1. CORPORATE AND GENERAL INFORMATION
Coastal Roadways Limited ("CRL" or "the Company") was incorporated as a Public Limited Company in India under
the Companies Act 1956. The Company's principal business is road transportation of goods. CRL is listed with BSE.
2. BASIS OF PREPARATION AND PRESENTATION OF FINANCIAL STATEMENT
2.1. Statement of Compliance
These financial statements have been prepared in accordance with the Indian Accounting Standards ("Ind AS") as
prescribed by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 ("the Act"), read with
the Companies (Indian Accounting Standards) Rules, 2015 (as amended), other relevant provisions of the Act and
other accounting principles generally accepted in India.
2.2. Basis of Measurement
The Company maintains accounts on accrual basis following the historical cost convention, except for Certain Financial
Assets and Liabilities which are measured at Fair value/ Amortised cost (refer accounting policy regarding financial
instruments and for Defined Benefit Plans - plan assets are measured at fair value.
2.3. Functional and Presentation Currency
The Financial Statements are presented in Indian Rupee (INR), which is the functional currency of the Company and
the currency of the primary economic environment in which the Company operates. All financial information
presented in INR has been rounded off in lakhs with two decimal places as per the requirements of Schedule III, unless
otherwise stated.
2.4. Use of Estimates and Judgements
The preparation of financial statements in conformity with Ind AS requires judgements, estimates and assumptions to
be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the
financial statements and the reported amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period in which the results are known/ materialized.
2.5. Presentation of Financial Statements
The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format prescribed in the
Division II of Schedule III to the Companies Act, 2013 ("the Act"). The Statement of Cash Flows has been prepared and
presented as per the requirements of Ind AS 7 "Statement of Cash flows". The disclosure requirements with respect to
items in the Balance Sheet and Statement of Profit and Loss, as prescribed in the Schedule III to the Act, are presented
by way of accompanying notes forming part of the financial statements along with the other notes required to be
disclosed under the notified Accounting Standards and the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 (as amended).
2.6. Operating Cycle for current and non-current classification
All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle
and other criteria set out in the Schedule III to the Companies Act, 2013 and Ind AS 1. The Company has ascertained its
operating cycle as twelve months for the purpose of current and non-current classification of assets and liabilities.
2.7. Measurement of Fair V alues
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. 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. All assets and
liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value
hierarchy.
External valuers are involved for valuation of significant assets & liabilities. Involvement of external valuers is decided
by the management of the company considering the requirements of Ind AS and selection criteria include market
knowledge, reputation, independence and whether professional standards are maintained.
3. ACCOUNTING POLICIES
A summary of the significant accounting policies applied in the preparation of the financial statements are as given
below. These accounting policies have been applied consistently to all the periods presented in the financial
statements.
3.1. CASH AND CASH EQUIVALENTS
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an
original maturity of three months or less, which are subject to an insignificant risk of change in value.
For the purpose of the statement of cash flows, cash and cash equivalents includes cash on hand, term deposits and
other short-term highly liquid investments, net of book overdrafts, if any, as they are considered an integral part of the
Company's cash management.
3.2. INCOME TAX
The income tax expense or credit for the period is the tax payable on the current period's taxable income based on the
applicable income tax rate 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 &
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 Tax:
Current tax liabilities (or assets) for the current and prior periods are measured at the amount expected to be paid to
(recovered from) the taxation authorities using the tax rates (and tax laws) that have been enacted or substantively
enacted, at the end of the reporting period.
Deferred Tax
Deferred Tax assets and liabilities is measured at the tax rates that are expected to apply to the period when the asset is
realized or the liability is settled based on tax rates (and tax laws) that have been enacted or substantively enacted by
the end of the reporting period.
Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities
for financial reporting purposes and the corresponding amounts used for taxation purposes (i.e., tax base). Deferred
tax is also recognized for carry forward of unused tax losses and unused tax credits.
Deferred tax assets are recognized 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 utilized.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period. The Company reduces the
carrying amount of a deferred tax asset to the extent that it is no longer probable that sufficient taxable profit will be
available to allow the benefit of part or that entire deferred tax asset to be utilized. Any such reduction is reversed to
the extent that it becomes probable that sufficient taxable profit will be available.
Deferred tax relating to items recognized outside the Statement of Profit and Loss is recognized either in other
comprehensive income or in equity. Deferred tax items are recognized in correlation to the underlying transaction
either in OCI or directly in equity.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against
current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company
intends to settle its current tax assets and liabilities on a net basis.
3.3. PROPERTY, PLANT AND EQUIPMENT
TANGIBLE ASSETS
Recognition and Measurement:
Property, plant and equipment held for use in the production or/and supply of goods or services, or for administrative
purposes, are stated in the balance sheet at cost, less any accumulated depreciation and accumulated impairment
losses (if any).
Cost of an item of property, plant and equipment acquired comprises its purchase price, including import duties and
non-refundable purchase taxes, after deducting any trade discounts and rebates, any directly attributable costs of
bringing the assets to its working condition and location for its intended use and present value of any estimated cost of
dismantling and removing the item and restoring the site on which it is located.
In case of self-constructed assets, cost includes the costs of all materials used in construction, direct labour, allocation of
directly attributable overheads, directly attributable borrowing costs incurred in bringing the item to working
condition for its intended use, and estimated cost of dismantling and removing the item and restoring the site on
which it is located. The costs of testing whether the asset is functioning properly, after deducting the net proceeds from
selling items produced while bringing the asset to that location and condition are also added to the cost of self-
constructed assets.
If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for
as separate items (major components) of property, plant and equipment.
Profit or loss arising on the disposal of property, plant and equipment are recognized in the Statement of Profit and
Loss.
Subsequent Measurement:
Subsequent costs are included in the asset's carrying amount, only when it is probable that future economic benefits
associated with the cost incurred will flow to the Company and the cost of the item can be measured reliably. The
carrying amount of any component accounted for as a separate asset is derecognized when replaced.
Major Inspection/ Repairs/ Overhauling expenses are recognized in the carrying amount of the item of property, plant
and equipment as a replacement if the recognition criteria are satisfied. Any Unamortized part of the previously
recognized expenses of similar nature is derecognized.
Depreciation and Amortization:
Depreciation on Property, Plant & Equipment is provided under Straight Line Method at rates determined based on
the useful life of the respective assets and the residual values in accordance with Schedule II of the Companies Act,
2013 or as reassessed by the Company based on the technical evaluation.
In case of asset Vehicles, depreciation has been provided on Straight Line Method method at the rates determined
considering the useful lives of 10 to 12 years which is based on technical assessment carried out by the OEMs and the
management believes that the useful lives as considered above best represent the period over which the respective
assets shall be expected in use.
Depreciation on additions (disposals) during the year is provided on a pro-rata basis i.e., from (up to) the date on
which asset is ready for use (disposed of).
Depreciation method, useful lives and residual values are reviewed at each financial year-end and adjusted if
appropriate.
Disposal of Assets
An item of property, plant and equipment is derecognized 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 net disposal proceeds and the carrying
amount of the asset and is recognized in the statement of profit and loss.
Capital Work in Progress
Capital work-in-progress is stated at cost which includes expenses incurred during construction period, interest on
amount borrowed for acquisition of qualifying assets and other expenses incurred in connection with project
implementation in so far as such expenses relate to the period prior to the commencement of commercial production.
Intangible Assets
Computer Software and licenses are recognised as Intangible Assets and stated at cost which is amortised over useful
life of the same.
3.4. LEASES
Determining whether an arrangement contains a lease
The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at
the inception of the lease. The arrangement is, or contains, a lease if fulfillment of the arrangement is dependent on the
use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not
explicitly specified in an arrangement.
Company as lessor
Finance Lease
Leases which effectively transfer to the lessee substantially all the risks and benefits incidental to ownership of the
leased item are classified and accounted for as finance lease. Lease rental receipts are apportioned between the finance
income and capital repayment based on the implicit rate of return. Contingent rents are recognized as revenue in the
period in which they are earned.
Operating Lease
Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are
classified as operating leases. Rental income from operating leases is recognized on a straight-line basis over the term
of the relevant lease except where scheduled increase in rent compensates the Company with expected inflationary
costs.
Company as lessee
Finance Lease
Finance Leases, which effectively transfer to the lessee substantially all the risks and benefits incidental to ownership of
the leased item, are capitalized at the lower of the fair value and present value of the minimum lease payments at the
inception of the lease term and disclosed as leased assets. Lease Payments under such leases are apportioned between
the finance charges and reduction of the lease liability based on the implicit rate of return. Finance charges are charged
directly to the statement of profit and loss. Lease management fees, legal charges and other initial direct costs are
capitalized. If there is no reasonable certainty that the Company will obtain the ownership by the end of lease term,
capitalized leased assets are depreciated over the shorter of the estimated useful life of the asset or the lease term.
Operating Lease
Assets acquired on leases where a significant portion of risk and reward is retained by the lessor are classified as
operating leases. Lease rentals are charged to statement of profit and loss on a straight-line basis over the lease term,
except where scheduled increase in rent compensates the Company with expected inflationary costs.
3.5. REVENUE RECOGNITION
Revenue is recognised based to the extent it is probable that the economic benefit will flow to the company and
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, considering contractually defined terms of payment and excludes
taxes & duties collected on behalf of the Government and is reduced for deductions, penalties and rebates or similar
allowances deducted by customers.
Freight income is accounted for on actual delivery of consignments by the Company to the customers and unqualified
acknowledgements are obtained from them. Generally, the contracts are Fixed price, thus the associated costs can be
reliably measured. Freight and Vehicle Trip Expenses are accounted when vehicles deliver the consignments to the
Company at destination. However, withholding taxes (TDS, TCS etc) are accounted for on receipt of corresponding
payment or information of such deductions, whichever is earlier.
Other Income:
Interest Income: For all debt instruments measured either at amortized cost or at fair value through other
comprehensive income (FVTOCI), interest income is recorded using the effective interest rate (EIR). EIR is the rate that
exactly discounts the estimated future cash receipts over the expected life of the financial instrument or a shorter
period, where appropriate, to the gross carrying amount of the financial asset.
Dividend Income: Dividend income is accounted in the period in which the right to receive the same is established.
Other Income: Other items of income are accounted as and when the right to receive such income arises and it is
probable that the economic benefits will flow to the company and the amount of income can be measured reliably.
3.6. EMPLOYEE BENEFITS
Short Term Benefits
Short term employee benefit obligations are measured on an undiscounted basis and are expensed as the related
services are provided. Liabilities for wages and salaries, including non-monetary benefits that are expected to be
settled wholly within twelve months after the end of the period in which the employees render the related service are
recognized in respect of employees' services up to the end of the reporting period.
Other Long Term Employee Benefits
Post Employment Benefits
The Company operates the following post employment schemes:
Defined Contribution Plan
Defined contribution plans such as Provident Fund, Employee State Insurance etc. are charged to the statement of
profit and loss as and when incurred.
Defined Benefit Plans
The liability or asset recognized 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 Company's net
obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future
benefit that employees have earned in the current and prior periods. The defined benefit obligation is calculated
annually by Actuaries using the projected unit credit method.
The liability recognized for defined benefit plans is the present value of the defined benefit obligation at the reporting
date less the fair value of plan assets, together with adjustments for unrecognized actuarial gains or losses and past
service costs. 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. The benefits are discounted using the government securities (G-Sec) at the
end of the reporting period that have terms approximating to the terms of related obligation.
Remeasurements of the net defined benefit obligation, which comprise actuarial gains and losses, the return on plan
assets (excluding interest) and the effect of the asset ceiling, are recognized in other comprehensive income.
Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not
be reclassified to the statement of profit and loss.
3.7. FOREIGN CURRENCY TRANSACTIONS
Foreign currency (other than the functional currency) transactions are translated into the functional currency using the
spot rates of exchanges at the dates of the transactions. Monetary assets and liabilities denominated in foreign
currencies are translated at the functional currency spot rate of exchanges at the reporting date.
Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of
monetary assets and liabilities are generally recognized in profit or loss in the year in which they arise except for
exchange differences on foreign currency borrowings relating to assets under construction for future productive use,
which are included in the cost of those qualifying assets when they are regarded as an adjustment to interest costs on
those foreign currency borrowings, the balance is presented in the Statement of Profit and Loss within finance costs.
Nonmonetary items are not retranslated at period end and are measured at historical cost (translated using the
exchange rate at the transaction date).
3.8. BORROWING COSTS
Borrowing Costs consists of interest and other costs that an entity incurs in connection with the borrowings of funds.
Borrowing costs also includes foreign exchange difference to the extent regarded as an adjustment to the borrowing
costs.
Borrowing costs directly attributable to the acquisition or construction of a qualifying asset are capitalized as a part of
the cost of that asset that necessarily takes a substantial period of time to complete and prepare the asset for its
intended use or sale.
Transaction costs in respect of long-term borrowing are amortized over the tenure of respective loans using Effective
Interest Rate (EIR) method. All other borrowing costs are recognized in the statement of profit and loss in the period in
which they are incurred.
3.9. FINANCIAL INSTRUMENTS
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity.
Financial Assets
Recognition and Initial Measurement:
All financial assets are initially recognized when the company becomes a party to the contractual provisions of the
instruments. A financial asset is initially measured at fair value plus, in the case of financial assets not recorded at fair
value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.
Classification and Subsequent Measurement:
For purposes of subsequent measurement, financial assets are classified in four categories:
o Measured at Amortized Cost;
o Measured at Fair Value Through Other Comprehensive Income (FVTOCI);
o Measured at Fair Value Through Profit or Loss (FVTPL); and
o Equity Instruments designated at Fair Value Through Other Comprehensive Income (FVTOCI).
Financial assets are not reclassified after their initial recognition, except if and in the period the Company changes its
business model for managing financial assets.
Measured at Amortized Cost: A debt instrument is measured at the amortized cost if the asset is held within a business
model whose objective is achieved by both collecting 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 (SPPI) on the principal
amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortized cost using the effective
interest rate (EIR) method. Amortised cost is calculated by considering any discount or premium on acquisition and
fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the statement of
profit or loss. The losses arising from impairment are recognised in the profit or loss. This category generally applies to
trade receivables, cash and bank balances, loans and other financial assets of the company.
Measured at FVTOCI: A debt instrument is measured at the FVTOCI if the objective of the business model is achieved
by both collecting contractual cash flows and selling the financial assets and the asset's contractual cash flows
represent SPPI.
Debt instruments meeting these criteria are measured initially at fair value plus transaction costs. They are
subsequently measured at fair value with any gains or losses arising on remeasurement recognized in other
comprehensive income, except for impairment gains or losses and foreign exchange gains or losses. Interest calculated
using the effective interest method is recognized in the statement of profit and loss in investment income.
Measured at FVTPL: FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the
criteria for categorization as at amortized cost or as FVTOCI, is classified as FVTPL. In addition, the company may
elect to designate a debt instrument, which otherwise meets amortized cost or FVTOCI criteria, as at FVTPL. Debt
instruments included within the FVTPL category are measured at fair value with all changes recognized in the
statement of profit and loss. Equity instruments which are, held for trading are classified as at FVTPL.
Equity Instruments designated at FVTOCI: For equity instruments, which has not been classified as FVTPL as above,
the company may make an irrevocable election to present in other comprehensive income subsequent changes in the
fair value. The company makes such election on an instrument-by-instrument basis. The classification is made on
initial recognition and is irrevocable. In case the company decides to classify an equity instrument as at FVTOCI, then
all fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the
amounts from OCI to P&L, even on sale of investment.
Derecognition:
The Company derecognizes a financial asset on trade date only when the contractual rights to the cash flows from the
asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset
to another entity.
Impairment of Financial Assets:
The Company assesses at each date of balance sheet whether a financial asset or a group of financial assets is impaired.
Ind AS - 109 requires expected credit losses to be measured through a loss allowance. The company recognizes
impairment loss for trade receivables that do not constitute a financing transaction using expected credit loss model,
which involves use of a provision matrix constructed based on historical credit loss experience. For all other financial
assets, expected credit losses are measured at an amount equal to the 12 month expected credit losses or at an amount
equal to the lifetime expected credit losses if the credit risk on the financial asset has increased significantly since initial
recognition.
Financial Liabilities
Recognition and Initial Measurement:
Financial liabilities are classified, at initial recognition, as at fair value through profit or loss, loans and borrowings,
payables or as derivatives, as appropriate. All financial liabilities are recognized initially at fair value and, in the case of
loans and borrowings and payables, net of directly attributable transaction costs.
Subsequent Measurement:
Financial liabilities are measured subsequently at amortized cost or FVTPL. A financial liability is classified as 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 recognized
in profit or loss. Other financial liabilities are subsequently measured at amortized cost using the effective interest rate
method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on
derecognition is also recognized in profit or loss.
Derecognition:
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.
Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet when there is a legally
enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset
and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must
be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the
counterparty.
3.10. EARNINGS PER SHARE
Basic Earnings per share (EPS) amounts are calculated by dividing the profit for the year attributable to equity holders
by the weighted average number of equity shares outstanding during the year. Diluted EPS amounts are calculated by
dividing the profit attributable to equity holders adjusted for the effects of potential equity shares by the weighted
average number of equity shares outstanding during the year plus the weighted average number of equity shares that
would be issued on conversion of all the dilutive potential equity shares into equity shares
3.11. IMPAIRMENT OF NON FINANCIAL ASSETS
The Company assesses at each reporting date, whether there is an indication that an asset may be impaired. An asset is
treated as impaired when the carrying cost of the asset exceeds its recoverable value being higher of value in use and
net selling price. Value in use is computed at net present value of cash flow expected over the balance useful lives of
the assets. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash inflows which are largely independent of the cash inflows from other assets or group of
assets (Cash Generating Units - CGU).
An impairment loss is recognized as an expense in the Statement of Profit and Loss in the year in which an asset is
identified as impaired. The impairment loss recognized in earlier accounting period is reversed if there has been an
improvement in recoverable amount.
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