1) Corporate information/background:
AVG Logistics Limited ('the Company') was incorporated
on January 25, 2010 under the Companies Act,
1956. The Company is public limited Company
incorporated and domiciled in India and its CIN is
L60200DL2010PLC198327. The main objects of the
Company are transportation of goods including
warehousing and cold chain facility, warehousing and
other incidental activities there to. The Company is
also involved in trading business.The address of its
corporate office is 102, 1st Floor, Jhilmil Metro Station
Complex, Delhi - 110095. The Board of Directors
approved the standalone financial statements for the
year ended March 31,2025 and authorised for issue on
May 30, 2025.
2) Statement of compliance:
These standalone financial statements have been
prepared in accordance with the Indian Accounting
Standards (referred to as "Ind AS") prescribed under
section 133 of the Companies Act, 2013 read with the
Companies (Indian Accounting Standards) Rules as
amended from time to time.
3) Basis of preparation:
The standalone financial statements have been
prepared on accrual basis and the historical cost basis
as a going concern except for financial instruments
that are measured at fair values or at amortised cost,
wherever applicable, at the end of each reporting
period, as explained in the accounting policies below.
Historical cost is generally based on the fair value of
the consideration given in exchange for goods and
services.
Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at the
measurement date, regardless of whether that price
is directly observable or estimated using another
valuation technique. In estimating the fair value
of an asset or a liability, the Company takes into
account the characteristics of the asset or liability if
market participants would take those characteristics
into account when pricing the asset or liability at the
measurement date. Fair value for measurement and/
or disclosure purposes in this standalone financial
statements is determined on such basis, except for
share-based payment transactions that are within
the scope of Ind AS 102, leasing transactions that are
within the scope of Ind AS 116, and measurements
that have some similarities to fair value but are not fair
value, such as net realisable value in Ind AS 2 or value
in use in Ind AS 36.
In addition, for financial reporting purposes, fair value
measurements are categorised into Level 1 , 2 or 3
based on the degree to which the inputs to the fair value
measurements are observable and the significance of
the inputs to the fair value measurement in its entirety,
which are described as follows:
* Level 1 inputs are quoted prices (unadjusted) in active
markets for identical assets or liabilities that the entity
can access at the measurement date;
* Level 2 inputs are inputs, other than quoted prices
included within Level 1, that are observable for the
asset or liability, either directly or indirectly; and
* Level 3 inputs are unobservable inputs for the asset
or liability.
The standalone financial statements are prepared in
Indian Rupee (INR) and denominated in lakhs.
The material accounting policy information related to
preparation of the standalone financial statements
have been discussed in the respective notes.
(a) Inventories:
Inventories are valued at lower of cost and net
realisable value. The cost is determined on first in first
out basis and includes all charges incurred for bringing
the inventories to their present condition and location.
Net realisable value is the estimated selling price in
the ordinary course of business, less estimated cost
necessary to make sale.
(b) Revenue recognition:
Revenue from contracts with customers is recognised
when control of the goods or 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 goods or services. The
Company has generally concluded that it is the principal
in its revenue arrangements because it typically
controls the goods or services before transferring
them to the customer.
(c) Rendering of services:
Incomes from logistics services rendered are recognised
on the completion of the services as per the terms of
contract. Revenue is recognized at the fair value of
consideration received or receivable, to the extent that
it is probable that the economic benefits will flow to the
Company and the revenue can be reliably measured.
(d) Warehouse income:
Warehouse rental income is recognised on a straight¬
line basis over the period of the lease agreements.
(e) Other income:
Dividend income from investments is recognised when
the right to receive payment has been established
(provided that it is probable that the economic benefits
will flow to the Company and the amount of income
can be measured reliably).
Interest income from a financial asset is recognised
when it is probable that the economic benefits will
flow to the Company and the amount of income can be
measured reliably. Interest income is accrued on a time
basis, by reference to the principal outstanding and at
the effective interest rate applicable, which is the rate
that exactly discounts estimated future cash receipts
through the expected life of the financial asset to that
asset's net carrying amount on initial recognition.
(f) Leasing:
At inception of a contract, the Company assesses
whether a contract is, or contains, a lease. A contract
is, or contains, a lease if the contract conveys the right
to control the use of an identified asset for a period of
time in exchange for consideration. To assess whether
a contract conveys the right to control the use of an
identified asset, the Company assesses whether:
* The contract involves the use of an identified asset -
this may be specified explicitly or implicitly and should
be physically distinct or represent substantially all of
the capacity of a physically distinct asset. If the lessor
has a substantive substitution right, then the asset is
not identified.
* The Company has the right to obtain substantially
all of the economic benefits from use of the asset
throughout the period of use; and
* The Company as a lessee has the right to direct the
use of the asset. The Company has this right when it
has the decision-making rights that are most relevant
to changing how and for what purpose the asset is
used. In rare cases where the decision about how and
for what purpose the asset is used is predetermined,
the Company has the right to direct the use of the asset
if either:
a) the Company as a lessee has the right to operate
the asset; or
b) the Company as a lessee designed the asset
in a way that predetermines how and for what
purpose it will be used.
This policy is applied to contracts entered into, or
modified, on or after 01 April 2021.
As a lessee
The Company recognises a right-of-use asset and a
lease liability at the lease commencement date. The
right-of-use asset is initially measured at cost, which
comprises the initial amount of the lease liability
adjusted for any lease payments made at or before
the commencement date, plus any initial direct
costs incurred and an estimate of costs to dismantle
and remove the underlying asset or to restore the
underlying asset or the site on which it is located, less
any lease incentives received.
The right-of-use assets are subsequently depreciated
using the straight-line method from the commencement
date to the earlier of the end of the useful life of the
right-of-use asset or the end of the lease term. In
addition, the right-of-use asset is periodically reduced
by impairment losses, if any, and adjusted for certain
re-measurements of the lease liability.
The lease liability is initially measured at amortised cost
at the present value of the lease payments that are not
paid at the commencement date, discounted using
the interest rate implicit in the lease or, if that rate
cannot be readily determined, using the incremental
borrowing rate. The ROU of assets has been created
on the basis of lock in period of lease agreement more
than 12 months.
It is re -measured when there is a change in future lease
payments arising from a change in an index or rate,
if there is a change in the Company's estimate of the
amount expected to be payable under a residual value
guarantee, or if the Company changes its assessment
of whether it will exercise a purchase, extension or
termination option.
When the lease liability is remeasured in this way, a
corresponding adjustment is made to the carrying
amount of the right-of-use asset, or is recorded in
profit or loss if the carrying amount of the right-of-use
asset has been reduced to zero.
Short-term leases and leases of low-value assets
The Company has elected not to recognise right-of-use
assets and lease liabilities for short-term leases that
have a lease term of 12 months or less and leases of
low-value assets. The Company recognises the lease
payments associated with these leases as an expense
on a straight-line basis over the lease term.
As a lessor
When the Company acts as a lessor, it determines at
lease inception whether each lease is a finance lease or
an operating lease.
Whenever the terms of the lease transfer substantially
all the risks and rewards of ownership to the lessee,
the contract is classified as a finance lease. All other
leases are classified as operating leases.
When the Company is an intermediate lessor, it
accounts for its interests in the head lease and the
sublease separately. The sublease is classified as a
finance or operating lease by reference to the right-of-
use asset arising from the head lease.
The Company recognises lease payments received
under operating leases as income on a straight- line
basis over the lease term as part of 'other income'.
As a lessee
Operating leases
The Company has elected not to apply the requirements
of Ind AS 116 to leases which are expiring within 12
months from the date of transition by class of asset
and leases for which the underlying asset is of low
value on a lease-by-lease basis. The Company has also
used the practical expedient provided by the standard
when applying Ind AS 116 to leases previously
classified as operating leases under Ind AS 17 and
therefore, has not reassessed whether a contract, is or
contains a lease, at the date of initial application, relied
on its assessment of whether leases are onerous,
applying Ind AS 37 immediately before the date of
initial application as an alternative to performing an
impairment review, excluded initial direct costs from
measuring the right of use asset at the date of initial
application and used hindsight when determining the
lease term if the contract contains options to extend or
terminate the lease. Single discount rate to a portfolio
of leases with similar characteristics.
On application of Ind AS 116, the nature of expenses
has changed from lease rent in previous periods to
depreciation cost for the right-to-use asset, and finance
cost for interest accrued on lease liability.
In case of sub-leases
I. When the intermediate lessor enters into a
sublease, the intermediate lessor (other than
operating lease):
1. Derecognises the ROU asset relating to the
head lease that it transfer to the sublessee and
recognises the net investment in the sublease.
2. Recognises any difference between the ROU asset
and the net investment in the sublease in profit or
loss.
3. Retains the lease liability relating to the head lease
in its balance sheet, which represent the lease
payments owned to the head lessor.
During the term of the sublease, the intermediate
lessor recognises both
- Finance income on the sublease; and
- Interest expenses on the head lease.
II. When the intermediate lessor enters into a
sublease, the intermediate lessor (operating
lease):
- There would be same treatment as in case of
finance lease.
(g) Foreign currencies:
Initial recognition
In preparing the financial statements of the Company,
transactions in currencies other than the entity's
functional currency of Indian Rupees (foreign
currencies) are recognised at the rates of exchange
prevailing at the dates of the transactions.
Conversion:
(a) Foreign currency monetary assets and liabilities
at the year-end are translated at the year-end
exchange rates and the resultant exchange
differences are recognised in the Statement of
Profit and Loss.
(b) Non-monetary items, if any are measured in
terms of historical cost denominated in a foreign
currency, are reported using the exchange rate at
the date of the transaction. Non-monetary items,
which are measured at fair value or other similar
valuation denominated in a foreign currency, are
translated using the exchange rate at the date
when such value was determined.
Exchange differences:
The Company accounts for exchange differences
arising on translation/settlement of foreign currency
monetary items as below:
a. Realized gains and losses on settlement of foreign
currency transactions are recognised in the
Standalone Statement of Profit and Loss."
b. Foreign currency monetary assets and liabilities
at the year-end are translated at the year-end
exchange rates and the resultant exchange
differences are recognised in the Standalone
Statement of Profit and Loss"
(h) Borrowing costs:
Borrowing Cost that are attributable to the acquisition
or construction of qualifying assets are capitalised
as part of the cost of such assets. A qualifying asset
is one that necessarily takes a substantial period of
time to get ready for its intended use or sale. All other
borrowing costs are charged to revenue in the year
of incurrence. Borrowing costs consist of interest and
other costs that an entity incurs in connection with
the borrowing of funds. Borrowing cost also includes
exchange differences to the extent regarded as an
adjustment to the borrowing costs.
(i) Employee benefits:
Retirement benefit costs and termination benefits
i. Defined contribution plan:
Company's contributions paid/payable during the
year to the superannuation fund, ESIC, provident
fund and labour welfare fund are recognised in
the Standalone Statement of Profit and Loss.
ii. Defined benefits plan:
For defined retirement benefit plans, the cost
of providing benefits is determined using the
projected unit credit method, with actuarial
valuations being carried out at the end of each
annual reporting period. Remeasurement,
comprising actuarial gains and losses, the effect
of the changes to the asset ceiling (if applicable)
and the return on plan assets (excluding net
interest), is reflected immediately in the Balance
Sheet with a charge or credit recognised in Other
Comprehensive Income in the period in which
they occur. Remeasurement recognised in Other
Comprehensive Income is reflected immediately
in retained earnings and is not reclassified to
profit or loss. Past service cost is recognised in
profit or loss in the period of a plan amendment.
Net interest is calculated by applying the discount
rate at the beginning of the period to the net
defined benefit liability or asset. Defined benefit
costs are categorised as follows.
a. Service cost (including current service cost,
past service cost, as well as gains and losses on
curtailments and settlements);"
b. Net interest expense or income; and"
c. Remeasurement.
The Company presents the first two components of
defined benefit costs in profit or loss in the line item
'Employee benefits expense'. Curtailment gains and
losses are accounted for as past service costs.
The retirement benefit obligation recognised in the
Balance Sheet represents the actual deficit or surplus
in the Company's defined benefit plans. Any surplus
resulting from this calculation is limited to the present
value of any economic benefits available in the form
of refunds from the plans or reductions in future
contributions to the plans.
Short-term and other long-term employee benefits
A liability is recognised for benefits accruing to
employees in respect of wages and salaries.
Liabilities recognised in respect of short-term employee
benefits are measured at the undiscounted amount of
the benefits expected to be paid in exchange for the
related service.
Liabilities recognised in respect of other long-term
employee benefits are measured at the present value
of the estimated future cash outflows expected to be
made by the Company in respect of services provided
by employees up to the reporting date.
Compensated Absences
Accumulated compensated absences, which are
availed or encashed within 12 months from the end
of the year end are treated as short term employee
benefits. The obligation towards the same is measured
at the cost of accumulating compensated absences
as the additional amount to be paid as a result of the
unused entitlement as at the year end.
(j) Taxation:
I ncome tax expense represents the sum of the tax
currently payable and deferred tax.
Current tax:
The tax currently payable is based on taxable profit
for the year. Taxable profit differs from 'Profit before
tax' as reported in the Statement of Profit and Loss
because of items of income or expense that are
taxable or deductible in other years and items that are
never taxable or deductible. The Company's current
tax is calculated using tax rates that have been enacted
or substantively enacted by the end of the reporting
period.
Deferred tax:
Deferred tax is recognised on temporary differences
between the carrying amounts of assets and liabilities
in the financial statements and the corresponding
tax bases used in the computation of taxable profit.
Deferred tax liabilities are generally recognised for all
taxable temporary differences. Deferred tax assets
are generally recognised for all deductible temporary
differences to the extent that it is probable that taxable
profits will be available against which those deductible
temporary differences can be utilised. Such deferred
tax assets and liabilities are not recognised if the
temporary difference arises from the initial recognition
(other than in a business combination) of assets and
liabilities in a transaction that affects neither the
taxable profit nor the accounting profit.
Deferred tax liabilities are recognised for taxable
temporary differences associated with investments
in subsidiaries and associates, and interests in joint
ventures, except where the Company is able to control
the reversal of the temporary difference and it is
probable that the temporary difference will not reverse
in the foreseeable future. Deferred tax assets arising
from deductible temporary differences associated with
such investments and interests are only recognised to
the extent that it is probable that there will be sufficient
taxable profits against which to utilise the benefits of
the temporary differences and they are expected to
reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed
at the end of each reporting period and reduced to
the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of
the asset to be recovered.
Deferred tax liabilities and assets are measured at the
tax rates that are expected to apply in the period in
which the liability is settled or the asset realised, based
on tax rates (and tax laws) that have been enacted
or substantively enacted by the end of the reporting
period.
The measurement of deferred tax liabilities and assets
reflects the tax consequences that would follow from
the manner in which the Company expects, at the end
of the reporting period, to recover or settle the carrying
amount of its assets and liabilities.
Current and deferred tax for the year:
Current and deferred tax are recognised in profit
or loss, except when they relate to items that are
recognised in Other Comprehensive Income or directly
in equity, in which case, the current and deferred tax
are also recognised in Other Comprehensive Income
or directly in equity respectively.
(k) Property, plant and equipment:
All items of property, plant and equipment are stated
at cost less accumulated depreciation and accumulated
impairment losses, if any. Cost of acquisition is inclusive
of purchase price, levies and any directly attributable
cost of bringing the assets to its working condition for
the intended use. Subsequent costs are included in the
asset's carrying amount or recognised as separate asset,
as appropriate, only when it is probable that the future
economic benefits associated with the item will flow to
the Company and cost of the item can be measured
reliably. The carrying amount of any component
accounted for as a separate asset is derecognised when
replaced. All other repairs and maintenance are charged
to Statement of Profit and Loss during the reporting
period in which they are incurred.
Depreciation on tangible assets is charged by the
Straight Line Method (SLM) in accordance with the
useful lives specified in Part - C of Schedule II of the
Companies Act, 2013 on a pro-rata basis except in the
case of:
The carrying amount is calculated after reducing 5% of
the value of property, plant and equipment as residual
value. The Company has used following useful lives to
provide depreciation of different class of its property,
plant and equipment
reviewed at the end of each reporting period, with the
effect of any changes in estimate being accounted for
on a prospective basis.
Intangible assets with indefinite useful lives that are
acquired separately are carried at cost less accumulated
impairment losses.
Useful lives of intangible assets:
The expenditure incurred is amortised over three
financial years equally commencing from the year in
which the expenditure is incurred.
The estimated useful lives, residual values and
depreciation method are reviewed at the end of each
reporting period, with the effect of any changes in
estimate accounted for on a prospective basis.
An item of property, plant and equipment is
derecognised upon disposal or when no future
economic benefits are expected to arise from the
continued use of the asset. Any gain or loss arising
on the disposal or retirement of an item of property,
plant and equipment is determined as the difference
between the sales proceeds and the carrying amount
of the asset and is recognised in profit or loss.
On transition to Ind AS, the Company has elected to
continue with the carrying value of all of its property,
plant and equipment measured as per the Previous
GAAP as at April 01, 2021 as its deemed cost on the
date of transition.
(l) Intangible assets:
Intangible assets acquired separately
The useful lives of intangible assets are assessed as
either finite or infinite. Intangible assets with finite
useful lives that are acquired separately are carried at
cost less accumulated amortisation and accumulated
impairment losses. Amortisation is recognised on a
straight-line basis over their estimated useful lives.
The estimated useful life and amortisation method are
Impairment of tangible and intangible assets:
The management of the Company assesses at each
Balance Sheet date whether there is any indication that
an asset may be impaired. If any such indication exists,
the management estimates the recoverable amount
of the asset. If such recoverable amount of the asset
is less than its carrying amount, the carrying amount
is reduced to its recoverable amount. The reduction is
treated as an impairment loss and recognised in the
Statement of Profit and Loss. If at the Balance Sheet
date there is an indication that if a previously assessed
impairment loss no longer exists, the recoverable
amount is reassessed, and the asset is reflected at
the recoverable amount subject to a maximum of
depreciated historical cost. A reversal of an impairment
loss is recognised immediately in profit or loss.
(m) Impairment of investments:
The Company assesses impairment of investments
in subsidiaries, associates and joint ventures which
are recorded at cost. At the time when there are any
indications that such investments have suffered a loss,
if any, is recognised in the statement of Profit and
Loss. The recoverable amount requires estimates of
operating margin, discount rate, future growth rate,
terminal values, etc. based on management's best
estimate.
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