1.B. Significant Accounting Policies
a. Basis for preparation of Standalone Financial Statements:
These standalone financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as notified
under Section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules, 2015 (as amended),
and other relevant provisions of the Act. The financial statements have been prepared on the historical cost basis, except for
certain financial instruments which are measured at fair value.
i) Certain financial assets and liabilities
ii) Defined benefit plans - plan assets
The financial statements of the Company are presented in Indian Rupees (INR), which is also the functional currency of the
Company.
All financial information presented in the financial statements has been rounded off to the nearest rupee, unless otherwise stated.
b. Property, Plant and Equipment (including Capital work-in-progress):
i. Recognition and Measurement
Freehold land is carried at historical cost. Other items of Property, Plant and Equipment (PPE) are measured at historical cost
less accumulated depreciation and impairment losses, if any. The historical cost includes expenditure directly attributable to
the acquisition of the asset and bringing the asset to its intended use.
ii. Subsequent Expenditure
Subsequent costs are capitalised only if it is probable that the future economic benefits associated with the expenditure will
flow to the Company and the cost can be measured reliably. The carrying amount of replaced components is derecognised.
All other repair and maintenance expenses are charged to the Statement of Profit and Loss as incurred.
iii. Leased Assets
Assets acquired under finance leases on or after April 1,2001, are capitalised at the lower of the fair value of the leased asset
and the present value of minimum lease payments at the inception of the lease, in accordance with Ind AS 116 - Leases.
iv. Leasehold Land
Leasehold land acquired under long-term leases (typically 99 years) is classified as Property, Plant and Equipment and not
separately presented as a right-of-use asset, in accordance with the Company's accounting policy and Ind AS 116.
v. Capital Work-in-Progress
Capital work-in-progress includes cost of PPE under installation or under active development which are not yet ready for
their intended use at the reporting date. These are carried at cost, comprising direct cost, related incidental expenses, and
attributable borrowing costs, if any.
c. Investment Property:
i. Recognition and Measurement
Investment property comprises land or buildings held to earn rentals or for capital appreciation or both, and not for use in the
production or supply of goods or services, for administrative purposes, or for sale in the ordinary course of business.
Investment property is initially measured at cost, including purchase price and any directly attributable expenditure (such as
professional fees, transaction taxes, and other incidental costs).
Subsequent to initial recognition, investment property is carried at cost less accumulated depreciation and accumulated
impairment losses, if any, in accordance with the cost model prescribed under Ind AS 40 - Investment Property.
ii. Depreciation
Depreciation on investment property is provided on a straight-line basis over the useful lives as prescribed in Part C of
Schedule II to the Companies Act, 2013. The residual values, useful lives, and method of depreciation are reviewed annually
and adjusted prospectively, if appropriate.
iii. Disposal
Any gain or loss arising from the disposal of an investment property is recognised in the Statement of Profit and Loss in the
period in which the property is derecognised, unless otherwise required by any other Ind AS.
d. Intangible Assets:
i. Recognition and Measurement
Intangible assets are recognised when it is probable that future economic benefits attributable to the asset will flow to
the Company and the cost of the asset can be measured reliably. Intangible assets are initially measured at cost and are
subsequently carried at cost less accumulated amortisation and accumulated impairment losses, if any.
ii. Amortisation
Intangible assets with finite useful lives are amortised over their estimated useful lives on a straight-line basis, commencing
from the date the asset is available for use. The amortisation period and method are reviewed at least at the end of each
financial year and adjusted prospectively if necessary.
iii. Derecognition
An intangible asset is derecognised upon disposal or when no future economic benefits are expected from its use or
disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net
disposal proceeds and the carrying amount of the asset, are recognised in the Statement of Profit and Loss in the period of
derecognition.
e. Depreciation / Amortization:
i. Method and Basis
Depreciation on Property, Plant and Equipment is provided on a straight-line basis, in accordance with the useful lives
prescribed under Part C of Schedule II to the Companies Act, 2013. The Company has not made any adjustments to the
useful lives as prescribed in the Schedule, unless otherwise stated.
ii. Timing of Depreciation
Depreciation is calculated on a pro-rata basis for additions and disposals, with reference to the date of addition or disposal of
the asset. Assets are depreciated from the date they are available for use and up to the date of disposal/derecognition.
iii. Leasehold Land
The cost of leasehold land is amortised over the residual lease period on a straight-line basis, in accordance with the terms
of the lease agreement.
iv. Review of Useful Lives
The residual values, useful lives, and method of depreciation are reviewed at the end of each financial year and adjusted
prospectively, if appropriate.
f. Impairment of non-financial assets (Property, plant and equipment and intangible assets):
The Company assesses at each reporting date whether there is any indication that a non-financial asset (including Property,
Plant and Equipment and Intangible Assets) or a group of assets forming a Cash-Generating Unit (CGU) may be impaired. If such
indications exist, the Company estimates the recoverable amount of the individual asset or CGU.
The recoverable amount is the higher of:
• Fair value less costs of disposal, and
• Value in use, which is the present value of estimated future cash flows expected to arise from the continuing use of the asset
or CGU, discounted using a pre-tax discount rate that reflects current market assessments of the time value of money and
risks specific to the asset or CGU.
If the carrying amount of the asset or CGU exceeds its recoverable amount, the difference is recognised as an impairment loss in
the Statement of Profit and Loss.
An impairment loss recognised in prior periods 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. Such a reversal is recognised in the Statement
of Profit and Loss to the extent that the asset's carrying amount does not exceed the carrying amount that would have been
determined, net of depreciation or amortisation, had no impairment loss been recognised earlier.
g. Financial Assets:
i. Financial Assets
A. Initial recognition and measurement
Financial assets are initially recognised when the Company becomes a party to the contractual provisions of the
instrument. All financial assets are initially measured at fair value, plus transaction costs that are directly attributable to
the acquisition of the financial asset, except in the case of financial assets measured at fair value through profit or loss
(FVTPL), where such costs are recognised in profit or loss.
Regular way purchase or sale of financial assets is recognised using trade date accounting, i.e., the date on which the
Company commits to purchase or sell the asset.
B. Subsequent measurement
The subsequent measurement of financial assets depends on the classification under the following categories:
a) Financial assets carried at amortised cost (AC)
A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold assets
to collect contractual cash flows, and the contractual terms give rise on specified dates to cash flows that are solely
payments of principal and interest (SPPI) on the principal amount outstanding.
Such assets are subsequently measured at amortised cost using the effective interest rate (EIR) method, less
impairment, if any.
b) Financial assets at fair value through other comprehensive income (FVTOCI)
A financial asset is classified as FVTOCI if it is held within a business model whose objective is achieved by both
collecting contractual cash flows and selling financial assets, and the asset meets the Solely Payment of Principal
and Interest (SPPI) criteria.
Changes in fair value of such assets are recognised in Other Comprehensive Income (OCI). Upon derecognition,
cumulative gains or losses previously recognised in OCI are reclassified to profit or loss.
Note: As the Company has not identified material fair value differences, such differences are currently not recognised
in OCI.
c) Financial assets at fair value through profit or loss (FVTPL)
Financial assets that do not meet the criteria for classification at amortised cost or FVTOCI are measured at FVTPL.
Gains or losses arising from changes in fair value of such assets are recognised in the Statement of Profit and Loss.
C. Investment in equity investments
Equity investments are measured at fair value. By default, changes in fair value are recognised in the Statement of
Profit and Loss. However, the Company may, on initial recognition, make an irrevocable election to present subsequent
changes in fair value in OCI for investments not held for trading. Such an election is made on an instrument-by-instrument
basis.
D. Impairment of financial assets
The Company applies the Expected Credit Loss (ECL) model for recognising impairment loss on financial assets
measured at amortised cost or at FVTOCI, in accordance with Ind AS 109.
For financial assets other than trade receivables, the Company applies a simplified approach and recognises 12-month
ECL, unless there is a significant increase in credit risk, in which case lifetime ECL is applied.
For trade receivables, the Company applies the simplified approach and recognises lifetime ECL from initial recognition.
The Company uses historical default rates, adjusted for forward-looking information, to estimate expected credit losses.
These assumptions are reviewed and updated at each reporting date.
ii. Financial Liabilities
(Applicable Standard: Ind AS 109 - Financial Instruments)
A. Initial Recognition and Measurement
Financial liabilities are initially recognised at fair value. In the case of borrowings and other interest-bearing financial
liabilities, the initial recognition is net of directly attributable transaction costs.
Fees and charges of a recurring nature related to financial liabilities are recognised directly in the Statement of Profit and
Loss as part of finance costs in the period in which they are incurred.
At the time of initial recognition, the Company assesses whether any financial liability needs to be designated as
measured at fair value through profit or loss (FVTPL). However, in the absence of any material impact on fair value
measurement, such financial liabilities are measured at amortised cost.
B. Subsequent Measurement
Subsequent to initial recognition, all financial liabilities are measured at amortised cost using the Effective Interest Rate
(EIR) method, except those classified as FVTPL.
Financial liabilities such as trade payables, borrowings, and other contractual obligations are generally classified under
this category.
For trade and other payables maturing within twelve months from the reporting date, the carrying amounts approximate
their fair value due to the short-term nature of these instruments.
The Company has not identified any significant fair value changes in financial liabilities designated at fair value through
other comprehensive income (FVTOCI), and accordingly, no gain or loss on such valuation is recognised.
iii. Membership shares of a Co-operative Housing Society
(Applicable Standard: Ind AS 109 - Financial Instruments)
Membership shares held in a Co-operative Housing Society, in respect of the office premises owned by the Company,
are classified as Non-Current Investments in the financial statements.
These shares are generally non-transferable, carry no market value, and are acquired as a statutory requirement to
obtain possession and rights of occupancy in the premises. Accordingly, such shares are carried at their nominal value
under Non-Current Investments - Other Investments, and are not subject to fair value changes.
iv. Profit / Loss on sale of Investments
(Applicable Standard: Ind AS 109 - Financial Instruments)
Profit or loss arising on the sale of Current or Non-Current Investments is computed using the First-In First-Out (FIFO)
method.
The gain or loss is measured as the difference between the net sale proceeds and the carrying amount of the investments,
determined on a FIFO basis. Such gain or loss is recognised in the Statement of Profit and Loss in the period in which
the sale occurs.
The classification of investments as Current or Non-Current is based on the management's intention and the Company's
expected holding period, in accordance with the criteria under Schedule III to the Companies Act, 2013.
h. Policy for Revenue Recognition:
(Applicable Standard: Ind AS 115 - Revenue from Contracts with Customers and Ind AS 109 - Financial Instruments, where
applicable)
i. General Recognition Principle
Revenue and expenses are recognised on an accrual basis, when it is probable that the economic benefits will flow to the
Company and the amount of revenue or cost can be measured reliably, except in cases involving significant uncertainty of
collection, in which case revenue is recognised on a receipt basis.
ii. Demurrage and Delivery Charges
Revenue towards demurrage charges, delivery charges, and recoveries from undelivered consignments is recognised only
when the amounts are ultimately realised, owing to inherent uncertainties in collection. Freight recoveries include amounts
certified by management as recoverable on undelivered consignments, along with other allied service charges accounted for
on a consistent basis.
iii. Co-loading and Cargo Division Income
Income from courier and cargo bookings (including co-loading arrangements) is recognised upon booking of load, when the
control over the service has been transferred and performance obligation is deemed satisfied as per contractual terms.
iv. Cargo Freight and Commission
Cargo freight charges are accounted for on a gross basis. Any commission income received in relation to freight services,
including those from Franchisees or Business Associates, is recognised under Revenue from Operations upon satisfaction of
performance obligations under respective agreements.
v. Gym Membership and Related Sales
Revenue from membership subscriptions for gym services is recognised at the time of enrolment, when the customer obtains
control of the service. Revenue from the sale of health supplements or gym equipment is recognised at the time of transfer of
control, typically on delivery or invoice date.
vi. Dividend Income
Dividend income from investments is recognised in accordance with Ind AS 109, when the Company's right to receive
payment is established, which is generally upon receipt of dividend.
vii. Other Income
All other income is recognised on an accrual basis unless there is significant uncertainty regarding ultimate collection, in
which case it is recognised on a receipt basis.
viii. Expense Netting
Administrative and other expenses are presented net of recoveries, wherever applicable, in accordance with the principle of
reflecting true net cost incurred.
i. Employee Benefits:
(Applicable Standard: Ind AS 19 - Employee Benefits)
i. Short Term Employee Benefits
Short-term employee benefits are benefits (other than termination benefits) that are expected to be settled wholly within
twelve months after the end of the reporting period in which the employees render the related service.
These include salaries, wages, performance bonuses, and short-term compensated absences (e.g., casual and sick leave).
The undiscounted amount of such benefits is recognised as an expense in the Statement of Profit and Loss in the period in
which the related service is rendered by employees.
ii. Post-Employment Benefits
A. Defined Contribution Plans
The Company makes monthly contributions towards Provident Fund and Pension Fund with regulatory authorities,
which are considered defined contribution plans under Ind AS 19. The Company's obligation is limited to the amount it
contributes.
Such contributions are recognised as an expense in the Statement of Profit and Loss in the period during which the
related services are rendered by employees.
B. Defined Benefit Plans
The following are considered defined benefit obligations:
a) Gratuity
The Company provides for gratuity to employees in accordance with the Payment of Gratuity Act, 1972, payable to
employees who have completed five years or more of continuous service, at the time of retirement, resignation, or
death. The gratuity amount is computed at 15 days' basic salary for every completed year of service.
b) Leave Encashment (Earned Leave Benefit)
The Company also provides for encashment of unutilised earned leave, which accrues to employees and is eligible
for carry forward. This benefit is treated as a defined benefit plan as the leave liability is expected to be settled
beyond 12 months from the reporting date.
Both gratuity and leave encashment liabilities are actuarially valued at each reporting date using the Projected Unit
Credit Method, based on assumptions including salary escalation, attrition rates, mortality, and discount rates.
The present value of the defined benefit obligation is recognised as a liability in the Balance Sheet.
Actuarial gains and losses arising from changes in actuarial assumptions and experience adjustments are recognised
immediately in Other Comprehensive Income (OCI) and are not reclassified to profit or loss subsequently.
The valuations are carried out by an independent actuary and by a recognised insurance agency such as the Life
Insurance Corporation of India (LIC).
j. Foreign Currency Transactions:
(Applicable Standard: Ind AS 21 - The Effects of Changes in Foreign Exchange Rates)
Foreign currency transactions are recorded in the functional currency, i.e., Indian Rupees (INR), by applying the exchange rate
prevailing at the date of the transaction.
Monetary items denominated in foreign currencies (such as trade receivables, trade payables, loans, and bank balances) are
translated at the exchange rates prevailing on the reporting date (i.e., balance sheet date).
Exchange differences arising on:
• the settlement of such transactions, and
• the restatement of monetary items at the closing exchange rate are recognised as income or expense in the Statement of
Profit and Loss in the period in which they arise.
Non-monetary items that are measured at historical cost are not retranslated. Non-monetary items measured at fair value in a
foreign currency are translated using the exchange rate at the date when the fair value was measured.
k. Recoverability of Trade Receivable:
(Applicable Standards: Ind AS 109 - Financial Instruments, Ind AS 1 - Presentation of Financial Statements)
The Company exercises significant judgment in assessing the recoverability of overdue trade receivables, including the
determination of an appropriate loss allowance (impairment provision). This assessment involves consideration of various
qualitative and quantitative factors, including:
• The aging profile of receivables,
• The creditworthiness and historical payment behavior of customers,
• The expected timing and amount of future cash inflows,
• Any legal or recovery actions initiated, and
• Relevant forward-looking macroeconomic indicators affecting customer risk profiles.
In accordance with Ind AS 109, the Company applies the Expected Credit Loss (ECL) model using the simplified approach for trade
receivables, whereby a lifetime expected loss allowance is recognised from the time of initial recognition.
While ECL provisions and actual credit losses are recognised in the Statement of Profit and Loss in line with Ind AS requirements,
the Company may, in accordance with its approved reserve policy, transfer an equivalent or higher amount from the Contingency
Reserve to the Statement of Profit and Loss.
l. Taxes on Income:
(Applicable Standard: Ind AS 12 - Income Taxes)
i. Components of Tax Expense
Tax expense comprises current tax and deferred tax. It is recognised in the Statement of Profit and Loss, except to the extent
that it relates to items recognised in Other Comprehensive Income (OCI) or directly in equity, in which case the related tax
effect is also recognised in OCI or equity, respectively.
ii. Current Tax
Current tax is the amount of income tax payable on taxable profit for the year, computed in accordance with the applicable
tax laws and rates enacted or substantively enacted at the reporting date. Taxable profit differs from accounting profit as it
excludes income or expenses that are either taxable or deductible in other periods or not taxable/deductible at all.
iii. Deferred Tax
Deferred tax is recognised using the balance sheet approach, 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 recognised for all taxable temporary differences.
Deferred tax assets are recognised for all deductible temporary differences, carry forward of unused tax credits, and unused
tax losses, to the extent it is probable that taxable profits will be available against which the deductible temporary differences
and losses can be utilised.
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 future taxable profit will be available to allow all or part of the asset to be recovered.
Deferred tax is measured at the tax rates and laws that have been enacted or substantively enacted by the reporting date and
are expected to apply in the period when the related asset is realised or the liability is settled. The measurement reflects the
tax consequences based on the manner in which the Company expects to recover or settle the carrying amount of its assets
and liabilities.
iv. Offsetting
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax assets against current
tax liabilities and the deferred taxes relate to income taxes levied by the same taxation authority on the same entity.
v. Minimum Alternate Tax (MAT)
MAT paid under Section 115JB of the Income-tax Act, 1961 is recognised as a deferred tax asset, if it is probable that future
taxable profit will be available against which MAT credit can be utilised. The asset is reviewed at each reporting date and
written down to the extent the realisability is no longer probable.
m. Indirect Tax Input Credit:
Input Tax Credit (ITC) on purchases of goods, services, and capital goods is recognised in the books in the period in which the
underlying goods or services are received and it is reasonably certain that the credit will be available under the applicable tax laws
(e.g., Goods and Services Tax Act, 2017).
ITC recognised is classified under Current Assets in the financial statements and is set off against the applicable output tax liability
in accordance with the provisions of the relevant tax laws and rules.
Unutilised ITC balances are carried forward to subsequent financial years to the extent eligible under the rules.
In cases where:
• Utilisation of credit is uncertain,
• Input credit is specifically disallowed, or
• Credit is not likely to be realised due to non-compliance or interpretation of law, the corresponding ITC is reversed in the
books and charged to the Statement of Profit and Loss in the period in which the related expense is incurred or disallowance
is determined.
n. Contingency Reserve:
A contingency reserve represents a portion of retained earnings appropriated by the Company to cover potential future losses
or unforeseen obligations. This reserve is created based on the Company's internal policy and prudent financial management
practices and does not arise from any specific statutory requirement under Ind AS.
The contingency reserve is not created in response to any present obligation or probable outflow of resources as defined under
Ind AS 37 - Provisions, Contingent Liabilities and Contingent Assets, and therefore, it is not recognised as a provision or liability.
Instead, it is shown under ‘Other Equity' in the financial statements.
The purpose of this reserve is to strengthen the Company's financial position and ensure the availability of funds to absorb any
unexpected future losses, such as operational disruptions, claims, or contingencies not covered by existing provisions.
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