Basis of Preparation and Presentation
The standalone financial statements have been prepared in accordance with Ind AS notified under the Companies (Indian
Accounting Standards) Rules, 2015. The standalone financial statements have been prepared on the historical cost basis.
Recent accounting pronouncements:
The Indian Accounting Standard (Ind AS) 115, Revenue from Contracts with Customers is applicable from FY 2018- 19, the
management believes that the adoption of Ind AS 115 does not have any significant impact on the standalone financial statement
The management believes that the adoption of amendment to Ind AS 21, Foreign currency transactions and advance consideration
and amendment to hid AS 12 Income Taxes does not have any significant impact on the standalone financial statements. The
amendment to Ind AS 40, Investment Property is not applicable
A Ind AS optional exemptions
Ind AS 101 prosides the option to apply following exemptions:
Business combination
Prospective application of hid AS 21 to business combination
Cumulative translation differences
Deemed cost
Designation of previously recognized financial instruments Leases Joint Ventures
The above the optional exemptions as mentioned above are not applicable to the division and hence not applied by the Division
A.1 Iurl AS mandatory exceptions
Ind AS 101 provides the following mandatory exceptions:
Hedge accounting
Estimates
Non-controlling interests’
De-recognition of financial assets and liabilities
Classification and measurement of financial assets
the mandatory exceptions ar e not applicable to the company and hence not applied by Division
A. 1.1 Classification and measurement of financial assets
hid AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and
circumstances that exist at the date of transition to hid AS
B. Current versus Non-Current Classification
The Company presents assets and liabilities in die balance sheet based on current/ non-cunent classification. An asset is classified
as current when it is:
Expected to be realized or intended to 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 tw'elve months after the
reporting period
All other assets are classified as non-current. A liability is classified as current when:
It is expected to be settled in nomial operating cycle
It is held primarily for the purpose of trading
It is due to be settled within twelve months after the reporting period, or
There is no unconditional right to defer the settlement of die liability for at least twelve months after the reporting period All
other liabilities are classified as non-cunent.
The operating cycle is the time between the acquisition of assets for processing and then' realization in cash and cash equivalents.
Deferred tax assets and liabilities are classified as non-current assets and liabilities
Fair value of financial Assets and Liabilities
The company has receivables and payables that arc non-derivative financial instruments. Under previous GAAP, these were
earned at transactions cost less allowances for impairment, if any. Under IND AS, these are financial assets and liabilities are
initially recognized at fair value and subsequently measured at amortised cost, less allowances for impairment, if any. For
transaction entered into on or after'the date of transition to IND AS, the requirement of initial recognition at fair'value is applied
prospectively.
C. Other comprehensive income
Under hid AS, all items of income and expenses recognized in a year should be included in profit or' loss for the year, unless a
standard requires or pennits otherwise. Items of income and expense that are not recognized in profit or loss but are shown in
the statement of profit and loss as “other comprehensive income" includes re-measurements of defined benefit plans. The concept
of other comprehensive income did not exist under previous GAAP
Note: 23
These Financial statements has been approved by Board of Directors of the Company on 26* May, 2025 for issue to the
shareholder's for' their' adoption
Note 24
Capital Management
For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity, reserves
attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to maximize
the shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic
conditions. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return
capital to shareholders or issue new shares. Hie Company monitors capital using a gearing ratio, which is net debt divided by
total capital plus net debt.
Note: 25
Significant Accounting Judgments, Estimates and Assumptions
The preparation of die Division’s financial statements requires management to make judgments, estimates and assumptions that
affect the reported amounts of revenues, expenses, assets and liabilities, and die accompanying disclosures, and die disclosure
of contingent liabilities. Uncertainty about tiiese assumptions and estimates could result in outcomes that require a material
adjustment to the carrying amount of assets or liabilities affected in future periods.
25.1
Judgments
25.1.1 Carrying cost as deemed cost for property plant & equipment
The Dm sion has opted for carrying cost as the deemed cost as on the date of transition
25.1.ii Depreciation/Amortization of and impairment loss on property Plant and equipment/Intangible Assets
Property, Plant and equipment are depreciated and intangible assets are amortized on straight line basis over the estimated useful
fives (or Lease Term of Shorter) in accordance with schedule II of the company’s act 2013, taking into account the estimated
residual value, wherever applicable. The company review's the estimated useful fives of the assets regularly in order to determine
the amount of depreciation/ amortization expense to be recorded during any recording period. Tins reassessment may result in
change in depreciation expense in future periods. The company lias opted out from fair market valuation method for all of its
fixed assets.
The Company review's it carrying value of its tangible and intangible assets whenever there is objective evidence that the assets
are impaired. The required level of impairment losses to be made is estimated by reference to the estimated value in use or
recoverable amount
25.1.ni Impairment loss on trade receivables:
The Company evaluated whether there is any objective evidence that trade receivable is impaired and determines the amount of
impairment loss as a result of die inability of the debtors to make requir ed payments. The Company bases the estimates on the
ageing of the trade receivable balances, cieditworthmess ot the trade receivables and historical written on exjieneuce. It the
financial conditions of the ti ade receivables were to deteriorate, actual write-offs would be higher than estimated
25.2 Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that har e a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year,
are described below. The Company based its assumptions and estimates on parameters available when the financial statements
were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes
or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they
occur.
25.2. L Defined benefits plans (gratuity 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 benefits obligation is highly sensitive to changes in these assumptions are
reviewed at each reporting date.
The parameter most subject to change is the discount rate in determining the appropriate discount rate for plans oper ated in India,
the management considers file interest rates of government bonds in currencies consistent with the currencies of the post¬
employment benefit obligation.
The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to change
only at interval in response to demographic changes. Future salary increases are based on expected future inflations rates.
25.2. ii. Fair value measurement of financial instruments
When the fair values of financial assets and financial liabilities recorded in die balance sheet cannot be measured based on quoted
prices in active market, ther e fair' value measured using various valuation techniques. The input s to these models is taken from
observable markets where possible, but where this is not feasible, a degr ee of judgment is required in establishing fur values.
Judgments include consideration of inputs such as liquidity risk and volatility. Changes in assumptions about these factors could
affect the reported fair value of financial instruments.
25.3 Revenue Recognition
Rev enue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can
be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration
received or receivable, taking into account contractually denied terms of payment and excluding taxes or dirties collected on
behalf of the government. The Company has concluded that it is the principal in all of its revenue arrangements since it is the
primary obligor in all die revenue arrangements as it has pricing latitude and is also exposed to credit risks. The company
primarily derives its income from tr ansportation of goods, and tourism and sell of fuel through petrol pump.
i)Transportation of Goods
Under transportation services, the principal service is related to customer contracts for warehousing activities. Based on the
customer contracts, income is recognized when services ar e render ed, he amount of revenue can be reliably measured, and in
all probability, the economic benefits from he transaction will flow' to the company. Where necessary, single transactions are
split into separately identifiable components to reflect the substance of the transaction Conversely, two or more transactions
may be considered together for revenue recognition purposes, where he commercial effect cannot be understood without
reference to the series of tr ansactions as a whole
iijTourisin:
Income from tourism is recognized on he basis of actual room bookings received from customer s and on completion of related
services rendered to the customers.
Other Income:
iii)Other Income includes the following:
Interest Income:
Interest income on fixed deposits is recognized on a time proportion basis taking into account the amount outstanding and
the applicable interest rate.
25.4 Income Tax
Tax expense recognized in profit or loss comprises the sum of deferred tax and current tax not recognized in other comprehensive
income or directly in equity
Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income-
tax Act. Current income tax relating to items recognized outside profit or loss is recognized outside profit or loss (either in
other comprehensive income or in equity). Current tax items are recognized in correlation to the underlying transaction either'
in OCI or directly in equity.
25.5
Cash and Cash Equivalents
Cash and cash equivalents comprise cash in hand, demand deposits with banks/corporations and short-tenn highly liquid
investments (original maturity less than 3 months) that are readily convertible into known amount of cash and ar e subject to an
insignificant risk of change in value.
25.6
Provisions are recognized only when there is a present obligation, as a result of past events, and when a reliable estimate of the
amount of obligation can be made at the reporting date. These estimates are reviewed at each reporting date and adjusted to
reflect the current best estimates. Provisions are discounted to their present values, where the time value of money is material
|