Accounting Policies of S J Logistics (India) Ltd. Company

Mar 31, 2025

Note 2: SIGNIFICANT ACCOUNTING POLICIES

A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

“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
(''the Act’) read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act. The
accounting policies adopted in the preparation of financial statements have been consistently applied.
All assets and liabilities have been classified as current or 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 operations
and time difference between the provision of services and realization of 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. “

B) USE OF ESTIMATES

The preparation of financial statements is in conformity with Indian GAAP which requires judgments, estimates
and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent
liabilities on the date of the financial statements and the reported amount of revenues and expenses during the
reporting period. Difference between the actual results and estimates are recognized in the period in which the
results are known / materialized.

C) ACCOUNTING CONVENTIONS

The Company follows the mercantile system of accounting, recognizing income and expenditure on accrual basis.
The accounts are prepared on historical cost basis and as a going concern. Accounting policies not referred to
specifically otherwise, are consistent with the generally accepted accounting principles.

The following significant accounting policies are adopted in the preparation and presentation of these financial
statements:

1. 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.

Sale of Services

Revenue from services is recognized when services have been rendered and there should be no uncertainty
regarding consideration and its ultimate collection. The sales recorded in the books is exclusive of all taxes i.e.
GST. In case of billing to overseas parties the total amount of services rendered for which revenue is expected to
be realized in foreign currency is converted in the company’s reporting currency at the exchange rate prevailing
on the date of invoice.

Interest Income

Interest Income is recognized on a time proportion basis taking into account the amount outstanding and the rate
applicable.

Dividend Income

Dividend Income is recognized on receipt basis.

2. Fixed Assets

a) Fixed Assets are stated as per Cost Model i.e., at cost less accumulated depreciation and impairment, if any.

b) Costs directly attributable to acquisition are capitalized until the Fixed Assets are ready for use, as intended by
the management.

c) Subsequent expenditures relating to fixed assets are capitalized only when it is probable that future economic
benefits associated with these will flow to the Company and the cost of the item can be measured reliably. Repairs
& maintenance costs are recognized in the Statement of profit & Loss when incurred.

d) The cost and related accumulated depreciated are eliminated from the financial statements upon sale or
retirement of the asset and the resultant gains or losses are recognized in the Statement of Profit or Loss. Assets
to be disposed of are reported at the lower of the carrying value or the fair value less cost to sell.

e) Depreciation on Tangible Assets in case of company is provided in such a manner so that the cost of asset (Net
of realizable value) will be amortized over their estimated remaining useful life on WDV basis as per the useful life
prescribed under Schedule II to the Companies Act 2013.

f) Depreciation methods, useful lives, and residual values are reviewed periodically, including at each financial year
end.

3. Impairment

The Management periodically assesses, using external and internal sources, whether there is an indication that

an asset may be impaired. An impairment loss is recognized wherever the carrying value of an asset exceeds its
recoverable amount. The recoverable amount is higher of the asset’s net selling price and value in use, which
means the present value of future cash flows expected to arise from the continuing use of the asset and its
eventual disposal. An impairment loss for an asset is reversed if, and only if, the reversal can be related objectively
to an event occurring after the impairment loss was recognized. The carrying amount of an asset is increased to
its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have
been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized
for the asset in prior years.

4. Inventories

As the Company operates in transportation and freight forwarding industry (service industry), the Company has
no inventories and hence AS-2 is not applicable to the Company.

5. Retirement Benefits & Other Employee Benefits
Defined-Contribution Plans:

All short term employee benefits are accounted on undiscounted basis during the accounting period based on
services rendered by employees.

The Company’s contribution to Provident Fund and Employees State Insurance Scheme is determined based on
a fixed percentage of the eligible employees’ salary and charged to the Statement of Profit and Loss on accrual
basis.

The Company has made provision for payment of Gratuity to its employees, based on the actuarial valuation report
obtained from actuarial valuer.

6. Foreign Exchange Transactions

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 the transactions are included in the Statement of Profit
and Loss. Revenue, expense and cash-flow items denominated in foreign currencies are translated using the
exchange rate in effect on the date of the transaction.

7. Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of
transactions of a non- cash nature, any deferrals or accruals of past or future operating cash receipts or payments
and item of income or expenses associated with investing or financing cash flows. The cash flows from operating,
investing and financing activities are segregated.

8. Borrowing Costs

Borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset are capitalized
as part of the cost of that asset till the time the asset is ready for its intended use. A qualifying asset is an asset
that necessarily takes a substantial period of time to get ready for its intended use. Costs incurred in raising funds
are amortized equally over the period for which the funds are acquired. All other borrowing costs are charged to
profit and loss account.

9. Income Tax

The accounting treatment for the Income Tax in respect of the Company’s income is based on the Accounting
Standard on ''Accounting for Taxes on Income’ (AS-22). The provision made for Income Tax comprises both,
Current Tax and Deferred Tax. Provision for Current Tax is made as per the applicable Income Tax rates for the
relevant assessment year after considering various deductions available under the Income Tax Act, 1961.

Deferred Tax is recognized for all timing differences; being the differences between the taxable income and
accounting income that originate in one period and are capable of reversal in one or more subsequent periods.
Such deferred tax is quantified using the tax rates and laws enacted or substantively enacted as on the Balance
Sheet date. The carrying amount of deferred tax asset/liability is reviewed at each Balance Sheet date and
consequential adjustments are carried out.

10. Earnings Per Share

Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity
shares outstanding during the period. 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.

The diluted potential equity shares are adjusted for the proceeds receivable had the shares been actually issued
at fair value which is the average market value of the outstanding shares. Dilutive potential equity shares are
deemed converted as of the beginning of the period, unless issued at a later date.

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Mar 31, 2024

Note 2: SIGNIFICANT ACCOUNTING POLICIES

A) BASIS OF PREPARATION OF FINANCIAL STATEMENT

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 (''the Act’) read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act. The accounting policies adopted in the preparation of financial statements have been consistently applied, except for the effects of the Restated Financial Statements for the year ended March 31st, 2023 and half year ended September 30th, 2023 which were provided in the following heads of the Financial Statements:

1. Gratuity Expense and Provision for Gratuity

2. Deferred Tax (Income)/Expense and Deferred Tax (Liability)/Assets

3. Audit Fees Expense and Audit Fees Payable

All assets and liabilities have been classified as current or 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 operations and time difference between the provision of services and realization of 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.

B) USE OF ESTIMATES

The preparation of financial statements is in conformity with Indian GAAP requires judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

C) ACCOUNTING CONVENTION

The group follows the mercantile system of accounting, recognizing income and expenditure on accrual basis. The accounts are prepared on historical cost basis and as a going concern. Accounting policies not referred to specifically otherwise, are consistent with the generally accepted accounting principles.

The following significant accounting policies are adopted in the preparation and presentation of these financial statements:

1. 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.

Sale of services

Revenue from services is recognized when services have been rendered and there should be no uncertainty regarding consideration and its ultimate collection. The sales recorded in the books is exclusive of all taxes i.e. GST. In case of billing to overseas parties the total amount of services rendered for which revenue is expected to be realized in foreign currency is converted in the company’s reporting currency at the exchange rate prevailing on the date of invoice.

Interest Income

Interest income is recognized on a time proportion basis taking into account the amount out standing and the rate applicable.

Dividend Income

Dividend Income is recognized on receipt basis.

2. Fixed Assets

a) Fixed are stated as per Cost Model i.e., at cost less accumulated depreciation and impairment, if any;

b) Costs directly attributable to acquisition are capitalized until the Fixed Assets are ready for use, as intended by the management;

c) Subsequent expenditures relating to fixed assets are capitalized only when it is probable that future economic benefits associated with these will flow to the Company and the cost of the item can be measured reliably. Repairs & maintenance costs are recognized in the Statement of profit & Loss when incurred;

d) The cost and related accumulated depreciated are eliminated from the financial statements upon sale or retirement of the asset and the resultant gains or losses are recognized in the Statement of Profit or Loss. Assets to be disposed of are reported at the lower of the carrying value or the fair value less cost to sell;

e) Depreciation on Tangible Assets in case of company is provided in such a manner so that the cost of asset (Net of realizable value) will be amortized over their estimated remaining useful life on WDV basis as per the useful life prescribed under Schedule II to the Companies Act 2013.

f) Depreciation methods, useful lives, and residual values are reviewed periodically, including at each financial year end;

3. Impairment

The Management periodically assesses, using external and internal sources, whether there is an indication that an asset may be impaired. An impairment loss is recognized wherever the carrying value of an asset exceeds its recoverable amount. The recoverable amount is higher of the asset’s net selling price and value in use, which means the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. An impairment loss for an asset is reversed if, and only if, the reversal can be related objectively to an event occurring after the impairment loss was recognized. The carrying amount of an asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

4. Inventories

As the company operates in transportation and freight forwarding industry (service industry), the company has no inventories and hence AS-2 is not applicable to the company.

5. Retirement Benefits & Other Employee Benefits Defined-contribution plans:

All short term employee benefits are accounted on undiscounted basis during the accounting period based on services rendered by employees.

The Company’s contribution to Provident Fund and Employees State Insurance Scheme is determined based on a fixed percentage of the eligible employees’ salary and charged to the Statement of Profit and Loss on accrual basis.

The Company has made provision for payment of Gratuity to its employees, based on the actuarial valuation report obtained from actuarial valuer.

6. Foreign Exchange Transactions

Foreign-currency denominated monetary assets and liabilities if any are translated at exchange rates in effect at the Balance Sheet date. The gains or losses resulting from the transactions relating to purchase of current assets like Raw Material etc. are included in the Statement of Profit and Loss. Revenue, expense and cash-flow items denominated in foreign currencies are translated using the exchange rate in effect on the date of the transaction.

7. Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non- cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities are segregated.

8. Borrowing Costs

Borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset are capitalized as part of the cost of that asset till such time the asset is ready for its intended use. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use. Costs incurred in raising funds are amortized equally over the period for which the funds are acquired. All other borrowing costs are charged to profit and loss account.

9. Income Tax

The accounting treatment for the Income Tax in respect of the Company’s income is based on the Accounting Standard on ''Accounting for Taxes on Income’ (AS-22). The provision made for Income Tax in Accounts comprises both, the current tax and deferred tax. Provision for

Current Tax is made on the assessable Income Tax rate applicable to the relevant assessment year after considering various deductions available under the Income Tax Act, 1961.

Deferred tax is recognized for all timing differences; being the differences between the tax able income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Such deferred tax is quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date. The carrying amount of deferred tax asset/liability is reviewed at each Balance Sheet date and consequential adjustments are carried out.

10. Earnings per share

Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. 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.

The diluted potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value which is the average market value of the outstanding shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.