Accounting Policies of Premier Roadlines Ltd. Company

Mar 31, 2025

NOTE -2 Significant accounting policies

(a) Basis of accounting and 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). The accounting policies
adopted in the preparation of the financial statements
are consistent with those followed in the previous year.

(b) 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.

(c) Functional and Presentation Currency

These financial statements are presented in Indian
Rupees (INR), which is the Company''s functional
currency.All the amounts included in the financial
statements are reported in Lacs of Indian Rupees and
are rounded to the nearest Lacs, except per share data
and unless stated otherwise.

(d) Cash and cash equivalents (for purposes of Cash
Flow Statement)

Cash and cash equivalent in the balance sheet
comprise cash at banks and cash on hand.

(e) Cash flow statement

Cash flows are reported using the indirect method,
whereby profit / (loss) before extraordinary items and
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. Cash flow statement
classifies cash flows during the period from operating,
investing and financing activities of the Company.

(f) Revenue Recognition

Revenue from transportation service is usually
recognised as the service is performed, by the
completed service contract method.

Interest income is recognized on accrual basis on
balance outstanding as at end of financial year, on
time proportionate basis, based on interest rates
implicit in the transaction.

Revenue from rendering of services is recognised
when the performance of agreed contractual task has
been completed.

(g) Property, Plant & Equipment (Tangible)

Items of Property, plant and equipment are measured
at its cost less any accumulated depreciation and
any accumulated impairment losses. The cost
comprises its purchase price including import duties
and non- refundable purchase taxes after deducting
trade discounts and rebates and any cost directly
attributable to bringing the assets to its working
condition for its intended use.

Subsequent expenditures related to an item of
Tangible asset are added to its book value only if
they increase the future benefits from the existing
asset beyond its previously assessed standards of
performance.

Projects under which assets are not ready for their
intended use are disclosed under Capital work in
Progress.

Items of property, plant and equipment retired from
active use and held for disposal is stated at the lower
of their carrying amount and net realisable value. Any
write-down in this regard is recognised immediately
in the statement of profit and loss.

(h) Intangibles

An intangible asset is recognised only when it is
probable that the future economic benefits that are
attributable to the asset will flow to the enterprise and
the cost of the asset can be measured reliably.

Intangible assets are carried at cost less accumulated
amortization and accumulated impairment losses, if
any.

An intangible asset is derecognised (eliminated from
the balance sheet) on disposal or when no future
economic benefits are expected from its use and
subsequent disposal.

The depreciable amount of an intangible asset is
allocated on a systematic basis over the best estimate
of its useful life.

(i) Depreciation & amortisation

Depreciation on Property, Plant and Equipment is
provided to the extent of depreciable amount using
Straight Line (SLM) Method. Depreciation is provided
based on useful life of the assets as prescribed in
schedule II of the companies Act, 2013 except for
intangible assets which are amortised over a period of
5 years as prescribed in Accounting Standard 26.

(j) Government Grants

Government grants available to the enterprise are
considered for inclusion in accounts: (i) where there is
reasonable assurance that the enterprise will comply
with the conditions attached to them; and (ii) where
such benefits have been earned by the enterprise and
it is reasonably certain that the ultimate collection will
be made. The grant towards fixed assets is shown as a
deduction from the gross value of the asset concerned
in arriving at its book value. Government grants related
to revenue is recognised on a systematic basis in the
profit and loss statement over the periods necessary
to match them with the related costs which they are
intended to compensate.

(k) Investments

Investments are classified as long term investments
and current investments. The carrying amount for
current investments is the lower of cost and fair value.
For current investments, any reduction to fair value
and any reversals of such reductions are included in
the profit and loss statement. Long-term investments
are usually carried at cost. Any decline, other than
temporary, in the value of a long term investment, the
carrying amount is reduced to recognise the decline.
On disposal of an investment, the difference between
the carrying amount and the disposal proceeds,
net of expenses, is recognised in the profit and loss
statement.

(l) Employee benefits

(i) Short-term employee benefits are recognized as
an expense at the undiscounted amount in the
profit and loss account of the year in which the
related service is rendered.

(ii) Defined contribution plans

Defined contribution plans are those plans in
which the company pays fixed contribution
into separate entities and will have no legal or
constructive obligation to pay further amounts.
Provident Fund and Employee State Insurance
are Defined Contribution Plans in which company
pays a fixed contribution and will have no further
obligation beyond the monthly contributions and
are recognised as an expenses in Statement of
Profit & Loss.

(iii) Defined Benefit Plans:

(a) Gratuity is defined benefit plan payable at
the end of the employment and is provided
for on the basis of actuarial valuation at each
year-end using the projected unit credit
method. Actuarial gain and loss for defined
benefit plan is recognized in full in the period
in which it occur in the statement of profit
and loss.

(b) Provision for leave encashment (including
long term compensated absences) is
provided for on the basis of acturial valuation
at each year-end using the projected unit
credit method. Actuarial gain and loss for
defined benefit plan is recognized in full in
the period in which it occur in the statement
of profit and loss.

(m) Borrowing Cost

Borrowing costs include interest, amortisation of
ancillary costs incurred and exchange differences
arising from foreign currency borrowings to the extent
they are regarded as an adjustment to the interest
cost. Costs in connection with the borrowing of funds
to the extent not directly related to the acquisition
of qualifying assets are charged to the Statement of
Profit and Loss over the tenure of the loan. Borrowing
costs, allocated to and utilised for qualifying assets,
pertaining to the period from commencement of
activities relating to construction / development of the
qualifying asset upto the date of capitalisation of such
asset is added to the cost of the assets. Capitalisation
of borrowing costs is suspended and charged to the
Statement of Profit and Loss during extended periods
when active development activity on the qualifying
assets is interrupted.

(n) Earning per share

Basic Earning Per Share is calculated by dividing
the net profit or loss for the period attributable to
equity shareholders by weighted average number
of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per
share, net profit after tax during the year and the
weighted average number of shares outstanding
during the year are adjusted for the effect of all dilutive
potential equity shares.

(o) Accounting for taxes on income

Deferred tax liabilities are recognized for all taxable
timing differences. Deferred tax assets are recognized
for deductible timing differences only to the extent
that there is reasonable certainty that sufficient
future taxable income will be available against which
such deferred tax assets can be realized. In situations
where the Company has unabsorbed depreciation
or carry forward tax losses, all deferred tax assets are
recognized only if there is virtual certainty supported
by convincing evidence that they can be realized
against future taxable profits.

The carrying amount of deferred tax assets are
reviewed at each balance sheet date. The Company
writes-down the carrying amount of a deferred tax
asset to the extent that it is no longer reasonably
certain or virtually certain, as the case may be, that
sufficient future taxable income will be available
against which deferred tax asset can be realized.
Any such write-down is reversed to the extent that it
becomes reasonably certain or virtually certain, as the
case may be, that sufficient future taxable income will
be available.

(p) Impairment of Assets

An asset is treated as impaired when the carrying cost
of asset exceeds its recoverable value. An impairment
loss is charged to the Profit and Loss Account in the
year in which an asset is identified as impaired. The
impairment loss recognised in prior accounting period

is reversed if there has been a change in the estimate
of recoverable amount.

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Mar 31, 2024

NOTE -1 Corporate Information

The company was incorporated on 19.03.2008. The

company is engaged in business of transportaion of goods

by road, allied activities and renting of trucks..

NOTE -2 Significant accounting policies

(a) Basis of accounting and 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 except for certain financial instruments which are measured at fair values. 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). The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

(b) 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.

(c) Functional and Presentation Currency

These financial statements are presented in Indian Rupees (INR), which is the Company''s functional currency.All the amounts included in the financial statements are reported in Lacs of Indian Rupees and are rounded to the nearest Lacs, except per share data and unless stated otherwise.

(d) Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash and cash equivalent in the balance sheet comprise cash at banks and cash on hand and shortterm deposits with an original maturity of three months or less, which are subject to insignificant risk of change in value.

(e) Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and

tax is adjusted for the effects of transactions of noncash nature and any deferrals or accruals of past or future cash receipts or payments. Cash flow statement classifies cash flows during the period from operating, investing and financing activities of the Company.

(f) Revenue Recognition

Revenue from transportation service is usually recognised as the service is performed, by the completed service contract method.

Interest income is recognized on accrual basis on balance outstanding as at end of financial year, on time proportionate basis, based on interest rates implicit in the transaction.

Revenue from rendering of services is recognised when the performance of agreed contractual task has been completed.

(g) Property, Plant & Equipment (Tangible)

Items of Property, plant and equipment are measured at its cost less any accumulated depreciation and any accumulated impairment losses. The cost comprises its purchase price including import duties and non- refundable purchase taxes after deducting trade discounts and rebates and any cost directly attributable to bringing the assets to its working condition for its intended use.

Subsequent expenditures related to an item of Tangible asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standards of performance.

Projects under which assets are not ready for their intended use are disclosed under Capital work in Progress.

Items of property, plant and equipment retired from active use and held for disposal is stated at the lower of their carrying amount and net realisable value. Any write-down in this regard is recognised immediately in the statement of profit and loss.

(h) Property, Plant & Equipment (Intangible)

An intangible asset is recognised only when it is probable that the future economic benefits that are attributable to the asset will flow to the enterprise and the cost of the asset can be measured reliably.

Subsequent exp. on an intangible asset after its purchase or its completion recognised as an intanglble asset

It is probable that the expenditure will enable the asset to generate future economic benefits in excess

of its originally assessed standard of performance and the expenditure can be measured and attributed to the asset reliably.

Intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any.

An intangible asset is derecognised (eliminated from the balance sheet) on disposal or when no future economic benefits are expected from its use and subsequent disposal.

The depreciable amount of an intangible asset is allocated on a systematic basis over the best estimate of its useful life.

(i) Depreciation & amortisation

Depreciation on Property, Plant and Equipment is provided to the extent of depreciable amount using Straight Line (SLM) Method. Depreciation is provided based on useful life of the assets as prescribed in schedule II of the companies Act ,2013 except for intangible assets which are amortised over a period of 5 years as prescribed in Accounting Standard 26.

Asset Head	Useful life
Flats & Offices	30 Years
Plant & Machinery	15 Years
Vehicles	10/8 Years
Furniture & Fixtures	10 Years
Computers	3 Years
Electric Equipments	15 Years
Office Equipments	5 Years

(j) Government Grants

Government grants available to the enterprise are considered for inclusion in accounts: (i) where there is reasonable assurance that the enterprise will comply with the conditions attached to them; and (ii) where such benefits have been earned by the enterprise and it is reasonably certain that the ultimate collection will be made. The grant towards fixed assets is shown as a deduction from the gross value of the asset concerned in arriving at its book value. Government grants related to revenue is recognised on a systematic basis in the profit and loss statement over the periods necessary to match them with the related costs which they are intended to compensate.

(k) Investments

Investments are classified as long term investments and current investments. The carrying amount for current investments is the lower of cost and fair value. For current investments, any reduction to fair value

and any reversals of such reductions are included in the profit and loss statement.Long-term investments are usually carried at cost. Any decline, other than temporary, in the value of a long term investment, the carrying amount is reduced to recognise the decline. On disposal of an investment, the difference between the carrying amount and the disposal proceeds, net of expenses, is recognised in the profit and loss statement.

(l) Employee benefits

(i) Short-term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.

(ii) Defined contribution plans

Defined contribution plans are those plans in which the company pays fixed contribution into separate entities and will have no legal or constructive obligation to pay further amounts. Provident Fund and Employee State Insurance are Defined Contribution Plans in which company pays a fixed contribution and will have no further obligation beyond the monthly contributions and are recognised as an expenses in Statement of Profit & Loss.

(iii) Defined Benefit Plans:

Gratuity is defined benefit plan payable at the end of the employment and is provided for on the basis of actuarial valuation at each year-end using the projected unit credit method. Actuarial gain and loss for defined benefit plan is recognized in full in the period in which it occur in the statement of profit and loss.

(m) Borrowing Cost

Borrowing costs include interest, amortisation of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset upto the date of capitalisation of such asset is added to the cost of the assets. Capitalisation of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.

(n) Earning per share

Basic Earning Per Share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, net profit after tax during the year and the weighted average number of shares outstanding during the year are adjusted for the effect of all dilutive potential equity shares.

(o) Accounting for taxes on income

Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the Company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

The carrying amount of deferred tax assets are reviewed at each balance sheet date. The Company writes-down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

(p) Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

(q) Provisions and contingencies

A provision is recognized when the Company has a present obligation as a result of past event. it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

(r) Foreign currency transactions and translations

Foreign Currency Transactions related to purchase and sales are recorded at the exchange rates prevailing under Customs Act on the date of the transactions. Gains and losses arising out of subsequent fluctuations are accounted for on actual payments or realisations as the case may be. Monetary assets and liabilities denominated in foreign currency as on Balance Sheet date are translated into functional currency at the exchange rates prevailing on that date and Exchange differences arising out of such conversion are recognised in the Statement of Profit and Loss. Other foreign currency transactions are recorded at prevailing RBI rates.