l) Provisions, Contingent Liabilities and Contingent Assets
Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result
of past events, it is probable that an outflow of resources embodying economic benefits will be required
to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the
Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the
reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The
expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as a finance cost.

Decommissioning liability

The Company records a provision for decommissioning costs of a facility used for warehousing purposes and
trading of goods. Decommissioning costs are provided at the present value of expected costs (less realisable
value of assets) to settle the obligation using estimated cash flows and are recognised as part of the cost
of the particular asset. The cash flows are discounted at a current pre-tax rate that reflects the risks specific
to the decommissioning liability. The unwinding of the discount is expensed as incurred and recognised
in the statement of profit and loss as a finance cost. The estimated future costs of decommissioning are
reviewed annually and adjusted as appropriate. The impact of climate-related matters, such as changes in
environmental regulations and other relevant legislation, is considered by the Company in estimating the
decommissioning liability on the manufacturing facility. Changes in the estimated future costs or in the
discount rate applied are added to or deducted from the cost of the asset.

Onerous contracts

If the Company has a contract that is onerous, the present obligation under the contract is recognised and
measured as a provision. However, before a separate provision for an onerous contract is established, the
Company recognises any impairment loss that has occurred on assets dedicated to that contract.

An onerous contract is a contract under which the unavoidable costs (i.e., the costs that the Company cannot
avoid because it has the contract) of meeting the obligations under the contract exceed the economic
benefits expected to be received under it. The unavoidable costs under a contract reflect the least net cost
of exiting from the contract, which is the lower of the cost of fulfilling it and any compensation or penalties
arising from failure to fulfil it. The cost of fulfilling a contract comprises the costs that relate directly to the
contract (i.e., both incremental costs and an allocation of costs directly related to contract activities).

Contingent liability
Contingent liability is:

(a) a possible obligation arising 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
entity or

(b) a present obligation that arises from past events but is not recognized because;

- it is not probable that an outflow of resources embodying economic benefits will be required to
settle the obligation, or

- the amount of the obligation cannot be measured with sufficient reliability.

The Company does not recognize a contingent liability but discloses its existence and other required
disclosures in notes to the financial statements, unless the possibility of any outflow in settlement is remote.

Contingent asset

A contingent asset is a possible asset 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 entity. The Company does not recognize the contingent asset in its standalone financial statements
since this may result in the recognition of income that may never be realised. Where an inflow of economic
benefits is probable, the Company disclose a brief description of the nature of contingent assets at the end
of the reporting period. However, when the realisation of income is virtually certain, then the related asset is
not a contingent asset and the Company recognize such assets.

Provisions, contingent liabilities and contingent assets are reviewed at each reporting date.

m) Retirement and other employee benefits

Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no
obligation, other than the contribution payable to the provident fund. The Company recognizes contribution
payable to the provident fund scheme as an expense, when an employee renders the related service. If
the contribution payable to the scheme for service received before the balance sheet date exceeds the
contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting the
contribution already paid. If the contribution already paid exceeds the contribution due for services received
before the balance sheet date, then excess is recognized as an asset to the extent that the pre-payment will
lead to, for example, a reduction in future payment or a cash refund.

Gratuity obligations

The Company operates a defined benefit gratuity plan in India, which requires contributions to be made
to a separately administered fund. The gratuity plan provides a lump sum payment to employees who
have completed four years and two hundred and forty days or more of service at retirement, disability or
termination of employment, being an amount based on the respective employee's last drawn salary and the
number of years of employment with the Company.

The liabilities with respect to gratuity plan are determined by actuarial valuation on projected unit credit
method on the balance sheet date, based upon which the Company contributes to the gratuity Scheme.
The difference, if any, between the actuarial valuation of the gratuity of employees at the year end and the
balance of funds is provided for as assets/ (liability) in the books.

Past service costs are recognised in profit or loss on the earlier of:

a) The date of the plan amendment or curtailment, and

b) The date that the Company recognises related restructuring costs.

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The
Company recognizes the following changes in the net defined benefit obligation under employee benefit
expense in statement of profit and loss:

a) Service costs comprising current service costs, past-service costs, gains and losses on curtailments
and non-routine settlements

b) Net interest expense or income

Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts
included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts
included in net interest on the net defined benefit liability), are recognized immediately in the Balance Sheet
with a corresponding debit or credit to retained earnings through other comprehensive income in the period
in which they occur. Remeasurements are not reclassified to statement of profit and loss in subsequent
periods.

Compensated absences

Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-term
employee benefit. The Company measures the expected cost of such absences as the additional amount
that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date.
The Company recognizes expected cost of short-term employee benefit as an expense, when an employee
renders the related service.

The Company treats accumulated leave expected to be carried forward beyond twelve months, as long¬
term employee benefit for measurement purposes. Such long-term compensated absences are provided for
based on the actuarial valuation using the projected unit credit method at the reporting date. Remeasurement
gains/losses are immediately taken to the statement of profit and loss and are not deferred. The obligations

are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to
defer the settlement for at least twelve months after the reporting date.

n) 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

Initial recognition and measurement

Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value
through other comprehensive income (OCI), and fair value through profit or loss.

The classification of financial assets at initial recognition depends on the financial asset's contractual cash
flow characteristics and the Company's business model for managing them. With the exception of trade
receivables that do not contain a significant financing component or for which the Company has applied
the practical expedient, the Company initially measures a financial asset at its fair value plus, in the case
of a financial asset not at fair value through profit or loss, transaction costs. Trade receivables that do not
contain a significant financing component or for which the Company has applied the practical expedient are
measured at the transaction price determined under Ind AS 115. Refer to the accounting policies in section
Revenue from contracts with customers.

In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it
needs to give rise to cash flows that are 'solely payments of principal and interest (SPPI)' on the principal
amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level.
Financial assets with cash flows that are not SPPI are classified and measured at fair value through profit or
loss, irrespective of the business model.

The Company's business model for managing financial assets refers to how it manages its financial assets in
order to generate cash flows. The business model determines whether cash flows will result from collecting
contractual cash flows, selling the financial assets, or both. Financial assets classified and measured at
amortised cost are held within a business model with the objective to hold financial assets in order to collect
contractual cash flows while financial assets classified and measured at fair value through OCI are held
within a business model with the objective of both holding to collect contractual cash flows and selling.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

• Financial assets at amortised cost (debt instruments)

• Financial assets at fair value through other comprehensive income (FVTOCI) with recycling of cumulative
gains and losses (debt instruments)

• Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses
upon derecognition (equity instruments)

• Financial assets at fair value through profit or loss
Financial assets at amortised cost (debt instruments)

A 'financial asset' is measured at the amortised cost if both the following conditions are met:

• The asset is held within a business model whose objective is to hold assets for collecting contractual
cash flows, and

• Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of
principal and interest (SPPI) on the principal amount outstanding.

This category is the most relevant to the Company. After initial measurement, such financial assets are
subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost
is calculated by taking into account any discount or premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation is included in other income in the profit or loss. The losses
arising from impairment are recognised in the profit or loss. The Company's financial assets at amortized
cost includes trade and other receivables. For more information on receivables, refer to note 6A.

Financial assets at fair value through OCI (FVTOCI) (debt instruments)

A 'financial asset' is classified as at the FVTOCI if both of the following criteria are met:

• The objective of the business model is achieved both by collecting contractual cash flows and selling
the financial assets, and

• The asset's contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting
date at fair value. Fair value movements are recognized in the other comprehensive income (OCI). However,
the Company recognizes interest income, impairment losses and reversals and foreign exchange gain or
loss in the statement of profit and loss. Upon derecognition of the asset, cumulative gain or loss previously
recognised in OCI is reclassified from the equity to statement of profit and loss. Interest earned whilst
holding FVTOCI debt instrument is reported as interest income using the EIR method. The Company has not
designated any debt instrument as at FVTOCI.

Financial assets designated at fair value through OCI (equity instruments)

Upon initial recognition, the Company can elect to classify irrevocably its equity investments as equity
instruments designated at fair value through OCI when they meet the definition of equity under Ind AS 32
Financial Instruments: Presentation and are not held for trading. The classification is determined on an
instrument-by-instrument basis. Equity instruments which are held for trading and contingent consideration
recognised by an acquirer in a business combination to which Ind AS103 applies are classified as at FVTPL.

Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as
other income in the statement of profit and loss when the right of payment has been established, except
when the Company benefits from such proceeds as a recovery of part of the cost of the financial asset, in
which case, such gains are recorded in OCI. Equity instruments designated at fair value through OCI are not
subject to impairment assessment.

Financial assets at fair value through profit or loss

Financial assets in this category are those that are held for trading and have been either designated by
management upon initial recognition or are mandatorily required to be measured at fair value under Ind AS
109 i.e. they do not meet the criteria for classification as measured at amortised cost or FVOCI. Management
only designates an instrument at FVTPL upon initial recognition, if the designation eliminates, or significantly
reduces, the inconsistent treatment that would otherwise arise from measuring the assets or liabilities or
recognising gains or losses on them on a different basis. Such designation is determined on an instrument-
by-instrument basis.

Financial assets at fair value through profit or loss are carried in the balance sheet at fair value with net
changes in fair value recognised in the statement of profit and loss.

Interest earned on instruments designated at FVTPL is accrued in interest income, using the EIR, taking
into account any discount/ premium and qualifying transaction costs being an integral part of instrument.
Interest earned on assets mandatorily required to be measured at FVTPL is recorded using the contractual
interest rate. Dividend income on equity investments are recognised in the statement of profit and loss as
other income when the right of payment has been established.

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial
assets) is primarily derecognised (i.e. removed from the balance sheet) when:

• The rights to receive cash flows from the asset have expired, or

• The Company has transferred its rights to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party under a 'pass¬
through' arrangement; and either (a) the Company has transferred substantially all the risks and rewards
of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and
rewards of the asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into
a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of
ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the
asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the
extent of the Company's continuing involvement. In that case, the Company also recognises an associated
liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and
obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the
lower of the original carrying amount of the asset and the maximum amount of consideration that the
Company could be required to repay.

Impairment of financial assets

Further disclosures relating to impairment of financial assets are also provided in the following notes:

• Disclosures for significant assumptions - see note 30 and note 31

• Trade receivables and contract assets - see note 6A and 6G

The Company recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at
fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in
accordance with the contract and all the cash flows that the Company expects to receive, discounted at an
approximation of the original effective interest rate. The expected cash flows will include cash flows from
the sale of collateral held or other credit enhancements that are integral to the contractual terms.

ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase
in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that
are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has
been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses
expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

For trade receivables and contract assets, the Company applies a simplified approach in calculating ECLs.
Therefore, the Company does not track changes in credit risk, but instead recognises a loss allowance based
on lifetime ECLs at each reporting date. The Company has established a provision matrix that is based on
its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the
economic environment.

The Company considers a financial asset in default when contractual payments are 90 days past due.
However, in certain cases, the Company may also consider a financial asset to be in default when internal or
external information indicates that the Company is unlikely to receive the outstanding contractual amounts
in full before taking into account any credit enhancements held by the Company. A financial asset is written
off when there is no reasonable expectation of recovering the contractual cash flows.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or
loss, loans and borrowings, payables, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs.

The Company's financial liabilities include trade and other payables, loans and borrowings including bank
overdrafts, financial guarantee contracts and derivative financial instruments.

Subsequent measurement

For purposes of subsequent measurement, financial liabilities are classified in two categories:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair value through profit or loss.

Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the
near term. This category also includes derivative financial instruments entered into by the Company that are
not designated as hedging instruments in hedge relationships as defined by Ind AS 109.

Gains or losses on liabilities held for trading are recognised in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated
as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities
designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in
OCI. These gains/ losses are not subsequently transferred to P&L. However, the Company may transfer the
cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the
statement of profit or loss. The Company has not designated any financial liability as at fair value through
profit and loss.

Financial liabilities at amortised cost (Loans and borrowings)

This is the category most relevant to the Company. After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are
recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation
process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or
costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement
of profit and loss.

This category generally applies to borrowings. For more information refer note 12A and 12B.

Financial guarantee contracts

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made
to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due
in accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially
as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the
guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined
as per impairment requirements of Ind AS 109 and the amount recognised less, when appropriate, the
cumulative amount of income recognised in accordance with the principles of Ind AS 115.

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different
terms, or the terms of an existing liability are substantially modified, such an exchange or modification is
treated as the derecognition of the original liability and the recognition of a new liability. The difference in the
respective carrying amounts is recognised in the statement of profit or loss.

Reclassification of financial assets

The Company determines classification of financial assets and liabilities on initial recognition. After initial
recognition, no reclassification is made for financial assets which are equity instruments and financial
liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change
in the business model for managing those assets. Changes to the business model are expected to be
infrequent. The Company's senior management determines change in the business model as a result of
external or internal changes which are significant to the Company's operations. Such changes are evident
to external parties. A change in the business model occurs when the Company either begins or ceases to
perform an activity that is significant to its operations. If the Company reclassifies financial assets, it applies
the reclassification prospectively from the reclassification date which is the first day of the immediately
next reporting period following the change in business model. The Company does not restate any previously
recognised gains, losses (including impairment gains or losses) or interest.

The following table shows various reclassification and how they are accounted for:

Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is
a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis
or realise the asset and settle the liability simultaneously.

o) 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, that are readily convertible to a known amount of cash and
subject to an insignificant risk of changes in value.

For the purpose of the 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.

p) Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of
financial year which are unpaid. The amounts are unsecured. Trade and other payables are presented as
current liabilities unless payment is not due within 12 months after the reporting period. They are recognised
initially at their fair value and subsequently measured at amortised cost using effective interest method.

q) Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the proceeds (net of transaction cost) and redemption
amount is recognised in profit or loss over the period of the borrowings using the effective interest rate
method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan
to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is
deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all
of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised
over the period of the facility to which it relates.

Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged,
cancelled or expired. The difference between the carrying amount of a financial liability that has been
extinguished or transferred to another party and the consideration paid, including any non-cash assets
transferred or liabilities assumed, is recognised in statement of profit and loss.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer
settlement of the liability for at least 12 months after the reporting period. Where there is a breach of a
material provision of a long-term arrangement on or before the end of the reporting period with the effect
that the liability becomes payable on demand on the reporting date, the entity does not classify the liability
as current, if the lender agreed, after the reporting period and before the approval of the financial statements
for issue, not to demand payment as a consequence of the breach.

r) Inventories

a) Basis of valuation:

Inventories are valued at lower of cost and net realizable value after providing cost of obsolescence, if
any. The comparison of cost and net realizable value is made on an item-by-item basis.

b) Method of Valuation:

(i) Cost of traded goods has been determined by using first in first out cost method and comprises all costs
of purchase, duties, taxes (other than those subsequently recoverable from tax authorities) and all other
costs incurred in bringing the inventories to their present location and condition.

(ii) Net realizable value is the estimated selling price in the ordinary course of business, less estimated
costs of completion and estimated costs necessary to make the sale.

s) Dividends

The Company recognises a liability to pay dividend to equity holders of the parent when the distribution is
authorised, and the distribution is no longer at the discretion of the Company. As per the corporate laws
in India, a distribution is authorised when it is approved by the shareholders. A corresponding amount is
recognised directly in equity.

t) Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss attributable to the equity holders of
the Company by the weighted average number of equity share outstanding during the financial year.

The weighted average number of equity shares outstanding during the period is adjusted for events such as
bonus issue, bonus element in a rights issue, share split, and reverse share split (consolidation of shares)
that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to
equity shareholders of the Company and the weighted average number of shares outstanding during the
period are adjusted for the effects of all dilutive potential equity shares.

u) Events after the reporting period

If the Company receives information after the reporting period, but prior to the date of approved for issue,
about conditions that existed at the end of the reporting period, it will assess whether the information affects
the amounts that it recognises in its separate financial statements. The Company will adjust the amounts
recognised in its financial statements to reflect any adjusting events after the reporting period and update
the disclosures that relate to those conditions in light of the new information. For non-adjusting events
after the reporting period, the Company will not change the amounts recognised in its separate financial
statements but will disclose the nature of the non-adjusting event and an estimate of its financial effect, or
a statement that such an estimate cannot be made, if applicable.

1.3.Significant accounting judgements, estimates and assumptions

The preparation of the Company's financial statements requires management to make judgements, estimates
and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the
accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions
and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or
liabilities affected in future periods.

Other disclosures relating to the Company's exposure to risks and uncertainties includes:

• Capital management note 32

• Financial risk management note 31

• Sensitivity analyses disclosures notes 31

Judgements

In the process of applying the Company's accounting policies, management has made the following judgements,
which have the most significant effect on the amounts recognised in the financial statements:

• Determining the lease term of contracts with renewal and termination options - Company as lessee

The Company determines the lease term as the non-cancellable term of the lease, together with any periods
covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by
an option to terminate the lease, if it is reasonably certain not to be exercised.

The Company has several lease contracts that include extension and termination options. The Company
applies judgement in evaluating whether it is reasonably certain whether or not to exercise the option to
renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive for
it to exercise either the renewal or termination. After the commencement date, the Company reassesses
the lease term if there is a significant event or change in circumstances that is within its control and affects
its ability to exercise or not to exercise the option to renew or to terminate (e.g., construction of significant
leasehold improvements or significant customisation to the right-of-use assets).

Estimates and judgements are continually evaluated. They are based on historical experience and other
factors, including expectations of future events that may have a financial impact on the company and that
are believed to be reasonable under the circumstances.

• Revenue from contracts with customers

The Company's contracts with customers include promises to transfer service to the customers. Judgement
is required to determine the transaction price for the contract. The transaction price could be either a fixed
amount of customer consideration or variable consideration with elements such as schemes, incentives,
cash discounts, etc. The estimated amount of variable consideration is adjusted in the transaction price
only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue
recognised will not occur and is reassessed at the end of each reporting period.

Estimates of rebates and discounts are sensitive to changes in circumstances and the Company's past
experience regarding returns and rebate entitlements may not be representative of customers' actual returns
and rebate entitlements in the future.

Costs to obtain a contract are generally expensed as incurred. The assessment of this criteria requires the
application of judgement, in particular when considering if costs generate or enhance resources to be used
to satisfy future performance obligations and whether costs are expected to be recovered.

• Provisions and contingent liabilities

The Company exercises judgement in measuring and recognising provisions and the exposures to contingent
liabilities which is related to pending litigation or other outstanding claims. Judgement is necessary in
assessing the likelihood that a pending claim will succeed, or a liability will arise, and to quantify the possible
range of the financial settlement. Because of the inherent uncertainty in this evaluation process, actual
liability may be different from the originally estimated as provision. (Refer note 27)

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting
date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year, are described below. The Company based its assumptions and estimates
on parameters available when the financial statements were prepared. Existing circumstances and assumptions
about future developments, however, may change due to market changes or circumstances arising that are
beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

• Useful lives and residual values of property, plant and equipment

The Company reviews the estimated residual values and expected useful lives of assets at least annually.
In particular, the Company considers the impact of health, safety and environmental legislation in its
assessment of expected useful lives and estimated residual values. Furthermore, the Company considers
climate-related matters, including physical and transition risks. Specifically, the Company determines
whether climate-related legislation and regulations might impact either the useful life or residual values.

• Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable
amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less
costs of disposal calculation is based on available data from binding sales transactions, conducted at arm's
length, for similar assets or observable market prices less incremental costs for disposing of the asset. The
value in use calculation is based on a DCF model. The cash flows are derived from the budget for the next
five years and do not include restructuring activities that the Company is not yet committed to or significant
future investments that will enhance the asset's performance of the CGU being tested. The recoverable
amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows
and the growth rate used for extrapolation purposes.

• Provision for expected credit loss of trade receivables

Trade receivables are typically unsecured and are derived from revenue earned from customers. Credit risk
has been managed by the Company 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. In accordance with Ind AS 109, the Company uses expected credit loss model to assess
the impairment loss or gain. The Company uses a provision matrix and forward-looking information and an
assessment of the credit risk over the expected life of the financial asset to compute the expected credit
loss allowance for trade receivables.

The provision matrix is initially based on the Company's historical observed default rates. The Company
will calibrate the matrix to adjust the historical credit loss experience with forward-looking information. At
every reporting date, the historical observed default rates are updated and changes in the forward-looking
estimates are analysed.

The assessment of the correlation between historical observed default rates, forecast economic conditions
and ECLs is a significant estimate. The amount of ECLs is sensitive to changes in circumstances and of
forecast economic conditions. The Company's historical credit loss experience and forecast of economic
conditions may also not be representative of customer's actual default in the future. The information about
the ECLs on the Company's trade receivables is disclosed in note 31.

• Recognition of deferred tax assets for carried forward losses and 35AD benefits

The Company has carried forward unused tax losses that are available for offset against future taxable profit.
Deferred tax assets are recognised only to the extent that it is probable that taxable profit will be available
against which the unused tax losses can be utilised. This involves an assessment of when those assets
are likely to reverse, and a judgement as to whether or not there will be sufficient taxable profits available
to offset the assets. This requires assumptions regarding future profitability, which is inherently uncertain.
To the extent assumptions regarding future profitability change, there can be an increase or decrease in the
amounts recognised in respect of deferred tax assets and consequential impact in the statement of profit
and loss. (Refer note 7)

• Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined
using actuarial valuations. An actuarial valuation involves making various assumptions that may differ
from actual developments in the future. These include the determination of the discount rate, future salary
increases and mortality rates. All assumptions are reviewed at each reporting date. Any changes in these
assumptions will impact the carrying amount of such obligations.

The calculation is most sensitive to changes in the discount rate. In determining the appropriate discount
rate for plans operated in India, the management considers the interest rates of government bonds where
remaining maturity of such bond correspond to expected term of defined benefit obligation.

The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality
tables tend to change only at interval in response to demographic changes. Future salary increases and
gratuity increases are based on expected future inflation rates for the respective countries. Refer note 26 for
the details of the assumptions used in estimating the defined benefit obligation.

• Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be
measured based on quoted prices in active markets, their fair value is measured using valuation techniques
including the DCF model. The inputs to these models are taken from observable markets where possible, but
where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include
considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these
factors could affect the reported fair value of financial instruments. (Refer note 30).

• Leases - estimating the incremental borrowing rate

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental
borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would have

to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of
a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what
the Company 'would have to pay', which requires estimation when no observable rates are available. The
Company estimates the IBR using observable inputs (such as market interest rates) when available and is
required to make certain entity-specific estimates (such as the credit rating).

2.4 Changes in accounting policies and disclosures
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 2024. The Company has not early adopted any standard, interpretation or
amendment that has been issued but is not yet effective.

(i) Ind AS 117 Insurance Contracts

The Ministry of Corporate Affairs (MCA) notified the Ind AS 117, Insurance Contracts, vide notification dated
12 August 2024, under the Companies (Indian Accounting Standards) Amendment Rules, 2024, which is
effective from annual reporting periods beginning on or after 1 April 2024.

Ind AS 117 Insurance Contracts is a comprehensive new accounting standard for insurance contracts
covering recognition and measurement, presentation and disclosure. Ind AS 117 replaces Ind AS 104
Insurance Contracts. Ind AS 117 applies to all types of insurance contracts, regardless of the type of entities
that issue them as well as to certain guarantees and financial instruments with discretionary participation
features; a few scope exceptions will apply. Ind AS 117 is based on a general model, supplemented by:

• A specific adaptation for contracts with direct participation features (the variable fee approach)

• A simplified approach (the premium allocation approach) mainly for short-duration contracts

The application of Ind AS 117 does not have material impact on the Company's separate financial statements
as the Company has not entered any contracts in the nature of insurance contracts covered under Ind AS
117.

(ii) Amendments to Ind AS 116 Leases - Lease Liability in a Sale and Leaseback

'The MCA notified the Companies (Indian Accounting Standards) Second Amendment Rules, 2024, which
amend Ind AS 116, Leases, with respect to Lease Liability in a Sale and Leaseback.

The amendment specifies the requirements that a seller-lessee uses in measuring the lease liability arising
in a sale and leaseback transaction, to ensure the seller-lessee does not recognise any amount of the gain
or loss that relates to the right of use it retains.

The amendment is effective for annual reporting periods beginning on or after 1 April 2024 and must be
applied retrospectively to sale and leaseback transactions entered into after the date of initial application of
Ind AS 116.

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

The below two amendments are not yet notified but expected to be notified soon.

(i) Amendments to Ind AS 7 and Ind AS 107 - Supplier Finance Arrangements

The MCA issued amendments to Ind AS 7 Statement of Cash Flows and Ind AS 107 Financial Instruments:
Disclosures which clarify the characteristics of supplier finance arrangements and require additional
disclosure of such arrangements. The disclosure requirements in the amendments are intended to assist
users of financial statements in understanding the effects of supplier finance arrangements on an entity's
liabilities, cash flows and exposure to liquidity risk. The amendments have not had an impact on the financial
statements of the Company.

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

The MCA issued 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.

The amendments have not had an impact on the classification of Company's liabilities.

2.5 Climate - related matters

The Company considers climate-related matters in estimates and assumptions, where appropriate. This
assessment includes a wide range of possible impacts on the Company due to both physical and transition risks.
Even though the Company believes its business model and products will still be viable after the transition to a low-
carbon economy, climate-related matters increase the uncertainty in estimates and assumptions underpinning
several items in the financial statements. Even though climate-related risks might not currently have a significant
impact on measurement, the Company is closely monitoring relevant changes and developments, such as new
climate-related legislation. The items and considerations that are most directly impacted by climate-related
matters are:

• Useful life of property, plant and equipment. When reviewing the residual values and expected useful lives of
assets, the Company considers climate-related matters, such as climate-related legislation and regulations
that may restrict the use of assets or require significant capital expenditures.

• Impairment of non-financial assets. The value-in-use may be impacted in several different ways by transition
risk in particular, such as climate-related legislation and regulations and changes in demand for the
Company's products and services.

• Fair value measurement for land and buildings, the Company considers the effect of physical and transition
risks and whether investors would consider those risks in their valuation. The Company believes it is not
currently exposed to severe physical risks, but believes that investors, to some extent, would consider
impacts of transition risks in their valuation, such as increasing requirements for energy efficiency of
buildings due to climate-related legislation and regulations as well as tenants' increasing demands for low-
emission buildings.

• Decommissioning liability the impact of climate-related legislation and regulations is considered in
estimating the timing and future costs of decommissioning liabilities, whenever applicable.

Further, title deeds in respect of certain immovable properties having gross and net book value of INR 1,298.86 lakhs

(March 31, 2024: INR 1,298.86 lakhs) included in property, plant, and equipment which are pledged with Axis Bank

and are not available with the Company. The same has been independently confirmed by the bank.

ii. Buildings include leasehold building and self constructed building on leasehold land with net book value of INR
12,201.72 lakhs (March 31, 2024: INR 14,238.54 lakhs).

iii. Contractual obligations: The Company has contractual commitments for the acquisition of property, plant and
equipment (refer note 27(c)).

iv. Assets pledged as security for borrowings: Refer note 34 and 35 for information on property, plant and equipment,
pledged as security by the Company.

v. The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible
assets or both during the current or previous year.

vi. The Company undertook three capex projects at the Lucknow, Krishnapatnam, and Kolkata locations during
the current year. The Lucknow project was capitalised in November 2024, while the Kolkata and Krishnapatnam
projects are expected to be completed in the next financial year. Borrowing costs capitalised during the year
ended March 31, 2025 was INR 139.00 lakhs (March 31,2024: Nil). The rate used for capitalisation was 8.55%
p.a., representing the effective interest rate of the specific borrowing. No borrowing costs have been capitalised
on other items of property, plant and equipment under construction.

vii. a) Capital work-in-progress as at March 31, 2025 mainly comprises construction cost of warehouse facility at
Kolkata location of INR 4,389.64 lakhs (March 31, 2024: INR 923.77 lakhs) and Krishnapatnam location of INR
894.23 lakhs (March 31, 2024: Nil) and an office at Delhi location of Nil ((March 31,2024: INR 451.54 lakhs).

Significant estimate

The Company has recognized deferred tax asset on carried forward losses under section 35AD of the Income-
tax Act, 1961.

In accordance with Finance (No. 2) Act, 2024 promulgated during the year, the Company has reassessed that
the effective tax rate of the Company will increase from 29.12% to 34.94% attracting a higher tax. Accordingly,
as per Ind AS, deferred tax assets have been remeasured as at year end and an additional deferred tax credit of
INR 551.47 lakhs has been recognized during the year ended March 31,2025. Accordingly profit after tax for the
year is higher by the same amount.

As at March 31, 2025, the Company has recognised deferred tax liabilities of INR 10,349.95 lakhs (March 31,
2024: INR 9,562.47 lakhs) and deferred tax assets of INR 13,530.20 lakhs (March 31, 2024: INR 12,416.53 lakhs)
on other temporary differences which will be adjusted for computation of future years taxable income.

The Company has unused losses under section 35AD as at March 31, 2025 of INR 19,322.68 lakhs (March 31,
2024: INR 23,370.25 lakhs) that are available for offsetting against future taxable profits of the Company and has

Note :

(i) On June 26, 2023, the Company entered into ATS with the said related party, GDL to purchase land of 1.71
acres at Krishnapatnam for a consideration of INR 230.85 lakhs against which the Company had paid 100%
advance of INR 230.85 lakhs and capitalized same in books. Also, on June 11,2024, the Company entered
into an Agreement to Sell ("ATS") with its related party, Gateway Distriparks Limited ("GDL') to purchase land
of 7.63 acres and two warehouses at Krishnapatnam for a consideration of INR 2,000.00 lakhs against which
the Company had paid an advance of INR 1,800.00 lakhs. As at March 31,2025 the Company has spent total
amount of INR 3,088.23 lakhs (including capital advance) in respect of said project at Krishnapatnam.

While the Company has obtained the possession of land by paying more than 90% of the consideration
in earlier period, during the current year, the application for registration of the Sale Deed for the said land
parcels was rejected by the Collector and District Collector, Nellore on the grounds that a portion of the said
land was appearing as a government land in revenue records, which cannot be used for private purposes.

26 Disclosures under Ind AS 19

a) Post retirement benefit- defined contribution plans

The Company makes contributions to Provident Fund and Employee State Insurance Corporation (ESIC),
which are defined contribution plan, for qualifying employees. Under the schemes, the Company is required
to contribute a specified percentage of the payroll cost to fund the benefits. The Company has recognised
an amount of INR 198.81 lakhs (March 31,2024: INR 180.16 lakhs) for provident fund contributions and INR
1.88 lakhs (March 31,2024: INR 2.91 lakhs) for contribution to ESIC in the statement of profit and loss. The
contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

b) Post retirement benefit- defined benefit plan

The Company makes annual contribution to the Gratuity Funds Trust which is maintained by LIC of India, a
defined benefit plan for qualifying employees. The gratuity plan is governed by the Payment of Gratuity Act,
1972. Under the Act, employees who have completed prescribed time period of service as per relevant act
are entitled to specific benefit. The level of benefit provided depends on the member's length of service and
salary at the retirement age. The employee is entitled to a benefit equivalent to 15 days of basic salary last
drawn for each completed year of service.

The present value of the obligation under such defined benefit plan is determined based on an actuarial
valuation as at the reporting date using the "projected unit credit" method, which recognises each period of
service as giving rise to additional unit of employee benefit entitlement and measures each unit separately
to build up the final obligation. The obligations are measured at the present value of the estimated future
cash flows. Actuarial gains and losses (net of tax) are recognised immediately in the Other Comprehensive
Income (OCI).

Risk exposure

These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity
risk and salary risk.

Investment risk

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by
reference to market yields at the end of the reporting period on government bonds. The Gratuity plan is funded
with Life Insurance Corporation of India (LIC). The Company does not have any liberty to manage the fund
provided to LIC.

Interest risk

A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an
increase in the return on the plan's debt investments.

Longevity risk

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the
mortality of plan participants during their employment. An increase in the life expectancy of the plan participants
will increase the plan's liability.

Salary risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan
participants. As such, an increase in the salary of the plan participants will increase the plan's liability.

Note:

i) Income tax matters:

The Company has appeals pending before CIT(A) in respect of disallowance of depreciation and certain
expenditures for A.Y.2003-04 and 2007-08. The Company is contesting aforesaid disallowances and the
management believes that the Company is entitled to aforesaid deductions and claims and hence no
provision for the aforesaid demand/notices has been made in the financial statements as at March 31,2025.

ii) VAT matter:

The order dated September 16, 2016 u/s 51(7)(c) of the Punjab Value Added Tax Act, 2005 demanding INR
8.42 lakhs was issued by the Assistant Commissioner of taxes. The Company has gone to appeal against
the order and believes that the Company is entitled to credits and hence no provision for the aforesaid
demand/notices has been made in the financial statements as at March 31, 2025.

iii) Goods and service tax matters :

During the year, the Company received demand orders under section 73 of Goods and Services Tax Act,
2017 amounting to INR 1,137.11 lakhs (including interest and penalties) from the states of Maharashtra,

West Bengal and Karnataka on account of various matters for financial year 2019-20 and 2020-21. The
Company has made a pre-deposit of INR 70.64 lakhs and filed appeals against the said orders and, while
the department has further unilaterally deducted input tax credit aggregating to INR 113.12 lakhs from
Company's electronic credit ledger.

Based on the opinion of independent tax expert, the management believes that the said demand is not
tenable and no provision is required in respect of the above matter. However, as abundant caution, the
Company has provided an amount of INR 17.86 lakhs in this regard in these financial statement.

iv) Other litigations

a. In November 2022, the Income-tax Department conducted a survey under Section 133A of the Income-tax
Act, 1961 ("Act") at certain premises of the Company and had taken certain documents and information
for further investigation. Subsequent to the survey, show cause notices were served on the Company as to
why income aggregating to INR 6,110.91 lakhs in respect of Assessment Years (AY) 2016-17 to 2022-23
should not be taxed, alleging that the Company had violated the conditions for Section 35AD of the Act,
which was availed in respect of its facilities at Hyderabad and Mumbai during the financial years 2013-14
and 2015-16 respectively, and that certain capital expenditure aggregating to INR 5,658.83 lakhs should not
be disallowed. The Income-tax Department assessed this to be a case for reassessment/re-computation of
income under Section 148 of the Act.

In March 2024 and July 2024, the Company received assessment orders for AY 2016-17 to 2022-23 under
Section 147 of the Act and for AY 2023-24 under Section 143(3) of the Act, disallowing the 35AD deduction
claimed for the two facilities amounting to INR 6,110.91 lakhs and disallowing certain other expenditure
alleged to be non-genuine amounting to INR 42.24 lakhs, and raised a demand of INR 3,177.40 lakhs.
The Income-tax Department also initiated penalty proceedings under Section 270A of the Act for these
assessment years. The management did not agree with these demand notices and filed applications for
rectification under Section 154 of the Act.

The Company performed a detailed assessment of the demand raised by the Income-tax Department and
involved a third-party tax expert to evaluate the potential tax liability. Based on advice from external legal
experts, the Company believes that these orders were issued due to differences in interpretation of the
provisions under Section 35AD of the Act and filed an appeal with CIT(A) against the orders received for the
aforementioned assessment years.

During the year, the Company received rectification orders under Section 154 of the Act for the aforesaid
assessment years with a demand of INR 19.72 lakhs, after reduction in brought forward business losses of
the Company by INR 1,889.29 lakhs and reduction in MAT credit by INR 542.15 lakhs.

The Company assessed the said orders and opted to file an application under the "Vivad Se Vishwas Scheme,
2024" on January 31, 2025, and has received orders for full and final settlement of tax liabilities for all
assessment years from the tax authorities under the said Scheme. The Company received net interest of INR
60.90 lakhs after adjusting the aforesaid demand and paid a total of INR 0.06 lakhs as part of the settlement.

Pursuant to the reduction in brought forward losses owing to the settlement under the Scheme, the Company
reversed deferred tax assets of INR 660.19 lakhs (of which deferred tax assets of INR 433.76 lakhs were
reversed on March 31,2024, based on management assessment supported by external expert views), and
the balance INR 226.43 lakhs was reversed during the year. Thus in the opinion of the management the said
matter stands resolved.

b. During the year ended March 31, 2025, the Company was copied in a notice wherein the District Valuation
Officer of Income-tax sent a report to the Assessing Officer in relation to the assessment of the value of
the Company's assets at Siliguri. The District Valuation Officer, based on the information submitted by the
Company and inspection conducted, had arrived at a value which was lower than the value declared by the
Company by INR 1,411.91 lakhs. The report was also issued without providing the Company any opportunity
of representation.

The Company believes that there is a calculation error in the notice and that the Valuation Officer did not
consider the impact of Goods and Services Tax and the structure and specification of the warehouse. The
Company filed its responses to the said notice during the year; however, as on date, the Assessing Officer
has not taken any further action on the Company.

The management, based on an opinion from a legal expert, believes that no new order can be passed under
Section 154 of the Income-tax Act, 1961, based solely on the report from the Valuation Officer, and no
material adjustments are likely to arise in the financial statements in this regard.

c. The order dated 06 February 2023 demanding INR 460.75 lakhs was received by the Company from Panvel
Municipal Corporation (PMC) for its warehouse for the payment of property taxes at an incremental rate
retrospectively from the years 2016 to 2022. The Company draws reference to provisions of Section 129A
of the Maharashtra Municipal Corporation Act, 1949 and recalculated the amount and had paid entire along
with penalty amounting to INR 467.19 lakhs to PMC. A legal case has also been filed against the demand
in Bombay High Court through Taloja Industrial Association (TMA) on behalf of the entire Taloja Industries
against exorbitantly high property tax by PMC. The matter is currently pending at Bombay High Court. No
liabilities exist with respect to property tax demands as of date.

28 Related party transactions

A) Information required to be disclosed under Ind AS 24 on "Related Party Disclosures":
Holding Company

Gateway Distriparks Limited (w.e.f December 24, 2024)

Investing party in respect of which the Company is an associate:

Gateway Distriparks Limited (till December 23, 2024)

Entities in which directors / investing party/holding company have control/significant influence

Gateway Distriparks (Kerala) Limited (GDKL)

Star Data Infra and Services Private Limited (SDISPL)

Container Gateway Limited (CGL)

Note:

i) The Company maintains gratuity trust with LIC for the purpose of administering the gratuity payment to its
employees (M/s Snowman Logistics Limited Employees Gratuity Fund).

ii) On June 26, 2023, the Company entered into ATS with the said related party, GDL to purchase land of 1.71
acres at Krishnapatnam for a consideration of INR 230.85 lakhs against which the Company had paid 100%
advance of INR 230.85 lakhs and capitalized same in books but pending registration in the name of company
(refer note 9A(i)).

F) Loans to/from related parties

No loan has been given/ received to/ from any related parties.

G) Terms and conditions of transactions with related parties

a. Services provided from/to related parties are made in terms equivalent to those that prevail at arm's
length transaction. Other reimbursement of expenses to/from related parties is on cost basis.

b. All other transactions were made on normal commercial terms and conditions and at market rates.

c. All outstanding balances are unsecured and are repayable/ receivable in cash.

d. There are no guarantees provided on/received for any related party receivables or payables.

H) There are no guarantees provided on/received for any related party receivables or payables.

I) For the year ended March 31, 2025, the Company has not recorded any impairment of receivables relating
to amount owed by related parties (March 31,2024: INR Nil). This assessment is undertaken each financial
year through examining the financial position of the related parties and the market in which they operate.

29 Segment information

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief
Operating Decision Maker ("CODM") of the Company. The CODM, who is responsible for allocating resources
and assessing performance of the operating segments, has been identified as the Chairman and Chief Executive
Officer of the Company.

As per Ind AS 108 "Operating segments" the Company has three reportable segments as below :

Warehousing services:

Warehousing services comprises of temperature controlled warehousing service operating across locations
servicing customers on pan-India basis.

Transportation services:

The transportation generally facilitates inter-city transport of products and includes door to door service i.e.
last mile distribution. This part of the business provides dry transportation facility also to the customers using
the temperature controlled facilities so that the customer gets a one stop solution for all the warehousing
requirement.

Trading and distribution:

The Company offer sourcing, vendor development, inventory planning and procurement services. The Company
also hold inventory and sell on just in time basis to the customers. Company use in-house IT technology to
ensure this model efficient and system driven with complete visibility to stakeholders.

No operating segments have been aggregated to form the above reportable reporting segments.

The management of the Company monitors the operating results of its segments separately for the purpose of
making decisions about resource allocation and performance assessment. Segment performance is evaluated
based on the profit/loss and is measured consistently with profit/loss in the financial statements and also the
Company's financing (including finance costs and other income) and income taxes are managed on the Company
basis and are not allocated to operating segments.

No customer represents sales of more than 10% of revenue from operations in the current and previous year. Also,
the Company operates within India and does not have operations in economic environments with different risks
and returns. Accordingly, there are no other separate reportable segments in terms of Ind AS 108 on "Operating
Segments" other than those stated above.

The management assessed that trade receivables, cash and cash equivalents, other bank balances, loan, other
financial assets, trade payables, other current financial liabilities approximate their carrying amounts largely due
to the short-term maturities of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could
be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The
following methods and assumptions were used to estimate the fair values:

(i) There is an active market for the Company's quoted investments.

(ii) The fair values of the Company's interest-bearing borrowings and loans are determined by using DCF method
using discount rate that reflects the issuer's borrowing rate as at the end of the reporting period. The own
non-performance risk as at March 31,2024 was assessed to be insignificant.

(iii) The fair value of other financial assets and liabilities that are not traded in an active market is determined
using unobservable inputs in the model, of which the significant unobservable inputs are disclosed in
the tables below. Management regularly assesses a range of reasonably possible alternatives for those
significant unobservable inputs and determines their impact on the total fair value.

Fair value hierarchy

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (i.e., as prices) or indirectly (i.e., derived from prices).

There have been no transfer to Level 1 and Level 2 during the year.

In the absence of observable inputs to measure fair value, the assets and liabilities have been classified as level
3. The Company has not given further disclosures since the amount involved is not material.

The management considers that the carrying amounts of financial assets and financial liabilities having short
term maturities recognised in the financial statements approximates their fair values.

31 Financial risk management

The Company's principal financial liabilities, comprise loans and borrowings, trade and other payables. The main
purpose of these financial liabilities is to finance the Company's operations and to provide guarantees to support
its operations. The Company's principal financial assets include trade and other receivables, and cash and cash
equivalents that derive directly from its operations. The Company's financial risk management is an integral part
of how to plan and execute its business strategies.

The Company is exposed to market risk, liquidity risk and credit risk. The Company's senior management
oversees the management of these risks. The senior professionals working to manage the financial risks and the
appropriate financial risk governance framework for the Company are accountable to the Board of Directors and
the Audit Committee. This process provides assurance to the Company's senior management that the Company's
financial risk taking activities are governed by appropriate policies and procedures and that the financial risks
are identified, measured and managed in accordance with the Company policies and risk objective. The Board of
Directors reviews and agrees to policies for managing each of these risks, which are summarised below.

i) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other
price risk, such as equity price risk. Financial instruments affected by market risk include borrowings, deposits
and equity investments.

The Company management evaluates and exercise control over process of market risk management. The Board
recommends risk management objective and policies which includes management of cash resources, borrowing
strategies and ensuring compliance with market risk limits and policies.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates
relates primarily to the Company's long-term debt obligations with variable interest rates.

The Company manages its funding requirements through borrowings from different banks. In order to
optimize the Company's position with regards to interest income and interest expense, the Company performs
a comprehensive corporate interest rate risk by using different type of economic product of floating rate of
borrowings in its total borrowings. The Company has obtained vehicle loan at fixed rate of interest and the
remaining borrowings at floating rate of interest.

Currency and price risk

The Company does not have any financial instrument subject to currency and price risk.
ii) Credit risk

Credit risk is the risk that counterparty will not meet its obligation under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily
trade receivables) and from its financing activities, including deposits with bank and financial institution and
other financial instruments.

Credit risk management

Financial instruments and cash deposits

The Company maintains exposure in cash and cash equivalents and term deposits with banks. Credit risk from
balances with banks and financial institutions is managed by the Company's treasury department in accordance
with the Company's policy. Investments of surplus funds are made only with approved counterparties and within
credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Company's Board
of Directors on an annual basis and may be updated throughout the year. The limits are set to minimise the
concentration of risks and therefore mitigate financial loss through counterparty's potential failure to make
payments.

The Company's maximum exposure to credit risk as at March 31, 2024 is the carrying value of each class of
financial assets as disclosed in note 6.

Trade receivables and other financial assets

Trade receivables are typically unsecured and are derived from revenue earned from customers. Other financial
assets are unsecured receivables. It comprises of margin money with the bank, utility deposits with the
government authorities and contract assets.

Customer credit risk is managed by the Company through its established policy, procedures and control relating
to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating
scorecard and individual credit limits are defined in accordance with this assessment. Outstanding customer
receivables are regularly monitored.

An impairment analysis is performed at each reporting date on trade receivables using provision matrix to
measure expected credit loss . Other factors of default are determined by considering the business environment
in which the company operates and other macro-economic factors. The Company considers the probability of
default upon initial recognition of asset and whether there has been a significant increase in credit risk on an
ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk the
company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as
at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:
adverse changes in business, changes in the operating results of the counterparty, change to the counterparty's
ability to meet its obligations etc. Financial assets are written off when there is no reasonable expectation of
recovery.

Excessive risk concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or have
economic features that would cause their ability to meet contractual obligations to be similarly affected by
changes in economic or other conditions. Concentrations indicate the relative sensitivity of the Company's
performance to developments affecting a particular industry. In order to avoid excessive concentrations of risk,
the Company's policies and procedures include specific guidelines to focus on the maintenance of a diversified
portfolio. Identified concentrations of credit risks are controlled and managed accordingly.

32 Capital management

Risk management

For the purpose of the Company's capital management, capital includes issued equity capital, share premium
and all other equity reserves attributable to the equity holders of the Company. The primary objective of the
Company's capital management is to maintain optimum capital structure to reduce cost of capital and to
maximize the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions
and the requirements of the financial covenants which otherwise would permit the banks to immediately call
loans and borrowings. To maintain or adjust the capital structure, the Company may adjust the dividend payment
to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a
gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, lease
liabilities, interest bearing loans and borrowings less cash and cash equivalents.

36 Other statutory information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding Benami property under the Benami Transactions (Prohibition) Act, 1988 (45
of 1988) and rules made thereunder.

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

(iii) The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(iv) The Company has not entered into any scheme of arrangement which has an accounting impact on current
or previous financial year.

(v) The Company does not have any charges or satisfaction which is yet to be registered with the Registrar of
Companies beyond the statutory period.

(vi) The Company has not traded or invested in crypto currency or virtual currency during the current or previous
financial year.

(vii) The Company has not advanced or loaned or invested funds to any other person or entity, including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the Company (Ultimate Beneficiary) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiary.

The Company has not received any fund from any person or entity, including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiary.

(viii) The borrowings obtained by the Company from banks and financial institutions have been applied for the
purposes for which such loans were was taken.

(ix) The Company does not have any 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).

(x) The Company have not been declared wilful defaulter by any bank or financial institution or Government or
any government authority or other lender.

37 In pursuant to the recent amendment in Companies (Accounts) Rules 2014, the Company is maintaining proper
books of account and other relevant books and papers in electronic mode which is accessible in India at all
times. Further, the books of account maintained in electronic mode is currently being backed-up on daily basis,
however, the exact location for the backup server is not defined in the Microsoft SOC report and the management
is unable to comment whether server is physically located in India.

38 The Company has used accounting software Dynamics 365 Business Central for maintaining its books of
account which has a feature of recording audit trail (edit log) facility which was not enabled throughout the year
for all relevant transactions recorded in the software. Accordingly, the audit trail has not been preserved by the
Company as per the statutory requirements for record retention.

39 Reclassification and enhanced disclosures

During the year, the Company has reassessed presentation of outstanding employee salaries and wages, which
were previously presented under 'Trade Payables' within 'Current Financial Liabilities'. In line the recent opinion
issued by the Expert Advisory Committee (EAC) of the Institute of Chartered Accountants of India (ICAI) on the
"Classification and Presentation of Accrued Wages and Salaries to Employees", the Company has concluded
that presenting such amounts under 'Other Financial Liabilities', within 'Current Financial Liabilities', results in
improved presentation and better reflects the nature of these obligations. Accordingly, amounts aggregating
to INR 289.10 lakhs as at March 31, 2025 (INR 355.12 lakhs as at March 31, 2024), previously classified under
'Trade Payables', have been reclassified under the head 'Other Financial Liabilities'. Both line items form part of
the main heading 'Financial Liabilities'.

Further, the Company has also reassessed presentation of Director sitting fees which was previously presented
under 'Other expense'. However, based on review of commonly prevailing practices and in line with paragraph
7 of Ind AS 19, the Company has concluded that presenting such amount under 'Employee benefit expense',
results in improved presentation and better reflects the nature of the expense. Accordingly, amounts aggregating
to INR 47.00 lakhs for the year ended 31 March 2025 (31 March 2024: INR 48.00 lakhs), previously classified
under 'Other expenses' has been reclassified under the head 'Employee benefit expense'. Both line items form
part of the main heading 'Expenses'.

In addition, the Company has reviewed its presentation of segment information in line with the IFRS Interpretations
Committee's Agenda Decision titled "Operating Segments - Disclosure of Revenues and Expenses for Reportable
Segments". Based on this guidance, the Company has enhanced its segment disclosures to include segment-
wise break-up of specified and material income and expense items. To ensure consistency and comparability,
the corresponding figures for the year ended March 31,2024 have also been revised.

The above changes do not impact recognition and measurement of items in the financial statements, and,
consequentially, there is no impact on total equity and/ or profit (loss) for the current or any of the earlier periods.

Nor there is any material impact on presentation of cash flow statement. Considering the nature of changes, the
management believes that they do not have any material impact on the balance sheet at the beginning of the
comparative period and, therefore, there is no need for separate presentation of third balance sheet.

40 The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post employment
benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India.
Certain sections of the Code came into effect on 3 May 2023. However, the final rules/interpretation have not
yet been issued. Based on a preliminary assessment, the entity believes the impact of the change will not be
significant.

41 The management has evaluated the likely impact of prevailing uncertainties relating to imposition or enhancement
of reciprocal tariffs and believes that there are no material impacts on the financial statements of the Company
for the year ended March 31, 2025. However, the management will continue to monitor the situation from the
perspective of potential impact on the operations of the Company.

As per our report of even date attached

For S.R. Batliboi & Co. LLP For and on behalf of the Board of Directors of

Chartered Accountants Snowman Logistics Limited

ICAI Firm's Registration Number: 301003E/E300005

per Amit Gupta Prem Kishan Dass Gupta Padamdeep Singh Handa

Partner Chairman and Director CEO and Whole Time Director

Membership Number: 501396 DIN: 00011670 DIN: 10809817

Place: New Delhi Place: New Delhi Place: New Delhi

Date: May 26, 2025 Date: May 26, 2025 Date: May 26, 2025

N Bala Krishna Sohan Singh Dhakad

Chief Financial Officer Company Secretary

Membership Number: 239908 Membership Number: 63562
Place: New Delhi Place: New Delhi

Date: May 26, 2025 Date: May 26, 2025