Accounting Policies of Tejas Cargo India Ltd. Company

Mar 31, 2024

SIGNIFICANT AGCOUTING POLICIES

a) Property, plant and equipment (including Capital work-in-progress)

All plant ano equipment are stated at historical cost less depreciation and impairment, if any. Historical
cost of items of property, plant and equipment includes expenditure that is directly attributable to the
acquisition and installation and excludes any duties / taxes recoverable.

Subsequent cost is included in the asset’s carrying amount or recognized as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to the
Company and the cost of such item can be measured reliably.

If significant parts of an item of property, plant and equipment have different useful lives then they are not
accounted for as separate components of property, plant, and equipment.

All other repairs and maintenance expenses, in the nature of revenue expenditure, are charged to the
Statement oi Profit and Loss during the reporting period in which they are incurred.

An item of property plant and equipment is derecognized at disposal or when no future economic benefits
are expected from its use or disposal. Gains or losses arising on retirement or disposal of items of property,
plant and equipment are measured as the difference between the net disposal proceeds and the carrying
amount of the asset and are recognized in the Statement of Profit and Loss when the asset is de-recognized.

Advances paid towards the acquisition of property, plant and equipment outstanding at each reporting date
are classified as Capital Advances under Other Non-Current Assets. Assets acquired but not ready for use

are classified under Capital Work in Progress and are stated at cost comprising of direct costs and related
incidental expenses.

b) Investment Property

Investment property is the property that is not occupied by the Company, and which is held to earn rentals
or for capital appreciation, or both. Upon initial recognition, an investment property is measured at cost,
including directly attributable overheads, if any. Subsequent to initial recognition, investment property is
measured at cost.

Any gain or loss on disposal of an investment property is recognized in the Statement of Profit and Loss,
unless any other standard specifically requires otherwise.

investment properties are de-recognized either when they have been disposed off or when they are
permanently withdrawn from use and no future economic benefit is expected from their disposal. The
difference between the net disposal proceeds and the carrying amount of the asset is recognized in the
Statement of Profit and Loss in the period of de-recognition.

c) Intangible assets

There is no Intangible assets with the company.

Depreciation is provided under the Written Down Value method over the useful lives of assets as
prescribed under Part C of Schedule il of the Act.

An assei s carrying amount is written down to its recoverable amount immediately, if the asset’s carrying
amount is greater than its estimated recoverable amount.

The residual value of an asset is not more than 5% of the original cost of that asset. The estimated useful life
and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in
estimate being accounted for on a prospective basis. As on now, there has not been any changes or
deviation from the useful life of asset as prescribed under Part C of Schedule II of the Act.

e} impairment of non-financial assets

At the end of each reporting period, the Company assesses whether there is any indication that non-
financial asset may be impaired, if any such indication exists, the recoverable amounts are estimated in
order io determine the extent of the impairment loss (if any). An impairment loss is recognized whenever
the carrying amount of an asset or a cash-generating unit exceeds its recoverable amount. The impairment

loss, if any, is recognized in the Statement of Profit and Loss in the period in which impairment takes
place.

The recoverable amount is higher than an asset’s or cash generating unit’s net selling price and its
value in use. Value in use is the present value of estimated future cash flows expected to arise from the
continuing use of an asset and from its disposal at the end of its useful life. A previously recognised
impaiiment loss is increased or reversed depending on changes in circumstances. However, the carrying
value after reversal is not increased beyond the carrying value that would have prevailed by charging usual
depreciation if there was no impairment.

f) Foreign currency transactions

No foreign currency transactions took place during the financial year.

g) Inventories

Consumables, stores and spares are valued at lower of cost and net realisable value; cost is computed on
first-in-first out basis. The cost of inventories comprises all costs of purchase and other costs incurred in
bringing the inventories to their present location and condition. Stores and spares which do not meet the
definition of property, plant and equipment are accounted as inventories. Obsolete, defective,
unserviceable and slow/nonmoving stocks are duly provided for. Net realisable value is estimated selling
price in ordinary course of business less the estimated cost necessary to make the sale.

The company classifies tyres as 90% of its total inventory. Spare parts, when consumed, are immediately
expensed under the "Vehicle Running, Repair, and Maintenance" category, along with other related costs.
However, given the significant proportion of tyres in the inventory, expenses related to tyres are accounted
for separately under the "Tyres, Flaps and Retreading” expense head.

,x/ pp?CX /VP—W\

h) Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits, together with other short- term,
highly liquid investments maturing in less than one year from the date of acquisition. Cash and cash
equivalents are readily convertible into known amounts of cash and are subject to an insignificant risk of
changes in value. This also includes amounts related to cheques that have been issued but not yet
presented at the bank, which reduces the balance in the Company''s records.

i) Revenue recognition

Revenue is recognized on satisfaction of performance obligation upon transfer of control of promised
products or services to customers in an amount that reflects the consideration the Company expects to
receive in exchange forthose products or services.

Revenue is recognised to the extent it is probable that the economic benefits will flow to the Company and
the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received
or receivable excluding taxes or duties collected on behalf of the government and reduced by any rebates
and trade discount allowed.

Contract assets include costs incurred to fulfil a contract with a customer. Where the amount of
consideration received from a customer exceeds the amount of revenue recognized, this gives rise to a
contract liability.

The specific recognition criteria described below must also be met before income is recognised.

Revenue from Goods transport and Courier service is recognised as and when goods and documents are
dispatched. Unbilled Revenues to customers have also been booked in Revenue.

j) Employee benefits Shortterm obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly
within 12 months after the end of the period in which the employees render the related service are
recognized in respect of employees’ services upto the end of the reporting period and are measured at the
amounts expected to be paid when the liabilities are settled.

Defined contribution plan

The Company’s contribution to Provident Fund and Employees State insurance Scheme is determined
based on a fixed percentage of the eligible employees'' salary and charged to the Statement of Profit and
Loss on accrual basis. The Company has categorised its Provident Fund and the Employees State
Insurance Scheme as a defined contribution plan since it has no further obligations beyond these
contributions.

k) Borrowing costs

General and specific borrowing costs directly attributable to the acquisition/construction of qualifying
assets, which are assets that necessarily take a substantial period of time to get ready for their intended
use, are added to the cost of those assets, until such time tfj@=a§§ets are substantially ready for their
intended use. All other borrowing costs are recognised as^d^^^^ip Statement aJ^uTffrafid Loss in

the period in which they are incurred.

Other borrowing costs are expensed in the period in which they are incurred.

l) Borrowings and other financial liabilities

Borrowings and other financial liabilities are initially recognized at fair value (net of transaction costs
incurred).

The difierence between the fair value and the transaction proceeds on initial recognition is recognized as
an asset/ liability based on the underlying reason for the difference.

Subsequently all financial liabilities are measured at amortized cost using the effective interest rate
method

Borrowings are eliminated from the balance sheet when the obligation specified in the contract is
discharged, cancelled or expired. The difference between the carrying amount of a financial liability that
has been extinguished or transferred to another party and the consideration paid, including any non-cash
assets transferred or liabilities assumed, is recognized in profit or loss.

Bors owings are classified as current liabilities unless the Company has an unconditional right to defer the
settlement of the liability for at least 12 months after the reporting period.

m) Trade receivables

A receivable is classified as a ‘trade receivable’ if it is in respect of the amount due on account of
services rendered or sale of goods in the normal course of business. Trade receivables are recognized
initially at fair value. Unbilled Revenues to party have also been included in Trade receivables as on closing
date.

n) Trade payables

A payable is classified as a ‘trade payable’ if it is in respect of the amount due on account of goods
purchased or services received in the normal course of business. These amounts represent liabilities for
goods and services provided to the Company prior to the end of the financial year which are unpaid. These
amounts are unsecured and are usually settled as per the payment terms stated in the contract. Trade and
other payables are presented as current liabilities unless payment is not due within 12 months after the
reporting period. They are recognised initially at their fair value and subsequently measured at amortised
cost using the EIR method.

o) Taxation

The income tax expense or credit for the period is the tax payable on the current period’s taxable income
based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities
attributable to temporary differences and to unused tax losses.

Current income tax liabilities and/or assets comprise those obligations to, or claims from, fiscal
authorities relating to the current or prior reporting periods, that are unpaid at the reporting date.

Current tax is payable on taxable profit, which differsor loss in j&egTTJtjrayal statements

//°/ ffW __ A

if tn i X 1 < II tn W tLXVl

Calculation of current tax is based on tax rates and tax laws that have been enacted or substantively
enacted by the end of the reporting period. Management periodically evaluates positions taken in tax
returns with respect to the applicable tax regulations which may be subject to interpretation and creates
provisions, where appropriate, on the basis of amounts expected to be paid to the tax authorities.

Deferred income taxes are calculated using the liability method on temporary differences between the
carrying amounts of assets and liabilities and their tax bases. Deferred income tax is determined using tax
rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are
expected to apply when the related deferred income tax asset is realised or the deferred income tax
liability is settled.

Deferred tax assets are recognised to the extent it is probable that the underlying tax loss or deductible
temporary difference will be utilised against future taxable income. This is assessed based on the
Company’s forecast of future operations results, adjusted for significant non-taxable income and
expenses and specific limits on the use of any unused tax loss or credit.

Deferred tax is not provided on the initial recognition of goodwill, or on the initial recognition of an asset or
liability unless the related transaction is a business combination or affects tax or accounting profit.

Changes in defetred tax assets or liabilities are recognised as a component of tax income or expense in
profit or loss, except where they relate to items that are recognised in other comprehensive income or
directly in equity, in which case the related deferred tax is also recognised in other comprehensive income
or equity, respectively.

Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and
intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.