k) Provisions and Contingent Liabilities:

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, 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 recognized 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 pretax 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 recognized as a finance cost.

Contingent Liabilities:

Contingent liability is:

(a) a possible obligation arising from past events and whose existence will be confirmed only by the occurrence or nonoccurrence 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 the same as per the requirements of Ind AS 37.

l) Retirement and other employee benefits:

Defined Contribution Plan

Retirement benefit in the form of provident fund and ESIC are defined contribution schemes. The Company has no obligation, other than the contribution payable to the provident fund and ESIC. The Company recognizes contribution made under these schemes as an expense, when an employee renders the related service. If the contribution payable to the schemes 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.

Defined Benefit Plan

The Company operates a defined benefit gratuity plan in India. The cost of providing benefits under the defined benefit plan is determined using the projected unit credit method.

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, are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Remeasurements are not reclassified to profit or loss in subsequent periods.

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

> The date of the plan amendment or curtailment, and

> The date that the Company recognises related restructuring costs.

m) 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 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.

n) Cash Flow statement:

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of noncash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated in the Cash flow statement.

o) Earnings per share (EPS):

Basic EPS amount is calculated by dividing the net profit for the year attributable to equity holders by the weighted average number of equities shares outstanding during the year.

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

p) Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakh as per the requirement of Schedule III, unless otherwise stated.

2.3 Changes in accounting policies and disclosures New and amended standards

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from April 1,2023, as below:

(i) Definition of Accounting Estimates - Amendments to Ind AS 8

The amendments clarify the distinction between changes in accounting estimates, changes in accounting policies and the correction of errors. It has also been clarified how entities use measurement techniques and inputs to develop accounting estimates.

The amendments had no impact on the Company’s financial statements.

(ii) Disclosure of Accounting Policies - Amendments to Ind AS 1

The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ‘significant’ accounting policies with a requirement to disclose their ‘material’ accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures.

The amendments have had an impact on the Company’s disclosures of accounting policies, but not on the measurement, recognition or presentation of any items in the Company’s financial statements.

(iii) Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to Ind AS 12

The amendments narrow the scope of the initial recognition exception under Ind AS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases.

The Company previously recognised for deferred tax on leases on a net basis. As a result of these amendments, the Company has recognised a separate deferred tax asset in relation to its lease liabilities and a deferred tax liability in relation to its right-of-use assets. Since, these balances qualify for offset as per the requirements of paragraph 74 of Ind AS 12,there is no impact in the balance sheet. There was also no impact on the opening retained earnings as at 1 /April 2022.

2.4 Amendments not yet effective:

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. During the year ended March 31,2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

Terms and conditions of transactions with related parties

The sales to related parties and purchases from related parties are made on terms equivalent to those that prevail in arm's length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash . There have been no guarantees provided or received for any related party receivables or payables. Assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

*This aforesaid amount does not includes amount in respect of gratuity since the actuarial valuation has been taken for the Company as a whole and individual amounts are not determinable. The aforesaid amounts are inclusive of reimbursement made to Key Managerial Personnel

Note 31: Employee Benefit Obligations

a. Defined Contributions Plans

For the Company an amount of ' 77.32 lakh (31st March, 2023: ' 71.95 lakh) contributed to provident funds, ESIC and other funds is recognised by as an expense and included in "Contibution to Provident & Other Funds" under "Employee benefits expense" in the Consolidated Statement of Profit and Loss.

b. Defined Benefits Plans

As per the Payment of Gratuity Act, 1972, the Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on resignation or retirement at 15 days salary (last drawn salary) for each completed year of service.

The following table's summaries the components of net benefit expense recognised in the Statement of Profit and Loss and the funded status and amounts recognised in the balance sheet for the respective plans of the company

The Company is contesting the demands and the management, including its tax/legal advisors, believe that its position will likely be upheld in the appellate process. No tax expense has been accrued in the financial statements for the tax demand raised. Cash outflows for the above are determinable only on receipt of judgements pending at various forums/authorities.

# The Company's income was assessed by the income tax department for the AY 2017-18 and a liability of Rs. 53.23 Lakhs was demanded. The Company has filed an appeal against the assessment order with the Income Tax Commissioner (Appeals) within the stipulated time. During the year the company was due to receive a refund from the Income Tax Department which was adjusted against the demand order. This adjustment forms part of balances receivable from the government. The Company has reviewed the demand and does not expect an unfavourable outcome.

* The Company has received Show Cause Notices in respect of certain service tax matters amounting to Rs. 1175.11 lakhs against which it has filed an appeal with the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) after paying deposit of Rs. 47.57 Lakhs. The Company has evaluated the legal position and believes that it has a strong case in this matter and no provision is required.

Note 34: Fair Value Measurements

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 Company has established the following fair value hierarchy that categorises the values into 3 levels. The inputs to valuation techniques used to measure fair value of financial instruments are:

Level 1: This hierarchy uses quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on Company specific estimates.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3. The following methods and assumptions were used to estimate the fair values:

1. The Company has not disclosed the fair values of financial instruments such as cash and cash equivalents, bank balances, other than cash and cash equivalents, trade receivables, other financial assets (except derivatives), trade payables and other financial liabilities (except derivatives) because their carrying amounts are a reasonable approximation of fair value. Further, for financial assets, the Company has taken into consideration impairment allowances and adjusted the carrying values where applicable.

2. The fair values of the quoted investments/units of mutual fund schemes are based on market price/ net asset value at the reporting date.

3. The fair values for loans given are calculated based on discounted cash flows using current lending rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair value of such instruments are not materially different from their carrying values.

4. Fair values of the Company's interest-bearing borrowings are determined by using discounted cash flow method using the current borrowing rates. Fair value of such instruments are not materially different from their carrying values. The own non-performance risk as at March 31,2023 was assessed to be insignificant.

The Company's principal financial liabilities, comprises of 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 also holds FVTPL investments.

It has an integrated financial risk management system which proactively identifies monitors and takes precautionary and mitigating measures in respect of various identified risks.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks, which evaluates and exercises independent control over the entire process of financial risks. All the derivative activities for risk management purposes are carried out by specialist teams that have appropriate skills, experience and supervision. It is the Company’s policy that no trading in derivatives for speculative purposes may be undertaken.The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

Market Risk

Market Risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate becasue of changes in market price. Market risk comprises three types of risk:interest rate risk, currency risk and other price risk, such as equity risk. Financial instruments affected by market risk include loans and borrowings , deposits, FVTPL investments and derivative financial instruments. Market risk is attributable to all market risk sensitive financial instruments.

The finance department undertakes management of cash resources, hedging strategies for foreign currency exposures, borrowing mechanism and ensuring compliance with market risk limits.

Interest 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 debt obligations with floating interest rates.

The Company is not very significantly exposed to interest rate risk except the variations in RBI Repo rate or Bank's MCLR rates as most of the borrowings are linked to these. 1% changes in interest rate will increase the borrowing cost by Rs 27.58 lakhs.

The Company does not have significant investment in Bank Deposits and hence not significantly exposed to Interest rate sensitivity.

1% changes in interest rate will decrease the other income by ' 15.68 lakhs.

Note 35: Financial Risk Management Objectives & Policies:-Foreign currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities and the Company’s net investments in foreign subsidiaries.

The Company has no borrowings in foreign currency as on March 31, 2024 (March 31, 2023: ' Nil) and hence no foreign currency risk.

Unhedged foreign currency exposure as at the reporting date expressed in INR are as follows :

As at balance sheet date, the Company’s net foreign currency exposure (receivable) that is not hedged is Rs. 1,816.46 lakhs (March 31,2023: Rs. 1,155.95 lakhs).

Credit risk

Credit risk is the risk that the counterparty will not meet its obligations 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 receivable) and from its financing activities, including deposits with banks and financial institutions,foreign exchange transactions and other financial instruments. The Company only deals with parties which has good credit rating/worthiness given by external rating agencies or based on Company's internal assessment.

Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognised as income in the statement of profit and loss.

Cash and cash equivalents and deposits:

Balances and deposits with banks are subject to low credit risks due to good credit ratings assigned to the banks.

Loans:

The Company has given loans to certain unrelated parties. The Company has made provisions in case where there is risk of loan recovery.

The Company has given loans to certain related parties. However, there is no counter party risk. (refer note 7)

Trade and other receivables:

The Company measures the impairment allowance of trade receivables and loans from individual customers based on historical trend,industry practices and business environment in which the entity operates.Loss rates are based on actual credit loss experience and past trends.

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 maximise the shareholder value.

The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to ourshareholders. The capital structure of the Company is based on management’s judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

The Company's policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.

Note 36: Segment Reporting

The Company has identified "Multimodal Transport Operations", as its only reportable segment as defined under Ind AS 108 -Operating Segments

Note: Schedule III requires explaination where the change in the ratio is more than 25% as compared to the proceeding year. Since there are total seven instances where the change is more than 25%, hence the explanation is given for the said ratios only. Also, Inventory Turnover ratio is not applicable to the company.

Note 38: Interest Settlement

The Company had taken interest free loans from some of its directors in the earlier years. These loans were repaid by the Company in earlier years. However, during the year, basis requests received from directors, the Company has entered into a final settlement agreement and agreed to pay the interest of Rs. 114.11 lakhs after taking required approvals and accounted in the statement of profit and loss for the year ended 31st March, 2024.

Note 39: Other Statutory information

a) No proceedings have been initiated on or are pending against the company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

b) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

c) The Company has not been declared wilful defaulter by any bank or financial institutions or government or any government authority.

d) Transactions with struck off Companies

The Company has balances with the below mentioned companies struck off under section 248 of Companies Act, 2013:

e) The Company have not advanced or given loan or invested funds to any other person(s) or entity(ies), 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 Beneficiaries) or

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

f) The Company has not received any fund from any persona) or entity(les), 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 Beneficiaries

g) The company has not received any funds as Intermediary for further advancing to the Ultimate beneficiaries.

h) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous

financial year.

i) The Company have not 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.

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

Note 40: The Company has used accounting softwares for maintaining its books of account which has a feature of recording

audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software except that, as explained below;

a. In case of E-Freight software for maintaining its books of account, (i) audit trail feature is not enabled for “invoice reversal” and (ii) direct changes to data when using certain access rights. Further, no instance of audit trail feature being tampered with was noted, where audit trail has been enabled.

b. In case of Asset Expert software used for maintaining its books of account as it relates to details of Property, plant and equipment records, audit trail feature is not enabled. Further, no instance of audit trail feature being tampered with was noted, where audit trail has been enabled.

c. The Company has used Spine software, which is operated by a third-party software service provider, for maintaining its books of account. Management is not in possession of Service Organisation Controls report to determine whether audit trail feature of the said software was enabled and operated throughout the year for all relevant transactions recorded in the software or whether there were any instances of the audit trail feature being tampered with.

Note 41: Previous period figures have been regrouped, as considered necessary to confirm with the current period presentation.

Note 42: The financial statements of the Company for the year ended March 31,2023, included in these standalone financial statements, have been audited by the previous auditor (S C M K & CO LLP).

Note 43: The financial statements were approved for issue by the Board of Directors on May 27, 2024.

For S R B C & CO LLP For and on Behalf of the Board of Directors of

Chartered Accountants Total Transport Systems Limited

ICAI Firm No. 324982E/E300003

per Pramod Kumar Bapna Makarand Pradhan Sanjiv Potnis

Partner Managing Director Director

Membership No. 105497 DIN : 00102413 DIN : 00102090

Shrikant Nibandhe Bhavik Trivedi

Director & CFO Company Secretary

DIN : 01029115 Membership No. A49807

Date: May 27, 2024 Date: May 27, 2024

Place: Mumbai Place: Mumbai