2. Material accounting policies

2.1 Basis of preparation

The Standalone Financial Statements have been prepared in
accordance with the Indian Accounting Standards ('Ind AS')
notified under the Companies (Indian Accounting Standards)
(Amendment) Rules, 2015 (as amended) under the provisions
of the Act and Presentation requirements of the Division II of the
Schedule III to the Act (Ind AS Compliant Schedule III).

These financial statements have been prepared on a historical
cost basis except for: certain financial assets and liabilities
which have been measured at fair value (refer accounting
policy regarding financial instruments).

The financial statements are presented in Indian Rupees (INR)
and all values are rounded to the rupees in Lakhs except when
otherwise indicated.

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

- Held primarily for the purpose of trading

- 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

All other assets are classified as non-current.

A liability is treated as current when it is:

- Expected to be settled in normal operating cycle

- Held primarily for the purpose of trading

- Due to be 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

All other liabilities are classified as non-current.

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.

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

.2 Summary of material accounting policies

a. Investment in Subsidiary and joint ventures: A subsidiary
is an entity that is controlled by another entity. A joint
venture is a type of joint arrangement whereby the parties
that have joint control of the arrangement have rights to
the net assets of the joint venture. These investments are
accounted at cost of acquisition less impairment, if any is
recognised through the Profit and Loss Account.

b. Foreign currencies

The Company's Standalone financial statements are
presented in INR, which is also the Company's functional
currency.

Transaction and balances:

Transactions in foreign currencies are initially recorded by
the Company at 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.

Exchange differences arising on translation / settlement
of foreign currency monetary items are recognised as
income or expenses in the period in which they arise.

c. Revenue recognition

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.

Container freight station income

Income from Container Handling is recognised on
completion of performance obligation as per the contract
with customer.

Income from Ground Rent is recognised for the period the
container is lying in the Container Freight Station as per
the terms of arrangement with the customers.

Income from auction sales is recognised when the
Company auctions long standing cargo that has not
been cleared by customs. Revenue and expenses for
Auction sales are recognised when auction is completed
after obtaining necessary approvals from appropriate
authorities. Auction sales include recovery of the cost
incurred in conducting auctions, accrued ground rent and
handling charges relating to long-standing cargo.

Interest income is recognised on time proportion basis.
Interest income is included in finance income in the
Statement of Profit and Loss.

Dividend income is recognised when the Company's right
to receive the payment is established i.e. the date on
which shareholders approve the dividend.

Business support charges are recognized as and when the
related services are rendered.

d. Contract Balances

Contract balances include trade receivables, contract
assets and contract liabilities.

Trade receivables

A receivable represents the Company's right to an
amount of consideration that is unconditional (i.e., only
the passage of time is required before payment of the
consideration is due). Trade receivables are separately
disclosed in the financial statements.

Contract assets

A contract asset is the right to consideration in exchange
for goods or services transferred to the customer. If the
Company performs by transferring services to a customer
before the customer pays consideration or before
payment is due, a contract asset is recognised for the
earned consideration that is conditional.

Contract asset includes the costs deferred for Container
freight stations operations relating to import handling and
transport activities where the Company's performance
obligation is yet to be completed.

Contract liabilities

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

e. Taxes

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

Current and deferred tax is recognised in the statement of
profit and loss, except to the extent that it relates to items
recognised in other comprehensive income or directly
in equity. In this case, the tax is also recognised in other
comprehensive income or directly in equity, respectively.

Current Income tax

Current income tax assets and liabilities are measured
at the amount expected to be recovered from or paid to
the taxation authorities in accordance with the applicable
tax laws. The tax rates and tax laws used to compute
the amount are those that are enacted or substantively
enacted, at the reporting date.

Current income tax relating to items recognised
outside the Statement of Profit and Loss is recognised
outside the Statement of Profit and Loss (either in other
comprehensive income or in equity). Current tax items
are recognised in correlation to the underlying transaction
either in OCI or directly in equity. 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 liability approach 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, except:

In respect of taxable temporary differences associated
with investments in subsidiary and interests in joint
ventures, when the timing of the reversal of the temporary
differences can be controlled and it is probable that the
temporary differences will not reverse in the foreseeable
future.

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 re¬
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
statement of profit and loss is recognised outside
statement of profit and loss (either in other comprehensive
income or in equity). Deferred tax items are recognised
in correlation to the underlying transaction either in OCI
(Other Comprehensive Income) 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 on
either the same taxable entity or different taxable entities
which intend either to settle current tax liabilities and
assets on a net basis, or to realise the assets and settle the
liabilities simultaneously, in each future period in which
significant amounts of deferred tax liabilities or assets are
expected to be settled or recovered.

Minimum Alternate Tax

According to Section 115JAA of the Income Tax Act, 1961,
Minimum Alternative Tax ('MAT') paid over and above the
normal income tax in a subject year is eligible for carry
forward for fifteen succeeding assessment years for set¬
off against normal income tax liability. The MAT credit
asset is assessed against the normal income tax during
the specified period.

Minimum alternate tax (MAT) paid in a year is charged
to the statement of profit and loss as current tax for the
year. The deferred tax asset is recognised for MAT credit
available only to the extent that it is probable that the
concerned Company will pay normal income tax during
the specified period, i.e., the period for which MAT credit
is allowed to be carried forward. In the year in which the
Company recognizes MAT credit as an asset, it is created
by way of credit to the statement of profit and loss and
shown as part of deferred tax asset. The Company reviews
the “MAT credit entitlement” asset at each reporting date
and writes down the asset to the extent that it is no longer
probable that it will pay normal tax during the specified
period.

f. Property, plant and equipment

Freehold land is carried at historical cost. Plant and
Equipment are stated at cost less accumulated
depreciation / amortisation and impairment loss, if
any. Cost comprises the purchase price and any cost

attributable to bringing the asset to its working condition
for its intended use. Borrowing cost relating to acquisition
of tangible assets which take substantial period of time
to get ready for its intended use are also included to the
extent they relate to the period till such assets are ready to
be put to use. Capital work-in-progress is stated at cost.

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. Likewise, when a major inspection is performed, its
cost is recognised in the carrying amount of the plant and
equipment as a replacement if the recognition criteria
are satisfied. All other repair and maintenance costs are
recognised in Statement of Profit and Loss as incurred.

Depreciation

Depreciation is calculated on a straight-line basis over
the estimated useful lives of the assets as follows :

The Company, based on internal assessment and
management estimate, depreciates certain items of
Heavy Equipment and Office Equipment over estimated
useful lives which are different from the useful life
prescribed in Schedule II to the Companies Act, 2013. The
management believes that these estimated useful lives
are realistic and reflect fair approximation of the period
over which the assets are likely to be used.

An item of property, plant and equipment and any
significant part initially recognised is derecognised
upon disposal 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 statement
of profit and 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.

g. Intangible assets

Intangible assets acquired separately are measured on
initial recognition at cost. The cost of intangible assets
acquired in a business combination is their fair value

at the date of acquisition. Following 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.

Amortisation

Intangible assets with finite lives are amortised over
the useful economic life 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. Changes in the expected useful life or
the expected pattern of consumption of future economic
benefits embodied in the asset are considered to modify
the amortisation period or method, as appropriate and
are treated as changes in accounting estimates. The
amortisation expense on intangible assets with finite lives
is recognised in the Statement of Profit and Loss unless
such expenditure forms part of carrying value of another
asset.

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 and loss when the
asset is derecognised.

h. Impairment of Non-Financial Assets

The Company assesses, at each reporting date, whether
there is an indication that an asset may be impaired. If
any indication exists, or when annual impairment testing
for an asset is required, the Company estimates the
asset's recoverable amount. An asset's recoverable
amount is the higher of an asset's or cash-generating
unit's (CGU) fair value less costs of disposal and its
value in use. Recoverable amount is determined for an
individual asset, unless the asset does not generate cash
inflows that are largely independent of those from other
assets or Company of assets. When the carrying amount
of an asset or CGU exceeds its recoverable amount, the
asset is considered impaired and is written down to its
recoverable amount.

In assessing the value in use, the estimated future cash
flows are discounted to their present value using a post¬
tax discount rate that reflects current market assessments
of the time value of money and the risks specific to the
asset. In determining fair value less costs of disposal,
recent market transactions are taken into account. If
no such transactions can be identified, an appropriate
valuation model is used.

The Company bases its impairment calculation on
detailed budgets and forecast calculations, which are
prepared separately for each of the Company's CGUs to
which the individual assets are allocated. These budgets
and forecast calculations generally cover a period of
five years. For longer periods, a long-term growth rate is
calculated and applied to project future cash flows after
the fifth year.

After impairment, depreciation is provided on the revised
carrying amount of the asset over its remaining useful life.

An assessment is made at each reporting date to
determine whether there is an indication that previously
recognised impairment losses no longer exist or have
decreased. If such indication exists, the Company
estimates the asset's or CGU's recoverable amount. A
previously recognised impairment loss is reversed only
if there has been a change in the assumptions used to
determine the asset's recoverable amount since the last
impairment loss was recognised. The reversal is limited
so that the carrying amount of the asset exceeds neither
its recoverable amount nor the carrying amount that
would have been determined, net of depreciation, had
no impairment loss been recognised for the asset in prior
years. Such reversal is recognised in the Statement of Profit
and Loss unless the asset is carried at a revalued amount,
in which case, the reversal is treated as a revaluation
increase.

i. Borrowing costs

Borrowing costs includes interest and amortisation of
ancillary cost over the period of loans which are incurred
in connection with arrangements of borrowings.

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 an entity incurs in connection
with the borrowing of funds.

j. 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.

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.

i) 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. The Company does not have any Right-of-
use assets which are depreciated on a straight-line
basis for the period shorter of the lease term. The
right-of- use assets are also subject to impairment.
Refer to the accounting policies in section for
Impairment of non-financial assets.

ii) Lease Liabilities

The Company recognises lease liabilities measured
at the present value of lease payments to be made
over the balance lease term. 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 transition 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 (e.g., changes to
future payments resulting from a change in an index
or rate used to determine such lease payments).

iii) 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 date of transition. It also applies the
lease of low-value assets recognition exemption to
leases that are considered to be low value. Lease
payments on short-term leases and leases of low-
value assets are recognised as expense over the
lease term.