n. Provisions
Provisions are recognised 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 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.
o. Contingent liabilities
A contingent liability is a possible obligation that
arises from past events whose existence will be
confirmed by the occurrence or non-occurrence
of one or more uncertain future events beyond the
control of the Company or a present obligation that
is not recognised because it is not probable that
an outflow of resources will be required to settle
the obligation. A contingent liability also arises
in extreme rare cases where there is a liability
that cannot be recognised because it cannot
be measured reliably. The Company does not
recognise a contingent liability but discloses its
existence in the financial statements.
p. Retirement and other employee benefits
Current employee benefits:
Employee benefits payable wholly within twelve
months of availing employee services are classified
as short-term employee benefits. These benefits
include salaries and wages, bonus and ex-gratia.
The undiscounted amount of short-term employee
benefits such as salaries and wages, bonus and ex-
gratia to be paid in exchange of employee services
are recognized in the period in which the employee
renders the related service.
Post-employment benefits:
(i) Defined contribution plans:
Retirement benefits in the form of contribution
to provident fund and pension fund are
charged to the Statement of Profit and Loss.
(ii) Defined benefit plan:
Gratuity is in the nature of a defined benefit
plan. Provision for gratuity is calculated on
the basis of actuarial valuations carried out
at the reporting date and is charged to the
Statement of Profit and Loss. The actuarial
valuation is computed 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 and the return
on plan assets (excluding amounts included in
net interest on the net defined benefit liability),
are recognised 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 statement of profit and loss in
subsequent periods.
(iii) Other employee benefits
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 year end.
The Company presents the leave as a short¬
term provision in the balance sheet to the
extent it does not have an unconditional right
to defer its settlement for 12 months after
the reporting date. Where Company has the
unconditional legal and contractual right to
defer the settlement for a period beyond 12
months, the same is presented as long-term
provision.
q. 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
All financial assets are recognised initially at
fair value, plus in the case of financial assets
not recorded at fair value through profit or loss,
transaction costs that are attributable to the
acquisition of the financial asset. Purchases
or sales of financial assets that require delivery
of assets within a time frame established by
regulation or convention in the market place
(regular way trades) are recognised on the trade
date, i.e., the date that the Company commits to
purchase or sell the asset.
Subsequent measurement
For purposes of subsequent measurement,
financial assets are classified in following four
categories:
- Financial assets at amortised cost
- Financial assets at fair value through other
comprehensive income (FVTOCI)
- Financial assets at fair value through profit or loss
(FVTPL) Equity investments
i. Financial assets at amortised cost
Financial assets is measured at the amortised cost
if both the following conditions are met -
- These assets are 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 finance income in the statement of
profit and loss. The losses arising from impairment
are recognised in the statement of profit and loss.
ii. Financial assets at fair value through other
comprehensive income (FVTOCI)
Financial assets are classified as FVTOCI if both of
the following criteria are met:
- These assets are held within a business model
whose objective is achieved both by collecting
contractual cash flows and selling the financial
assets; and
- Contractual terms of the asset give rise on
specified dates to cash flows that are SPPI on the
principal amount outstanding.
Fair value movements are recognised in the Other
Comprehensive Income (OCI). On derecognition
of the asset, cumulative gain or loss previously
recognised in OCI is reclassified from the equity to
the Statement of Profit and Loss.
iii. Financial assets at fair value through profit or
loss (FVTPL)
FVTPL is a residual category for debt instruments.
Any financial assets, which do not meet the criteria
for categorisation as at amortised cost or as
FVTOCI, are classified as FVTPL. Gain or losses
are recognised in the Statement of Profit and Loss.
iv. Equity investments
All equity investments in scope of Ind AS 109 are
measured at fair value. Equity instruments which
are held for trading are classified as at FVTPL and
any changes in its values are recognised through
the statement of profit and loss.
If the Company decides to classify an equity
instrument as at FVTOCI, then all fair value
changes on the instrument, excluding dividends,
are recognized in the OCI. There is no recycling of
the amounts from OCI to profit and loss, even on
sale of investment. However, the company may
transfer the cumulative gain or loss within equity.
The Company makes election whether to classify
the equity instruments as FVTPL or FVTOCI on
instrument-by-instrument basis. The classification
is made on initial recognition and is irrevocable.
Equity investments made by the Company in
subsidiaries are carried at cost less impairment
loss (if any).
Derecognition
A financial asset is derecognised 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 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
But 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.
Impairment of financial assets
In accordance with Ind AS 109, the Company
applies expected credit loss (ECL) model for
measurement and recognition of impairment
loss on the financial assets which are not fair
valued through statement of profit and loss. Loss
allowance for trade receivables with no significant
financing component is measured at an amount
equal to lifetime ECL at each reporting date, right
from its initial recognition. For all other financial
assets, expected credit losses are measured at an
amount equal to the 12-month ECL, unless there
has been a significant increase in credit risk from
initial recognition in which case those are measured
at lifetime ECL. If, in a subsequent period, credit
quality of the instrument improves such that there
is no longer a significant increase in credit risk
since initial recognition, then the entity reverts to
recognising impairment loss allowance based on
12-month ECL.
ECL impairment loss allowance (or reversal)
recognized during the period is recognized as
income/ expense in the statement of profit and
loss. This amount is reflected under the head 'other
expenses' in the statement of profit and loss.
As a practical expedient, The Company uses a
provision matrix to determine impairment loss
allowance on portfolio of its trade receivables. The
provision matrix is based on its historically observed
default rates over the expected life of the trade
receivables and is adjusted for forward-looking
estimates. At every reporting date, the historical
observed default rates are updated and changes in
the forward-looking estimates are analysed.
ECL is recognised based on assessment of credit
risk and since credit risk is low in case of related
party. Hence ECL not recognised.
Impairment of non-financial assets
The carrying amounts of assets are reviewed at
each reporting date if there is any indication of
impairment based on internal/external factors.
An impairment loss is recognised wherever the
carrying amount of an asset exceeds its recoverable
amount. The recoverable amount is the greater of
the asset's fair value less cost of disposals and
value in use. In assessing value in use, the estimated
future cash flows are discounted to their present
value using a pre-tax discount rate that reflects
current market assessments of the time value of
money and the risks specific to the asset. Fair value
is the price that would be received to sell an asset
or paid to transfer a liability in orderly transaction
between market participants at the measurement
date. After impairment, depreciation is provided on
the revised carrying amount of the asset over its
remaining useful life.
The Company bases its impairment calculation on
detailed budgets and forecast calculations, which
are prepared separately for the Company Cash
Generating Unit's (CGU) to which the individual
assets are allocated. These budgets and forecast
calculations generally cover a period of 5 years.
For longer periods, a long-term growth rate is
calculated and applied to project future cash flows
after the 5th year. Impairment losses are recognised
in the Statement of Profit and Loss.
An assessment is made at each reporting date as
to whether there is any indication that previously
recognised impairment losses may no longer exist
or may have decreased. If such indication exists,
the Company estimates the asset's or CGU's
recoverable amount. A previously recognised
impairment loss is reversed only if there has been
a change in the assumptions used to determine
the asset's recoverable amount since the last
impairment loss was recognised. The reversal is
limited so that the carrying amount of the asset
does not exceed its recoverable amount, nor
exceed the carrying amount that would have been
determined, net of depreciation, had no impairment
loss been recognised for the asset in prior years.
Financial liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial
recognition, as financial liabilities at fair value
through Statement of Profit and Loss, loans and
borrowings, payables, or as derivatives designated
as hedging instruments in an effective hedge, 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
The measurement of financial liabilities depends on
their classification, as described below:
Loans and borrowings
After initial recognition, interest-bearing loans
and borrowings are subsequently measured at
amortised cost using the EIR method. Gains and
losses are recognised in Statement of Profit and
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 amortization is included as finance costs in
the Statement of Profit and Loss. This category
generally applies to borrowings.
Derecognition
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 and Loss.
r. 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, which are 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.
s. 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 non-cash 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.
t. Cash dividend and non-cash distribution to
equity holders of the parent
The Company recognises a liability to make cash
or non-cash distributions 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.
Non-cash distributions are measured at the fair
value of the assets to be distributed with fair value
re-measurement recognised directly in equity.
Upon distribution of non-cash assets, any difference
between the carrying amount of the liability and
the carrying amount of the assets distributed is
recognised in the Statement of Profit and Loss.
u. Earnings per equity share
Basic earnings per share (EPS) amounts is
calculated by dividing the profit for the year
attributable to equity holders by the weighted
average number of equity 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.
The number of equity shares and potentially dilutive
equity shares are adjusted retrospectively for all
periods presented for any share splits and bonus
shares issues including for changes effected prior
to the approval of the financial statements by the
Board of Directors.
Recent Accounting Developments
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. For the year
ended 31 March 2025, MCA has notified Ind AS -
117 Insurance Contracts and amendments to Ind
AS 116 - Leases, relating to sale and leaseback
transactions, applicable to the Company w.e.f 01
April 2024. The Company has reviewed the new
pronouncements and based on its evaluation has
determined that it does not have any impact in its
financial statements.
2.3 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. Some
of the significant accounting judgement and estimates
are given below:
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 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.
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).
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.
The parameter most subject to change is the discount
rate. In determining the appropriate discount rate for
plans operated in India, the management considers
the interest rates of government bonds in currencies
consistent with the currencies of the post-employment
benefit obligation. Future salary increases and gratuity
increases are based on expected future inflation rates
for the respective countries. 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.
Acquisition of rights and interests in specified
entities [refer note 35(i)]
The management of the Company has used its
judgement to arrive at the value of rights and interests
which contains a markup. It was based on the third-party
valuation of underlying investment property which TRL
group is going to hold in future on achievement of certain
milestones.
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 discounted cash flow (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. See Note 28
for further disclosures.
Property, plant and equipment
Property, plant and equipment represent a significant
proportion of the asset base of the Company. The
charge in respect of periodic depreciation is derived
after determining an estimate of an asset's expected
useful life and the expected residual value at the end of
its life. The useful lives and residual values of Company
assets are determined by management at the time the
asset is acquired and reviewed periodically, including at
each financial year end. The lives are based on historical
experience with similar assets.
Investment property
Investment property represent a significant proportion
of the asset base of the Company. The charge in respect
of periodic depreciation is derived after determining
an estimate of an asset's expected useful life and
the expected residual value at the end of its life. The
useful lives and residual values of Company assets
are determined by management at the time the asset
is acquired and reviewed periodically, including at each
financial year end. The lives are based on historical
experience with similar assets.
7.4 Loans (Contd.)
Notes:
(i) The above loans have been given for strategic business purpose.
(ii) There are no outstanding loans/advances in the nature of loan given to promoters, key managerial personnel or other
officers of the company.
(iii) There are no loans and advances as well as debts which stands due from directors or other officers of the company
or any of them either severally or jointly with any other persons.
(iv) ' 17,915 lakhs (31 March 2024: 26,598 lakhs) were due from firms or private companies in which any director of the
Company is a partner or a director or a member.
(v) The loans has been given to related parties and they are interest bearing as per policy approved by Audit committee.
The same are repayable over the term of 5 years from the date of first disbursement.
(vi) @ During the current financial year, the Company has converted part of loan amount given to subsidiary companies
into equity shares falling under the category of Non current Investments [refer note 6(a)].
(vii) Loans and advances in the nature of loans which falls under the category of 'Non-current' are re-payable after more
than 1 year.
24 Net employee defined benefit liabilities
(a) Defined Contributions Plans
For the Company, an amount of ' 61 lakhs [31 March 2024: ' 48 lakhs (Continuing operations) (' 8 Lakhs towards
discontinuing operation)] contributed to provident and other funds (refer note 18) is recognised by as an expense and
included in "Contribution to Provident and other funds” under "Employee benefits expense” in the Statement of Profit
and Loss.
(b) Defined Benefit 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 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.
**In accordance with the NCLT Demerger order, all legal or other proceedings, claims, notices, demands, and obligations of
whatsoever nature and whether known or unknown, contingent or otherwise related to demerged undertaking may arise in the
future, the value of which cannot be accurately determined as at the close of the financial year.
26 Details of dues to micro and small enterprises as defined under the MSMED Act, 2006
Certain disclosures are required to be made relating to Micro, Small and Medium Enterprises Development Act Act, 2006
(MSMED). On the basis of the information and records available with the Company, the following disclosures are made for the
amounts due to the Micro and Small Enterprises. The information given is based on the information available with the Company
and has been relied upon by the auditors.
(G) By virtue of Demerger order dated 05 January 2023 passed by Hon'ble NCLT Mumbai bench, the entire equipment hiring
business (with Crane and Non crane constituents) of Allcargo Logistics Limited (Demerged Company) got transferred to
Transindia Real Estate Limited (TRL) with effect from appointed date i.e. 01 April 2022. The Certified true copy of Final
Demerger order along with sanctioned scheme have been received from Hon'ble NCLT, Mumbai bench on 10 March
2023 and the same got filed with Registrar of Companies on 01 April 2023 (Effective date). Soon thereafter, Business
Transfer Agreement (BTA) was entered into between (TRL and Premier Heavy Lift Private Limited (PHL) on 27 April 2023
(with subsequent addendum thereto forming part of BTA) by virtue of which the entire Crane business of TRL has been
transferred to PHL on slump sale arrangement basis with effect from 01 April 2023. As a matter of practical expedient
and as per the terms and conditions contained in said BTA/addendum thereto, till the time the requisite work orders of
existing customers gets novated (which was in the name of Demerged Company) or assigned in favour of PHL, the business
continued to be carried on by TRL on behalf of PHL in trust (via demerged company medium on back to back arrangement
basis). The summary of transactions between the Allcargo and TRL for the year ended 31 March 2025 was as under:-
Terms and conditions of trade transactions with related parties
The services provided to and services received 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.
27D Transfer in/ Transfer out of provision of Employee related benefits (Actuarial) between the related parties:-
During current financial year, there is a transfer of Gratuity Liability of ' 6 lakhs on account of employee transfer from
the Company to Allcargo Logistics Limited. Also there is a divestiture of Leave encashment liability of ' 3 lakhs from the
Company to Allcargo Logistics Limited.
During previous financial year, there is a transfer of Gratuity Liability of ' 30 lakhs on account of employee transfer from
Allcargo Logistics Limited to the Company. Also some of the employees of the Company got transferred to the Allcargo
Terminals Limited hence there is a divestiture of Gratuity liability of ' 35 lakhs to that extent.
During the previous financial year, there is a transfer of Leave encashment of ' 13 lakhs as well as ' 3 lakhs on account of
employee transfer from Allcargo Logistics Limited as well as from Allcargo Terminals Limited to the Company. Also some
of the employees of the Company got transferred to the Allcargo Terminals Limited hence there is a divestiture of Leave
encashment liability of ' 8 lakhs to that extent.
The management assessed that cash and cash equivalents, trade receivables, trade payables, short-term borrowings and
other current 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.
29 Financial risk management objectives and policies
The Company's activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk.
The Company's primary risk management focus is to minimize potential adverse effects of market risk on its financial
performance. The Company's risk assessment and policies and processes are established to identify and analyse the
risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the
policies and processes. Risk assessment and policies and processes are reviewed regularly to reflect changes in market
conditions and the Company's activities. The Board of Directors and the management is responsible for overseeing the
Company's risk assessment and policies and processes.
i) Market risk
Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes
in market rates and prices (such as interest rates and foreign currency exchange rates) or in the price of market risk-
sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to all
market risk-sensitive financial instruments, and all short term and long-term debt. The Company is exposed to market
risk primarily related to interest rate risk. Thus, the Company's exposure to market risk is a function of investing and
borrowing activities and it's revenue generating and operating activities.
a) 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 floating interest rates.
29 Financial risk management objectives and policies (Contd.)
b) Interest rate sensitivity
Since the Company has fully repaid all outstanding borrowings during the financial year ended 31 March 2025,
there is no requirement to disclose interest rate sensitivity for loans and borrowings.
As at 31 March 2024 the following table demonstrate the sensitivity to a reasonably possible change in interest
rates on the outstanding portion of loans and borrowings. With all other variables held constant, the Company's
profit/(loss) before tax is affected as follows:
ii) Credit risk
Credit risk is the risk that 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 receivables) and from its financing activities, including deposits with banks and financial institutions and other
financial instruments.
Trade receivables
Customer credit risk is managed by each business unit subject to the Company's established policy, procedures and
control relating to customer credit risk management. Credit quality of a customer is assessed and individual credit
limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored.
The Company has diversified customer base considering the nature and type of business.
An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a
large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively.
The calculation is based on historical data. The maximum exposure to credit risk at the reporting date is the carrying
value of each class of financial assets disclosed in Note 7.2. The Company does not hold collateral as security. The
Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located
in several jurisdictions and industries and operate in largely independent markets.
As per management policy there is no credit risk on trade receivables arising on account of transactions with related
parties.
(iii) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting its commitments associated with
financial instruments. Liquidity risk management implies maintaining sufficient cash and marketable securities and
the availability of funding through committed credit facilities to meet the obligations when due.
The Company's objective is to maintain a balance between continuity of funding and flexibility through the use of
bank term loans. In the current year, the entire borrowings have been prepaid. In previous financial year 33% of total
Company's borrowings including current maturities of the non-current borrowings has matured in less than one year
as at 31 March 2024 based on the carrying value of borrowings as reflected in the financial statements.
Excessive risk concentration
Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the
same geographical region, or have economic features that would cause their ability to meet contractual obligations to be
similarly affected by changes in economic, political 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.
(v) Capital management
For the purpose of the Company's capital management, capital includes issued equity capital, securities premium
and all other equity reserves attributable to the equity holders of the Company. The Company manages its capital
structure and makes adjustments in light of changes in economic conditions and the requirements of the financial
covenants. The funding requirement is met through a mixture of equity, internal accruals, long term borrowings and
short term borrowings.
30 Leases:
Company as Lessor
Rental income earned from logistics park and commercial properties given on operating leases to Companies in which
Key managerial personnel or their relatives exercises significant influences was ' 3,874 lakhs for the year ended 31 March
2025 (31 March 2024: '3,747 lakhs) [refer note 27(B)].
Company as Lessee
Changes in carrying value of Right - Of - Use Assets for the previous year ended March 31, 2024 is given separately in note
no 3.2.
31 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 any Benami property.
ii) The Company has not advanced or loaned or invested funds to any other persons or entities, including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:
a) directly or indirectly lend or invest in other persons or entitiesidentified 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.
iii) The Company has not received any fund from any persons or entities, 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,
iv) The Company has not entered any such transaction which is not recorded in the books of account 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)
v) The Company do not have any transactions with companies struck off under section 248 of the Companies Act, 2013.
vi) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
32 Assets Held for Sale
(i) Sale of crane business in the previous year ended 31 March 2024:
In the previous year, Pursuant to the approval of the Board of directors dated 26 April 2023, the Company has executed
and signed Business Transfer Agreement with Premier Heavy Lift Private Limited, for sale of Crane Division on going
concern basis under slump sale arrangements at a lump sum cash consideration of ' 12,100 lakhs plus the net working
capital as on 1 April 2023 being effective date. The related Conditions Precedents as mentioned in Business Transfer
agreement has been complied by the Company to the satisfaction of the buyer on 4 July 2023 and Company recorded
gain of ' 9,679 lakhs in this transaction. Accordingly, revenue and corresponding expenses of the crane division for
the period ended 4 July 2023 are incurred on behalf of the buyer. Thus profit / (loss) attributable to crane division
does not impact Statement of Profit and Loss of the company.
For the previous year ended 31 March 2024 crane business of Equipment Hiring segment has been classified as
'discontinuing operations'.
(ii) Transaction with BRE Asia Urban Holdings Limited:-
On February 28, 2024, the Company executed a Securities Subscription and Purchase Agreement ("SSPA”) with
Allcargo Logistics Limited, Horizon Industrial Parks Private Limited ("HIPPL”), and BRE Asia Urban Holdings Ltd
("Investor”) for the sale of its remaining 10% equity stake in the specified companies and its entire 100% equity stake
in Allcargo Multimodal Private Limited, for a total consideration of ' 25,136 lakhs. The transfer of shareholding was
completed on March 7, 2024. As of the previous financial year, the Company had received ' 23,036 lakhs and in the
current financial year, it has received an additional '2,100 lakhs from the Investor and HIPPL, following the fulfilment
of customary closing conditions as stipulated in the SSPA. In the previous financial year, the Company recognized a
profit of ' 22,831 lakhs from the dilution of its equity stake, which has been disclosed as an exceptional item (refer
to Note 22) in the financial statements.
Pursuant to the SSPA, certain additional milestones [referred to as Conditions Subsequent (CS)] remain outstanding
and are subject to investor satisfaction in relation to the aforementioned transaction. During the current financial year,
the Company incurred further expenditure of '235 lakhs towards the fulfilment of these milestones. The deadlines
for meeting the CS may be extended from time to time, as mutually agreed between the Investor and the Company,
until all CS are satisfied
a) On account of liquid funds deployed in business capex plan as well as reduction in short term financial assets due to receipt
of balance consideration from BRE Asia.
b) The Company has become zero-debt in current year as it has fully prepaid its borrowings during the current year, resulting
in an improved DSCR and a zero debt-to-equity ratio.
c) The Company's operating profits has decreased duing the year as compared to last year.
d) Improved Trade receivables and Trade payable turnover ratios on account of better collections from customers as well as
payments to vendors.
e) ROCE reduced in the current year due to reduction in EBIT.
f) Net capital turnove ratio is higher due to effective debtors collection as well as vendor payment management.
34 Segment reporting
Disclosure of segment reporting as per the requirements of Ind AS 108 "Operating Segment” is reported in the consolidated
financial statements of the Company. Therefore, the same has not been separately disclosed in the standalone financial
statements in line with the requirement of Ind AS 108.
35 (i)Acquisition of Rights and Interests in Specified Entities following Approval of the Board of Directors as
well as Shareholders:
The Company has entered into definitive transaction document with Gorsai Logistics Park Private Limited, Dighanta
Landscape Private Limited, Panchghara Landscape Private Limited, Panchghara Logistics Park Private Limited, and PCPL
Industrial & Logistics Park (Hoskote) Private Limited (collectively, the "Target Companies”) and 'Talentos Entertainment
Private Limited and Talentos Warehousing and Industrial Parks Private Limited (collectively referred to as the "promoter
group companies”) for acquisition of rights and interests from promoter group companies in both the shares and underlying
assets of aforesaid target companies for a total purchase consideration of ' 27,778 lakhs (based on third party valuation
report). As per said definitive transaction, shares of target companies are pledged in the favour of the Company till the
controlling interest will get transferred upon the satisfaction of certain milestones as defined in these documents.
The Company has paid ' 16,158 lakhs to the promoter group companies in this regards. As of 31 March 2025, the Company
is yet to acquire any interest in the Target Companies, since certain substantive conditions precedent outlined in the
transaction documents are not yet satisfied. Hence, the said transaction has been treated as a 'non-adjusting event' as at
the close of the financial year. Subsequent to the acquisition of rights and interests, the Company has made an additional
payment of '2,694 lakhs as advance towards land acquisition to the said Target Companies and its promoters.
35 (ii) Acquisition of property through wholly owned subsidiary company following Approval of the Board of
Directors as well as Shareholders:
The Company through its Wholly Owned Subsidiary Company namely AGL Warehousing Private Limited has purchased
Investment Property from 'Allnet Financial Services Private Limited, Sealand Cranes Private Limited, Talentos
(India) Private Limited and Avash Builders & Infrastructure Private Limited' for the total consideration amounting to
' 10,730 lakhs.
36 During the current year, the Board of Directors at their meeting held on 7 August 2024 has considered, approved and paid
an interim dividend of '0.50 per equity share.
37 Madanhatti Logistics and Industrial Parks Private Limited' (Wholly owned subsidiary of Transindia Real Estate Limited)
has sold investment property (Land, building and other appurtenance) for a total consideration of ' 6,776 lakhs pursuant
to the approval of Board of Directors of Transindia Real Estate Limited ('the Company') through a circular resolution dated
21 February 2025 (In principle Board approval was taken on 30 January 2025). The subsidiary Company has executed
final Sales Deed in this regard with Caterpillar India Private Limited and the said transaction has been concluded. Out of
the proceeds received from sale of Investment property, the wholly owned subsidiary Company has fully redeemed the
1,07,78,147 (One Crore, Seven Lakhs, Seventy Eight Thousand, One Hundred and Forty Seven) Class A Optionally Convertible
Debentures ("Class A OCDs”) as well as partly repaid loan taken from the Company. The Company has recognised the
Impairment loss on redemption of Class A OCDs of ' 682 lakhs as shown under note 21 other expenses
38 Corporate Social Responsibility
As per section 135 of the Companies Act, 2013 read with relevant rules thereon, a CSR Committee has been formed by
the Company. The funds are utilised throughout the year on activities which are specified in Schedule VII of the Act. The
utilisation is done either by way of direct contribution towards various activities or by way of contribution to a trust.
*Excess amount spend towards CSR activities may be set off against the requirement to spend under sub-section (5) of the Section 135
up to immediately succeeding three financial years subject to the condition that the excess amount available for set off shall not include
the surplus arising out of the CSR activities, if any, in pursuance of sub-rule (2) of this rule.
(b) In the previous year, CSR expenditure includes a sum of ' 50 lakhs as a contribution to Avvashya Foundation Trust
(where key managerial personnel and relatives are able to exercise significant influence) (refer note 27B).
(c) As per the rules contained and notified under Companies (Corporate Social Responsibility Policy) Amendment Rules
2021 as at 31 March 2025, the Company do not have any unspent Corporate Social Responsibility amount which
needs to be transferred to a separate account maintained with a scheduled bank within a period of 30 days from the
end of financial year.
39 Note on audit trail
The Company utilizes ERP-based accounting software to maintain its books of account which includes an audit trail (edit
log) feature. This functionality was operational throughout the year for all relevant transactions recorded in the same, with
the exception that the audit trail feature for spend management (at the application level) and the consolidation software
became effective on January 29, 2025, and December 30, 2024, respectively.
There is no instance of audit trail feature being tampered with, in respect of all softwares as mentioned above where
the audit trail have been enabled. Additionally, the audit trail of prior year has been preserved by the Company as per the
statutory requirements for record retention to the extent it was enabled and recorded in the respective years.
39 Note on audit trail (Contd.)
The audit trail (edit log) feature for spend management at the database level is managed by the software service providers.
The Service Organization Controls (SOC) reports obtained by management do not include information regarding the audit
trail feature at the database level, specifically whether this feature was enabled and functioning throughout the year. The
company is currently in the process of verifying this matter with the vendor.
40 During the current year, Income-Tax Authorities has conducted search at the office premises of the Company, some of it's
subsidiaries and at the residence of one of its key management personnel. Company extended full cooperation and support
to the Income-tax officials during the search and has provided all the requested information during search and continue
to provide information as and when sought by the authorities. Management has made necessary disclosures to the stock
exchanges in this regard on February 12, 2025. As on the date of signing of these financial statements, the Company has
not received any communication from the Income-Tax Authorities regarding the findings of their investigation. Pending
final outcome of this matter, no adjustments have been recognised in the financial statements.
41 Previous year figures
Previous year figures have been regrouped/reclassified, where necessary, to conform to current year's classification.
42 Events after reporting period
The Company has evaluated subsequent events from the balance sheet date to 15 May 2025, the date at which the
financial statements were approved and adopted by Board of Directors and determined that there are no material items
to be disclosed other than those disclosed above.
As per our report of even date For and on behalf of Board of directors of Transindia Real Estate Limited
For C C Dangi & Associates (Formerly known as Transindia Realty and Logistics Parks Limited)
Chartered Accountants CIN No:L61200MH2021PLC372756
ICAI Firm Registration No: 102105W
Ashish C. Dangi Jatin Jayantilal Chokshi Mohinder Pal Bansal Ram Walase
Partner Managing Director Chairman and Independent Director Chief Executive Officer
Membership No: 122926 DIN:00495015 DIN:01626343
Nilesh Mishra Khushboo Dinesh Mishra
Chief Financial Officer & C°mpliance
Officer
Membership No:A68324
Place: Mumbai Place: Mumbai
Date: May 15, 2025 Date: May 15, 2025
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