Accounting Policies of Kaushalya Logistics Ltd. Company

Mar 31, 2025

A. Corporate Information

Kaushalya Logistics Limited (herein after referred to as "the Company") was incorporated on 24-08-2007 as a private
limited Company under the Companies Act, 2013 and domiciled in India.The Company is presently engaged in C & F
Agency, Transportation and in the business of retail trade of various types of home appliances, consumer electronics etc.
and allied services on various online marketplaces.

Company was converted into a public limited company on 01st May,2023 and the name of Company was changed
to ''Kaushalya Logistics Limited'' and a fresh certificate of incorporation consequent upon conversion to public limited
company was issued by the Registrar of Companies, Delhi on 01st May,2023. The shares of the Company got listed on
National Stock Exchange of India (NSE) on 08th january,2024. The CIN of the Company is U45400PB2007PLC063260.

B. Basis of preparation and presentation of financial statements

i. The 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 and the provisions of the Act (to the extent notified).

Accounting policies have been consistently applied by the Company and are consistent with those used in the
previous year except where a newly issued accounting standard is initially adopted or a revision to an existing
accounting standard required a change in the accounting policy hitherto in use.

As per MCA Notification dated 16th February 2015, the companies whose shares are listed on SME exchange are
exempted from the compulsory requirement of adoption of Ind AS. As the company is covered under exempted
from the compulsory requirement of adoption of Ind AS, the company has not adopted Ind AS.

ii. The Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis
except to the extent stated otherwise.

iii. All assets and liabilities have been classified as current and non-current as per the Company''s normal operating
cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and
the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the
Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification
of assets and liabilities.

C. Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue
can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized:

i) Sale of Services

The Company recognizes revenue from services namely Clearing & Forwarding and Frieght, Handling &
Transporation services on accrual basis.

ii) Sale of traded goods

Sale of traded goods represents revenue from the sale of products (net of sales return, provision for future expected
sales return and trade discounts). The sale is recorded when the products are delivered and all significant risks and
rewards of ownership of the goods have passed to the customers.

It is the company''s policy to sell its products to the end customers with a right of return within specified period on
case to case basis. Historical experience is used to estimate and provide for such returns at the time of sales and Sale
is reversed at year end (As per Guidance note on Accounting by E-commerce Entities issued by ICAI) .The Company
collects Goods and Service Tax on behalf of the government and therefore, these are not economic benefits flowing
to the Company. Hence, they are excluded from revenue.

iii) Income from auxiliary activities

Income from auxiliary activities includes shipping revenue, gift wrapping fees and subvention fee recovery, etc.
Revenue is recognized as and when services are rendered. Company collects Goods and Service Tax on behalf of the
Government and therefore, these are not economic benefit flowing to the Company, hence they are excluded from
revenue.

iv) Interest income

Income is recognized on a time proportion basis taking into account the amount outstanding and the applicable
interest rate. Interest income is included under the head "Other Income" in the Statement of Profit and Loss.

v) Rental income

Rental income arising from operating lease on investment properties is accounted for on a straight line basis over
lease terms unless the receipts are structured to increase in line with expected general inflation to compensate for the
expected inflationary cost increases and is included in the Statement of profit or loss due to its operating nature.

D. Property, Plant and Equipment

Property, Plant and Equipment are stated at cost net of tax/duty credits & subsidy availed, if any, less accumulated
depreciation/amortization/impairment losses. The cost of fixed assets includes freight, other incidental expenses related to
the acquisition and installation of the respective assets, preoperative expenses and borrowing costs directly attributable to
fixed assets which necessarily take a substantial period of time to get ready for their intended use.

Depreciation has been provided for on straight line method ( for proportionate period in use) in accordance with the rates
of Schedule II to the companies Act,2013 (as amended) on the cost of assets as refered to above. Useful life is determined by
the Management on technical evaluation which is not more than the life specified in schedule II to the companies ACT, 2013.

Depreciation on addition to assets has been calculated on pro-rata basis from the date of acquisition / installation.
Depreciation on assets sold has been calculated on pro-rata basis till the date of sale/ deletion.

E. Borrowing costs

Borrowing costs including incidental/ ancillary costs are recognized in the Statement of Profit and Loss in the period in
which it is incurred, except where the cost is incurred for acquisition, construction or production of an asset that takes a
substantial period of time to get ready for its intended use in which case it is capitalized up to the date the assets are ready
for their intended use. Ancillary costs incurred in connection with the arrangement of borrowings are amortized over the
period of such borrowings.

F. Inventories

Inventory of traded goods are valued at lower of direct costs (Direct cost is the prime cost incurred in bringing the
inventories to their present location and condition) and estimated net realizable value, after adjusting for obsolescence,
where appropriate. Cost is determined on First-In-First-Out (FIFO) basis. Net realizable value is the estimated selling
price in the ordinary course of business, less estimated costs necessary to make the sale.

The company has calculated the provision for inventory basis the percentage as per historical experience for future expected
sales return and reversed Inventory Valuation as at year end (As per Guidance note on Accounting by E-commerce
Entities issued by ICAI).

G. Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such
investments are made, are classified as current investments. All other investments are classified as long-term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable
acquisition charges such as brokerage, fees and duties, etc. If an investment is acquired, or partly acquired, by the issue
of shares or other securities, the acquisition cost is the fair value of the securities issued. If an investment is acquired in
exchange for another asset, the acquisition cost is determined by reference to the fair value of the asset given up or by
reference to the fair value of the investment acquired, whichever is more clearly evident.

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual
investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to
recognize a decline other than temporary in the value of the investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited
to the Statement of Profit and Loss.

H. Taxes on Income
Current Tax

Current tax expense is based on the provisions of Income Tax Act, 1961 and judicial interpretations thereof as at the

Balance Sheet date and takes into consideration various deductions and exemptions to which the Company is entitled
to as well as the reliance placed by the Company on the legal advices received by it. Current tax assets and current tax
liabilities are offset when there is a legally enforceable right to set off the recognised amounts and there is an intention to
settle the asset and the liability on a net basis.

Deferred Tax

Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable
income for the current year and reversal of timing differences for earlier years. The deferred tax charge or credit and the
corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively
enacted by the Balance Sheet date.

Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future;
however, where there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognized only if
there is a virtual certainty of realization of such assets. Deferred tax assets are reviewed at each Balance Sheet date and are
written-down or written-up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realized.
Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off assets against
liabilities representing current tax.

Minimum Alternate Tax

Minimum Alternate Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence
that the Company will pay normal income tax during the specified period. In the year in which MAT credit becomes
eligible to be recognized as an asset in accordance with the recommendation contained in the Guidance Note on
"Accounting for Credit Available in respect of Minimum Alternative Tax under The Income Tax Act, 1961" issued by the
Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of Profit and Loss
Account and shown as MAT Credit Entitlement. The Company reviews the same at each Balance Sheet date and writes
down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect
that Company will pay normal income tax during the specified period.

H. Earnings Per share

Basic earnings per share is calculated by dividing the net profit / (loss) for the year attributable to equity shareholders
(after deducting preference dividends and attributable taxes) by weighted average number of equity shares outstanding
during the year. For the purpose of calculating diluted earnings per share, the net profit / (loss) for the year attributable to
equity shareholders and the weighted average numbers of shares outstanding during the year are adjusted for the effects
of all dilutive potential equity shares.

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Mar 31, 2024

1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

A. Corporate Information

Kaushalya Logistics Limited (herein after referred to as "the Company") was incorporated on 24-08-2007 as a private limited Company under the Companies Act, 2013 and domiciled in India.The Company is presently engaged in C & F Agency, Transportation and in the business of retail trade of various types of home appliances, consumer electronics etc. and allied services on various online marketplaces.

Company is converted from Private limited company to Public company (Unlisted) as on 01-05-2023.

B. Basis of preparation and presentation of financial statements

i. These accounts are prepared on historical cost basis and on the Accounting principles of going concern. Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principles.

ii. The Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except

to the extent stated otherwise.

iii. All assets and liabilities have been classified as current and non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.

C. Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized:

i) Sale of Services

The Company recognizes revenue from services namely Clearing & Forwarding and Frieght, Handling & Transporation services on accrual basis.

ii) Sale of traded goods

Sale of traded goods represents revenue from the sale of products (net of sales return, provision for future expected sales return and trade discounts). The sale is recorded when the products are delivered and all significant risks and rewards of ownership of the goods have passed to the customers.

It is the company''s policy to sell its products to the end customers with a right of return within specified period on case to case basis. Historical experience is used to estimate and provide for such returns at the time of sales and Sale is reversed at year end (As per Guidance note on Accounting by E-commerce Entities issued by ICAI) .The Company collects Goods and Service Tax on behalf of the government and therefore, these are not economic benefits flowing to the Company. Hence, they are excluded from revenue.

iii) Income from auxiliary activities

Income from auxiliary activities includes shipping revenue, gift wrapping fees and subvention fee recovery, etc. Revenue is recognized as and when services are rendered. Company collects Goods and Service Tax on behalf of the Government and therefore, these are not economic benefit flowing to the Company, hence they are excluded from revenue.

iv) Interest income

Income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head "Other Income" in the Statement of Profit and Loss.

v) Rental income

Rental income arising from operating lease on investment properties is accounted for on a straight line basis over lease terms unless the receipts are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increases and is included in the Statement of profit or loss due to its operating nature.

D. Property, Plant and Equipment

Property, Plant and Equipment are stated at cost net of tax/duty credits & subsidy availed, if any, less accumulated depreciation/amortization/impairment losses. The cost of fixed assets includes freight, other incidental expenses related to the acquisition and installation of the respective assets, preoperative expenses and borrowing costs directly attributable to fixed assets which necessarily take a substantial period of time to get ready for their intended use.

Depreciation has been provided for on straight line method ( for proportionate period in use) in accordance with the rates of Schedule II to the companies Act,2013 (as amended) on the cost of assets as refered to above. Useful life is determined by the Management on technical evaluation which is not more than the life specified in schedule II to the companies ACT , 2013.

Depreciation on addition to assets has been calculated on pro-rata basis from the date of acquisition / installation. Depreciation on assets sold has been calculated on pro-rata basis till the date of sale/ deletion.

E. Borrowing costs

Borrowing costs including incidental/ ancillary costs are recognized in the Statement of Profit and Loss in the period in which it is incurred, except where the cost is incurred for acquisition, construction or production of an asset that takes a substantial period of time to get ready for its intended use in which case it is capitalized up to the date the assets are ready for their intended use. Ancillary costs incurred in connection with the arrangement of borrowings are amortized over the period of such borrowings.

F. Inventories

Inventory of traded goods are valued at lower of direct costs (Direct cost is the prime cost incurred in bringing the inventories to their present location and condition) and estimated net realizable value, after adjusting for obsolescence, where appropriate. Cost is determined on First-In-First-Out (FIFO) basis. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs necessary to make the sale.

The company has calculated the provision for inventory basis the percentage as per historical experience for future expected sales return and reversed Inventory Valuation as at year end (As per Guidance note on Accounting by E-commerce Entities issued by ICAI).

G. Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties, etc. If an investment is acquired, or partly acquired, by the issue of shares or other securities, the acquisition cost is the fair value of the securities issued. If an investment is acquired in exchange for another asset, the acquisition cost is determined by reference to the fair value of the asset given up or by reference to the fair value of the investment acquired, whichever is more clearly evident.

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the Statement of Profit and Loss.

H. Taxes on Income Current Tax

Current tax expense is based on the provisions of Income Tax Act, 1961 and judicial interpretations thereof as at the Balance Sheet date and takes into consideration various deductions and exemptions to which the Company is entitled to as well as the reliance placed by the Company on the legal advices received by it. Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle the asset and the liability on a net basis.

Deferred Tax

Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the current year and reversal of timing differences for earlier years. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the Balance

Sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future; however, where there is unabsorbed depreciation or carry forward of losses, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets. Deferred tax assets are reviewed at each Balance Sheet date and are written-down or written-up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realized. Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off assets against liabilities representing current tax.

Minimum Alternate Tax

Minimum Alternate Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which MAT credit becomes eligible to be recognized as an asset in accordance with the recommendation contained in the Guidance Note on "Accounting for Credit Available in respect of Minimum Alternative Tax under The Income Tax Act, 1961" issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of Profit and Loss Account and shown as MAT Credit Entitlement. The Company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.

H. Earnings Per share

Basic earnings per share is calculated by dividing the net profit / (loss) for the year attributable to equity shareholders (after deducting preference dividends and attributable taxes) by weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit / (loss) for the year attributable to equity shareholders and the weighted average numbers of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.