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Accounting Policies of Sical Logistics Ltd. Company

Mar 31, 2023

Significant Accounting Policies
Company overview

1.1 Sical Logistics Limited (âSicalâ) founded in 1955 is a leading integrated multimodal logistics solutions provider. The
Company is into every aspect of logistics namely port handling, road and rail transport, warehousing, shipping, stevedoring,
customs handling, trucking, retail logistics, mining and integrated logistics.

The Company is a public limited company incorporated and domiciled in India and has its registered office at Chennai,
Tamilnadu. The Company has its equity shares listed on the BSE Limited and National Stock Exchange of India Limited
[NSE] and its NCDs on the NSE.

The financial statements are approved for issue by the companyâs Board on 31st August 2023.

1.2 The Honâble National Company Law Tribunal (âNCLTâ), Chennai Bench, admitted the Corporate Insolvency Resolution
Process (âCIRPâ) application filed by an operational creditor of SICAL LOGISTICS LIMITED (âthe Companyâ) and appointed
Mr. Lakshmisubramanian (IBBI Registration no. IBBI/IPA-003/IP-N00232/2019-2020/12697) as Interim Resolution
Professional (âIRPâ), in terms of the Insolvency and Bankruptcy Code, 2016 (âthe Codeâ) to manage the affairs of the
Company vide CP No. IBA/73/2020 dated 10th March 2021. Pursuant to this, based on the application made by the
Committee of Creditors of the Company, the Honâble NCLT has ordered appointment of Mr. Sripatham Venkatasubramanian
Ramkumar (IBBI Registration No. IBBI/IPA-001/IP-P00015/2016-17/10039) as Resolution Professional (âRPâ) of the
Company in disposing of IA no. IA/54/CHE/2021 in IBA/73/2020 on 2nd June 2021.

The resolution plan as submitted by Pristine Malwa Logistics Park Private Limited was approved by CoC was filed before
Honourable NCLT Chennai Bench for their approval. Tthe Honâble National Company Law Tribunal Chennai as required
under section 30 & 31 of the Insolvency and Bankruptcy Code, 2016, approved the Resolution Plan vide the Order IA
(IBC)/ 366 (CHE)/2022 in IBA/73/2020 along with IA(IBC)/102(CHE)/2022 in IBA/73/2020 dated 08 December 2022. As
per the said Order, the Resolution Plan is binding on the corporate debtor and its employees, members, creditors,
including the Central Government, any State Government or any local authority to whom a debt in respect of the payment
of dues arising under any law for the time being in force, such as authorities to whom statutory dues are owed, guarantors
and other stakeholders involved in the Resolution Plan.

11th January, 2023 was declared as the effective date for the implementation of the Resolution Plan by the Monitoring
Committee upon fulfilment of certain conditions precedent by the successful Resolution Applicant (Pristine Malwa Logistics
Park Private Limited) inlcuding infusing of initial funding.

1.3 Basis of preparation of financial statements

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under the historical
cost convention on the accrual basis, the provisions of the Companies Act, 2013 (âActâ) (to the extent notified) and
guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS prescribed under Section 133 of the
Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting
Standards) Amendment Rules, 2016.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted
or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

1.4 Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset
is treated as current when it is:

â¢ Expected to be realised or intended to be sold or consumed in normal operating cycle;

â¢ Held primarily for the purpose of trading;

â¢ Expected to be realised within twelve months after the reporting period; or

â¢ Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

â¢ It is expected to be settled in normal operating cycle;

â¢ it is held primarily for the purpose of trading;

â¢ It is due to be settled within twelve months after the reporting period; or

â¢ There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
period. All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash
equivalents. The Company has identified twelve months as its operating cycle.

1.5 Use of estimates

The preparation of financial statements in conformity with Ind AS requires management to make judgments, estimates
and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income
and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates are recognized
in the period in which the estimates are revised and in any future periods affected. In particular, information about
significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most
significant effect on the amounts recognized in the financial statements is included in the following notes:

(i) Income taxes: Significant judgments are involved in determining the provision for income taxes, including the amount
expected to be paid or recovered in connection with uncertain tax positions.

(ii) Property, plant and equipment: Property, plant and equipment represent a significant proportion of the asset base of
the company. The charge in respect of periodic depreciation is derived after determining an estimate of an assetâs
expected useful life and the expected residual value at the end of its life. The useful lives and residual values of
Companyâs assets are determined by management at the time the asset is acquired and reviewed periodically,
including at each financial year end. The lives are based on historical experience with similar assets as well as
anticipation of future events, which may impact their life, such as changes in technology.

(iii) Other estimates: The preparation of financial statements involves estimates and assumptions that affect the reported
amount of assets, liabilities, disclosure of contingent liabilities at the date of financial statements and the reported
amount of revenues and expenses for the reporting period. Specifically, the Company estimates the probability of
collection of accounts receivable by analyzing historical payment patterns, customer concentrations, customer creditÂ¬
worthiness and current economic trends. If the financial condition of a customer deteriorates, additional allowances
may be required.

1.6 Revenue recognition

Revenue is recognized on accrual method on rendering of services when the significant terms of the arrangement are
enforceable, services have been delivered and the collectability is reasonably assured.

Effective April 1, 2018, the Company adopted Ind AS 115 âRevenue from Contracts with Customersâ. The effect on
adoption of Ind AS 115 was insignificant. Revenues in excess of invoicing are classified as contract assets (which we
refer as unbilled revenue) while invoicing in excess of revenues are classified as contract liabilities (which we refer to as
unearned revenues).

To determine whether to recognise revenue from contracts with customers, the Company follows a 5-step process:

1 Identifying the contract with customer

2 Identifying the performance obligations

3 Determining the transaction price

4 Allocating the transaction price to the performance obligations

5 Recognising revenue when/as performance obligation(s) are satisfied.

A performance obligation is satisfied over time if one of the following criteria is met:

(a) the customer simultaneously receives and consumes the benefits provided by the entityâs performance as the entity
performs;

(b) the entityâs performance creates or enhances an asset (for example, work in progress) that the customer controls as
the asset is created or enhanced ; or

(c) the entityâs performance does not create an asset with an alternative use to the entity and the entity has an enforceable
right to payment for performance completed to date.

Revenues from sale of services comprise income from container handling, storage and transportation services provided
to customers. Revenue from handling, storage and transport services arc recognised on completion of services i.e. when
services are performed or delivered, as per the contracts entered with the customers provided the consideration is
reliably determinable and no significant uncertainty exists regarding collection of consideration.

Revenue from terminal access service is recognized on completion of access services provided to rail operators for
loading/unloading of the containers

Revenue from rental income from lease of plant and equipment is recognised on accrual basis as per the contracted
terms. The amount recognised as revenue is exclusive of tax and net of rerums.

(a) Contract assets

A Contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the
establishment performs by transferring goods or services to a customer before the customer pays consideration or
before payment is due, a contract asset is recognised from the earned consideration that is conditional. The contract
assets are transferred to receivable when the rights become unconditional. Payment terms are contractually agreed
with the customers.

(b) Contract liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Establishment has
received consideration from the customer. If a customer pays consideration before the establishment transfers
goods or services to the customer, a contract liability is recognised when the payment is made or the payment is due
(whichever is earlier). Contract liabilities arc recognised as revenue when the Establishment performs under the
contract.

1.7 Property, plant and equipment

Recognition and measurement: Property, plant and equipment are measured at cost less accumulated depreciation and
impairment losses, if any. Cost includes expenditures directly attributable to the acquisition of the asset.

Depreciation: The Company depreciates property, plant and equipment over the estimated useful life on a straight-line
from the date the assets are ready for intended use. Assets acquired under finance lease and leasehold improvements
are amortized over the lower of estimated useful life and lease term. The estimated useful lives of assets for the current
and comparative period of significant items of property, plant and equipment are as follows:

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate
items (major components) of property, plant and equipment. Subsequent expenditure relating to property, plant and
equipment is 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 and maintenance costs are recognized in the
statement of profit and loss when incurred. The cost and related accumulated depreciation are eliminated from the
financial statements upon sale or disposition of the asset and the resultant gains or losses are recognized in the statement
of profit and loss.

Amounts paid towards the acquisition of property, plant and equipment outstanding as of each reporting date and the
cost of property, plant and equipment not ready for intended use before such date are disclosed under capital work- inÂ¬
progress.

1.8 Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary economic environment in
which the entity operates (i.e. the âfunctional currencyâ). The financial statements are presented in Indian Rupee, the
national currency of India, which is the functional currency of the Company.

1.9 Foreign currency transactions and balances

Transactions in foreign currency are translated into the functional currency using the exchange rates prevailing at the
dates of the respective transactions. Foreign exchange gains and losses resulting from the settlement of such transactions
and from the translation at the exchange rates prevailing at reporting date of monetary assets and liabilities denominated
in foreign currencies are recognized in the statement of profit and loss and reported within foreign exchange gains/
(losses).

Non-monetary assets and liabilities denominated in a foreign currency and measured at historical cost are translated at
the exchange rate prevalent on the date of transaction.

1.10 Financial instruments

All financial instruments are recognised initially at fair value. Transaction costs that are attributable to the acquisition of
the financial asset (other than financial assets recorded at fair value through profit or loss) are included in the fair value
of the financial assets. Loans and borrowings and payable are recognised net of directly attributable transactions costs.

(i) Financial assets at amortised cost:

A financial asset shall be measured at amortised cost if both of the following conditions are met:

(a) the financial asset is held within a business model whose objective is to hold financial assets in order to collect
contractual cash flows and

(b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding (SPPI).

They are presented as current assets, except for those maturing later than 12 months after the reporting date which
are presented as non-current assets. Financial assets are measured initially at fair value plus transaction costs and
subsequently carried at amortized cost using the effective interest method, less any impairment loss.

Financial assets at amortised cost are represented by trade receivables, security deposits, cash and cash equivalents,
employee and other advances and eligible current and non-current assets.

(ii) Financial assets at Fair Value Through Other Comprehensive Income (FVTOCI) :

Includes assets that are held within a business model where the objective is both collecting contractual cash flows
and selling financial assets along with the contractual terms giving rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding. At initial recognition, the Company,
based on its assessment, makes an irrevocable election to present in other comprehensive income the changes in
the fair value of an investment in an equity instrument that is not held for trading. These elections are made on an
instrument-by instrument (i.e.., share-by-share) basis. If the Company decides to classify an equity instrument at
FVTOCI, then all fair value changes on the instrument, excluding dividends, impairment gains or losses and foreign
exchange gains and losses, are recognized in other comprehensive income. There is no recycling of the amounts
from OCI to profit or loss, even on sale of investment. The dividends from such instruments are recognized in
statement of profit and loss.

The fair value of financial assets in this category are determined by reference to active market transactions or using
a valuation technique where no active market exists.

The loss allowance at each reporting period is evaluated based on the expected credit losses for next 12 months
and credit risk exposure. The Company shall also measure the loss allowance for a financial instrument at an
amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased
significantly since initial recognition. The loss allowance shall be recognized in other comprehensive income and
shall not reduce the carrying amount of the financial asset in the balance sheet.

(iii) Financial assets at Fair Value Through Profit or Loss (FVTPL) : Financial assets at FVTPL include financial assets
that are designated at FVTPL upon initial recognition and financial assets that are not measured at amortized cost
or at fair value through other comprehensive income. All derivative financial instruments fall into this category,
except for those designated and effective as hedging instruments, for which the hedge accounting requirements
apply. Assets in this category are measured at fair value with gains or losses recognized in statement of profit and
loss. The fair value of financial assets in this category are determined by reference to active market transactions or
using a valuation technique where no active market exists.

(iv) Cash and cash equivalents comprise cash on hand and in banks and demand deposits with banks which can be
withdrawn at any time without prior notice or penalty on the principal.

For the purposes of the cash flow statement, cash and cash equivalents include cash on hand, in banks and demand
deposits with banks, net of outstanding book overdrafts that are repayable on demand, and are considered part of
the Companyâs cash management system.

(v) Financial liabilities at amortised cost: Financial liabilities at amortised cost represented by trade and other payables
are initially recognized at fair value, and subsequently carried at amortized cost using the effective interest method.

1.11 Fair value measurement

The Company measures financial instruments, such as, derivatives at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The fair value measurement is based on the presumption that the
transaction to sell the asset or transfer the liability takes place either:

â¢ In the principal market for the asset or liability, or

â¢ In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when
pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participantâs ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the
asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are
available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable
inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within
the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement
as a whole:

â¢ Level 1 â Quoted (unadjusted) market prices in active markets for identical assets or liabilities

â¢ Level 2 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is
directly or indirectly observable

â¢ Level 3 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines
whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest
level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

The Company enters into certain derivative contracts such as interest rate swaps and currency swaps to hedge risks
which are not designated as hedges. Such contracts are accounted for at fair value through profit or loss. Such derivative
financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and
are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and
as financial liabilities when the fair value is negative.

1.12 Impairment

(i) Financial assets: In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for
measurement and recognition of impairment loss. The Company follows âsimplified approachâ for recognition of
impairment loss allowance on trade receivable.

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it
recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether
there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased
significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly,
lifetime ECL is used. If in subsequent period, credit quality of the instrument improves such that there is no longer a
significant increase in credit risk since initial recognition, then the entity reverts to recognising impairment loss
allowance based on 12 month ECL.

Lifetime ECLs are the expected credit losses resulting from all possible default events over the expected life of a
financial instrument. The 12 month ECL is a portion of the lifetime ECL which results from default events that are
possible within 12 months after the reporting date.

As a practical expedient, the Group uses a provision matrix to determine impairment loss on portfolio of its trade
receivable. The provision matrix is based on its historically observed default rates over the expected life of the trade
receivable and is adjusted for forward- looking estimates. At every reporting date, the historical observed default
rates are updated and changes in forward-looking estimates are analysed.

ECL impairment loss allowance (or reversal) recognised during the period is recognised as income/expense in the
statement of profit and loss. This amount is reflected under the head other expenses in the statement of profit and
loss. The balance sheet presentation for various financial instruments is described below:

Financial assets measured at amortised cost, contractual revenue receivable: ECL is presented as an allowance,
i.e. as an integral part of the measurement of those assets in the balance sheet. The allowance reduces the net
carrying amount. Until the asset meets write off criteria, the group does not reduce impairment allowance from the
gross carrying amount.

b) Non-financial assets: The Company assesses at each reporting date whether there is any objective evidence that a
non financial asset or a group of non financial assets is impaired. If any such indication exists, the Company estimates
the amount of impairment loss.

An impairment loss is calculated as the difference between an assetâs carrying amount and the recoverable. Losses
are recognised in the statement of profit and loss and reflected in an allowance account. When the Company
considers that there are no realistic prospects of recovery of the asset, the relevant amounts are written off. If the
amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring
after the impairment was recognised, then the previously recognised impairment loss is reversed through statement
of profit and loss.

The recoverable amount of an asset or cash-generating unit (as defined below) is the greater of its value in use and
its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects current market assessments of the time value of money and
the risks specific to the asset. For the purpose of impairment testing, assets are grouped together into the smallest
group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of
other assets or groups of assets (the âcash-generating unitâ).

1.13 Loss allowance for receivables and unbilled revenues

The Company determines the allowance for credit losses based on historical loss experience adjusted to reflect current
and estimated future economic conditions. The company considered current and anticipated future economic conditions
relating to industries the company deals with. In calculating expected credit loss, the company has also considered credit
reports and other related credit information for its customers to estimate the probability of default in future and has taken
into account estimates of possible effect from the pandemic relating to COVID -19.

1.14 Employee Benefit

The Company participates in various employee benefit plans. Post-employment benefits are classified as either defined
contribution plans or defined benefit plans. Under a defined contribution plan, the Companyâs only obligation is to pay a
fixed amount with no obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee
benefits. The related actuarial and investment risks fall on the employee. The expenditure for defined contribution plans
is recognized as expense during the period when the employee provides service. Under a defined benefit plan, it is the
Companyâs obligation to provide agreed benefits to the employees. The related actuarial and investment risks fall on the
Company. The present value of the defined benefit obligations is calculated using the projected unit credit method.

The Company has the following employee benefit plans:

obligation in respect of the gratuity plan, which is a defined benefit plan, is provided for based on actuarial valuation
using the projected unit credit method.

Actuarial gains or losses are recognized in other comprehensive income. Further, the profit or loss does not include
an expected return on plan assets. Instead net interest recognized in profit or loss is calculated by applying the
discount rate used to measure the defined benefit obligation to the net defined benefit liability or asset. The actual
return on the plan assets above or below the discount rate is recognized as part of re-measurement of net defined
liability or asset through other comprehensive income.

Remeasurements comprising of actuarial gains or losses and return on plan assets (excluding amounts included in
net interest on the net defined benefit liability) are not reclassified to profit or loss in subsequent periods.

(b) Compensated absences: The employees of the Company are entitled to compensated absences. The employees
can carry forward a portion of the unutilised accumulating compensated absences and utilise it in future periods or
receive cash at retirement or termination of employment. The Company records an obligation for compensated
absences in the period in which the employee renders the services that increases this entitlement. The Company
measures the expected cost of compensated absences as the additional amount that the Company expects to pay
as a result of the unused entitlement that has accumulated at the end of the reporting period. The Company recognizes
accumulated compensated absences based on actuarial valuation. Non-accumulating compensated absences are
recognized in the period in which the absences occur. The Company recognizes actuarial gains and losses immediately
in the statement of profit and loss.

Mar 31, 2018

1.1 Company overview

Sical Logistics Limited (âSicalâ) founded in 1955 is a leading integrated multimodal logistics solutions provider. The Company is into every aspect of logistics namely port handling, road and rail transport, warehousing, shipping, stevedoring, customs handling, trucking, retail logistics, mining and integrated logistics.

The Company is a public limited company incorporated and domiciled in India and has its registered office at Chennai, Tamilnadu. The Company has its equity shares listed on the BSE Limited and National Stock Exchange of India Limited [NSE] and its NCDs on the NSE.

The financial statements are approved for issue by the companyâs Board of Directors on 11 May 2018.

1.2 Basis of preparation of financial statements

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under the historical cost convention on the accrual basis, the provisions of the Companies Act, 2013 (âActâ) (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS as prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

1.3 Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is treated as current when it is:

- Expected to be realised or intended to be sold or consumed in normal operating cycle

- Expected to be realised within twelve months after the reporting period, or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period

AH other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in normal operating cycle

- Itisdue tobe settled within twelve months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period The Group classifies AH other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has identified twelve months as its operating cycle.

1.4 Use of estimates

The preparation of financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements is included in the following notes:

(i) Income taxes: Significant judgments are involved in determining the provision for income taxes, including the amount expected to be paid or recovered in connection with uncertain tax positions. Also referto Note 1.15.

(ii) Property, plant and equipment: Property, plant and equipment represent a significant proportion of the asset base of the company. The charge in respect of periodic depreciation is derived after determining an estimate of an assetâs expected useful life and the expected residual value at the end of its life. The useful lives and residual values of companyâs assets are determined by management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology.

(iii) Other estimates: The preparation of financial statements involves estimates and assumptions that affect the reported amount of assets, liabilities, disclosure of contingent liabilities at the date of financial statements and the reported amount of revenues and expenses forthe reporting period. Specifically, the Company estimates the probability of collection of accounts receivable by analyzing historical payment patterns, customer concentrations, customer credit-worthiness and current economic trends. If the financial condition of a customer deteriorates, additional allowances may be required.

1.5 Revenue recognition

Revenue is recognized on accrual method on rendering of services when the significant terms of the arrangement are enforceable, services have been delivered and the collectability is reasonably assured.

1.6 Property, plant and equipment

Recognition and measurement: Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any. Cost includes expenditures directly attributable to the acquisition of the asset.

Depreciation: The Company depreciates property, plant and equipment over the estimated useful life on a straight-line from the date the assets are ready for intended use. Assets acquired under finance lease and leasehold improvements are amortized over the lower of estimated useful life and lease term. The estimated useful lives of assets for the current and comparative period of significant items of property, plant and equipment are as follows:

Depreciation methods, useful lives and residual values are reviewed at each reporting date.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. Subsequent expenditure relating to property, plant and equipment is capitalized only when it is probable that future economic benefits associated with these wiUftowto the Company and the cost of the item can be measured reliably. Repairs and maintenance costs are recognized in the statement of profit and loss when incurred. The cost and related accumulated depreciation are eliminated from the financial statements upon sale or disposition of the asset and the resultant gains or losses are recognized in the statement of profit and loss.

Amounts paid towards the acquisition of property, plant and equipment outstanding as of each reporting date and the cost of property, plant and equipment not ready for intended use before such date are disclosed under capitalwork- in-progress.

1.7 Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (i.e. the functional currency). The financial statements are presented in Indian Rupee, the national currency of India, which is the functional currency of the Company.

1.8 Foreign currency transactions and balances

Transactions in foreign currency are translated into the functional currency using the exchange rates prevailing at the dates of the respective transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at the exchange rates prevailing at reporting date of monetary assets and liabilities denominated in foreign currencies are recognized in the statement of profit and loss and reported within foreign exchange gains/ (losses).

Non-monetary assets and liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent on the date of transaction.

1.9 Financial instruments

AH financial instruments are recognised initially at fair value. Transaction costs that are attributable to the acquisition of the financial asset (other than financial assets recorded at fair value through profit or loss) are included in the fair value of the financial assets. Loans and borrowings and payable are recognised net of directly attributable transactions costs.

(i) Financial assets at amortised cost: A financial asset shall be measured at amortised cost if both of the following conditions are met:

(a) the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and

(b) the contractualterms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding (SPPI).

They are presented as current assets, except for those maturing later than 12 months after the reporting date which are presented as non-current assets. Financial assets are measured initially at fair value plus transaction costs and subsequently carried at amortized cost using the effective interest method, less any impairment loss.

Financial assets at amortised cost are represented by trade receivables, security deposits, cash and cash equivalents, employee and other advances and eligible current and non-current assets.

Cash and cash equivalents comprise cash on hand and in banks and demand deposits with banks which can be withdrawn at anytime without prior notice or penalty on the principal.

For the purposes of the cash flow statement, cash and cash equivalents include cash on hand, in banks and in fixed deposits with a original maturity period of less than 12 months from balance sheet date are considered as a part of the Companyâs cash management system.

(ii) Financial liabilities at amortised cost: Financial liabilities at amortised cost represented by trade and other payables are initially recognized at fair value, and subsequently carried at amortized cost using the effective interest method.

1.10 Fair value measurement

The Company measures financial instruments, such as, derivatives at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the assetortransferthe liability takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market forthe asset or liability The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participantâs ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

AH assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

- Level 1 â Quoted (unadjusted) market prices in active markets for identical assets or liabilities

- Level 2 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

- Level 3 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

The Company enters into certain derivative contracts such as interest rate swaps and currency swaps to hedge risks which are not designated as hedges. Such contracts are accounted for at fair value through profit or loss. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

1.11 Impairment

(i) Financial assets: In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss. The Company follows âsimplified approachâ for recognition of impairment loss allowance on trade receivable.

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If in subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognising impairment loss allowance based on 12 month ECL.

Lifetime ECLs are the expected credit losses resulting from all possible default events over the expected life of a financial instrument. The 12 month ECL is a portion of the lifetime ECL which results from default events that are possible within 12 months after the reporting date.

ECL impairment loss allowance (or reversal) recognised during the period is recognised as income/ expense in the statement of profit and loss. This amount is reflected under the head other expenses in the statement of profit and loss. The balance sheet presentation for various financial instruments is described below:

Financial assets measured at amortised cost, contractual revenue receivable: ECL is presented as an allowance, i.e. as an integral part of the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount. Until the asset meets write off criteria, the group does not reduce impairment allowance from the gross carrying amount.

ii) Non-financial assets: The Company assesses at each reporting date whether there is any objective evidence that a non financial asset or a group of non financial assets is impaired. If any such indication exists, the Company estimates the amount of impairment loss.

An impairment loss is calculated as the difference between an assetâs carrying amount and the recoverable. Losses are recognised in the statement of profit and loss and reflected in an allowance account. When the Company considers that there are no realistic prospects of recovery of the asset, the relevant amounts are written off. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, then the previously recognised impairment loss is reversed through statement of profit and loss.

The recoverable amount of an asset or cash-generating unit (as defined below) is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the cash-generating unit).

1.12 Employee Benefit

The Company participates in various employee benefit plans. Post-employment benefits are classified as either defined contribution plans or defined benefit plans. Under a defined contribution plan, the Companyâs only obligation is to pay a fixed amount with no obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits. The related actuarial and investment risks fall on the employee. The expenditure for defined contribution plans is recognized as expense during the period when the employee provides service. Under a defined benefit plan, it is the Companyâs obligation to provide agreed benefits to the employees. The related actuarial and investment risks fall on the Company. The present value of the defined benefit obligations is calculated using the projected unit credit method.

The Company has the following employee benefit plans:

(a) Gratuity: In accordance with the Payment of Gratuity Act, 1972, the Company provides for a lump sum payment to eligible employees, at retirement or termination of employment based on the last drawn salary and years of employment with the Company. The gratuity fund is managed by the Life Insurance Corporation of India (LIC). The Companyâs obligation in respect of the gratuity plan, which is a defined benefit plan, is provided for based on actuarial valuation using the projected unit credit method.

Actuarial gains or losses are recognized in other comprehensive income. Further, the profit or loss does not include an expected return on plan assets. Instead net interest recognized in profit or loss is calculated by applying the discount rate used to measure the defined benefit obligation to the net defined benefit liability or asset. The actual return on the plan assets above or below the discount rate is recognized as part of re-measurement of net defined liability or asset through other comprehensive income.

Remeasurements comprising of actuarial gains or losses and return on plan assets (excluding amounts included in net interest on the net defined benefit liability) are not reclassified to profit or loss in subsequent periods.

(b) Compensated absences: The employees of the Company are entitled to compensated absences. The employees can carryforward a portion of the unutilised accumulating compensated absences and utilise it in future periods or receive cash at retirement or termination of employment. The Company records an obligation for compensated absences in the period in which the employee renders the services that increases this entitlement. The Company measures the expected cost of compensated absences as the additional amount that the Company expects to pay as a result of the unused entitlement that has accumulated at the end of the reporting period. The Company recognizes accumulated compensated absences based on actuarial valuation. Non-accumulating compensated absences are recognized in the period in which the absences occur. The Company recognizes actuarial gains and losses immediately in the statement of profit and loss.

1.13 Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognized as an asset, if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

1.14 Inventories

Inventories are valued at the lower of cost and net realisable value.

Cost of raw materials includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on first in, first out basis. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

1.15 Finance income and expense

Finance income consists of interest income on funds invested. Interest income is recognized as it accrues in the statement of profit and loss, using the effective interest method.

Finance expenses consist of interest expense on loans and borrowings. Borrowing costs are recognized in the statement of profit and loss using the effective interest method.

Foreign currency gains and losses are reported on a net basis.

1.16 Income tax

Income tax comprises current and deferred tax. Income tax expense is recognized in the statement of profit and loss except to the extent it relates to items directly recognized in equity or in other comprehensive income.

(a) Current income tax: Current income tax for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities based on the taxable income for the period. The tax rates and tax laws used to compute the current tax amount are those that are enacted or substantively enacted by the reporting date and applicable for the period. The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set offthe recognized amounts and where it intends either to settle on a net basis or to realize the asset and liability simultaneously.

(b) Deferred income tax: Deferred income tax is recognized using the balance sheet approach. Deferred income tax assets and liabilities are recognized for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount in financial statements, except when the deferred income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profits or loss at the time of the transaction.

Deferred income tax asset are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carryforward of unused tax credits and unused tax losses can be utilized.

Deferred income tax liabilities are recognized for all taxable temporary differences.

The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

1.17 Earnings per share

Basic earnings per share is computed using the weighted average number of equity shares outstanding during the period.

Diluted EPS is computed by dividing the net profit after tax by the weighted average number of equity shares considered for deriving basic EPS and also weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity 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.

1.18 Rounding of amounts

AH amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per the requirement of Schedule III, unless otherwise stated.

Mar 31, 2017

1 Company overview and Significant Accounting Policies

1.1 Company overview

Sical Logistics Limited (âSical'') founded in 1955 is a leading integrated multimodal logistics solutions provider. The Company is into every aspect of logistics namely port handling, road and rail transport, warehousing, shipping, stevedoring, customs handling, trucking, retail logistics, mining and integrated logistics.

The Company is a public limited company incorporated and domiciled in India and has its registered office at Chennai, Tamilnadu. The Company has its equity shares listed on the BSE Limited and National Stock Exchange of India Limited [NSE] and its NCDs on the NSE.

The financial statements are approved for issue by the company''s Board of Directors onlO May 2017.

1.2 Basis of preparation of financial statements

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under the historical cost convention on the accrual basis, the provisions of the Companies Act, 2013 (''Act'') (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS as prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.

These financial statements are the company''s first Ind AS financial statements. The company has adopted all the Ind AS standards and the adoptions were carried out in accordance with Ind AS 101 First time adoption of Indian Accounting Standards. The transition was carried out from Indian Accounting Principles generally accepted in India as prescribed under Sec 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (IGAAP), which was the previous GAAP. Reconciliations and descriptions of the effect of the transition has been summarized in Note 1.19.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

1.3 Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is treated as current when it is:

- Expected to be realized or intended to be sold or consumed in normal operating cycle

- Expected to be realized within twelve months after the reporting period, or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period

AH other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in normal operating cycle

- Tissue tobe settled within twelve months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. The Group classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The Company has identified twelve months as its operating cycle.

1.4 Use of estimates

The preparation of financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements is included in the following notes:

(i) Income taxes: Significant judgments are involved in determining the provision for income taxes, including the amount expected to be paid or recovered in connection with uncertain tax positions. Also refer to Note 1.15.

(ii) Property, plant and equipment: Property, plant and equipment represent a significant proportion of the asset base of the company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset''s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of company''s assets are determined by management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology.

(iii) Other estimates: The preparation of financial statements involves estimates and assumptions that affect the reported amount of assets, liabilities, disclosure of contingent liabilities at the date of financial statements and the reported amount of revenues and expenses for the reporting period. Specifically, the Company estimates the probability of collection of accounts receivable by analyzing historical payment patterns, customer concentrations, customer credit-worthiness and current economic trends. If the financial condition of a customer deteriorates, additional allowances may be required.

1.5 Revenue recognition

Revenue is recognized on accrual method on rendering of services when the significant terms of the arrangement are enforceable, services have been delivered and the collectability is reasonably assured.

1.6 Property, plant and equipment

Recognition and measurement: Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any. Cost includes expenditures directly attributable to the acquisition of the asset.

Depreciation: The Company depreciates property, plant and equipment over the estimated useful life on a straight-line (SLM) from the date the assets are ready for intended use. Assets acquired under finance lease and leasehold improvements are amortized over the lower of estimated useful life and lease term. The estimated useful lives of assets for the current and comparative period of significant items of property, plant and equipment are as follows:

Depreciation methods, useful lives and residual values are reviewed at each reporting date.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. Subsequent expenditure relating to property, plant and equipment is 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 and maintenance costs are recognized in the statement of profit and loss when incurred. The cost and related accumulated depreciation are eliminated from the financial statements upon sale or disposition of the asset and the resultant gains or losses are recognized in the statement of profit and loss.

Amounts paid towards the acquisition of property, plant and equipment outstanding as of each reporting date and the cost of property, plant and equipment not ready for intended use before such date are disclosed under capital work- in-progress.

1.7 Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (i.e. the "functional currency"). The financial statements are presented in Indian Rupee, the national currency of India, which is the functional currency of the Company.

1.8 Foreign currency transactions and balances

Transactions in foreign currency are translated into the functional currency using the exchange rates prevailing at the dates of the respective transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at the exchange rates prevailing at reporting date of monetary assets and liabilities denominated in foreign currencies are recognized in the statement of profit and loss and reported within foreign exchange gains/ (losses).

Non-monetary assets and liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent on the date of transaction."

1.9 Financial instruments

AH financial instruments are recognized initially at fair value. Transaction costs that are attributable to the acquisition of the financial asset (other than financial assets recorded at fair value through profit or loss) are included in the fair value of the financial assets. Loans and borrowings and payable are recognized net of directly attributable transactions costs.

(i) Financial assets at amortized cost: A financial asset shall be measured at amortized cost if both of the following conditions are met:

(a) the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and

(b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding (SPPI).

They are presented as current assets, except for those maturing later than 12 months after the reporting date which are presented as non-current assets. Financial assets are measured initially at fair value plus transaction costs and subsequently carried at amortized cost using the effective interest method, less any impairment loss.

Financial assets at amortized cost are represented by trade receivables, security deposits, cash and cash equivalents, employee and other advances and eligible current and non-current assets.

Cash and cash equivalents comprise cash on hand and in banks and demand deposits with banks which can be withdrawn at any time without prior notice or penalty on the principal.

(ii) Financial liabilities at amortized cost: Financial liabilities at amortized cost represented by trade and other payables are initially recognized at fair value, and subsequently carried at amortized cost using the effective interest method.

1.10 Fair value measurement

The Company measures financial instruments, such as, derivatives at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market for the asset or liability The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset ora liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

AH assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

- Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities

- Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

- Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

The Company enters into certain derivative contracts such as interest rate swaps and currency swaps to hedge risks which are not designated as hedges. Such contracts are accounted for at fair value through profit or loss. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

1.11 Impairment

(a) Financial assets: In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss. The Company follows ''simplified approach'' for recognition of impairment loss allowance on trade receivable.

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

For recognition of impairment Loss on other financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If in subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognizing impairment loss allowance based on 12 month ECL.

Lifetime ECLs are the expected credit losses resulting from all possible default events over the expected life of a financial instrument. The 12 month ECL is a portion of the lifetime ECL which results from default events that are possible within 12 months after the reporting date.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in the statement of profit and loss. This amount is reflected under the head other expenses in the statement of profit and loss. The balance sheet presentation for various financial instruments is described below:

Financial assets measured at amortized cost, contractual revenue receivable: ECL is presented as an allowance, i.e. as an integral part of the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount. Until the asset meets write off criteria, the group does not reduce impairment allowance from the gross carrying amount.

b) Non-financial assets: The Company assesses at each reporting date whether there is any objective evidence that a non financial asset or a group of non financial assets is impaired. If any such indication exists, the Company estimates the amount of impairment loss.

An impairment loss is calculated as the difference between an asset''s carrying amount and the recoverable. Losses are recognized in the statement of profit and loss and reflected in an allowance account. When the Company considers that there are no realistic prospects of recovery of the asset, the relevant amounts are written off. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, then the previously recognized impairment loss is reversed through statement of profit and loss.

The recoverable amount of an asset or cash-generating unit (as defined below) is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the "cash-generating unit").

1.12 Employee Benefit

The Company participates in various employee benefit plans. Post-employment benefits are classified as either defined contribution plans or defined benefit plans. Under a defined contribution plan, the Company''s only obligation is to pay a fixed amount with no obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits. The related actuarial and investment risks fall on the employee. The expenditure for defined contribution plans is recognized as expense during the period when the employee provides service. Under a defined benefit plan, it is the Company''s obligation to provide agreed benefits to the employees. The related actuarial and investment risks fall on the Company. The present value of the defined benefit obligations is calculated using the projected unit credit method.

The Company has the following employee benefit plans:

(a) Gratuity: In accordance with the Payment of Gratuity Act, 1972, the Company provides for a lump sum payment to eligible employees, at retirement or termination of employment based on the last drawn salary and years of employment with the Company. The gratuity fund is managed by the Life Insurance Corporation of India (LIC). The Company''s obligation in respect of the gratuity plan, which is a defined benefit plan, is provided for based on actuarial valuation using the projected unit credit method.

Actuarial gains or losses are recognized in other comprehensive income. Further, the profit or loss does not include an expected return on plan assets. Instead net interest recognized in profit or loss is calculated by applying the discount rate used to measure the defined benefit obligation to the net defined benefit liability or asset. The actual return on the plan assets above or below the discount rate is recognized as part of re-measurement of net defined liability or asset through other comprehensive income.

Remeasurements comprising of actuarial gains or losses and return on plan assets (excluding amounts included in net interest on the net defined benefit liability) are not reclassified to profit or loss in subsequent periods.

(b) Compensated absences: The employees of the Company are entitled to compensated absences. The employees can carry forward a portion of the unutilized accumulating compensated absences and utilize it in future periods or receive cash at retirement or termination of employment. The Company records an obligation for compensated absences in the period in which the employee renders the services that increases this entitlement. The Company measures the expected cost of compensated absences as the additional amount that the Company expects to pay as a result of the unused entitlement that has accumulated at the end of the reporting period. The Company recognizes accumulated compensated absences based on actuarial valuation. Non-accumulating compensated absences are recognized in the period in which the absences occur. The Company recognizes actuarial gains and losses immediately in the statement of profit and loss.

1.13 Provisions

1.14 Inventories

Inventories are valued at the lower of cost and net realizable value.

Cost of raw materials includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on first in, first out basis. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

1.15 Finance income and expense

Finance income consists of interest income on funds invested. Interest income is recognized as it accrues in the statement of profit and loss, using the effective interest method.

Finance expenses consist of interest expense on loans and borrowings. Borrowing costs are recognized in the statement of profit and loss using the effective interest method.

Foreign currency gains and losses are reported on a net basis.

1.16 Income tax

(a) Current income tax: Current income tax for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities based on the taxable income for the period. The tax rates and tax laws used to compute the current tax amount are those that are enacted or substantively enacted by the reporting date and applicable for the period. The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis or to realize the asset and liability simultaneously.

(b) Deferred income tax: Deferred income tax is recognized using the balance sheet approach. Deferred income tax assets and liabilities are recognized for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount in financial statements, except when the deferred income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profits or loss at the time of the transaction.

Deferred income tax asset are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized.

Deferred income tax liabilities are recognized for all taxable temporary differences.

1.17 Earnings per share

Basic earnings per share is computed using the weighted average number of equity shares outstanding during the period.

1.18 Rounding of amounts

AH amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per the requirement of Schedule III, unless otherwise stated.

1.19 First-time adoption of Indian Accounting Standard (Ind AS)

The Company''s financial statements for the year ended 31 March 2017 are the first financial statements prepared in accordance with Ind AS''s notified under the Companies (Indian Accounting Standards) Rules, 2015. The adoption of Ind AS was carried out in accordance with Ind AS 101, using 1 April 2015 as the transition date. Ind AS 101 requires that all Ind AS standards and interpretations that are effective for the first Ind AS Financial Statements for the year ended 31 March 2017, be applied consistently and retrospectively for all fiscal years presented.

AH applicable Ind AS have been applied consistently and retrospectively wherever required. The resulting difference between the carrying amounts of the assets and liabilities in the financial statements under both Ind AS and Indian GAAP as of the Transition Date have been recognized directly in equity at the Transition Date.

In preparing these financial statements, the Company has availed itself of certain exemptions and exceptions in accordance with Ind AS 101 as explained below:

(a) Exceptions from full retrospective application:

A. Estimates exception: Upon an assessment of the estimates made under previous GAAP, the management is of the opinion that there was no need to revise such estimates under Ind AS, except where estimates were required by Ind AS''s and not required by previous GAAP.

Explanations for reconciliation of Equity:

(i) Discounting of retention money under Ind AS, resulted in reduction of trade receivables, which will be recognized as interest income over the retention period.

(ii) Discounting of long-term liabilities underlined AS, resulted in reversal of liabilities, which will be recognized as interest expense over the tenure of the liability.

(iii) Under Ind AS, the loss allowances for trade and other receivables have been made under expected credit loss model.

(iv) Under Ind AS, the fair value of property, plant and equipment have been used as deemed cost as on the date of transition as per Ind AS 101.

(v) Under Ind AS, interest income has been recognized on the Corporate Guarantee issued to subsidiaries.

(vi) Under Ind AS, the fair value of investments have been used as deemed cost as on the date of transition as per Ind AS 101.

Explanations for reconciliation Equity and Total comprehensive income:

(i) Discounting of retention money under Ind AS, resulted in reduction of trade receivables, which will be recognized as interest income over the retention period.

(ii) Discounting of long-term liabilities underlined AS, resulted in reversal of liabilities, which will be recognized as interest expense over the tenure of the liability.

(iii) Under Ind AS, the loss allowances for trade and other receivables have been made under expected credit loss model.

(iv) Under Ind AS, the fair value of property, plant and equipment have been used as deemed cost which resulted in change in depreciation on such assets.

(v) Under Ind AS, interest income has been recognised on the Corporate Guarantee issued to subsidiaries.

(vi) Under Ind AS, the investment in equity instruments (other than subsidiaries and joint ventures) are fair valued.

Cash flow statement:

There were no significant reconciliation items between cash flows prepared under Indian GAAP and those prepared under

Ind AS.

(i) The rights, preferences and restrictions attaching to each class of shares including restrictions on the distribution of dividends and the repayment of capital:

The Company has one class of equity shares having a par value of '' 10 per share. Each shareholder is eligible for one vote per share held. The dividend, if any, proposed by the Board of Directors shall be subject to the approval of the Shareholders at the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts if any, in proportion to their shareholding.

(v) The Company has not allotted any fully paid up equity shares by way of bonus shares nor has bought back any class of equity shares during the period of five years immediately preceding the balance sheet date nor has issued shares for consideration other than cash.

(vi) There are no shares for which calls remain unpaid.

Mar 31, 2016

I Basis of 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) and guidelines issued by the Securities and Exchange Board of India (SEBI).

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

ii 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.

iii Fixed Assets:

Fixed assets are stated at cost, less accumulated depreciation and impairment loss, if any. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

Other assets including the additions subsequent to revaluation are shown at cost, which includes capitalization of pre-operative expenses and net of CENVAT credit availed wherever applicable.

iv Borrowing Cost:

Borrowing costs are capitalized as part of qualifying fixed assets wherever it is possible that they will result in future economic benefits. Other borrowing costs are expensed.

v Depreciation:

Depreciation is provided at the rates prescribed under Schedule II of the Companies Act, 2013 with 5% salvage value.

a) Method of Depreciation:

i) Port handling equipments at Ennore Port and Chennai Port are written off over the period of BOT Scheme/ Berth

Reservation Scheme on Straight-line method;

ii) Assets of Transportation & Warehousing divisions which are depreciated at straight-line method;

iii) Assets of logistics division are depreciated at written down value method.

b) Depreciation on certain premises are provided on composite cost where it is not possible to segregate the land cost.

c) Assets costing less than Rs.5000 are fully depreciated.

vi Investments (Long Term):

Investments in shares are stated at cost, net of permanent diminution in value wherever necessary.

vii Inventories:

a) Stores and Spares used for running of trucks and other machineries valued at lower of cost and net realizable value .

b) Loose tools are valued after writing off certain percentage of cost.

viii Excise Duty:

CENVAT credit on materials purchased and on input services used for providing output services are taken into account at the time of purchase/payment and CENVAT credit on purchase of capital items wherever applicable are taken into account as and when the assets are installed, to the credit of respective purchase and assets accounts. The CENVAT credits so taken are utilized for payment of service tax on output services provided. The unutilized CENVAT credit is carried forward in the books.

ix Revenue Recognition:

Revenue is recognized on accrual method on rendering of services.

x Foreign Currency transactions:

Foreign Currency transactions are recorded in the books at the rates prevailing on the date of transaction.

Foreign currency monetary items as on balance sheet date are translated at exchange rate in effect at the Balance Sheet date, The gains or losses from such transactions are included in the statement of profit and loss.

Any exchange gain or loss arising out of restatement of "Long Term Foreign Currency Monetary Item" is transferred to foreign currency translation reserve account and amortized to P&L over the term of loan as per AS-11(R) issued by the Central Government vide their notification no G.S.R 225(E) Dt. 31st March 2009.

The Foreign Currency Monetary Item shall be classified as "Short Term Foreign Currency Monetary Item" when it is expected to be realized within twelve months after the reporting date. On such reclassification of long term foreign currency monetary item into short term foreign currency monetary item, the relevant balance in foreign currency translation reserve account is recognized in profit and loss account.

xi Retirement Benefits:

Short term employee benefits are charged off at the undiscounted amount in the year in which the related service is rendered.

Post employment and other long term employee benefits are charged off in the year in which the employee has rendered service. The amount charged off is recognized at the present value of the amounts payable determined using actuarial valuation method. Actuarial gains and losses in respect of post employment and other long term benefits are charged to Statement of Profit and Loss.

xii Contingent Liabilities & Provisions:

All known liabilities of material nature have been provided for in the accounts except liabilities of a contingent nature, which have been disclosed at their estimated value in the notes on accounts in accordance with Accounting Standard- 29. As regards Provisions, it is only those obligations arising from past events existing independently of an enterprise''s future actions that are recognized as provisions.

xiii Segment Reporting:

The accounting policies adopted for Segment reporting are in line with the Accounting Standard-17. The Company is primarily engaged in providing integrated logistics services which is considered as single business segment in terms of segment reporting as per AS 17. There being no services rendered outside India there are no separate geographical segments to be reported on.

xiv Discontinuing Operations:

There are no discontinuing operations that have been reported in the current year financials and thus disclosure as per Accounting Standard Â 24 is not applicable.

xv Impairment of Assets:

The Company recognizes impairment of all assets other than the assets, which are specifically excluded under Accounting Standard-28 on Impairment of Assets after comparing the asset''s recoverable value with its carrying amount in the books. In case the carrying amount exceeds recoverable value, impairment losses are provided for.

The company has introduced a policy of measuring impairment of its goodwill on an annual basis. While testing for impairment the company shall pay heed to market prospects, company profitability, EPS and performance indicators in determining the same. Any upward movement in goodwill shall not be considered on account of prudence.

xvi Deferred Taxes:

a. Current Tax is determined in accordance with the Provisions of Income Tax Act, 1961.

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

iv) The Company has only one class of share viz Equity shares which are fully paid up. All equity shares rank Pari-Passu with respect to payment of dividend and the repayment of capital.

v) No Shares are reserved for issue under options and contracts/ commitments for the sale of shares/ disinvestment.

During the period of 5 years immediately preceding the Balance Sheet date with 31st March 2016, no shares were allotted for consideration pursuant to contracts without receiving cash or issue of any bonus shares or has not bought back any shares.

vi) No securities convertible into equity/ preference shares were issued by the company.

vii) There are no shares for which calls remain unpaid.

Debenture redemption reserve has been created in accordance with the provisions of Rule 18(7) of the Companies (Share Capital and Debenture) Rules 2014 as amended from time to time.

a. Details of Security or secured longt erm borrowings

(i) Non-convertible Debentures

The Company had raised a sum of Rs.100 crores through issue of 1000 Nos. Secured listed 12.75% Non-convertible debentures of

Rs.10 lakh each against the security of Dredger belonging to the subsidiary company viz Norsea Offshore India Ltd and assets procured out of funds received through ING Vysya Bank ( now Kotak Mahindra Bank Ltd) term loan of Rs.20 Crores. The NCDs are listed in NSE. The purpose of issue of NCDs were for taking up the existing term loan and shoring up of long term net working capital for its ongoing contracts. IDBI Trusteeship Services Ltd has been appointed as the debenture trustees. Debentures are redeemable in two installments i.e. 50% in September 2017 and balance 50% in September 2018.

(ii) Bank of Baroda

The company has taken term Loan of Rs 75 Crores during the FY 2014-15 against security of certain Immovable properties (Land) for carrying CAPEX and other expenditure for work orders awarded from Neyveli Lignite Corporation Limited and Mahanadi Coal fields Limited, with a moratorium period of 9 months. Loan is repayable in step up 16 quarterly installments.

(iii) ING Vysya Bank (now Kotak Mahindra Bank Ltd)

The company has taken a term loan of Rs.20 Crores during the FY 2012-13 to meet its capital expenditure requirements against security of movable fixed assets to be funded out of the loan amount with a moratorium period of 12 months. Loan is repayable in 12 equal quarterly installments.

(iv) IDBI Bank Ltd

The company has taken a term loan of Rs. 72 Crores during the FY 2013-14 for paying off its existing debt and to meet its normal capital expenditure/ other corporate purposes against security of first charge on Ennore project assets and receivables and collateral security of immovable properties. Loan is repayable in 94 equal monthly installments.

(v) The Karur Vysya Bank

The company has taken a term loan of Rs. 20 Crores during the FY 2013-14 for general corporate purposes against security of exclusive charge in the form of mortgage of certain specific immovable properties situated at Mumbai, Jamnagar, Bhavnaghar and Kolkatta, with a moratorium period of 12 months. Loan is repayable in 12 equal Quarterly installments.

(vi) Inducing Bank

The company has taken a term loan of Rs 20 Crores during the FY 2013-14 against security of pari-passu charge on the Ennore Project Assets. Loan is repayable in 84 equal Monthly installments

(vii) Canara Bank

The company has taken a secured term loan of Rs. 40 Crores during FY 2013-14 and Rs 10 Crores in FY 2014-15 against security of pari pasu second charge over current assets and movable fixed assets of the company along with Bank of Baroda who has the first charge over the assets with a moratorium period of 12 months. Loan is repayable in 16 equal quarterly installments.

(viii) SREI Equipment Finance Ltd

The loan is secured by a charge on the purchased assets - Pay loaders, Excavators, Compactor and Motor Grader.

(ix) Sundaram Finance Ltd

The loan is secured by a charge on the purchased assets - Trucks, pay loaders and tippers.

(x) Tata Finance Ltd

The loan is secured by a charge on the purchased assets - Trucks, pay loaders and tippers.

(xi) Daimler Finance Ltd

The loan is secured by a charge on the purchased assets - Trucks, pay loaders and tippers.

(xii) South Indian Bank Ltd

The company has taken a term loan of Rs. 50 Crores during the FY 2015-16 to meet its capital expenditure requirements against security of movable Fixed assets to be funded out of the loan amount, with a moratorium period of 12 months. Loan is repayable in 12 equal Quarterly installments.

(xiii) YES Bank Limited

The company has taken a term loan of Rs. 130 Crores during the FY 2015-16 to meet its capital expenditure requirements against security of fixed and current assets, with a moratorium period of 6 months. Loan is repayable in 18 Quarterly installments.

(xiv) Cholamandalam Investment & Finance Co Ltd

The loan is secured by a charge on the purchased assets - Trucks and tankers

(xv) YES Bank Limited

The loan is secured by a charge on the purchased assets - Dozers

(xvi) Axis Bank Limited

The loan is secured by a charge on the purchased assets - Diesel Tankers and Excavators

Mar 31, 2015

I Basis of 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) and guidelines issued by the Securities and Exchange Board of India (SEBI).

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

ii 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.

iii Fixed Assets:

Fixed assets are stated at cost, less accumulated depreciation and impairment loss, if any. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

Other assets including the additions subsequent to revaluation are shown at cost, which includes capitalization of pre- operative expenses and net of CENVAT credit availed wherever applicable.

iv Borrowing Cost:

Borrowing costs are capitalized as part of qualifying fixed assets wherever it is possible that they will result in future economic benefits. Other borrowing costs are expensed.

v Depreciation:

Depreciation is provided at the rates prescribed under Schedule II of the Companies Act, 2013 with 5% salvage value. The useful life and rate of depreciation followed are as follows-

Method of Depreciation

a) Depreciation on certain premises are provided on composite cost where it is not possible to segregate the land cost.

b) Assets costing less than Rs. 5000 are fully depreciated.

vi Investments (Long Term):

Investments in shares are stated at cost, net of permanent diminution in value wherever necessary.

vii Inventories:

a) Stores and Spares used for running of trucks and other machineries valued at lower of cost and net realizable value .

b) Loose tools are valued after writing off certain percentage of cost.

viii Excise Duty:

CENVAT credit on materials purchased and on input services used for providing output services are taken into account at the time of purchase/payment and CENVAT credit on purchase of capital items wherever applicable are taken into account as and when the assets are installed, to the credit of respective purchase and assets accounts. The CENVAT credits so taken are utilized for payment of service tax on output services provided. The unutilized CENVAT credit is carried forward in the books.

ix Revenue Recognition:

Revenue is recognized on accrual method on rendering of services.

x Foreign Currency transactions:

Foreign Currency transactions are recorded in the books at the rates prevailing on the date of transaction.

Foreign currency monetary items as on balance sheet date are translated at exchange rate in effect at the Balance Sheet date, The gains or losses from such transactions are included in the statement of profit and loss.

Any exchange gain or loss arising out of restatement of "Long Term Foreign Currency Monetary Item" is transferred to foreign currency translation reserve account and amortized to P&L over the term of loan as per AS-11(R) issued by the Central Government vide their notification no G.S.R 225(E) Dt. 31st March 2009.

The Foreign Currency Monetary Item shall be classified as "Short Term Foreign Currency Monetary Item" when it is expected to be realized within twelve months after the reporting date. On such reclassification of long term foreign currency monetary item into short term foreign currency monetary item, the relevant balance in foreign currency translation reserve account is recognized in profit and loss account.

xi Retirement Benefits:

Short term employee benefits are charged off at the undiscounted amount in the year in which the related service is rendered. Post employment and other long term employee benefits are charged off in the year in which the employee has rendered service. The amount charged off is recognized at the present value of the amounts payable determined using actuarial valuation method. Actuarial gains and losses in respect of post employment and other long term benefits are charged to Statement of Profit and Loss.

xii Contingent Liabilities & Provisions:

All known liabilities of material nature have been provided for in the accounts except liabilities of a contingent nature, which have been disclosed at their estimated value in the notes on accounts in accordance with Accounting Standard- 29. As regards Provisions, it is only those obligations arising from past events existing independently of an enterprise's future actions that are recognized as provisions.

xiii Segment Reporting:

The accounting policies adopted for Segment reporting are in line with the Accounting Standard-17. The Company is primarily engaged in providing integrated logistics services which is considered as single business segment in terms of segment reporting as per AS 17. There being no services rendered outside India there are no separate geographical segments to be reported on.

xiv Discontinuing Operations:

There are no discontinuing operations that have been reported in the current year financials and thus disclosure as per Accounting Standard Â 24 is not applicable.

xv Impairment of Assets:

The Company recognizes impairment of all assets other than the assets, which are specifically excluded under Accounting Standard-28 on Impairment of Assets after comparing the asset's recoverable value with its carrying amount in the books. In case the carrying amount exceeds recoverable value, impairment losses are provided for.

The company has introduced a policy of measuring impairment of its goodwill on an annual basis. While testing for impairment the company shall pay heed to market prospects, company profitability, EPS and performance indicators in determining the same. Any upward movement in goodwill shall not be considered on account of prudence.

xvi Deferred Taxes:

a. Current Ta x is determined in accordance with the Provisions of Income Tax Act, 1961.

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

Mar 31, 2014

1. Method of Accounting

The financial statements have been prepared under the historical convention on an accrual basis of accounting in accordance with generally accepted accounting principles notified under section 211(3C) of the Companies Act,1956 and the relevant provisions thereof except in the case of certain fixed assets which were revalued as stated below:

2. Fixed Assets

Fixed assets are stated at cost, less accumulated depreciation and impairment loss, if any. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

Other assets including the additions subsequent to revaluation are shown at cost, which includes capitalization of pre- operative expenses and net of CENVAT credit availed wherever applicable. With regard to assets acquired under hire purchase, the cost of the assets are capitalized while the annual charges are charged to revenue.

3. Borrowing Cost

Borrowing costs are capitalized as part of qualifying fixed assets wherever it is possible that they will result in future economic benefits. Other borrowing costs are expensed.

4. Depreciation

Depreciation is consistently provided at the rates prescribed under Schedule XIV of the Companies Act, 1956 on the following methods:

a) Assets of logistics division are depreciated at written down value method except assets of transportation & warehousing divisions which are depreciated at straight-line method. Port handling equipments at Ennore Port and JD V are written off over the period of BOT Scheme/ Berth Reservation Scheme

b) Depreciation on certain premises are provided on composite cost where it is not possible to segregate the land cost.

c) Assets costing less than Rs.5000 are fully depreciated.

5. Investments (Long Term) Investments in shares are stated at cost, net of permanent diminution in value wherever necessary.

6. Inventories

a) Stores and Spares used for running of trucks and other machineries valued at lower of cost and net realizable value .

b) Loose tools are valued after writing off certain percentage of cost.

7. Excise Duty

CENVAT credit on materials purchased and on input services used for providing output services are taken into account at the time of purchase/payment and CENVAT credit on purchase of capital items wherever applicable are taken into account as and when the assets are installed, to the credit of respective purchase and assets accounts. The CENVAT credits so taken are utilized for payment of service tax on output services provided. The unutilized CENVAT credit is carried forward in the books.

8. Revenue Recognition

Revenue is recognized on their accrual upon completion of services. Expenditure incurred on incomplete services are included under "Advances Recoverable".

9. Foreign Currency transactions

Foreign currency transactions are recorded in the books at the rates prevailing on the date of transaction.

Foreign currency monetary items as on balance sheet date are translated at exchange rate in effect at the Balance sheet date. The gains or losses from such transactions are included in the Statement of Profit and loss. Out of the total exchange difference of Rs.665.84 lakhs arose on reporting of long term foreign currency monetary items as on Balance sheet date, Rs.225.61 lakhs included in the Statement of profit and loss and balance of Rs. 440.23 lakhs transferred to Foreign Currency Translation Reserve Account as per AS-11(R) issued by the Central Government vide their notification no G.S.R 225(E) Dt. 31st March 2009.

10. Retirement Benefits

Short term employee benefits are charged off at the undiscounted amount in the year in which the related service is rendered.

Post employment and other long term employee benefits are charged off in the year in which the employee has rendered service. The amount charged off is recognised at the present value of the amounts payable determined using actuarial valuation method. Actuarial gains and losses in respect of post employment and other long term benefits are charged to Statement of Profit and Loss.

11. Contingent Liabilities & Provisions

All known liabilities of material nature have been provided for in the accounts except liabilities of a contingent nature, which have been disclosed at their estimated value in the notes on accounts in accordance with Accounting Standard- 29. As regards Provisions, it is only those obligations arising from past events existing independently of an enterprise''s future actions that are recognized as provisions.

12. Segment reporting

The accounting policies adopted for Segment reporting are in line with the Accounting Standard-17. The Company is primarily engaged in providing integrated logistics services which is considered as single business segment in terms of segment reporting as per AS 17. There being no services rendered outside India there are no separate geographical segments to be reported on.

13. Discontinuing Operations

There are no discontinuing operations that have been reported in the current year financials and thus no disclosure as per Accounting Standard Â 24 is applicable.

14. Impairment of Assets

The Company recognizes impairment of all assets other than the assets, which are specifically excluded under Accounting Standard-28 on Impairment of Assets after comparing the asset''s recoverable value with its carrying amount in the books. In case the carrying amount exceeds recoverable value, impairment losses are provided for.

The company has introduced a policy of measuring impairment of its goodwill on an annual basis. While testing for impairment the company shall pay heed to market prospects, company profitability, EPS and performance indicators in determining the same. Any upward movement in goodwill shall not be considered on account of prudence.

15. Deferred Taxes

a. Current Tax is determined in accordance with the provisions of Income Ta x Act, 1961.

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

a) 93,20,003 Equity Shares Of Rs.10 Each were allotted as fully paid up as per the earlier schemes of Amalgamation

b) 98,60,910 Equity Shares of Rs.10 Each were Allotted as fully paid up to the share holders of 3,45,13,195, 1% Preference Shares on 1/4/1997 in terms of Special resolution passed by the shareholders on 9/12/1996

c) 47,61,908 Equity shares of Rs.10 each were alloted as fully paid up by way of bonus shares by capitalisation of Securities premium.

* Debenture redemption reserve has been created in accordance with Section 117C of the Companies Act, 1956 and Proviso 2(iii) of Ministry of Corporate Affairs Circular No 04/2013 dtd 11.02.2013 in respect of public issue of 12.75% Secured Listed Non Convertible Debentures to ING VYSYA Bank Ltd

a. Details of Security for secured long term borrowings

(i) Non-convertible Debentures

The Company had raised a sum of Rs.100 crores through issue of 1000 Nos. Secured listed 12.75% Non-convertible debentures of Rs.10 lakh each against the security of Dredger belonging to the subsidiary company viz Norsea Offshore India Ltd and assets procured out of funds received through ING Vysya Bank term loan of Rs.20 Crores. The NCDs are listed in NSE. The purpose of issue of NCDs were for taking over the existing term loan and shoring up of long term net working capital for its ongoing contracts. IDBI Trusteeship Services Ltd has been appointed as the debenture trustees. Debentures are redeemable in two installments i.e 50% in September 2017 and balance 50% in September 2018.

(ii) The Ratnakar Bank Ltd

The company has taken Long term Loan of Rs 75 Crores against security of certain Immovable properties (Land), during the FY 2012-13 with a moratorium period of 24 months. Loan is repayable in 8 equal quarterly installments after the moratorium period.

(iii) ING Vysya Bank

The company has taken a term loan of Rs. 20 Crores during the FY 2012-13 to meet its capital expenditure requirements against security of movable Fixed assets to be funded out of the loan amount, with a moratorium period of 12 months. Loan is repayable in 12 equal Quarterly installments.

(iv) IDBI Bank Ltd

The company has taken a term loan of Rs. 72 Crores during the current FY 2013-14 for paying off its existing debt and to meet its normal capital expenditure/ other corporate purposes against security of first charge on Ennore project assets and receivables and collateral security of immovable properties situated at Madhavaram, Chennai and Mumbai. Loan is repayable in 94 equal monthly installments.

(v) The Karur Vysya Bank

The company has taken a term loan of Rs. 20 Crores during the current FY 2013-14 for general corporate purposes against security of exclusive charge in the form of mortgage of certain specific immovable properties situated at Mumbai, Jamnagar, Bhavnaghar and Kolkatta, with a moratorium period of 12 months. Loan is repayable in 12 equal Quarterly installments.

(vi) IndusInd Bank

The company has taken a term loan of Rs 20 Crores during the current FY 2013-14 against security of second charge on the Ennore Project Assets. Loan is repayable in 84 equal Monthly installments

(vii) Canara Bank

The company has taken a secured medium term loan of Rs. 40 Crores during the current FY 2013-14 against security of pari pasu second charge over current assets and movable fixed assets of the company with a moratorium period of 12 months alongwith Bank of Baroda who has the first charge over the assets. Loan is repayable in 16 equal quarterly installments.

(viii) SREI Equipment Finance Ltd

Secured loan of Rs 10 Crores was taken in the year 2011 to finance purchase of Pay-loaders and Tippers at Chennai port. The same is secured by a charge on the purchased assets.

15.2 Working capital facility is secured by composite hypothecation of entire raw materials, stock in process, stores and spares, packing material, finished goods, Plant & Machinery etc and Book debts & Trade Advances of the company both present and future as well as Equitable Mortgage of certain immovable properties.

Mar 31, 2013

1. Method of Accounting

The financial statements have been prepared under the historical convention on an accrual basis of accounting in accordance with generally accepted accounting principles notified under section 211 (3C) of the Companies Act, 1956 and the relevant provisions thereof except in the case of certain fixed assets which were revalued as stated below:

2. Fixed Assets

Fixed assets are stated at cost, less accumulated depreciation and impairment loss, if any. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

Other assets including the additions subsequent to revaluation are shown at cost, which includes capitalization of pre- operative expenses and net of CENVAT credit availed wherever applicable.

With regard to assets acquired under hire purchase, the cost of the assets are capitalized while the annual charges are charged to revenue.

3. Borrowing Cost

Borrowing costs are capitalized as part of qualifying fixed assets wherever it is possible that they will result in future economic benefits. Other borrowing costs are expensed.

4. Depreciation

Depreciation is consistently provided at the rates prescribed under Schedule XIV of the Companies Act, 1956 on the following methods:

a) Assets of logistics division at written down value method except assets of transportation & warehousing divisions at straight-line method. Port handling equipments at Ennore Port and J D V are written off overthe period of BOT Scheme.

b) Depreciation on certain premises are provided on composite cost where it is not possible to segregate the land cost.

c) Assets costing less than Rs.5000 are fully depreciated.

5. Investments (Long Term)

Investments in shares and debentures are stated at cost, net of permanent diminution in value wherever necessary.

6. Inventories

a) Stores and Spares used for running of trucks and other machineries valued at lower of cost and net realizable value.

b) Loose tools are valued after writing off certain percentage of cost.

7. Excise Duty

CENVAT credit on materials purchased and on input services used for providing output services are taken into account at the time of purchase/payment and CENVAT credit on purchase of capital items wherever applicable are taken into account as and when the assets are installed, to the credit of respective purchase and assets accounts. The CENVAT credits so taken are utilized for payment of service tax on output services provided. The unutilized CENVAT credit is carried forward in the books.

8. Revenue Recognition

Revenue is recognized on their accrual as stated below.

i. Net earnings on completion of service.

ii. Other services on completion of services.

iii. Expenditure incurred on incomplete services are included under "Advances Recoverable".

9. Foreign Currency transactions

Foreign currency transactions are recorded in the books at the rates prevailingon the date of transaction.

Foreign currency monetary items as on balance sheet date are translated at exchange rate in effect at the Balance sheet date. The gains or losses from such transactions are included in the Statement of Profit and loss. Out of the total exchange difference of Rs.384.67 lakhs arose on reporting of long term foreign currency monetary items as on Balance sheet date, Rs 130.48 lakhs included in the Statement of profit and loss and balance of Rs. 254.19 lakh transferred to Foreign Currency Translation Reserve Account as per AS-11 (R) issued by the Central Government vide their notification no G.S.R 225(E) Dt. 31st March ,2009.

10. Retirement Benefits

Short term employee benefits are charged off at the undiscounted amount in the year in which the related service is rendered.

Post employment and other long term employee benefits are charged off in the year in which the employee has rendered service. The amount charged off is recognised at the present value of the amounts payable determined using actuarial valuation method. Actuarial gains and losses in respect of post employment and other long term benefits are charged to Statement of Profit and Loss.

11. Contingent Liabilities & Provisions

All known liabilities of material nature have been provided for in the accounts except liabilities of a contingent nature, which have been disclosed at their estimated value in the notes on accounts in accordance with Accounting Standard- 29. As regards Provisions, it is only those obligations arising from past events existing independently of an enterprise''s future actions that are recognized as provisions.

12. Segment reporting

The accounting policies adopted for Segment reporting are in line with the Accounting Standard-17. The Company is primarily engaged in providing integrated logistics services which is considered as single business segment in terms of segment reporting as per AS 17. There being no services rendered outside India there are no separate geographical segments to be reported on.

13. Discontinuing Operations

There are no discontinuing operations that have been reported in the current year financials, thus no disclosure as per Accounting Standard - 24.

14. Impairment of Assets

The Company recognizes impairment of all assets other than the assets, which are specifically excluded under Accounting Standard-28 on Impairment of Assets after comparing the asset''s recoverable value with its carrying amount in the books. In case the carrying amount exceeds recoverable value, impairment losses are provided for.

The company has introduced a policy of measuring impairment of its goodwill on an annual basis. While testing for impairment the company shall pay heed to market prospects, company profitability, EPS and performance indicators in determining the same. Any upward movement in goodwill shall not be considered on account of prudence.

15. Deferred Taxes

a. Current Tax is determinedinaccordance with the Income Tax Act, 1961.

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

Mar 31, 2012

1 Method of Accounting:

The financial statements have been prepared under the historical convention on an accrual basis of accounting in accordance with generally accepted accounting principles notified under section 211(3C) of the Companies Act,1956 and the relevant provisions thereof except in the case of certain fixed assets which were revalued as stated below:

2 Fixed Assets

Fixed assets are stated at cost, less accumulated depreciation and impairment loss, if any .Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

Other assets including the additions subsequent to revaluation are shown at cost, which includes capitalization of pre- operative expenses and net of CENVAT credit availed wherever applicable.

With regard to assets acquired under hire purchase, the cost of the assets are capitalized while the annual charges are charged to revenue.

3 Borrowing Cost

Borrowing costs are capitalized as part of qualifying fixed assets wherever it is possible that they will result in future economic benefi ts. Other borrowing costs are expensed.

4 Depreciation

Depreciation is consistently provided at the rates prescribed under Schedule XIV of the Companies Act, 1956 on the following methods:

a Assets of logistics division at written down value method except assets of transportation & warehousing divisions at straight-line method. Port handling equipments are written off over the period of BOT Scheme.

b Depreciation on certain premises are provided on composite cost where it is not possible to segregate the land cost.

c Assets costing less than Rs.5000 are fully depreciated.

5 Investments (Long Term)

Investments in shares and debentures are stated at cost, net of permanent diminution in value wherever necessary. Cost includes interest attributable to funds borrowed for acquisition of investments.

6 Inventories

a Stores and Spares used for running of trucks and other machineries valued at lower cost and net realizable value. b Loose tools are valued after writing off certain percentage of cost.

7 Excise Duty

CENVAT credit on materials purchased for production and on input services used for providing output services are taken into account at the time of purchase/payment and CENVAT credit on purchase of capital items wherever applicable are taken into account as and when the assets are installed, to the credit of respective purchase and assets accounts. The CENVAT credits so taken are utilized for payment of service tax on output services provided. The unutilized CENVAT credit is carried forward in the books.

8 Revenue Recognition

a Revenue is recognized and expenses are accounted on their accrual with necessary provisions for all known liabilities and losses.

b Service Income:

i Net earnings on voyage/contracts on completion.

ii Other services on completion of services and billed.

iii Expenditure incurred on incomplete voyages and contracts are included under "Advances Recoverable".

9 Foreign Currency transactions

Foreign currency transactions are recorded in the books at the rates prevailing on the date of transaction.

Foreign currency monetary items as on balance sheet date are translated at exchange rates in effect at the Balance sheet date. The gains or losses from such transactions are included in the Profit and Loss account. Out of the total exchange difference of Rs 741.61 lakh arose on reporting of long term foreign currency monetary items as on Balance sheet date, Rs 82.40 lakh included in Profit and loss account and balance of Rs 659.21 lakh transferred to Foreign Currency Translation Reserve Account as per AS-11(R) issued by the Central Government vide their notification no G.S.R 225(E) Dt. 31 March 2009.

10 Retirement Benefits

Short term employee Benefits are charged off at the undiscounted amount in the year in which the related service is rendered.

Post employment and other long term employee Benefits are charged off in the year in which the employee has rendered service. The amount charged off is recognised at the present value of the amounts payable determined using actuarial valuation method. Actuarial gains and losses in respect of post employment and other long term Benefits are charged to Profit and Loss Account.

11 Contingent Liabilities & Provisions

All known liabilities of material nature have been provided for in the accounts except liabilities of a contingent nature, which have been disclosed at their estimated value in the notes on accounts in accordance with Accounting Standard-29. As regards Provisions, it is only those obligations arising from past events existing independently of an enterprise's future actions that are recognized as provisions.

12 Segment reporting

The accounting policies adopted for Segment reporting are in line with the Accounting Standard-17.

13 Discontinuing Operations

Discontinuing Operations have been recognized and disclosed as per Accounting Standard-24.

14 Impairment of Assets

The Company recognizes impairment of all assets other than the assets, which are specifically excluded under Accounting Standard-28 on Impairment of Assets after comparing the asset's recoverable value with its carrying amount in the books. In case the carrying amount exceeds recoverable value, impairment losses are provided for.

The company has introduced a policy of measuring impairment of its goodwill on an annual basis. While testing for impairment the company shall pay heed to market prospects, company Profitability, EPS and performance indicators in determining the same. Any upward movement in goodwill shall not be considered on account of prudence.

15 Deferred Taxes

a Current Tax is determined in accordance with the Income tax Act, 1961.

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

Mar 31, 2010

1 Method of Accounting:

The financial statements have been prepared under the historical convention on an accrual basis of accounting in accordance with generally accepted accounting standards as notified under section 211(3C) of the Companies Act 1956 and the relevant provisions thereof except in the case of certain fixed assets which were revalued as stated below.

2 Fixed Assets

Fixed assets are stated at cost, less accumulated depreciation and impairment loss, if any. Cost comprises of the purchase price and any attributable cost for bringing the assets into its working condition for its intended use.

Assets which were revalued on 31 March 1989, 31 March 1994 and 31 March 1995 are stated at revalued amounts. The resultant increase on revaluation was credited to Revaluation Reserve.

Other assets including the additions subsequent to revaluation are shown at cost, which includes capitalization of pre-operative expenses and net of CENVAT credit availed wherever applicable.

With regard to assets acquired under hire purchase, the cost of the assets are capitalized while the annual charges are charged to revenue.

3 Borrowing Cost

Borrowing costs are capitalized as part of qualifying fixed assets wherever it is possible that they will result in future economic benefits. Other borrowing costs are expensed.

4 Depreciation

Depreciation is consistently provided at the rates prescribed under Schedule XIV of the Companies Act, 1956 on the following methods:

a Assets of logistics division at written down value method except assets of transportation & warehousing divisions at straight-line method. Port handling equipments are written off over the period of BOT Scheme.

b Assets of Civil Engineering & Property Development divisions at straight-line method.

c Depreciation on certain premises are provided on composite cost where it is not possible to segregate the land cost. d Assets costing less than Rs 5000 are fully depreciated.

5 Investments (Long Term)

Investments in shares and debentures are stated at cost, net of permanent diminution in value wherever necessary. Cost includes interest attributable to funds borrowed for acquisition of investments.

6 Inventories

a Stores and Spares used for running of trucks and other machineries valued at lower of cost and net realizable value. b Loose tools are valued after writing off certain percentage of cost.

7 Excise Duty

CENVAT credit on materials purchased for production are taken into account at the time of purchase and CENVAT credit on purchase of capital items wherever applicable are taken into account as and when the assets are installed, to the credit of respective purchase and assets accounts. The CENVAT credits so taken are utilized for payment of excise duty on goods manufactured. The unutilized CENVAT credit is carried forward in the books.

8 Revenue Recognition

a Revenue is recognized and expenses are accounted on their accrual with necessary provisions for all known liabilities and losses.

b Service Income:

i Net earnings on voyage/contracts on completion.

ii Other services on completion of services and billed.

iii Expenditure incurred on incomplete voyages and contracts are included under ÃAdvances RecoverableÃ.

c Coal handling charges up to January 2001 is net of shortage cover retained by the Tamil Nadu Electricity Board.

Additional claim, if any, that may be determined on the closure of the contract will be recognized when the claim is made.

9 Foreign Currency transactions

Foreign currency transactions are recorded in the books at the rates prevailing on the date of transaction.

Foreign currency monetary items as on balance sheet date are reinstated to its acquisition/commencing date, the resultant difference transferred to General reserve account. The exchange difference arose on reporting of long term foreign currency monetary items as on Balance sheet date transferred to Foreign currency translation reserve account and half of such amount amortized during the year and remaining balance to the tune of Rs 836.43 Lakh (Previous year (Rs 3362.60 Lakh)) to be amortized on the forthcoming year-2010-11, as per AS-11(R) issued by the Central government vide their notifi cation no GSR 226(E) Dt. 31 March 2009.

10 Retirement Benefi ts

Short term employee benefi ts are charged off at the undiscounted amount in the year in which the related service is rendered.

Post employment and other long term employee benefi ts are charged off in the year in which the employee has rendered service. The amount charged off is recognised at the present value of the amounts payable determined using actuarial valuation method. Actuarial gains and losses in respect of post employment and other long term benefits are charged to Profit and Loss Account.

11 Contingent Liabilities & Provisions

All known liabilities of material nature have been provided for in the accounts except liabilities of a contingent nature, which have been disclosed at their estimated value in the notes on accounts in accordance with Accounting Standard-29. As regards Provisions, it is only those obligations arising from past events existing independently of an enterprises future actions that are recognized as provisions.

12 Segment reporting

The accounting policies adopted for Segment reporting are in line with the Accounting Standard-17.

13 Discontinuing Operations

Discontinuing Operations have been recognized and disclosed as per Accounting Standard-24.

14 Impairment of Assets

The Company recognizes impairment of all assets other than the assets, which are specifically excluded under Accounting Standard-28 on Impairment of Assets after comparing the assets recoverable value with its carrying amount in the books. In case the carrying amount exceeds recoverable value, impairment losses are provided for.

The company has introduced a policy of measuring impairment of its goodwill on an annual basis .While testing for impairment the company shall pay heed to market prospects ,company profitability, EPS and performance indicators in determining the same. Any upward movement in goodwill shall not be considered on account of prudence.

15 Deferred Taxes

a Current Tax is determined in accordance with the Income tax Act, 1961.

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

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