G Provisions (other than for employee benefits)

A provision is recognised if, as a result of a past event,
the Company has a present legal or constructive
obligation that can be estimated reliably, and it is
probable that an outflow of economic benefits will
be required to settle the obligation. Provisions are
determined by discounting the expected future
cash flows (representing the best estimate of the
expenditure required to settle the present obligation
at the balance sheet date) at a pre-tax rate that
reflects current market assessments of the time
value of money and the risks specific to the liability.
The unwinding of the discount is recognised as
finance cost. Expected future operating losses are not
provided for.

i. Onerous contracts

A contract is considered to be onerous when the
expected economic benefits to be derived by
the Company from the contract are lower than
the unavoidable cost of meeting its obligations
under the contract. The provision for an onerous
contract is measured at the present value of the
lower of the expected cost of terminating the

contract and the expected net cost of continuing
with the contract. Before such a provision is
made, the Company recognises any impairment
loss on the assets associated with that contract.

H LeasesCompany as a Lessor:

Leases in which the Company does not transfer
substantially all the risks and rewards incidental to
ownership of an asset is classified as operating leases.
Rental income arising is accounted for on a straight¬
line basis over the lease term. Initial direct costs
incurred in negotiating and arranging an operating
lease are added to the carrying amount of the leased
asset and recognised over the lease term on the
same basis as rental income. Contingent rents are
recognised as revenue in the period in which they are
earned.

Leases are classified as finance leases when
substantially all of the risks and rewards of ownership
transfer from the Company to the lessee. Amounts
due from lessees under finance leases are recorded
as receivables at the Company's net investment
in the leases. Finance lease income is allocated to
accounting periods so as to reflect a constant periodic
rate of return on the net investment outstanding in
respect of the lease.

Company as lessee

The Company assesses at contract inception whether
a contract is, or contains, a lease. That is, if the
contract conveys the right to control the use of an
identified asset for a period of time in exchange
for consideration. The Company applies a single
recognition and measurement approach for all
leases, except for short-term leases. The Company
recognises lease liabilities to make lease payments
and right-of-use assets representing the right to use
the underlying assets.

(i) Right-of-use assets

The Company recognises right-of-use assets at
the commencement date of the lease (i.e., the
date the underlying asset is available for use).
Right-of-use assets are measured at cost, less
any accumulated depreciation and impairment
losses, and adjusted for any remeasurement
of lease liabilities. The cost of right-of-use
assets includes the amount of lease liabilities
recognised, initial direct costs incurred, and lease
payments made at or before the commencement
date less any lease incentives received. Right-

of-use assets are depreciated on a straight-line
basis over the shorter of the lease term or the
estimated useful lives of the assets.

If ownership of the leased asset transfers to the
Company at the end of the lease term or the
cost reflects the exercise of a purchase option,
depreciation is calculated using the estimated
useful life of the asset. The right-of-use assets are
subject to impairment.

(ii) Lease liabilities

At the commencement date of the lease, the
Company recognises lease liabilities measured
at the present value of lease payments to be
made over the lease term. The lease payments
include fixed payments (including in substance
fixed payments) less any lease incentives
receivable, variable lease payments that depend
on an index or a rate, and amounts expected to
be paid under residual value guarantees. The
lease payments also include the exercise price
of a purchase option reasonably certain to be
exercised by the Company and payments of
penalties for terminating the lease, if the lease
term reflects the Company exercising the option
to terminate. Variable lease payments that do not
depend on an index or a rate are recognised as
expenses (unless they are incurred to produce
inventories) in the period in which the event or
condition that triggers the payment occurs.

In calculating the present value of lease
payments, the Company uses its incremental
borrowing rate at the lease commencement
date because the interest rate implicit in the
lease is not readily determinable. After the
commencement date, the amount of lease
liabilities is increased to reflect the accretion of
interest and reduced for the lease payments
made. In addition, the carrying amount of lease
liabilities is remeasured if there is a modification,
a change in the lease term, a change in the lease
payments (e.g., changes to future payments
resulting from a change in an index or rate used
to determine such lease payments) or a change
in the assessment of an option to purchase the
underlying asset.

(iii) Short-term leases

The Company applies the short-term lease
recognition exemption to its short-term leases
(i.e., those leases that have a lease term of 12

months or less from the commencement date
and do not contain a purchase option). Lease
payments on short-term leases are recognised
as expense on a straight-line basis over the lease
term.

I Contingent liabilitiesContingent liability is disclosed for all:

- possible obligation that arises from past events
and whose existence will be confirmed only by
the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control
of the Company (or)

- present obligations arising from past events where
it is not probable that an outflow of resources
embodying economic benefits will be required to
settle the obligation or a sufficiently reliable estimate
of the amount of the obligation cannot be made.

J Property, plant and equipmenti. Recognition and measurement

On transition to Ind AS (i.e. 1 April 2016),
the Company has elected to continue with
the carrying value of all Property, plant and
equipment measured as per the previous GAAP
and use that carrying value as the deemed cost of
Property, plant and equipment.

For subsequent acquisition, items of property,
plant and equipment (other than land) are
measured at cost, which includes capitalised
borrowing costs, less accumulated depreciation
and accumulated impairment losses, if any.

Capital work in progress is stated at cost, net of
accumulated impairment loss, if any.

Cost of an item of property, plant and equipment
comprises its purchase price, including import
duties, if any and non-refundable purchase taxes,
after deducting trade discounts and rebates, any
directly attributable cost of bringing the item to
its working condition for its intended use and
estimated costs of dismantling and removing the
item and restoring the site on which it is located.

When significant parts of plant and equipment
are required to be replaced at intervals, the
Company depreciates them separately based on
their specific useful lives. Likewise, when a major
inspection is performed, its cost is recognised in
the carrying amount of the plant and equipment
as a replacement if the recognition criteria are

satisfied. All other repair and maintenance costs
are recognised in profit or loss as incurred.

An item of property, plant and equipment
and any significant part initially recognised
is derecognised upon disposal or when no
future economic benefits are expected from
its use or disposal. Any gain or loss arising on
derecognition of the asset (calculated as the
difference between the net disposal proceeds
and the carrying amount of the asset) is included
in the statement of profit and loss when the asset
is derecognised.

ii. Subsequent expenditure

Subsequent expenditure is capitalised only if it
is probable that the future economic benefits
associated with the expenditure will flow to
the Company and the cost of the item can be
measured reliably.

iii. Depreciation

Depreciation is calculated on cost of items
of property, plant and equipment less their
estimated residual values over their estimated
useful lives using the straight-line method, and
is generally recognised in the statement of profit
and loss. Freehold land is not depreciated.

The Company reviews the estimated residual
values and expected useful lives of assets at least
annually.

The estimated useful lives of items of property,
plant and equipment for the current and
comparative periods are as follows:

Based on technical evaluation and consequent
advice, the management believes that its
estimates of useful lives as given above best
represent the period over which management
expects to use these assets and are different
from those prescribed in Schedule II of the Act.

Depreciation on additions (disposals) is provided
on a pro-rata basis i.e. from (up to) the date on
which asset is ready for use (disposed of).

K Cash and cash equivalents

Cash and cash equivalent comprise of cash on hand
and at banks including short-term deposits with an
original maturity of three months or less, that are
readily convertible to a known amount of cash and
which are subject to an insignificant risk of changes in
value. Other bank deposits which are not in the nature
of cash and cash equivalents with an original maturity
period of more than three months are classified as
other bank balances.

For the purpose of the standalone statement of cash
flows, cash and cash equivalents consist of cash
and short-term deposits, as defined above, net of
outstanding bank overdrafts as they are considered
an integral part of the Company's cash management.

L Cash flows

Cash flows are reported using the indirect method,
whereby profit before tax is adjusted for the effects of
transactions of a non cash nature and any deferrals or
accruals of past or future cash receipts or payments.
The cash flows from regular revenue generating,
financing and investing activities of the Company are
segregated.

M Segment reporting

Operating segments are reported in a manner
consistent with the internal reporting provided to the
chief operating decision maker. The Key managerial
personnel comprising the Managing Director and
Deputy Managing Director assess the financial
performance and position of the Company, and make
strategic decisions and have been together identified
as being the chief operating decision maker ('CODM').

N Recognition of dividend income, interest income
or expense

Dividend income is recognised in profit or loss on the
date on which the Company's right to receive payment
is established.

Interest income or expense is recognised using the
effective interest method.

The 'effective interest rate' is the rate that exactly
discounts estimated future cash payments or receipts
through the expected life of the financial instrument
to:

- the gross carrying amount of the financial asset; or

- the amortised cost of the financial liability.

In calculating interest income and expense, the
effective interest rate is applied to the gross carrying
amount of the asset (when the asset is not credit-
impaired) or to the amortised cost of the liability.
However, for financial assets that have become credit-
impaired subsequent to initial recognition, interest
income is calculated by applying the effective interest
rate to the amortised cost of the financial asset. If the
asset is no longer credit-impaired, then the calculation
of interest income reverts to the gross basis.

O Income tax

Income tax comprises current and deferred tax. It is
recognised in statement of profit and loss except to
the extent that it relates to a business combination
or to an item recognised directly in equity or in other
comprehensive income.

i. Current tax

Current tax comprises the expected tax payable
or receivable on the taxable income or loss for
the year and any adjustment to the tax payable
or receivable in respect of previous years. The
amount of current tax reflects the best estimate
of the tax amount expected to be paid or
received after considering the uncertainty, if any,
related to income taxes. It is measured using
tax rates (and tax laws) enacted or substantively
enacted by the reporting date.

Current tax assets and current tax liabilities are
offset only if there is a legally enforceable right to
set off the recognised amounts, and it is intended
to realise the asset and settle the liability on a net
basis or simultaneously.

Management periodically evaluates positions
taken in the tax returns with respect to situations
in which applicable tax regulations are subject
to interpretation and considers whether it is
probable that a taxation authority will accept
an uncertain tax treatment. The Company shall
reflect the effect of uncertainty for each uncertain

tax treatment by using either most likely method
or expected value method, depending on
which method predicts better resolution of the
treatment.

ii. Deferred tax

Deferred tax is recognised 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. Deferred
tax is also recognised in respect of carried
forward tax losses and tax credits. Deferred tax is
not recognised for:

- temporary differences arising on the initial
recognition of assets or liabilities in a
transaction that is not a business combination
and that affects neither accounting nor taxable
profit or loss at the time of the transaction;

- temporary differences related to investments in
subsidiaries, associates and joint arrangements
to the extent that the company is able to control
the timing of the reversal of the temporary
differences and it is probable that they will not
reverse in the foreseeable future; and

- taxable temporary differences arising on the
initial recognition of goodwill.

Deferred tax assets are recognised to the extent
that it is probable that future taxable profits will
be available against which they can be used.
Deferred tax assets - unrecognised or recognised
are reviewed at each reporting date and are
recognised/ reduced to the extent that it is
probable/ no longer probable respectively that
the related tax benefit will be realised.

Deferred tax is measured at the tax rates that are
expected to apply to the period when the asset
is realised or the liability is settled, based on the
laws that have been enacted or substantively
enacted by the reporting date.

The measurement of deferred tax reflects the
tax consequences that would follow from the
manner in which the Company expects, at the
reporting date, to recover or settle the carrying
amount of its assets and liabilities.

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 taxable profit will be available to allow

all or part of the deferred tax asset to be utilised.
Unrecognised deferred tax assets are re-assessed
at each reporting date and are recognised to the
extent that it has become probable that future
taxable profits will allow the deferred tax asset to
be recovered.

In assessing the recoverability of deferred tax
assets, the Company relies on the same forecast
assumptions used elsewhere in the financial
statements and in other management reports.

P Borrowing cost

Borrowing costs are interest and other costs (including
exchange differences relating to foreign currency
borrowings to the extent that they are regarded as an
adjustment to interest costs) incurred in connection
with the borrowing of funds. Other borrowing costs
are recognised as an expense in the period in which
they are incurred.

Q Earnings per share

Basic earnings per equity share are computed by
dividing the net profit or loss attributable to the equity
holders of the Company by the weighted average
number of equity shares outstanding during the
period. Diluted earnings per share are computed
by dividing the net profit attributable to the equity
holders of the Company by the weighted average
number of equity shares considered for deriving basic
earnings per equity share and also weighted average
number of equity shares that could have been issued
upon conversion of all dilutive potential equity shares.

R Inventories

Inventories consist of purchase of stock in trade,
stores, spare parts and are measured at the lower of
cost and net realisable value. The cost of inventories
is based on the first-in first-out basis, and includes
expenditure incurred in acquiring the inventories
and other costs incurred in bringing them to their
present location and condition. Cost includes cost
of Purchases, other costs, labour and a proportion
of overheads but excluding borrowing costs. Net
realisable value is the estimated selling price in the
ordinary course of business, less estimated costs
of completion and the estimated costs necessary
to make the sale. The comparison of cost and net
realisable value is made on an item by item basis.
Inventories are written down for obsolete/slow-
moving/non-moving items, wherever necessary.

S Exceptional items

Exceptional items include income or expense that are
considered to be part of ordinary activities, however
are of such significance and nature that separate
disclosure enables the user of the financial statements
to understand the impact in a more meaningful
manner.

T Foreign currencies

The Company's Standalone financial statements
are presented in INR, which is also the Company's
functional currency.

Foreign currency transactions

Transactions in foreign currencies are initially
recorded at the functional currency of the Company,
at the exchange rates at the dates of the transactions
or an average rate if the average rate approximates
the actual rate at the date of the transaction.

Monetary assets and liabilities denominated in foreign
currencies are translated into the functional currency
at the exchange rate at the reporting date. Non¬
monetary assets and liabilities that are measured at
fair value in a foreign currency are translated into the
functional currency at the exchange rate when the
fair value was determined. Non-monetary assets and
liabilities that are measured based on historical cost in
a foreign currency are translated at the exchange rate
at the date of the transaction. Exchange differences
are recognised in statement of profit and loss.

U Investment in subsidiaries

Investment in subsidiaries is carried at cost in the
separate financial statements.

V New and amended standards

The Company applied for the first-time certain
standards and amendments, which are effective for
annual periods beginning on or after 1 April 2025.

The Company has not early adopted any standard,
interpretation or amendment that has been issued
but is not yet effective.

(i) Amendments to Ind AS 21 - Lack of
exchangeability

The Ministry of Corporate Affairs (MCA) notified
the Companies (Indian Accounting Standards)
Amendment Rules, 2025, which amend Ind AS
21, The Effects of Changes in Foreign Exchange
Rates to specify how an entity should assess

whether a currency is exchangeable and how it
should determine a spot exchange rate when
exchangeability is lacking. The amendments also
require disclosure of information that enables
users of its financial statements to understand
how the currency not being exchangeable into
the other currency affects, or is expected to
affect, the entity's financial performance, financial
position and cash flows.

The amendments are effective for annual
reporting periods beginning on or after 1 April
2025. When applying the amendments, an entity
cannot restate comparative information.

The amendments do not have a material impact
on the financial statements.

(ii) Amendments to Ind AS 1 - Classification of
Liabilities as Current or Non-current and Non¬
current Liabilities with Covenants

In August 2025, the MCA notified amendments
to paragraphs 69 to 76 of Ind AS 1 to specify the
requirements for classifying liabilities as current
or non-current. The amendments clarify:

• What is meant by a right to defer settlement

• That a right to defer must exist at the end of
the reporting period

• That classification is unaffected by the
likelihood that an entity will exercise its
deferral right

• That only if an embedded derivative in
a convertible liability is itself an equity
instrument would the terms of a liability not
impact its classification

In addition, a requirement has been introduced
to require disclosure when a liability arising from
a loan agreement is classified as non-current and
the entity's right to defer settlement is contingent
on compliance with future covenants within
twelve months.

If there is a breach of a material covenant of a
long term loan arrangement on or before the end
of the reporting period, resulting in the liability
becoming payable on demand as at the reporting
date, and the lender agrees-after the reporting
period but before the financial statements are
approved for issue-not to demand repayment
for at least 12 months as a consequence of the
breach, this shall be treated as an adjusting
event. Accordingly, the entity is not required to
classify the liability as current.

Notes:

1) On March 23, 2025, TVS America Inc. has filed Articles of Dissolution with the Michigan Department of Licensing and
Regulatory Affairs (LARA) to formally commence the process of dissolving the Company in accordance with Michigan
law. The dissolution was approved by LARA on March 25, 2025.

2) Draft Scheme of Amalgamation

The Board of Directors at its meeting held on February 5, 2024, has accorded its approval to the draft Scheme of
Amalgamation which provides for the merger of TVS SCS Global Freight Solutions Limited, White Data Systems
Private Limited, SPC International (India) Private Limited and FLEXOL Packaging (India) Limited which are wholly
owned subsidiaries of the Company, and Mahogany Logistics Services Private Limited (formerly known as 'DRSR
Logistics Services Private Limited') with and into TVS Supply Chain Solutions Limited.

BSE and NSE have, vide their letters dated January 1,2025 and February 28, 2025, respectively, conveyed "no adverse
observations / no-objection" to the Scheme. The Scheme would be subject to the sanction and approval of the
National Company Law Tribunal and shareholders.

The application for merger of TVS SCS Global Freight Solutions Limited, White Data Systems Private Limited, FLEXOL
Packaging (India) Limited and Mahogany Logistics Services Private Limited (formerly known as 'DRSR Logistics
Services Private Limited') with and into TVS Supply Chain Solutions Limited was filed with National Company Law
Tribunal, Chennai and the application for merger of SPC International (India) Private Limited with and into TVS Supply
Chain Solutions Limited was filed with National Company Law Tribunal, Bangalore on March 31,2025.

NCLT, Chennai vide their order dated May 30, 2025, directed the Company to convene the meeting of Equity
Shareholders and Unsecured Creditors of the Company on July 30, 2025 ("NCLT Convened Meetings") for their
approval. Pursuant to the directions of NCLT, Chennai, the NCLT Convened Meetings were held and resolutions were
passed with requisite majority. Post approval of shareholders and creditors, the Company filed a petition with NCLT

b. Terms/rights attached to equity shares

The Company has one class of equity shares having face value of '1 per share. Each holder of equity shares is entitled to
one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of
Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

c. Terms/rights attached to preference shares

The preference shares shall be cumulative, redeemable, non-convertible, participating preference shares ('preference
shares'). The preference shares shall carry a preferential right to dividends over the Equity Shares. The preference
shares shall carry a fixed rate of preferential dividend at the rate of 0.0001% per annum. In addition to the fixed rate of
dividend, the preference shareholders shall, at their discretion, be entitled to additional preferential dividend and carry a
preferential right to dividends over the equity shares. The preference shares shall be redeemed, from time to time as may
be required by the preference shareholders at face value plus the redemption premium payable thereon no later than 20
years from the date of allotment or longer period as may be prescribed by law.

The holder of preference shares have a right to vote only on resolutions placed before the company which directly affect
the rights attached to preference shares and, any resolution for the winding up of the company or for the repayment or
reduction of its equity or preference share capital and voting right on a poll shall be in proportion to the share in the paid-
up preference share capital of the company. On winding up or repayment of capital, the preference shareholders shall
carry a preferential right of repayment.

26B Other Equity
Securities premium

Securities premium represents premium received on issue of shares and it is utilised in accordance with the provisions
for the Companies Act, 2013.

Capital reserve

During earlier years, the Company had reissued the shares forfeited and the profit on reissue of such forfeited shares
were transferred to capital reserve.

Capital redemption reserve

During the year ended 31 March 2018, the Company had redeemed preference shares issued to Tata International
Limited and Tata Industries Limited, out of profits of the Company. A sum equivalent to the nominal amount of the shares
redeemed had been transferred to capital redemption reserve in accordance with the provisions of the Companies Act,
2013.

The Company has Management Incentive Plan (MIP) scheme and ESOP 21 scheme under which share options are granted
to employees which has been approved by the shareholders of the company. In accordance with the terms of the plan,
eligible employees may be granted options to purchase equity shares of the Company if they are in service on exercise of
the grant. Each employee share option converts into one equity share of the company on exercise at the exercise price as
per the scheme. The option carry neither rights to dividend nor voting rights. Options can be exercised at any time from
the date of vesting to the date of their expiry.

General reserve

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a
specified percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that if a
dividend distribution in a given year is more than 10% of the paid-up capital of the Company for that year, then the total
dividend distribution is less than the total distributable results for that year. Consequent to introduction of Companies
Act 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been
withdrawn. However, the amount previously transferred to the general reserve can be utilised only in accordance with the
specific requirements of Companies Act, 2013.

Retained Earnings

Retained earnings are the profits/(loss) that the Company has earned/incurred till date, less any transfers to general
reserve or other reserve as well as dividends or other distributions paid to shareholders. The amount is available for
distribution to the shareholders.

Re-measurement gains/ (losses) on defined benefit plans

Re-measurement gains/ (losses) on defined benefit plans comprises actuarial gains and losses and return on plan assets
(excluding interest income).

26D Capital management

The Company intends to maintain a strong capital base so as to maintain investor, creditor confidence and to sustain
future development of the business

The Company monitors capital using a ratio of 'debt' to 'equity'. For this purpose, debt is defined as total debt, comprising
interest-bearing loans and borrowings and obligations under finance leases. Equity comprises all components of equity.
There were no changes to the measure of monitoring capital in the periods presented.

B Secured loans
Secured term loan from banks

Term loans from HDFC Bank Limited are secured by hypothecation of vehicles acquired out of the loan.

C Redeemable Preference Shares

The Company has cumulative, redeemable, non-convertible, participating preference shares. These preference shares
have been classified as a liability. For rights, preferences and restrictions attached to preference shares attached to these
preference shares refer note 26A.

D Changes in liabilities arising from financing activities

Certain items of plant and machinery have been obtained on finance lease basis. The legal title to these items vests with
their lessor. The total future minimum lease payments at the balance sheet date, element of interest included in such
payments, and present value of these minimum lease payments are as follows:

E Utilisation of borrowings

a) The Company has used the borrowings from banks for the specific purpose for which it was taken at the balance
sheet date.

b) The quarterly returns/statements of current assets filed by the Company with banks in relation to secured
borrowings wherever applicable, are in agreement with the books of accounts.

32 Employee benefits
A Defined contribution plans

The Company makes contributions, determined as a specified percentage of employee salaries, in respect of qualifying
employees towards Provident Fund (PF) and employees' state insurance (ESI) scheme which are defined contribution
plans. The Company has no obligations other than to make the specified contributions. The contributions are charged to
the statement of profit and loss as they accrue. The amount recognised as an expense towards contribution to Provident
Fund and ESI for the year aggregated to '35.91 crores (31 March 2025: '34.14 crores).

For details about the related employee benefit expenses, see note 9.

The Company has a defined benefit gratuity plan in India (the Plan), governed by the Payment of Gratuity Act, 1972. The
Plan entitles an employee, who has rendered at least five years of continuous service, to gratuity at the rate of fifteen
days wages for every completed year of service or part thereof in excess of six months, based on the rate of wages last
drawn by the employee at the time of retirement, death or termination of employment.

These defined benefit plans expose the Company to actuarial risks, such as longevity risk, interest rate risk and market
(investment) risk.

A. Funding

The gratuity plan of the Company is a partially funded plan with the Company making periodic contributions to a fund
managed by Life Insurance Corporation (LIC).

B. Reconciliation of the net defined benefit (asset)/ liability

The following table shows a reconciliation from the opening balances to the closing balances for the net defined benefit
(asset)/ liability and its components:

The company has Management Incentive Plan (MIP) scheme and ESOP 21 scheme under which share options are granted
to employees which has been approved by the shareholders of the company. In accordance with the terms of the plan,
eligible employees may be granted options to purchase equity shares of the company if they are in service on exercise of
the grant. Each employee share option converts into one equity share of the company on exercise at the exercise price as
per the scheme. The option carry neither rights to dividend nor voting rights. Options can be exercised at any time from
the date of vesting to the date of their expiry.

Fair value of share options granted during the year

During the year ended 31 March 2026, the Company had granted 2,00,000 stock options (31 March 2025 : 1,75,000) to
certain identified employees. The weighted average fair value of options granted during the year is 123.05 (31 March 2025
: 189.40). The Options were priced using a Black Scholes option valuation model & Monte Carlo simulation model for MIP
I and II respectively. Where relevant, the expected life used in the model has been adjusted based on management's best
estimate for the effects of non-transferability, exercise restrictions and behavioural considerations. Expected volatility is
based on the historical share price volatility of guideline companies in developed and developing countries.

From time to time, the Company is involved in claims and legal matters arising in the ordinary course of business.
Management is not currently aware of any matters that will have a material adverse effect on the financial position,
results of operations, or cash flows of the Company.

*The Company has challenged the demand orders from Provident Fund authorities aggregating to '17.23 crores for the
periods April 2011 to February 2015 on the grounds that provident fund on certain allowances need not be included for
calculation of the Provident Fund contribution, as the same is not universally paid to all the employees of the Company.
The Hon'ble Supreme Court of India by their order dated February 28, 2019, set out the principles based on which
allowances paid to the employees should be identified for inclusion for the purposes of computation of the Provident
Fund contribution.

With respect to the demand order for the period from April 2011 to October 2013, originally amounting to '12.49
crores, the Company had filed a review petition before the Regional Provident Fund Commissioner (RPFC) seeking
reconsideration of the demand in light of the Supreme Court's decision. Pursuant to the reassessment undertaken by the
EPFO, the RPFC issued a final order dated April 3, 2025, (received by the Company on April 21,2025) revising the demand
to '8.21 crores after excluding certain allowances. However, since five allowances which are not universally and uniformly
paid were still considered, the Company, based on legal advice, deposited 25% of the reassessed amount ('2.05 crores)
on July 23, 2025 and filed a writ petition before the Hon'ble High Court of Madras. The Hon'ble High Court granted a stay
on recovery and permitted the Company to approach the EPF Tribunal. Subsequently, as directed by the EPF Tribunal, the
Company deposited an additional 25% of the reassessed amount ('2.05 crores) on September 17, 2025, aggregating to a
total deposit of 50% ('4.10 crores), and is contesting the matter. The case is currently pending before the EPF Tribunal.

With respect to the demand order for the period from November 2013 to February 2015 amounting to '9.02 crores, the
matter is pending before the PF Appellate Tribunal. The Company has remitted a deposit of '3.60 crores during the year
ended March 31,2023. Based on the management's assessment supported by external legal advice, the Company is of
the view that no provision is required for the aforesaid matters as at March 31,2026 and March 31,2025.

# Fund based guarantees are disclosed to the extent of the total facility. Non-fund based guarantees are disclosed only to
the extent of utilization.

35 Details of dues to micro and small enterprises as defined under the MSMED Act, 2006

The management has identified enterprises which have provided goods and services to the Company and which qualify
under the definition of micro and small enterprises, as defined under Micro, Small and Medium Enterprises Development
Act, 2006. Accordingly, the disclosure in respect of the amounts payable to such enterprises as at March 31,2026 has
been made in these standalone financial statements based on information received and available with the Company, to
the extent identified by the management.

36 Related party disclosures (continued)Terms of the related party transactions:

Income from Supply Chain Management Services: Income from these services provided to related parties are on the
same terms as applicable to third parties in an arm's length transaction and in the ordinary course of business. Such
transactions generally include payment terms requiring related parties to make payments within 15 to 60 days from the
date of invoice.

Other income (Cross charges): The Company incurs certain common expenses, which are cross-charged to its subsidiary
companies with an arm's length mark-up. The mark-up is determined based on a transfer pricing study conducted by tax
professionals engaged by the Company.

Loans from subsidiaries and related interest expense: As described in the note 27 of the standalone financial
statements, during the year ended March 31,2026, the Company obtained loans aggregating to '40.0 crores from its
subsidiaries, Flexol (Packaging) India Private Limited ('3.5 crores) and TVS SCS Global Freight Solutions Limited ('36.5
crores) for working capital purposes. These loans were repayable on demand and carried an interest ranging from 7.85%
to 8.20% per annum. The company also obtained a term loan of '8.5 crores from Fit 3PL Warehousing Private Limited
repayable in 2028 carrying an interest of 7.85% to 8.20% per annum. These loans were extended at the prevailing interest
rate on an arm's length basis. The Company has serviced interest payments on these loans in a timely manner.

Investment made in Subsidiaries & Joint Venture: The Company has invested in equity shares of its wholly owned
subsidiaries. During the current year, the Company infused fresh equity amounting to '21.35 crores and converted
existing loans amounting to '129.59 crores in its wholly owned subsidiary, TVS Logistics Investments USA Inc . The
investment has been utilized by the subsidiaries for the purpose it was obtained. The subsidiaries have only one class
of equity shares carrying one vote per share. In the event of liquidation, the holders of equity shares will be entitled to
receive its remaining assets, after distribution of all preferential amounts. The distribution will be in proportion to the
number of equity shares held by the shareholders. Refer note 16A for impairment against investments.

Purchase of property, plant & equipment, goods and services: In the ordinary course of business, the Company
receives freight and forwarding services, software, consulting services, and procures property, plant & equipment,
spare parts and consumables from both third parties and related parties. These purchases from related parties on the
same terms as applicable to third parties in an arm's length transaction and in the ordinary course of business. Such
purchases generally include payment terms requiring the Company to make payment within 30 to 60 days from the date
of submission of the invoice.

Sale of Property Plant and Equipment: During the current and previous year, the Company disposed of items of
property, plant, and equipment to related parties. The sales were conducted on the same terms as those applicable to
third parties, in arm's length transactions and in the ordinary course of business. Such sales generally include payment
terms requiring payment within 30 to 60 days from the date of submission of the invoice.

Rental Expenses: In the ordinary course of business, the Company leases warehouses and offices from both third parties
and certain related parties, based on its business needs. Rental expenses paid to related parties are based on prevailing
market rates and determined on an arm's length basis.

Compensation to KMP of the Company: The amounts disclosed in the table are the amounts recognised as an
expense during the financial year related to KMP. The amounts do not include expense, if any, recognised toward post¬
employment benefits and other long-term benefits of key managerial personnel. Such expenses are measured based
on an actuarial valuation done for the Company as a whole. Hence, amounts attributable to KMPs are not separately
determinable.

Expenses incurred by and reimbursed to: Related parties make certain payment on behalf of the Company. In such
cases, reimbursement to the related parties are due within period of 15 to 30 days. The amounts payable are unsecured
and interest free.

Expenses incurred on behalf of: The Company makes certain payment on behalf of related parties. In such cases,
reimbursement from the related party are due within period of 15 to 30 days. The amount recoverable are unsecured
and interest free.

Guarantees given on behalf of wholly owned subsidiary: The Company has charged 1% of the amounts guaranteed
for fund-based guarantees issued to subsidiaries towards the guarantee fee. This fee is determined on an arm's length
basis and a transfer pricing study was conducted by tax professionals engaged by the Company. The company has
provided guarantees for performance of certain contracts entered into by its subsidiaries. The aggregate amount of non¬
fund-based guarantees outstanding as at the reporting date is '20.77 crores (March 31,2025: '5.48 crores).

Security Deposit: In the normal course of business, the Company pays security deposits for warehouse and office leases
in accordance with the terms of the agreements entered into with the respective parties. The applicable terms, including
the amount of security deposit, are determined on an arm's length basis.

Receivables: Trade receivables/other receivables outstanding balances are unsecured, interest free and require
settlement in cash. No guarantee or other security has been received against these receivables. The amounts are
recoverable within 30 to 90 days from the reporting date (March 31,2025: 30 to 90 days from the reporting date). For
the year ended March 31,2026, the Company has not recorded any impairment on receivables due from related parties
(March 31,2025: Nil).

Payables: Trade payables/other payables outstanding balances are unsecured, interest free and require settlement in
cash. No guarantee or other security has been given against these payables. The amounts are payable within 30 to 60
days from the reporting date (31 March 2025: 30 to 60 days from the reporting date).

37 Transfer pricing

The Company has international transactions with related parties. The management confirms that all such transactions are
in compliance with the provisions of Income-tax Act, 1961. The management also confirms that it maintains documents
as prescribed by the Income Tax Act to prove that the international and domestic transactions are at arm's length and the
aforesaid legislation will not have any impact on the standalone financial statements, particularly on the amount of tax
expense and that of provision for taxation.

39 Financial instruments - Fair values and risk management
A. Accounting classification and fair values and fair value hierarchy

This section explains the carrying amounts and fair values of financial assets and liabilities, including judgements and
estimates made in determining the fair values of the standalone financial instruments that are (a) recognised and
measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial
statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has
classified its financial instruments into the three levels as described in note 3.

Note: The Company has not disclosed fair values of financial instruments such as loans, deposits and other receivables,
trade receivables, cash and cash equivalents, other bank balances, other financial assets, borrowings, trade payables,
lease liabilities and other financial liabilities because their carrying amounts are reasonable approximations of their fair
values. The Company has also not disclosed fair values of investments carried at cost.

There have been no transfers between Level 2 and Level 3 during the periods.

B. Financial risk management

The Company has exposure to the following risks arising from financial instruments:

- credit risk;

- liquidity risk; and

- market risk

i. Risk management framework

The Company's Board of Directors has overall responsibility for the establishment and oversight of the Company's risk
management framework. The Board of Directors along with the senior management are responsible for developing and
monitoring the Company's risk management policies.

The Company's risk management policies are established to identify and analyse the risks faced by the Company, to
set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and
systems are reviewed regularly to reflect changes in market conditions and the Company's activities. The Company,
through its training and management standards and procedures, aims to maintain a disciplined and constructive control
environment in which all employees understand their roles and obligations.

ii. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet
its contractual obligations, and arises principally from the Company's receivables from customers; loans and investments.

The carrying amounts of financial assets represent the maximum credit risk exposure.

Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the
creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company
establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of
the Company's trade receivables, certain loans and advances and other financial assets.

The Company determines credit risk based on a variety of factors including but not limited to the age of the receivables,
cash flow projections and available information about customers from internal/external sources. The Company
establishes an allowance for impairment that represents its estimate of expected losses in respect of trade receivables.

The ageing of trade receivables that were not impaired as at the reporting date was:

Trade and other receivables

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The
demographics of the customer, including the default risk of the industry and country in which the customer operates, also
has an influence on credit risk assessment.

Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine
incurred and expected credit losses. The impairment loss at the reporting dates relates to several customers that have
defaulted on their payments to the Company and are not expected to be able to pay their outstanding balances, mainly
due to economic circumstances.

impairment losses on financial instruments represent the net charge recognised under the expected credit loss model
in accordance with Ind AS 109, comprising movements in loss allowance of '13.78 crores (31 March 2025 : '2.41 crores)
and write-off of financial assets amounting to '9.44 crores (31 March 2025 : '9.52 crores). The impairment reflects
management's assessment of credit risk and recoverability of financial assets as at the reporting date.

Cash and cash equivalents and other bank balances

The Company holds cash and bank balances of '164.57 crores as at 31 March 2026 (31 March 2025: '189.75 crores). The
credit worthiness of such banks and financial institutions are evaluated by the management on an ongoing basis and is
considered to be good.

Deposits and other receivables

The Company has Deposits and other receivables of '171.26 crores as at 31 March 2026 (31 March 2025: '163.62 crores).
It consists of deposit given in relation to leasehold premises occupied by the Company for carrying out its operations and
receivable from subsidiaries. The Company does not expect any losses from non-performance by these counter-parties.

Loans, Investments and Other financial assets

The Company has loans, investments and other financial assets of '3.87 crores as at 31 March 2026 (31 March 2025:
'123.02 crores). The credit worthiness of such parties are evaluated by the management on an ongoing basis and are
provided wherever necessary and the remaining balances are considered to be good.

iii. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to
ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal
and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross
and undiscounted, and include contractual interest payments and exclude the impact of netting agreements:

Currency risk

The Company is exposed to currency risk to the extent that there is a mismatch between the currencies in which
revenues, loans given to related parties and other payables and receivables are denominated in a currency other than the
INR.

The following table analyses foreign currency risk from financial instruments. The amounts disclosed in the table below
are in equivalent ' for the various currencies to which the Company is exposed to currency risk.

42 Undisclosed income

The Company has no transaction which is not recorded in the books of accounts that has been surrendered or disclosed
as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other
relevant provisions of the Income Tax Act, 1961)

43 Benami property

The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made
thereunder.

44 Other Statutory Information

(i) The Company has not traded or invested Crypto currency during the current year or the preceding year.

(ii) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction in number of Layers) Rules, 2017.

# This has been repaid during FY26

The Company has complied with the relevant provisions of the Foreign Exchange Management Act, 1999 (42 of 1999) and
the Companies Act, 2013 for the above transactions and the transactions are not violative of the Prevention of Money¬
Laundering Act, 2002 (15 of 2003).

Other than the above, there are no funds that have been advanced or loaned or invested (either from borrowed funds
or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entities,
including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the
Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.

Other than the above, there are no funds that have been received by the Company from any person(s) or entities,
including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that
the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like
on behalf of the Ultimate Beneficiaries

49 Subsequent events

There are no significant subsequent events that have occurred after the reporting period which required adjustement /
disclosure in the standalone financial statements.

50 Struck off companies

The Company does not have any material transactions with companies struck off under section 248 of Companies Act,
2013.

51 Information relating to Proviso to Rule 3(1) of Companies (Accounts) Rules, 2014 on Audit Trail

The Company has used accounting software for maintaining its books of account which has a feature of recording an
audit trail (edit log), and the same was operational throughout the year for all relevant transactions recorded in the
software. Further, there were no instances of the audit trail feature being tampered with. Additionally, the audit trail in
respect of prior years have been preserved by the Company as per the statutory requirements for record retention, in
respect of the financial years ended March 31,2025 and March 31,2024.

52 Backup of Books of Accounts:

Proper books of accounts as required by the law have been kept by the Company. Backup of the books of accounts
(including audit trail) and papers are maintained in electronic mode on servers physically located in India.

As per our report of even date attached

for S.R. Batliboi & Associates LLP for and on behalf of the board of directors of

Firm Registration Number : 101049W / E300004 TVS Supply Chain Solutions Limited
Chartered Accountants

Aravind K R Dinesh Ravi Viswanathan Vikas Chadha

Partner Executive Chairman Managing Director Chief Executive Officer

Membership No. 221268 DIN: 00363300 DIN: 08713910

Place : Chennai
Date : May 25, 2026

Vaidhyanathan R P D Krishna Prasad Pl_{ace :} Ch_ennai

Chief Financial Officer Company Secretary Date : May 25, 2026