2.15. Provisions, Contingent Liabilities & Contingent assets

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result
of a past event, it is probable that the Company will be required to settle the obligation, and a reliable
estimate can be made of the amount of the obligation. When some or all of the economic benefits
required to settle a provision are expected to be recovered from a third party, a receivable is recognised
as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable
can be measured reliably.

2.16. Financial instruments

Financial assets and financial liabilities are recognized when a company becomes a party to the
contractual provisions of the instruments. Financial assets and financial liabilities are initially measured
at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets
and financial liabilities (other than financial assets and financial liabilities at fair value through profit or
loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as
appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial
assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or
loss.

2.17. Financial assets

All regular way purchases or sales of financial assets are recognised and derecognised on a settlement
date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery
of assets within the time frame established by regulation or convention in the marketplace. All
recognised financial assets are subsequently measured in their entirety at either amortised cost or fair
value, depending on the classification of the financial assets.

2.17.1. Classification of financial assets

Debt instruments that meet the following conditions are subsequently measured at amortised cost (except
for debt instruments that are designated as at fair value through profit or loss on initial recognition):
i. the asset is held within a business model whose objective is to hold assets in order to collect
contractual cash flows; and

ii. the contractual terms of the instrument give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.

For the impairment policy on financial assets measured at amortised cost, refer note no 2.17.4

All other financial assets are subsequently measured at fair value.

2.17.2. Effective interest method

The effective interest method is a method of calculating the amortised cost of a debt instrument and of
allocating interest income over the relevant period. The effective interest rate is the rate that exactly
discounts estimated future cash receipts (including all fees and points paid or received that form an
integral part of the effective interest rate, transaction costs and other premiums or discounts) through the
expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount
on initial recognition.

Income is recognised on an effective interest basis for debt instruments other than those financial assets
classified as at FVTPL. Interest income is recognised in profit or loss and is included in the “Other
income” line item.

Company has adopted a policy of recognizing fee below 0.1% of revenue as expense in the year in which
fee is paid.

2.17.3. Financial assets at Fair value through Profit and Loss

Investments in equity instruments are classified as at FVTPL, unless the Company irrevocably elects on
initial recognition to present subsequent changes in fair value in Other Comprehensive Income for
investments in equity instruments which are not held for trading.

A financial asset that meets the amortised cost criteria or debt instruments that meet the FVTOCI criteria
may be designated as at FVTPL upon initial recognition if such designation eliminates or significantly
reduces a measurement or recognition inconsistency that would arise from measuring assets or liabilities
or recognising the gains and losses on them on different bases.

Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains
or losses arising on remeasurement recognised in profit or loss. The net gain or loss recognised in profit
or loss incorporates any dividend or interest earned on the financial asset and is included in the ‘Other
Income’ line item. Dividend on financial assets at FVTPL is recognised when the Company’s right to
receive the dividend is established, it is probable that the economic benefits associated with the dividend
will flow to the entity and the amount of dividend can be measured reliably.

2.17.4. Impairment of financial assets

The Company applies the expected credit loss model for recognising impairment loss on financial assets
measured at amortised cost, trade receivables, other contractual rights to receive cash or other financial
asset, and financial guarantees not designated as at FVTPL.

Expected credit losses are the weighted average of credit losses with the respective risks of default
occurring as the weights. Credit loss is the difference between all contractual cash flows that are due to
the Company in accordance with the contract and all the cash flows that the Company expects to receive
(i.e. all cash shortfalls), discounted at the original effective interest rate (or creditadjusted effective
interest rate for purchased or originated credit-impaired financial assets).

The Company measures the loss allowance for a financial instrument at an amount equal to the lifetime
expected credit losses if the credit risk on that financial instrument has increased significantly since
initial recognition.

When making the assessment of whether there has been a significant increase in credit risk since initial
recognition, the Company uses the change in the risk of a default occurring over the expected life of the
financial instrument instead of the change in the amount of expected credit losses. To make that
assessment, the Company compares the risk of a default occurring on the financial instrument as at the
reporting date with the risk of a default occurring on the financial instrument as at the date of initial
recognition and considers reasonable and supportable information, that is available without undue cost or
effort, that is indicative of significant increases in credit risk since initial recognition.

For trade receivables or any contractual right to receive cash or another financial asset that result from
transactions that are within the scope of Ind AS 18, the Company always measures the loss allowance at
an amount equal to lifetime expected credit losses.

Further, for the purpose of measuring lifetime expected credit loss allowance for trade receivables, the
Company has used a practical expedient as permitted under Ind AS 109. This expected credit loss
allowance is computed based on a provision matrix which takes into account historical credit loss
experience and adjusted for forward-looking information

2.17.5. Derecognition of financial assets

The Company derecognises a financial asset when the contractual rights to the cash flows from the asset
expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of
the asset to another party. If the Company neither transfers nor retains substantially all the risks and
rewards of ownership and continues to control the transferred asset, the Company recognises its retained
interest in the asset and an associated liability for amounts it may have to pay. If the Company retains
substantially all the risks and rewards of ownership of transferred financial asset, the Company
continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds
received.

On derecognition of a financial asset in its entirety, the difference between the asset’s carrying amount
and the sum of the consideration received and receivable and the cumulative gain or loss that had been
recognised in Other Comprehensive Income and accumulated in equity is recognised in profit or loss if
such gain or loss would have otherwise been recognised in profit or loss on disposal of that financial
asset.

On derecognition of a financial asset other than in its entirety (e.g. when the Company retains an option
to repurchase part of a transferred asset), the Company allocates the previous carrying amount of the
financial asset between the part it continues to recognise under continuing involvement, and the part it no
longer recognises on the basis of the relative fair values of those parts on the date of the transfer. The
difference between the carrying amount allocated to the part that is no longer recognised and the sum of
the consideration received for the part no longer recognised and any cumulative gain or loss allocated to
it that had been recognised in Other Comprehensive Income is recognised in profit or loss if such gain or
loss would have otherwise been recognised in profit or loss on disposal of that financial asset. A
cumulative gain or loss that had been recognised in Other Comprehensive Income is allocated between
the part that continues to be recognised and the part that is no longer recognised on the basis of the
relative fair values of those parts.

2.17.6. Foreign exchange gains and losses

The fair value of financial assets denominated in a foreign currency is determined in that foreign
currency and translated at the spot rate at the end of each reporting period.

• For foreign currency denominated financial assets measured at amortised cost and FVTPL, the
exchange differences are recognised in profit or loss except forthose which are designated as
hedging instruments in a hedging relationship.

• Changes in the carrying amount of investments in equity instruments at FVTOCI relating to
changes in foreign currency rates are recognised in Other Comprehensive Income.

• For the purposes of recognising foreign exchange gains and losses, FVTOCI debt instruments
are treated as financial assets measured at amortised cost. Thus, the exchange differences on
the amortised cost are recognised in profit or loss and other changes in the fair value of
FVTOCI financial assets are recognised in Other Comprehensive Income

2.18. Financial liabilities and equity instruments

2.18.1. Classification as debt or equity

Debt and equity instruments issued by a company are classified as either financial liabilities or as equity
in accordance with the substance of the contractual arrangements and the definitions of a financial
liability and an equity instrument.

2.18.2. Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after
deducting all of its liabilities. Equity instruments issued by a company entity are recognised at the
proceeds received, net of direct issue costs. Repurchase of the Company's own equity instruments is
recognised and deducted directly in equity. No gain or loss is recognized in profit or loss on the
purchase, sale, issue or cancellation of the Company's own equity instruments.

2.18.3. Compound financial instruments

The component parts of compound financial instruments (convertible notes) issued by the Company are
classified separately as financial liabilities and equity in accordance with the substance of the contractual
arrangements and the definitions of a financial liability and an equity instrument. A conversion option
that will be settled by the exchange of a fixed amount of cash or another financial asset for a fixed
number of the Company’s own equity instruments is an equity instrument.

At the date of issue, the fair value of the liability component is estimated using the prevailing market
interest rate for similar non-convertible instruments. This amount is recognised as a liability on an
amortised cost basis using th effective interest method until extinguished upon conversion or at the
instrument’s maturity date.

The conversion option classified as equity is determined by deducting the amount of the liability
component from the fair value of the compound financial instrument as a whole. This is recognised and
included in equity, net of income tax effects, and is not subsequently remeasured. In addition, the
conversion option classified as equity will remain in equity until the conversion option is exercised, in
which case, the balance recognised in equity will be transferred to other component of equity. When the
conversion option remains unexercised at the maturity date of the convertible note, the balance
recognised in equity will be transferred to retained earnings. No gain or loss is recognised in profit or
loss upon conversion or expiration of the conversion option.

2.18.4. Financial liabilities

All financial liabilities are subsequently measured at amortised cost.

Financial liabilities that are not held-fortrading and are not designated as at FVTPL are measured at
amortised cost at the end of subsequent accounting periods. The carrying amounts of financial
liabilities that are subsequently measured at amortised cost are determined based on the effective
interest method. Interest expense that is not capitalized as part of costs of an asset is included in the
'Finance costs' line item.

The effective interest method is a method of calculating the amortised cost of a financial liability and of
allocating interest expense over the relevant period. The effective interest rate is the rate that exactly
discounts estimated future cash payments (including all fees that form an integral part of the effective
interest rate, transaction costs and other premiums or discounts) through the expected life of the
financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial
recognition.

2.19. Segment Accounting:

The CEO monitors the operating results of the business segments separately for the purpose of making
decisions about the allocation of resources and performance assessment. Segment performance is
measured based on profit or loss and is measured consistently with profit or loss in Financial Statements

2.19.1. Identification of Operating Segments

The operating segments have been identified based on its services and in the current year company has
two reportable segments, as follows:

i. Logistics, Warehousing and allied services.

ii. Retail Trade

2.19.2. Accounting of Operating Segments

Accounting policies adopted for segment reporting are in line with the accounting policies of the
Company. Revenue and expenses have been identified to segments on the basis of their relationship to
the operating activities of the segment. Revenues and expenses, which relate to the enterprise as a whole

and are not allocable to segments on a reasonable basis and inter-segment revenue and expenses, have
been included under “Unallocated Corporate Expenses/Eliminations”.

2.20. Earnings Per Share:

Basic and diluted earnings per share is computed by dividing the net profit or loss for the year
attributable to equity shareholders by the weighted average number of Equity Shares outstanding during
the year, in accordance with Ind AS 33.

2.21. Critical accounting judgements and key sources of estimation uncertainty

In the application of the Company’s accounting policies, which are described in note 2, the management
is required to make judgements, estimates and assumptions about the carrying amounts of assets and
liabilities that are not readily apparent from other sources. The estimates and associated assumptions are
based on historical experience and other factors that are considered to be relevant. Actual results may
differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period in which the estimate is revised if the revision affects only the
period of the revision and future periods if the revision affects both current and future periods.

The estimates and assumptions that have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next financial year are discussed below.

(i) Useful lives of Property, Plant and Equipment

As described in note 2.10 above, the Company reviews the estimated useful lives of Property, Plant and
Equipment at the end of each annual reporting period.

(ii) Defined Benefit Plans

The cost of the defined benefit plans and other post-employment benefits and the present value of such
obligation are determined using actuarial valuations. An actuarial valuation involves making
assumptions that may differ from actual developments in the future. These include the determination of
discount rate, future salary increases, mortality rates and attrition rate. Due to the complexities involved
in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in
these assumptions. All assumption are reviewed at each reporting date.

(iii) Fair Value of financial assets and liabilities and investments The Company measures certain
financial assets and liabilities on fair value basis at each balance sheet date or at the time they are
assessed for impairment. Fair value measurement that are based on significant unobservable inputs
(Level 3) requires estimates of operating margin, discount rate, future growth rate, terminal values etc.
based on management’s best estimate about future developments.

(iv) Estimated Lead Time for determining completion of performance obligation

The company also determines completion of performance obligation with respect to transportation
service based on Estimated Lead Time (ELT) to deliver based on standard past performance and to that
extent it involves management judgments for estimating delivery time to destination.

(v) Leases

Ind AS 116 requires lessees to determine the lease term as the non- cancellable period of a lease
adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain.
The Company makes an assessment on the expected lease term on a lease-by lease basis and there by
assesses whether it is reasonably certain that any options to extend or terminate the contract will be
exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold
improvements undertaken over the lease term, costs relating to the termination of the lease and the
importance of the underlying asset to operations taking into account the location of the underlying asset
and the availability of suitable alternatives. The lease term in future periods is reassessed to ensure that
the lease term reflects the current economic circumstances.

(vii) Trade receivables

The Company determines the allowance for credit losses based on historical loss experience adjusted to
reflect current and estimated future economic conditions. The Company has considered subsequent

recoveries, past trends, credit risk profiles of the customers based on their industry, macroeconomic
forecasts and internal and external information available to estimate the probability of default in future.

2.22. Recent Accounting Pronouncements

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. MCA has not
notified any new standards or amendments to the existing standards applicable to the company for the
upcoming period.