Accounting Policies of Rapid Multimodal Logistics Ltd. Company

Mar 31, 2025

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of preparation of financial statements

(a) The financial statements are prepared in accordance with Generally Accepted Accounting Principles
(Indian GAAP) under the historical cost convention on accrual basis and on principles of going concern. The
accounting policies are consistently applied by the Company.

(b) The financial statements are prepared to comply in all material respects with the Accounting Standards
specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and
provisions of Companies Act, 2013.

(c) The preparation of the financial statements requires estimates and assumptions to be made that affect the
reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Differences between the actual results and estimates are
recognized in the period in which the results are known / materialize.

2.2 Revenue Recognition

(a) The company generally follows the mercantile system of accounting and recognizes Income &
Expenditure on accrual basis.

(b) Revenue is recognised to the extent that it is possible that, the economic benefits will flow to the compnay
and the revenue can be reliably estimated and collectability is reasonably assured.

(c) Revenue from sale of services are recognised when control of the products being sold is transferred to our
customer and when there are no longer any unfulfilled obligations. The performance oblogations in our
contracts are fulfilled at the time of dispatch, delivery or upon formal customer acceptance depending on
customer terms.

(d) Revenue is measured on the basis of sale price, after deduction of any trade discounts, volume rebates
and any taxes or duties collected on behalf of the Government such as goods and service tax etc. Accumulated

experience is used to estimate the provision for such disclounts and rebates. Revenue is only recognised to
the extent that it is highly probable a significant reversal will not occur.

(e) Interest income is recognized on a time proportion basis taking into account the amount outstanding and
the rate applicable.

2.3 Property,Plant & Equipment and Intangible Assets & Depreciation

(a) Property, Plant and Equipment is stated at acquisition cost net of accumulated depreciation and
accumulated impairment losses, if any. Cost of acquisition or construction of property, plant and equipment
comprises its purchase price including import duties and non-refundable purchase taxes after deducting trade
discounts, rebates and any directly attributable cost of bringing the item to its working condition for its
intended use.

(b) Subsequent costs are included in the assets'' carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to the
company and the cost of the item can be measured reliably. All other repairs and maintance cost are charged
to the statement of profit and loss during the period in which they are incurred.

(c) Gains or losses that arise on disposal or retirement of an asset are measured as the difference between net
disposal proceeds and the carrying value of property, plant and equipment and are recognised in the statement
of profit and loss when the same is derecognised.

(d) Depreciation is calculated on pro rata basis on written down value method (WDV) based on estimated
useful Life as prescribed under Part C of Schedule - II of the Companies Act, 2013. Freehold land is not
depreciated.

(e) Intangible asset purchased are initially measured at cost. The cost of an intangible assets comprises its
purchase price including duties and taxes and any costs directly attributable to making the assets ready for
their intended use. The useful lives of intangible assets are assessed as either finite or indefinite. Finite-life
intangible assets are amortised on a straight-line basis over the period of their estimated useful lives.

2.4 Impairment of Assets

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment
based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset
exceeds its recoverable amount. The recoverable amount is the higher of the asset''s net selling price and value
in use, which is determined by the present value of the estimated future cash flows.

2.5 Investments

Investments classified as long-term investments are stated at cost. Provision is made to recognize any
diminution other than temporary in the value of such investments. Current investments are carried at lower of
cost and fair value.

2.6 Inventories

The company do not have any inventory during the period under review.

2.7 Employee Benefits

Retirement benefit in the form of provident fund is a defined contribution scheme. The contribution to the
provident fund is charged to the statement of profit and loss for the year when an employee renders the related
services.

Provision for Gratuity has been considered as per Acturial valuation report.

Leave encashment to the employees are accounted for as & when the same is claimed by eligible employees.

2.8 Borrowing Costs

(a) Borrowing costs that are directly attributable to the acquisition of qualifying assets are capitalized for the
period until the asset is ready for its intended use. A qualifying asset is an asset that necessarily takes
substantial period of time to get ready for its intended use.

(b) Other Borrowing costs are recognized as expense in the period in which they are incurred.

2.9 Taxes on Income

Tax expense comprises of current tax and deferred tax.

Current income tax is measured at the amount expected to be paid to the tax authorities, computed in
accordance with the applicable tax rates and tax laws.

Deferred Tax arising on account of "timing differences" and which are capable of reversal in one or more
subsequent periods is recognized, using the tax rates and tax laws that are enacted or substantively enacted.
Deferred tax asset is recognized only to the extent there is reasonable certainty with respect to reversal of the
same in future years as a matter of prudence.

2.10 Earning per share (EPS)

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

(b) For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable
to equity shareholders and the weighted average number of shares outstanding during the period are adjusted
for the effects of all dilutive potential equity shares.

2.11 Prior Period Items

Prior Period and Extraordinary items and Changes in Accounting Policies having material impact on the
financial affairs of the Company are disclosed in financial statements if any.