounts) Rules, 2014 as applicable, and the relevant provisions of the Companies Act,
2013.

(b) Use of estimates

The preparation of the financial statements in conformity with the generally accepted accounting
principles requires that the management makes estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent liabilities as of the date of the financial
statements, and the reported amount of revenues and expenses during the reported period, actual
results could differ from those estimates.

(c) Leases

Where the Company is the lessee

Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the
leased item, are classified as operating leases. Operating lease payments are recognized as an expense
in the Profit and Loss Account on a straight-line basis over the lease term.

(d) Borrowing Cost

Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets
are capitalised as part of the cost of such assets. A qualifying asset is an asset that necessarily takes a
substantial period of time to get ready for its intended use. All other borrowing costs are recognized
as expense in the year in which they are incurred.

(e) Inventories

Raw material, packing material, stores and work-in-progress are valued at cost. Finished goods are
valued at lower of cost or net realizable value. Excise duty on goods manufactured by the company
and remaining in inventory is included as part of valuation of finished goods.

(f) Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. The company
recognizes sales at the point of dispatch of goods to the customer. Sales are net of discounts, sales tax,
excise duty and returns. Revenue from sales is based on the price specified in the sales contracts, net
of all expected discounts and returns in relation to sales made until the end of the year.

(g) Depreciation

Depreciation is provided using the straight-line method over the useful life of the assets as prescribed
under part C of Schedule II of the Companies Act, 2013. Depreciation is charged on a pro-rata basis
for assets purchased / sold during the year.

(h) Property, Plant and Equipment

Property, Plant and Equipment are stated at cost less accumulated depreciation and impairment
losses. Cost comprises all direct expenses incurred to bring an asset to working condition for its
intended use. Cost also includes financing costs relating to specific borrowing(s) attributable to the
acquisition or construction of Property, Plant and Equipment.

(i) Borrowing costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are
capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes a
substantial time to get ready for its intended use or sale. All other borrowing costs are charged to
revenue.