13 Provisions and Contingent Liabilities

a) Provisions

Provisions are recognized when there is a present obligation 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 there is a reliable estimate of the amount of the obligation. Provisions are
measured at the best estimate of the expenditure required to settle the present obligation at
the Balance sheet date and are not discounted to its present value.

b) Contingent Liabilities

Contingent liabilities are disclosed when there is a possible obligation arising from past
events, the existence of which will be confirmed only by the occurrence or non-occurrence
of one or more uncertain future events not wholly within the control of the company or
a present obligation that arises from past events where it is either not probable that an
outflow of resources will be required to settle or a reliable estimate of the amount cannot be
made.

14 Accounting for Taxes of Income
Current Taxes

Tax expense comprises current and deferred tax. Current income tax is measured at the amount
expected to be paid to the tax authorities in accordance with Income Tax Act, 1961. Deferred
income tax reflects the impact of current year timing differences between taxable income that
originates in one period and are capable of reversal in one or more subsequent periods

Deferred Taxes

Deferred tax is recognised on timing differences, being the differences between the taxable
income and the accounting income that originate in one period and are capable of reversal in
one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws
enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised
for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry
forward of losses are recognised only if there is virtual certainty that there will be sufficient future
taxable income available to realise such assets. Deferred tax assets are recognised for timing
differences of other items only to the extent that reasonable certainty exists that sufficient future
taxable income will be available against which these can be realised. Deferred tax assets and
liabilities are offset if such items relate to taxes on income levied by the same governing tax

laws and the Company has a legally enforceable right for such set off. Deferred tax assets are
reviewed at each Balance Sheet date for their realisability.

15 Foreign Currency Transaction
Initial Recognition

Foreign currency transactions are recorded in the reporting currency by applying to the foreign
currency amount the exchange rate between the reporting currency and the foreign currency at
the date of the transaction.

Conversion

Foreign currency monetary items are reported using the closing rate. Non-monetary items which
are carried in terms of historical cost denominated in a foreign currency are reported using the
exchange rate at the date of the transaction and non-monetary items which are carried at fair value
or other similar valuation denominated in a foreign currency are reported using the exchange
rates that existed when the values were determined.

Exchange Differences

Exchange differences arising on the settlement of monetary items or on reporting such monetary
items of company at rates different from those at which they were initially recorded during the
year, or reported in previous financial statements, are recognised as income or as expenses in
the year in which they arise.

16 Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise of cash at bank and in hand and short¬
term investments with an original maturity of twelve months or less. Earmarked balances with
bank, margin money or security against borrowings, guarantees and other commitments, if any
shall be treated separately from cash and cash equivalent

17 Earnings Per Share

The Company reports basic and diluted Earnings per Share (EPS) in accordance with Accounting
Standard 20 'Earning per Share’.

Basic EPS is computed by dividing the net profit or loss attributable to the equity shareholders for
the year by the weighted average number of equity shares outstanding during the year. Diluted
EPS is computed by dividing the net profit or loss attributed to the equity shareholders for the
year by weighted average number of equity shares outstanding during the year as adjusted for
the effects of all potential equity share, except where the result is antidilutive.

Note : During the FY 2022-23, the Company had completed its Initial Public Offering (“IPO”) of
27,00,000 new equity shares of face value of Rs.10/- each at a premium of Rs. 18/- per equity
share aggregating to Rs. 756.00 Lakhs. Expenses related to IPO Rs. 97.40 Lakhs is debited
against Securities Premium Account as per Section 52 of Companies Act 2013. Pursuant to the
IPO, the equity shares of the Company have got listed on the SME Platform of BSE on 10th
October, 2022.

(b) Terms / rights attached to equity shares:

The Company has one class of equity shares having a par value of Rs.10 per share. Each
shareholder is eligible for one vote per share held. In the event of liquidation, the equity
shareholders are eligible to receive the remaining assets of the Company, in proportion to their
shareholding.

a. Secured Loans from Banks and Financial Institutions includes:

(i) Rs. 579.76 lakhs (P.Y Rs. Nil) Loan against property from Indusind Bank carries interest
ranging from 9.43% p.a. The loan is secured against Office Premises. These Loans are
repayable in 15 to 124 monthly installments.

(ii) Rs. Nil (P.Y 641.50 lakhs) Loan against property from ICICI Bank & Kotak Bank has been fully
repaid during the year.

(iii) Rs. 165.25 lakhs (P.Y 293.99 lakhs) working capital term loans from Indusind Bank carries
interest ranging from 9.25% to 10.73% p.a. The Loan has First and exclusive charge on
Current Assets of the Company. These Loans are repayable in 36 to 60 monthly instalments.

(iv) Rs. 88.07 lakhs (P.Y. 118.48 lakhs) vehicle loans from Banks carries interest ranging from
7.02% to 9.55% p.a. The Loan is secured against Hypothecation of Vehicles. These Loans
are repayable in 36 to 60 monthly instalments.

(v) Rs. 21.85 lakhs (P.Y 27.12 lakhs) vehicle loan from Kotak Mahindra Prime Limited carries
interest @ 8.29% p.a. The Loan is secured against Hypothecation of Vehicles. The loan is
repayable in 60 monthly instalments.

b. Unsecured Loans from Banks includes:

(i) Rs. 184.00 lakhs (P.Y 42.21 lakhs) business loans from Banks carries interest ranging from
14.12% to 15.15%p.a. These Loans are repayable in 24 to 36 monthly instalments.

(ii) Rs. 284.00 lakhs (P.Y Nil) business loans from Financial Institutions carries interest ranging
from 15% to 16.50%p.a. These Loans are repayable in 36 monthly instalments.

c. Loan from others

Rs.133.82 lakhs (P.Y 219.37 lakhs) loan from Directors are interest free loans and are repayable

after March 31,2025.

Note 30 : Disclosure pursuant to “Employee Benefit Expenses”

A. Defined benefit Obligation - Gratuity (funded)

The Group has a funded defined benefit gratuity plan and is governed by the Payment of Gratuity
Act, 1972. Under the Act, employee who has completed five years of service is entitled to specific
benefit. The level of benefits provided depends on the member‘s length of service and salary at
retirement age

The following tables summarise the components of net benefit expense recognised in the summary
statement of profit or loss and the funded status and amounts recognised in the statement of
assets and liabilities for the respective plans:

1 The Company does not have any benami property held in its name. 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.

2 The Company is not declared as willful defaulter by any bank or financial institution (as defined
under the Companies Act, 2013) or consortium thereof or other lender in accordance with the
guidelines on willful defaulters issued by the Reserve Bank of India.

3 The Company has complied with the requirement with respect to number of layers as prescribed
under section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number
of layers) Rules, 2017.

4 The Company does not have any transactions with companies struck off under section 248 of the
Companies Act, 2013 (as amended) or section 560 of the Companies Act, 1956

5 The Company has not advanced or loaned 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.

6 The Company has not received any fund from any person(s) or entity(ies), 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.

7 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.

8 The Company has not traded or invested in crypto currency or virtual currency during the
year.

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

10 The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use
Assets) during the year.

The Company has not given any loans or advances in the nature of loans to promoters, directors, KMPs
and/ or related parties (as defined under Companies Act, 2013), either severally or jointly with any other
person, that are repayable on demand, or without specifying any terms or period of repayment.

Note 38 - Code On Social Security, 2020

The Code on Social Security, 2020 (‘Code’) has been notified in the Official Gazette on 29th September,
2020.The Code is not yet effective and related rules are yet to be notified. Impact if any of the change
will be assessed and recognized in the period in which said Code becomes effective and the rules
framed thereunder are notified.

Note 39 - Significant Events After The Reporting Period

There were no significant adjusting events that occurred subsequent to the reporting period other than
the events disclosed in the relevant Notes.

Note 40 - Previous Year’s Figures

The previous year figures have also been reclassified to conform to current year’s classification
wherever applicable.

In terms of our report of even date

For T M R & Associates LLP For and on behalf of the Board of Directors

Chartered Accountants Cargosol Logistics Limited

Firm Registration No. W100109

Anil Makhija Roshan Rohira Samuel Muliyil

Partner Director Director

M. No.136292 DIN No.: 01608551 DIN No.: 01608626

Cletus D'souza Vinay Karkera

Chief Financial Officer Company Secretary

M. No. A63357

Place : Mumbai Place : Mumbai

Date : Date :