2. Significant Accounting Policies :
2.1 Basis of Preparation and Presentation
The financial statements of the Company up to the year 2016-17 was prepared in accordance with the requirements of GAAP as
notified under the Companies (Accounting Standards) Rules, 2006. From the year 2017-18, the Company switched over to the
preparation of financial statements in accordance with Ind AS notified under the Companies (Indian Accounting Standards)
Rules, 2015. The date of transition to Ind AS is April 1, 2016.
The significant accounting policies are detailed below.
2.2 Revenue Recognition :
Revenue is recognised to the extent it is probable that the economic benefits will flow to the Company and the revenue can be
reliably measured. The specific recognition criteria is described below for the income to recognised.
i. Income is recognised on accrual basis and provision is made for all known losses and liabilities.
ii. Revenue from Goods transport and Courier service is recognised when goods / documents are delivered to the
customers/nearest destination branches/nearest transshipment points.
iii. Interest income is accrued on a time proportionate basis on the principal outstanding at the effective interest rate applicable.
iv. Dividend income is recognised based on the accrual system.
2.3 Use of Estimates :
The preparation of financial statements in conformity with Ind AS requires the Company’s Management to make judgments,
estimates and assumptions about the carrying amounts of assets and liabilities, recognised in the financial statements that are not
readily apparent from other sources. The judgments, estimates and associated assumptions are based on historical experience and
other factors including estimation of effects of uncertain future events that are considered to be relevant. Actual results may differ
from these estimates.
2.4 Financial Assets -Investments:
Investments that are readily realizable and intended to be held for not more than a year from the date on which such investments
are made are classified as current investments. All other investments are classified as long-term investments.
2.5 Leases :
Rental expense from operating leases is generally recognised on a straight-line basis over the term of the relevant lease. Where the
rentals are structured solely to increase in line with expected general inflation to compensate for the lessor’s expected inflationary
cost increases, such increases are recognised in the year in which such benefits accrue.
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