Accounting Policies of Western Carriers (India) Ltd. Company

Mar 31, 2025

3 Material accounting policies

This note provides a list of the material accounting
policies adopted in the preparation of Standalone
Financial Statement. These policies have been
consistently applied to all the years.

3.1 Current versus non-current classification

The Company presents assets and liabilities in the
standalone balance sheet based on current/non-current
classification.

An asset is classified current when it is:

(a) Expected to be realised or intended to be sold or
consumed in the normal operating cycle;

(b) Held primarily for the purpose of trading;

(d) 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 classified current when:

(a) It is expected to be settled in the normal
operating cycle;

(b) It is held primarily for the purpose of trading;

(d) There is no unconditional right to defer the
settlement of the liability for at least twelve months
after the reporting period

The Company classifies all other liabilities as non-current.

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

3.2 Financial instruments

(a) Recognition and initial measurement

Trade receivables and investment in debt securities
issued are initially recognised when they are
originated. All other financial assets and financial
liabilities are initially recognised when the Company

becomes a party to the contractual provisions of
the instrument.

A financial asset or financial liability is initially
measured at fair value plus, for an item not
at fair value through profit and loss (FVTPL),
transaction costs that are directly attributable to its
acquisition or issue.

(b) Classification and subsequent measurement

Financial assets

On initial recognition, a financial asset is
classified as measured at

- amortised cost;

- Fair value through profit or loss (FVTPL) or
Fair value through other comprehensive
income (''FVOCI'')

Financial assets are not reclassified subsequent to
their initial recognition, except if and in the period
the Company changes its business model for
managing financial assets.

A financial asset is measured at amortised cost if it
meets both of the following conditions and is not
designated as at FVTPL:

- the asset is held within a business model
whose objective is to hold assets to collect
contractual cash flows; and

- 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.

A financial asset is measured at fair value through
other comprehensive income (''FVOCI'') if it
meets both of the following conditions and is not
designated as at FVTPL:

- the asset is held within a business model
whose objective is to hold assets to collect
contractual cash flows and cash flows
from sales; and

- 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.

otherwise meets the requirements to be measured
at amortised cost as at FVTPL if doing so eliminates
or significantly reduces an accounting mismatch
that would otherwise arise.

Equity instruments are always classified fair value
through profit and loss, except in cases where the
Company has elected an irrevocable option of
designating the same as fair value through other
comprehensive income (FVOCI).

Financial assets: Subsequent measurement and
gains and losses

Financial assets at FVTPL :

These assets are subsequently measured at fair
value. Net gains and losses, including any interest
or dividend income, are recognised in profit or loss.

Financial assets at amortised cost:

These assets are subsequently measured at
amortised cost using the effective interest method.
The amortised cost is reduced by impairment
losses. Interest income, foreign exchange gains
and losses and impairment are recognised in
profit or loss. Any gain or loss on derecognition is
recognised in profit or loss.

Financial assets at FVOCI :

These assets are subsequently measured at fair value
through other comprehensive income i.e., subsequent
changes in fair value of the instrument is recognised in
other comprehensive income. Any dividend received
on such instruments are recognised in of profit or loss.

Financial liabilities: Classification, subsequent
measurement and gains and losses

Financial liabilities are classified and measured
at amortised cost or FVTPL. A financial liability
is classified as at FVTPL if it is classified as
held-for-trading, or it is a derivative or it is designated
as such on initial recognition. Financial liabilities at
FVTPL are measured at fair value and net gains
and losses, including any interest expense, are
recognised in profit or loss. Other financial liabilities
are subsequently measured at amortised cost using
the effective interest method. Interest expense and
foreign exchange gains and losses are recognised
in profit or loss. Any gain or loss on derecognition
is also recognised in profit or loss.

(c) Derecognition
Financial assets:

The Company derecognises a financial asset when
the contractual rights to the cash flows from the
financial asset expire, or it transfers the rights to

receive the contractual cash flows in a transaction
in which substantially all of the risks and rewards
of ownership of the financial asset are transferred
or in which the Company neither transfers nor
retains substantially all of the risks and rewards
of ownership and does not retain control of the
financial asset.

If the Company enters into transactions whereby it
transfers assets recognised on its balance sheet, but
retains either all or substantially all of the risks and
rewards of the transferred assets, the transferred
assets are not derecognised.

Financial liabilities:

The Company derecognises a financial liability
when its contractual obligations are discharged or
cancelled, or expire.

The Company also derecognises a financial liability
when its terms are modified and the cash flows under
the modified terms are substantially different. In this
case, a new financial liability based on the modified
terms is recognised at fair value. The difference
between the carrying amount of the financial liability
extinguished and the new financial liability with
modified terms is recognised in profit or loss.

(d) Impairment of financial assets

Loss allowance for expected credit losses is
recognised for financial assets measured at
amortised cost and fair value through other
comprehensive income.

The Company recognises life time expected credit
losses for all trade receivables that do not constitute
a financing transaction.

For financial assets (apart from trade receivables that
do not constitute of financing transaction) whose
credit risk has not significantly increased since initial
recognition, loss allowance equal to twelve months
expected credit losses is recognised. Loss allowance
equal to the lifetime expected credit losses is
recognised if the credit risk of the financial asset has
significantly increased since initial recognition.

(e) Offsetting

Financial assets and financial liabilities are offset
and the net is amount presented in the balance
sheet when, and only when, the Company currently
has a legally enforceable right to set off the
amounts and it intends either to settle them on
a net basis or to realise the asset and settle the
liability simultaneously.

3.3 Revenue from contract with customers

Revenue from contracts with customers is recognised
when control of the services are transferred to the
customer at an amount that reflects the consideration to
which the Company expects to be entitled in exchange
for those services. Such revenue is recognised upon the
Company''s performance of its contractual obligations
and on satisfying all the following conditions:

(1) Parties to the contract have approved the
contract and undertaken to perform their
respective obligations;

(2) Such contract has specified the respective rights
and obligations of the parties in connection with
the transfer of goods or rendering of services
(hereinafter the âTransferâ);

(3) Such contract contains specific payment terms in
relation to the Transfer;

4) Such contract has a commercial nature, namely, it
will change the risk, time distribution or amount of
the Company''s future cash flow;

(5) The Company is likely to recover the consideration
it is entitled to for the Transfer to customers.

Revenue is recognised when no significant uncertainty
exists regarding the collection of the consideration. The
amount recognised as revenue is exclusive of all indirect
taxes and net of returns and discounts.

(a) Rendering of services

The Company generates revenue from services to
its customers such as providing freight and other
transportation services, warehousing contracts
ranging from a few months to a few years. Certain
accessorial services may be provided to customers
under their transportation contracts, such as
unloading and other incidental services. The
Company''s performance obligations are satisfied
over time as customers simultaneously receive and
consume the benefits of the Company''s services.
The contracts contain a single performance
obligation, as the distinct services provided remain
substantially the same over time and possess the
same pattern of transfer. The transaction price
is based on the consideration specified in the
contract with the customer and contains fixed
and variable consideration. In general, the fixed
component of a contract represents amounts for
facility and equipment costs incurred to satisfy the
performance obligation and is recognized over the
term of the contract.

In the case of transportation services, performance
obligation is created when a customer under a
transportation contract submits a shipment note for
the transport of goods from origin to destination.
These performance obligations are satisfied
over the period as the shipments move from
origin to destination and revenue is recognized
proportionally as a shipment moves and the related
costs are recognized as incurred. Performance
obligations are short-term, with transit days less
than one week. Generally, customers are billed
upon completion of shipment, and remit payment
according to approved payment terms. The
Company recognizes revenue on a net basis when
the Company does not control the specific services.

(b) Contract balances
Contract assets

A contract asset is initially recognised for revenue
earned from inspection services because the
receipt of consideration is conditional on successful
completion of the inspection. Upon completion of
the inspection, the amount recognised as contract
assets is reclassified to trade receivables.

Trade receivables

A receivable is recognised if an amount of
consideration that is unconditional is due from the
customer (i.e., only the passage of time is required
before payment of the consideration is due). Refer
to accounting policies for financial assets for initial
and subsequent measurements.

Contract liabilities

A contract liability is recognised if a payment is
received or a payment is due (whichever is earlier)
from a customer before the Company transfers
the related goods or services. Contract liabilities
are recognised as revenue when the Company
performs under the contract (i.e., transfers control
of the related goods or services to the customer).

3.4 Income Taxes
Current tax

Current tax assets and liabilities are measured at the
amount expected to be recovered from or paid to the
taxation authorities. The tax rates and tax laws used
to compute the amount are those that are enacted
or substantively enacted at the reporting date in the
countries where the Company or companies within the
Company operates and generates taxable income.

Current tax relating to items recognised directly in equity
is recognised in equity and not in the statement of profit
or loss. Management periodically evaluates positions

taken in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation
and establishes provisions where appropriate.

Deferred tax

Deferred tax is provided using the liability method on
temporary differences between the tax bases of assets and
liabilities and their carrying amounts for financial reporting
purposes at the reporting date. Deferred tax liabilities are
recognised for all taxable temporary differences.

Deferred tax assets are recognised for all deductible
temporary differences, the carry forward of unused tax
credits and any unused tax losses. Deferred tax assets are
recognised 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 utilised.

The carrying amount of deferred 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 tax asset
to be utilised. Unrecognised deferred tax assets are reÂ¬
assessed at each reporting date and are recognised to
the extent that it has become probable that future taxable
profits will allow the deferred tax asset to be recovered.

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

^Deferred tax relating to items recognised outside profit or
loss is recognised outside profit or loss. Deferred tax items
are recognised in correlation to the underlying transaction
either in OCI or directly in equity.

The Company offsets deferred tax assets and deferred
tax liabilities if and only if it has a legally enforceable right
to set off current tax assets and current tax liabilities and
the deferred tax assets and deferred tax liabilities relate
to income taxes levied by the same taxation authority.

3.5 Property, plant and equipment

Property, plant and equipment is stated at cost, net of
accumulated depreciation and accumulated impairment
losses, if any. Construction in progress is stated at cost,
net of accumulated impairment losses, if any.

Cost of Property, plant and equipment includes the costs
directly attributable to the acquisition or constructions of
assets, or replacing parts of the plant and equipment and
borrowing costs for qualifying assets, if the recognition criteria
are met. When significant parts of plant and equipment are
required to be replaced at intervals, the Company depreciates
them separately based on their specific useful lives.

Subsequent costs are included in the asset''s carrying
amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits
associated with them will flow to the Company and the
cost of the item can measured reliably. All other repair
and maintenance costs are recognised in profit or
loss as incurred.

Depreciation is provided on written down value method
in the manner and on the basis of useful lives prescribed
in Schedule II to the Companies Act, 2013. Depreciation
on addition / deduction is calculated pro-rata from/to the
month of addition / deduction.

Advance given for acquisition / construction of Property,
Plant and Equipment and Intangible assets are presented
as "Capital Advance" under Other Non Current Assets.

The assets in the process of construction or acquisition
but not ready for management''s intended use are
included under Capital Work in progress.

An item of property, plant and equipment and any
significant part initially recognised is derecognised
upon disposal (i.e., at the date the recipient obtains
control) or when no future economic benefits are
expected from its use or disposal. Any gain or loss
arising on derecognition of the asset (calculated as
the difference between the net disposal proceeds and
the carrying amount of the asset) is included in the
standalone statement of profit or loss when the asset
is derecognised.

The residual values, useful lives and methods of
depreciation of property, plant and equipment are
reviewed at each financial year end and adjusted
prospectively, if appropriate.

The estimated useful lives of the assets considered
by the Company is stated hereunder, which is in line
with useful lives specified under schedule II of the
Companies Act, 2013

3.6 Leases

The Company assesses at contract inception whether a
contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified asset
for a period of time in exchange for consideration.

The Company as a lessee

The Company applies a single recognition and
measurement approach for all leases, except for
short-term leases and leases of low-value assets. The
Company recognises lease liabilities to make lease
payments and right-of-use assets representing the right
to use the underlying assets.

Right-of-use assets

The Company recognises right-of-use assets at the
commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use
assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted
for any remeasurement of lease liabilities. The cost
of right-of-use assets includes the amount of lease
liabilities recognised, initial direct costs incurred, and
lease payments made at or before the commencement
date less any lease incentives received. Right-of-use
assets are depreciated on a straight-line basis over
the shorter of the lease term and the estimated useful
lives of the assets.

If ownership of the leased asset transfers to the Company
at the end of the lease term or the cost reflects the
exercise of a purchase option, depreciation is calculated
using the estimated useful life of the asset.

Lease liabilities

At the commencement date of the lease, the Company
recognises lease liabilities measured at the present value of
lease payments to be made over the lease term. The lease
payments include fixed payments (including in-substance
fixed payments) less any lease incentives receivable,
variable lease payments that depend on an index or a rate,
and amounts expected to be paid under residual value
guarantees. The lease payments also include payments of
penalties for terminating the lease, if the lease term reflects
the Company exercising the option to terminate.

Variable lease payments that do not depend on an index
or a rate are recognised as expenses (unless they are
incurred to produce inventories) in the period in which
the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the
Company uses its incremental borrowing rate at the
lease commencement date because the interest rate

implicit in the lease is not readily determinable. After
the commencement date, the amount of lease liabilities
is increased to reflect the accretion of interest and
reduced for the lease payments made. In addition, the
carrying amount of lease liabilities is remeasured if there
is a modification, a change in the lease term, a change in
the lease payments.

The Company''s lease obligations are presented on the
face of the Standalone Balance Sheet.

Short-term leases and leases of low value assets

The Company applies the short-term lease recognition
exemption to its short-term leases (i.e., those leases
that have a lease term of 12 months or less from the
commencement date). It also applies the lease of low-
value assets recognition exemption to leases of assets
that are considered to be low value. Lease payments
on short-term leases and leases of low-value assets
are recognised as expense on a straight-line basis over
the lease term.

The Company as a lessor

Leases in which the Company does not transfer
substantially all the risks and rewards incidental to
ownership of an asset are classified as operating leases.
Rental income arising is accounted for on a straight-line
basis over the lease terms and is included in revenue in
the statement of profit or loss due to its operating nature.
Initial direct costs incurred in negotiating and arranging
an operating lease are added to the carrying amount
of the leased asset and recognised over the lease
term on the same basis as rental income. Contingent
rents are recognised as revenue in the period in which
they are earned.

3.10 Borrowing costs

Borrowing costs directly attributable to the acquisition,
construction or production of an asset that necessarily
takes a substantial period of time to get ready for its
intended use or sale are capitalised as part of the cost
of the asset. All other borrowing costs are expensed in
the period in which they occur. Borrowing costs consist
of interest and other costs that the Company incurs in
connection with the borrowing of funds.

3.11 Intangible assets

Intangible assets acquired separately are measured
on initial recognition at cost. Subsequent to initial
recognition, intangible assets are carried at cost less any
accumulated amortisation and accumulated impairment
losses. Internally generated intangibles, excluding
capitalised development costs, are not capitalised and
the related expenditure is reflected in profit or loss in the
period in which the expenditure is incurred.

Intangible assets are amortised over the useful economic
life (5 years for computer software) and assessed for
impairment whenever there is an indication that the
intangible asset may be impaired. The amortisation
period and the amortisation method for an intangible
asset with a finite useful life are reviewed at least at the
end of each reporting period.

An intangible asset is derecognised upon disposal (i.e.,
at the date the recipient obtains control) or when no
future economic benefits are expected from its use or
disposal. Any gain or loss arising upon derecognition of
the asset (calculated as the difference between the net
disposal proceeds and the carrying amount of the asset)
is included in the statement of profit or loss.

3.12 Impairment of assets (other than financial assets)

At each balance sheet date, the Company reviews the
carrying value of its property, plant and equipment and
intangible assets to determine whether there is any
indication that the carrying value of those assets may
not be recoverable through continuing use. If any such
indication exists, the recoverable amount of the asset is
reviewed in order to determine the extent of impairment
loss, if any. Where the asset does not generate cash
flows that are independent from other assets, the
Company estimates the recoverable amount of the cash
generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to
sell and value in use. 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 which the estimates of future cash flows have
not been adjusted. An impairment loss is recognised in the
statement of profit and loss as and when the carrying value
of an asset exceeds its recoverable amount.

Where an impairment loss subsequently reverses, the
carrying value of the asset (or cash generating unit) is
increased to the revised estimate of its recoverable
amount so that the increased carrying value does
not exceed the carrying value that would have been
determined had no impairment loss been recognised
for the asset (or cash generating unit) in prior years.
A reversal of an impairment loss is recognised in the
statement of profit and loss immediately.

Mar 31, 2024

1 General Information

Western Carriers (India) Limited (the Company) having CIN: U63090WB2011PLC161111 is a public limited company registered in India under the provisions of the erstwhile Companies Act, 1956. The Company is domiciled in India. The Company is a player in the Indian logistics industry and engaged in providing single, multimodal and other transportation services, warehousing and other ancilliary services.

2 Basis of Preparation

2.1 Statement of Compliance

The standalone financial statements comply with all material aspect of Indian Accounting Standards (Ind AS) notified under section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting standards) Rule, 2015] and other relevant provisions of the Act.

2.2 Functional and presentation currency

These standalone financial statements are presented in Indian Rupees (Rs.), which is also the Company''s functional currency. All amounts have been rounded-off to the nearest Millions upto two decimals, unless otherwise stated.

2.3 Basis of measurement

The standalone financial statements have been prepared on the historical cost basis except certain financial assets and liabilities which are measured at fair values.

2.4 Use of estimates and critical accounting judgements

In the preparation of the financial statements, the Company makes judgements, estimates and assumptions about the carry ing value of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis Revisions to accounting estimates are recognised in the period in which the estimate is revised and future periods affected.

Key source of estimation of uncertainty at the date of the financial statements, which may cause material adjustment to the carrying amounts of assets and liabilities within the next financial year are provided below:

(a) Property, plant and equipment and intangible assets - useful lives

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 the Companyâs assets arc determined by the Management at the time the asset is acquired and reviewed periodically, including at the end of each reporting period. The lives are based on historical experience with similar assets.

(b) Assets and obligations relating to employee benefits

The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate; future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

Ind AS 116, Leases requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that the Company will continue the lease beyond non-cancellable period and whether any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the terminating the lease and the importance of the underlying asset to Company''s operations taking in to account the location of the underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances. After considering current and future economic conditions, the Company has concluded that no material changes are required to lease period relating to the existing lease contracts.

(d) Impairment of Goodwill

The Company estimates the value in use of the cash generating unit (CGU) based on future cash flows after considering current economic conditions and trends, estimated future operating results and growth rates and anticipated future economic and regulatory conditions. The estimated cash flows are-developed using internal forecasts. The cash flows are discounted using a suitable discount rate in order to calculate the present value. Refer Note 6 for additional details.

2.5 Measurement of fair values

A number of the Company''s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities.

The Company has an established control framework with respect to the measurement of fair values The Company regularly reviews significant unobservable inputs and valuation adjustments. If third party information is used to measure fair values, then the Company assesses the evidence obtained from the third parties to support the conclusion that these valuations meet the requirements of Ind AS. including the level in the fair value hierarchy in which the valuations should be classified.

-Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

- Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, cither directly (i.e., as prices) or indirectly (i.e..

derived from prices). ...

- Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. IVt^B Inputs used toNnq^urc the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement isftate-gori&''j in its entireivA^Ahe same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The CompanylrKOgty^a^&s^b^eeri''.ievcIs of the fair value hierarchy at the end of the reporting period during which the change has occurred. UQ l //* //

3 Material accounting policies

This note provides a list of the material accounting policies adopted in the preparation of Standalone Financial Statement. These policies have been consistently applied to all the years.

3.1 New and amended standards adopted by the company

The Company has applied the following amendments to Ind AS for the first time for their latest annual reporting period commencing from April 1,2023:

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Amendment Rules, 2023 dated March 31,2023 to amend the following Ind AS which are effective from April 1,2023.

(i) Definition of Accounting Estimates - Amendments to Ind AS 8

The amendments clarify the distinction between changes in accounting estimates and changes in accounting policies and the correction of errors. It has also been clarified how entities use measurement techniques and inputs to develop accounting estimates.

The amendments are effective for annual reporting periods beginning on or after April 1,2023 and apply to changes in accounting policies and changes in accounting estimates that occur on or after the start of that period.

The amendments do not have any impact on the Companyâs financial statements.

(ii) Disclosure of Accounting Policies - Amendments to Ind AS 1

The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their âMaterialâ accounting policies with a requirement to disclose their âmaterialâ accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures.

The amendments to Ind AS 1 are applicable for annual periods beginning on or after 1 April 2023. Consequential amendments have been made in Ind AS 10 The Company has modified their accounting policy information disclosures to ensure consistency with the amended requirements

(iii) Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to Ind AS 12

The amendments narrow the scope of the initial recognition exception under Ind AS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences.

The amendments should be applied to transactions that occur on or after the beginning of the earliest comparative period presented. In addition, at the beginning of the earliest comparative period presented, a deferred tax asset (provided that sufficient taxable profit is available) and a deferred tax liability should also be recognised for all deductible and taxable temporary differences associated with leases and decommissioning obligations. Consequential amendments have been made in Ind AS 101. The amendments to Ind AS 12 are applicable for annual periods beginning on or after 1 April 2023.

The amendments do not have any impact on the Companyâs financial statements.

3.2 Current versus non-current classification

The Company presents assets and liabilities in the standalone balance sheet based on currcnt/non-current classification.

An asset is classified current when it is:

(a) Expected to be realised or intended to be sold or consumed in the normal operating cycle:

(b) Held primarily for the purpose of trading:

(d) 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 classified current when:

(a) It is expected to be settled in the normal operating cycle;

(b) It is held primarily for the purpose of trading;

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

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

3.3 Financial instruments

(a) Recognition and initial measurement

Trade receivables and investment in debt securities issued are initially recognised when they are originated. All other financial assets and financial liabilities are initially recognised when the Company becomes a party to the contractual provisions of the instrument.

A financial asset or financial liability is initially measured at fair value plus, for an item not at fair value through profit and loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue.

_p .. . ,

(b) Classification and subsequent measurement

Financial assets

On initial recognition, a financial asset is classified as measured at

- amortised cost;

- Fair value through profit or loss (FVTPL) or Fair value through other comprehensive income (''FVOCI'')

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Company changes its business model for managing financial assets.

A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:

- the asset is held within a business model whose objective is to hold assets to collect contractual cash flows; and

- the contractual terms of the financial asset give rise on specified dates to cash flows that arc solely payments of principal and interest on the principal amount outstanding.

A financial asset is measured at fair value through other comprehensive income (''FVOCT) if it meets both of the following conditions and is not designated as at FVTPL:

- the asset is held within a business model whose objective is to hold assets to collect contractual cash flows and cash flows from sales; and

- 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.

All financial assets not classified as measured at amortised cost as described above are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

Equity instruments are always classified fair value through profit and loss, except in cases where the Company has elected an irrevocable option of designating the same as fair value through other comprehensive income (FVOCI).

Financial assets: Subsequent measurement and gains and losses Financial assets at FVTPL :

These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, arc recognised in profit or loss. Financial assets at amortised cost:

These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss.

Financial assets at FVOCI :

These assets are subsequently measured at fair value through other comprehensive income i.e.. subsequent changes in fair value of the instrument is recognised in other comprehensive income. Any dividend received on such instruments are recognised in of profit or loss.

Financial liabilities: Classification, subsequent measurement and gains and losses

Financial liabilities are classified and measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset.

If the Company enters into transactions whereby it transfers assets recognised on its balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not derecognised.

Financial liabilities:

The Company derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire.

The Company also derecognises a financial liability when its terms are modified and the cash Hows under the modified terms are substantially different. In this case, a new financial liability based on the modified terms is recognised at fair value. The difference between the carrying amount of

(d) Impairment of financial assets

Loss allowance for expected credit losses is recognised for financial assets measured at amortised cost and fair value through other comprehensive income.

The Company recognises life time expected credit losses for all trade receivables that do not constitute a financing transaction.

For financial assets (apart from trade receivables that do not constitute of financing transaction) whose credit risk hasj^ndgnifiGaptly increased since initial recognition, loss allowance equal to twelve months expected credit losses is recognised. Loss allowance: eqa^l^Hnelifetime.^xpccted credit losses is recognised if the credit risk of the financial asset has significantly increased since initial recognition. //\ \

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(e) Offsetting

Financial assets and financial liabilities are offset and the net is amount presented in the balance sheet when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.

3.4 Revenue from contract with customers

Revenue from contracts with customers is recognised when control of the services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services. Such revenue is recognised upon the Companyâs performance of its contractual obligations and on satisfying all the following conditions:

(1) Parties to the contract have approved the contract and undertaken to perform their respective obligations;

(2) Such contract has specified the respective rights and obligations of the parties in connection with the transfer of goods or rendering of services (hereinafter the âTransferâ);

(3) Such contract contains specific payment terms in relation to the Transfer;

(4) Such contract has a commercial nature, namely, it will change the risk, time distribution or amount of the Companyâs future cash flow;

(5) The Company is likely to recover the consideration it is entitled to for the Transfer to customers.

Revenue is recognised when no significant uncertainty exists regarding the collection of the consideration. The amount recognised as revenue is exclusive of all indirect taxes and net of returns and discounts.

(a) Rendering of services

The Company generates revenue from services to its customers such as providing freight and other transportation services, warehousing contracts ranging from a few months to a few years. Certain accessorial services may be provided to customers under their transportation contracts, such as unloading and other incidental services. The Companyâs performance obligations are satisfied over time as customers simultaneously receive and consume the benefits of the Companyâs services. The contracts contain a single performance obligation, as the distinct services provided remain substantially the same over time and possess the same pattern of transfer. The transaction price is based on the consideration specified in the contract with the customer and contains fixed and variable consideration. In general, the fixed component of a contract represents amounts for facility and equipment costs incurred to satisfy the performance obligation and is recognized over the term of the contract.

In the case of transportation services, performance obligation is created when a customer under a transportation contract submits a shipment note for the transport of goods from origin to destination. These performance obligations are satisfied over the period as the shipments move from origin to destination and revenue is recognized proportionally as a shipment moves and the related costs are recognized as incurred. Performance obligations are short-term, with transit days less than one week. Generally, customers are billed upon completion of shipment, and remit payment according to approved payment terms. The Company recognizes revenue on a net basis when the Company does not control the specific services.

(b) Contract balances Contract assets

A contract asset is initially recognised for revenue earned from inspection services because the receipt of consideration is conditional on successful completion of the inspection. Upon completion of the inspection, the amount recognised as contract assets is reclassified to trade receivables.

Trade receivables

A receivable is recognised if an amount of consideration that is unconditional is due from the customer (i.c., only the passage of time is required before payment of the consideration is due). Refer to accounting policies for financial assets for initial and subsequent measurements.

Contract liabilities

A contract liability is recognised if a payment is received or a payment is due (whichever is earlier) from a customer before the Company transfers the related goods or services. Contract liabilities are recognised as revenue when the Company performs under the contract (i.e., transfers control of the related goods or services to the customer).

3.5 Government grants

Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. When the grant relates to an expense item, it is recognised as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, it is recognised as income in equal amounts over the expected useful life of the related asset.

3.6 Income Taxes Current tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date in the countries where the Company or companies within the Company operates and generates taxable income.

Current tax relating to items recognised directly in equity is recognised in equity and not in the statement of profit or loss. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations arc subject to interpretation and establishes provisions where appropriate.

Deferred tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities, and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax liabilities are recognised for all taxable temporary differences.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unj^^^esseS^O^red tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible tcmno^try^xwerences, amW^gj&arry forward of unused tax credits and unused tax losses can be utilised. j ( . ₇>\ \ L\ \

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The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longcr^pr-obabie¹ thqft^lcjept*taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets arc re-as&^dvat eachVeporTTn^^dAnd are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recov^&^s^ -â

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

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

The Company offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority.

3.7 Foreign currencies

Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (''the functional currency''). The Company''s financial statements are presented in Indian Rupees, which is the Companyâs functional and presentation currency.

Transactions and balances

Transactions in foreign currencies are initially recorded by the Company in its functional currency spot rates at the date the transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date. Differences arising on settlement or translation of monetary items are recognised in profit or loss unless they relates to the qualifying cash flow hedges.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rales at the dates of the initial transactions.

In determining the spot exchange rate to use on initial recognition of the related asset, expense or income (or part of it) on the derecognition of a nonmonetary asset or non-monetary liability relating to advance consideration, the date of the transaction is the date on which the Company initially recognises the non-monetary asset or non-monetary liability arising from the advance consideration. If there arc multiple payments or receipts in advance, the

3.8 Property, plant and equipment

Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Construction in progress is stated at cost, net of accumulated impairment losses, if any.

Cost of Property, plant and equipment includes the costs directly attributable to the acquisition or constructions of assets, or replacing parts of the plant and equipment and borrowing costs for qualifying assets, if the recognition criteria are met. When significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives.

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with them will flow to the Company and the cost of the item can measured reliably. All other repair and maintenance costs are recognised in profit or loss as incurred.

Depreciation is provided on written down value method in the manner and on the basis of useful lives prescribed in Schedule II to the Companies Act, 2013. Depreciation on addition / deduction is calculated pro-rata from/to the month of addition / deduction.

Advance given for acquisition / construction of Property, Plant and Equipment and Intangible assets are presented as "Capital Advance" under Other Non Current Assets.

The assets in the process of construction or acquisition but not ready for management''s intended use are included under Capital Work in progress.

An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal (i.e., at the date the recipient obtains control) or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the standalone statement of profit or loss when the asset is derecognised.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted The estimated useful lives of the assets considered by the Company is stated hereunder, which is in line with useful lives specified under schedule II of the Companies Act, 2013

Assets Description	Useful Life in Years
Office Building	60
Heavy Equipment	15
Heavy Vehicles	6
Office Appliances	5
Computer	3
Other Machinery	15
Motor Cycle,Scooter	10
Motor Vehicles	8
Furniture	10
Electrical Equipments	10

3.9 Leases

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

The Company as a lessee

The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

Right-of-use assets

The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost ol right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of*the assets

If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.

Lease liabilities

At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate.

Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments.

The Company''s lease obligations are presented on the face of the Standalone Balance Sheet.

Short-term leases and leases of low value assets

The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease term of 12 months or less from the commencement date). It also applies the lease of low-value assets recognition exemption to leases of assets that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.

The Company as a lessor

Leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms and is included in revenue in the statement of profit or loss due to its operating nature. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents arc recognised as revenue in the period in which they are earned.

3.10 Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to gel ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs arc expensed in the period in which they occur. Borrowing costs consist of interest and other costs that the Company incurs in connection with the borrowing of funds.

3.11 Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. Subsequent to initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. Internally generated intangibles, excluding capitalised development costs, are not capitalised and the related expenditure is reflected in profit or loss in the period in which the expenditure is incurred.

Intangible assets are amortised over the useful economic life (5 years for computer software) and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period.

An intangible asset is derecognised upon disposal (i.e., at the date the recipient obtains control) or when no future economic benefits are expected from its use or disposal. Any gain or loss arising upon derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit or loss.

3.12 Impairment of assets (other than financial assets)

At each balance sheet date, the Company reviews the carrying value of its property, plant and equipment and intangible assets to determine whether there is any indication that the carrying value of those assets may not be recoverable through continuing use. If any such indication exists, the recoverable amount of the asset is reviewed in order to determine the extent of impairment loss, if any. Where the asset does not generate cash flows that are independent from other assets, the Company estimates the recoverable amount of the cash generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. 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 which the estimates of future cash flows have not been adjusted. An impairment loss is recognised in the statement of profit and loss as and when the carrying value of an asset exceeds its recoverable amount.

Where an impairment loss subsequently reverses, the carrying value of the asset (or cash generating unit) is increased to the revised estimate of its recoverable amount so that the increased carrying value does not exceed the carrying value that would have been determined had no impairment loss been recognised for the asset (or cash generating unit) in prior years. A reversal of an impairment loss is recognised in the statement of profit and loss

3.13 Provisions and contingencies â¢ ^r - â¢

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result oLa^pSsUp^nt^iLjs probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate c^^^^^Lof-th^kp^u^i^f the obligation.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax raiy^ljat relief, when aphr^Vipte, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recod/iiscd a*la,fiSgctee\]p Disclosure for contingent liabilities is made when there is a possible obligation arising from past evehyrnLâ e^Â«Wi(e^Ul^Awi/l be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the controKoi-O^e C ompal^j or a Resent obligation that arises from Dast events where it is either not probable that an outflow of resources embodying economic benelifKXvjjLbcjxquirejwset)!^or a reliable estimate ol

3.14 Cash and short-term deposits

Cash and short-term deposits in the statement of financial position comprise cash at banks and on hand and short-term highly liquid deposits with a maturity of three months or less, that are readily convertible to a known amount of cash and subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above.

3.15 Employee benefits Short-term employee benefits

Liabilities for short-term employee 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 recognised in respect of employeesâ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee related liabilities under other financial liabilities in balance sheet. Post - employment benefits

The liability or asset recognised in the Balance Sheet in respect of defined benefit plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually at year end by actuaries using the projected unit credit method.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in âEmployee Benefits Expenseâ in the Statement of Profit and Loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. These are included in retained earnings in the statement of changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligations resulting from plan amendments or curtailments are recognised immediately in profit or loss as past service cost.

Defined contribution plan

The Company pays provident fund contributions to publicly administered provident fund as per local regulations. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognised as employee benefit expense when they are due. Prepaid contributions arc recognised as an asset to the extent that a cash refund or a reduction in the future

3.16 Earnings per share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing:

â¢ the profit attributable to equity shareholders of the Company

â¢ by the weighted average number of equity shares outstanding during the financial year

(ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

â¢ the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

â¢ the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity

3.17 Contributed equity

Equity shares are classified as equity. Incremental cost directly attributable to the issue of new shares or options are shown in equity as reduction, net of lax from the proceeds.

3.18 Cash dividend

The Company recognises a liability to pay a dividend when the distribution is authorised, and the distribution is no longer at the discretion of the Company. As per the corporate laws of India, a distribution is authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity.

3.19 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (''CODM'').The CODM is responsible for allocating resources and assessing performance of the operating segments and has been identified as the Board of Directors of the Company.

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