Accounting Policies of Balurghat Technologies Ltd. Company

Mar 31, 2025

Basis of Preparation and Presentation

The standalone financial statements have been prepared in accordance with Ind AS notified under the Companies (Indian
Accounting Standards) Rules, 2015. The standalone financial statements have been prepared on the historical cost basis.

Recent accounting pronouncements:

The Indian Accounting Standard (Ind AS) 115, Revenue from Contracts with Customers is applicable from FY 2018- 19, the
management believes that the adoption of Ind AS 115 does not have any significant impact on the standalone financial statement
The management believes that the adoption of amendment to Ind AS 21, Foreign currency transactions and advance consideration
and amendment to hid AS 12 Income Taxes does not have any significant impact on the standalone financial statements. The
amendment to Ind AS 40, Investment Property is not applicable

A Ind AS optional exemptions

Ind AS 101 prosides the option to apply following exemptions:

Business combination

Prospective application of hid AS 21 to business combination
Cumulative translation differences
Deemed cost

Designation of previously recognized financial instruments Leases Joint Ventures

The above the optional exemptions as mentioned above are not applicable to the division and hence not applied by the Division

A.1 Iurl AS mandatory exceptions

Ind AS 101 provides the following mandatory exceptions:

Hedge accounting
Estimates

Non-controlling interests’

De-recognition of financial assets and liabilities
Classification and measurement of financial assets

the mandatory exceptions ar e not applicable to the company and hence not applied by Division

A. 1.1 Classification and measurement of financial assets

hid AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and
circumstances that exist at the date of transition to hid AS

B. Current versus Non-Current Classification

The Company presents assets and liabilities in die balance sheet based on current/ non-cunent classification. An asset is classified
as current when it is:

Expected to be realized or intended to sold or consumed in normal operating Cycle
Held primarily for the purpose of trading

Expected to be realized within twelve months after the reporting period, or

Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least tw''elve months after the
reporting period

All other assets are classified as non-current. A liability is classified as current when:

It is expected to be settled in nomial operating cycle
It is held primarily for the purpose of trading

It is due to be settled within twelve months after the reporting period, or

There is no unconditional right to defer the settlement of die liability for at least twelve months after the reporting period All
other liabilities are classified as non-cunent.

The operating cycle is the time between the acquisition of assets for processing and then'' realization in cash and cash equivalents.
Deferred tax assets and liabilities are classified as non-current assets and liabilities

Fair value of financial Assets and Liabilities

The company has receivables and payables that arc non-derivative financial instruments. Under previous GAAP, these were
earned at transactions cost less allowances for impairment, if any. Under IND AS, these are financial assets and liabilities are
initially recognized at fair value and subsequently measured at amortised cost, less allowances for impairment, if any. For
transaction entered into on or after''the date of transition to IND AS, the requirement of initial recognition at fair''value is applied
prospectively.

C. Other comprehensive income

Under hid AS, all items of income and expenses recognized in a year should be included in profit or'' loss for the year, unless a
standard requires or pennits otherwise. Items of income and expense that are not recognized in profit or loss but are shown in
the statement of profit and loss as “other comprehensive income" includes re-measurements of defined benefit plans. The concept
of other comprehensive income did not exist under previous GAAP

Note: 23

These Financial statements has been approved by Board of Directors of the Company on 26* May, 2025 for issue to the
shareholder''s for'' their'' adoption

Note 24

Capital Management

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity, reserves
attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to maximize
the shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic
conditions. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return
capital to shareholders or issue new shares. Hie Company monitors capital using a gearing ratio, which is net debt divided by
total capital plus net debt.

Note: 25

Significant Accounting Judgments, Estimates and Assumptions

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

25.1

Judgments

25.1.1 Carrying cost as deemed cost for property plant & equipment

The Dm sion has opted for carrying cost as the deemed cost as on the date of transition

25.1.ii Depreciation/Amortization of and impairment loss on property Plant and equipment/Intangible Assets

Property, Plant and equipment are depreciated and intangible assets are amortized on straight line basis over the estimated useful
fives (or Lease Term of Shorter) in accordance with schedule II of the company’s act 2013, taking into account the estimated
residual value, wherever applicable. The company review''s the estimated useful fives of the assets regularly in order to determine
the amount of depreciation/ amortization expense to be recorded during any recording period. Tins reassessment may result in
change in depreciation expense in future periods. The company lias opted out from fair market valuation method for all of its
fixed assets.

The Company review''s it carrying value of its tangible and intangible assets whenever there is objective evidence that the assets
are impaired. The required level of impairment losses to be made is estimated by reference to the estimated value in use or
recoverable amount

25.1.ni Impairment loss on trade receivables:

The Company evaluated whether there is any objective evidence that trade receivable is impaired and determines the amount of
impairment loss as a result of die inability of the debtors to make requir ed payments. The Company bases the estimates on the
ageing of the trade receivable balances, cieditworthmess ot the trade receivables and historical written on exjieneuce. It the
financial conditions of the ti ade receivables were to deteriorate, actual write-offs would be higher than estimated

25.2 Estimates and assumptions

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

25.2. L Defined benefits 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. Due to the complexities involved
in the valuation and its long-term nature, a defined benefits obligation is highly sensitive to changes in these 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 oper ated in India,
the management considers file interest rates of government bonds in currencies consistent with the currencies of the post¬
employment benefit obligation.

The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to change
only at interval in response to demographic changes. Future salary increases are based on expected future inflations rates.

25.2. ii. Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in die balance sheet cannot be measured based on quoted
prices in active market, ther e fair'' value measured using various valuation techniques. The input s to these models is taken from
observable markets where possible, but where this is not feasible, a degr ee of judgment is required in establishing fur values.
Judgments include consideration of inputs such as liquidity risk and volatility. Changes in assumptions about these factors could
affect the reported fair value of financial instruments.

25.3 Revenue Recognition

Rev enue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can
be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration
received or receivable, taking into account contractually denied terms of payment and excluding taxes or dirties collected on
behalf of the government. The Company has concluded that it is the principal in all of its revenue arrangements since it is the
primary obligor in all die revenue arrangements as it has pricing latitude and is also exposed to credit risks. The company
primarily derives its income from tr ansportation of goods, and tourism and sell of fuel through petrol pump.

i)Transportation of Goods

Under transportation services, the principal service is related to customer contracts for warehousing activities. Based on the
customer contracts, income is recognized when services ar e render ed, he amount of revenue can be reliably measured, and in
all probability, the economic benefits from he transaction will flow'' to the company. Where necessary, single transactions are
split into separately identifiable components to reflect the substance of the transaction Conversely, two or more transactions
may be considered together for revenue recognition purposes, where he commercial effect cannot be understood without
reference to the series of tr ansactions as a whole

iijTourisin:

Income from tourism is recognized on he basis of actual room bookings received from customer s and on completion of related
services rendered to the customers.

Other Income:

iii)Other Income includes the following:

Interest Income:

Interest income on fixed deposits is recognized on a time proportion basis taking into account the amount outstanding and
the applicable interest rate.

25.4 Income Tax

Tax expense recognized in profit or loss comprises the sum of deferred tax and current tax not recognized in other comprehensive
income or directly in equity

Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income-
tax Act. Current income tax relating to items recognized outside profit or loss is recognized outside profit or loss (either in
other comprehensive income or in equity). Current tax items are recognized in correlation to the underlying transaction either''
in OCI or directly in equity.

25.5

Cash and Cash Equivalents

Cash and cash equivalents comprise cash in hand, demand deposits with banks/corporations and short-tenn highly liquid
investments (original maturity less than 3 months) that are readily convertible into known amount of cash and ar e subject to an
insignificant risk of change in value.

25.6

Provisions are recognized only when there is a present obligation, as a result of past events, and when a reliable estimate of the
amount of obligation can be made at the reporting date. These estimates are reviewed at each reporting date and adjusted to
reflect the current best estimates. Provisions are discounted to their present values, where the time value of money is material

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Mar 31, 2024

Basis of Preparation and Presentation

The standalone financial statements have been prepared in accordance with Ind AS notified under the Companies (Indian Accounting Standards) Rules, 2015. The standalone financial statements have been prepared on the histoncal cost basis.

Recent accounting pronouncements:

The Indian Accounting Standard (Ind AS) 115, Revenue from Contracts with Customers is applicable from FY 2018- 19, the management believes that the adoption of Ind AS 115 does not have any significant impact on the standalone financial statement The management believes that the adoption of amendment to Ind AS 21, Foreign currency transactions and advance consideration and amendment to Ind AS 12 Income Taxes does not have any significant impact on the standalone financial statements. The amendment to Ind AS 40, Investment Property is not applicable

A Ind AS optional exemptions

Ind AS 101 provides the option to apply following exemptions:

Business combination Prospective application of Ind AS 21 to business combination Cumulative translation differences Deemed cost Designation of previously recognized financial instruments Leases Joint Ventures

The above the optional exemptions as mentioned above are not applicable to the division and hence not applied by the Division

A.1 Ind AS mandatory exceptions Ind AS 101 provides the following mandatory exceptions:

Hedge accounting Estimates Non-controlling interests'' De-recognition of financial assets and liabilities Classification and measurement of financial assets the mandatory exceptions are not applicable to the company and hence not applied by Division

A. 1.1 Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS

B. Current versus Non-Current Classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is classified as current when it is:

Expected to be realized or intended to sold or consumed in normal operating Cycle Held primarily for the purpose of trading Expected to be realized within twelve months after the reporting period, or Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period All other assets are classified as noncurrent. A liability is classified as current when:

It is expected to be settled in normal operating cycle It is held primarily for the purpose of trading It is due to be settled within twelve months after the reporting period, or There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period All other liabilities are classified as non-current.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. Deferred tax assets and liabilities are classified as non-current assets and liabilities

Fair value of financial Assets and Liabilities

The company has receivables and payables that are non-derivative financial instruments. Under previous GAAP, these were carried at transactions cost less allowances for impairment, if any. Under IND AS, these are financial assets and liabilities are initially recognized at fair value and subsequently measured at amortised cost, less allowances for impairment, if any. For transaction entered into on or after the date of transition to IND AS, the requirement of initial recognition at fair value is applied prospectively.

C. Other comprehensive income

Under Ind AS, all items of income and expenses recognized in a year should be included in profit or loss for the year, unless a standard requires or penmts otherwise. Items of income and expense that are not recognized in profit or loss but are shown in the statement of profit and loss as ‘''other comprehensive income" includes re-measurements of defined benefit plans. The concept of other comprehensive income did not exist under previous GAAP

Note: 24:

These Financial statements has been approved by Board of Directors of the Company on 29th May, 2024 for issue to the shareholders for their adoption

Note 25:

Capital Management

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity, reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to maximize the shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt.

Note: 26

Significant Accounting Judgments, Estimates and Assumptions

The preparation of the Division’s financial statements requires management to make judgments, 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.

26.1

Judgments

26.1.i Carrying cost as deemed cost for property plant & equipment

The Division has opted for carrying cost as the deemed cost as on the date of transition

26.1.ii Depreciation/Amortization of and impairment loss on property Plant and equipment/Intangible Assets

Property, Plant and equipment are depreciated and intangible assets are amortized on straight line basis over the estimated useful lives (or Lease Term of Shorter) in accordance with schedule II of the company’s act 2013, taking into account the estimated residual value, wherever applicable. The company reviews the estimated useful lives of the assets regularly in order to determine the amount of depreciation/ amortization expense to be recorded during any recording period. This reassessment may result in change in depreciation expense in future periods. The company has opted out from fair market valuation method for all of its fixed assets.

The Company reviews its carrying value of its tangible and intangible assets whenever there is objective evidence that the assets are impaired. The required level of impairment losses to be made is estimated by reference to the estimated value in use or recoverable amount.

26.1.iii. Impairment loss on trade receivables:

The Company evaluated whether there is any objective evidence that trade receivable are impaired and determines the amount of impairment loss as a result of the inability of the debtors to make required payments. The Company bases the estimates on the ageing of the trade receivable balances, creditworthiness of the trade receivables and historical written off experience. If the financial conditions of the trade receivables were to deteriorate, actual write-offs would be higher than estimated

26.2 Estimates and assumptions

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

26.2,i. Defined benefits plans (gratuity benefits)

The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are detennined using actuanal 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. Due to the complexities involved in the valuation and its long-term nature, a defined benefits obligation is highly sensitive to changes in these 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 postemployment benefit obligation.

The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases are based on expected future inflations rates.

26.2. ii. Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded m the balance sheet cannot be measured based on quoted prices in active market, there fair value measured using various valuation techniques. The input s to these models is taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments include consideration of inputs such as liquidity risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

26.3 Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually denied terms of payment and excluding taxes or duties collected on behalf of the government. The Company has concluded that it is the principal in all of its revenue arrangements since it is the primary obligor in all the revenue arrangements as it has pricing latitude and is also exposed to credit risks. The company primarily derives its income from transportation of goods, and tourism and sell of fuel through petrol pump

^Transportation of Goods

Under transportation services, the principal service is related to customer contracts for warehousing activities. Based on the customer contracts, income is recognized when services are rendered, the amount of revenue can be reliably measured, and in all probability, the economic benefits from the transaction will flow to the company. Where necessary, single transactions aresplit into separately identifiable components to reflect the substance of the transaction. Conversely, two or more transactions may be considered together for revenue recognition purposes, where the commercial effect cannot be understood without reference to the senes of transactions as a whole

ii) Tourism:

Income from tourism is recognized on the basis of actual room bookings received from customers and on completion of related services rendered to the customers.

Other Income:

iii) Other Income includes the following:

Interest Income:

Interest income on fixed deposits is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate.

26.4 Income Tax

Tax expense recognized in profit or loss comprises the sum of deferred tax and current tax not recognized in other comprehensive income or directly in equity

Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income-tax Act. Current income tax relating to items recognized outside profit or loss is recognized outside profit or loss (either in other comprehensive income or in equity). Current tax items are recognized in correlation to the underlying transaction either in OCI or directly m equity.

26.5

Cash and Cash Equivalents

Cash and cash equivalents comprise cash in hand, demand deposits with banks/corporations and short-tenn highly liquid investments (original maturity less than 3 months) that are readily convertible into known amount of cash and are subject to an insignificant risk of change m value.

26.6

Provisions are recognized only when there is a present obligation, as a result of past events, and when a reliable estimate of the amount of obligation can be made at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. Provisions are discounted to their present values, where the time value of money is material

26.7

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Mar 31, 2015

A. Basis of Preparation of Financial Statement

The financial statements are prepared under the historical cost convention, except for certain fixed assets which are revalued, in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 2013.

B. Use of Estimates

The preparation of financial statements require estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

C. Own fixed Assets

Fixed Assets are stated at cost and includes amounts added on revaluation in certain cases determined in the year 1993.

D. Depreciation

Depreciation on fixed assets is provided on straight line method in the manner prescribed in Companies Act, 2013.

E. Foreign Currency Transactions

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transactions.

F. Investments

Long Term Investments are stated at cost. However, in cases of quoted securities any changes of Market price are ignored considering the same to be temporary reversible in the long run.

G. Inventories

Items of inventories are measured at lower of cost and net realizable value, in conformity with AS-2. Cost of inventories comprises of cost of purchase.

H. Revenue Recognition

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operation includes Sale of goods, Services, Commission, Interest and Rent income. Sale of goods is recognized at the time of sale.

Service in relation to transportation business is recognized at the time of delivery of goods to the ultimate consignee. Commission in relation to Travel Division is recognized on the basis of ticket and package sold to the customer. The system has been changed from past years. In the past year Travel Division revenue has been shown on the basis of total turnover. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable. Rent income is recognized on monthly basis as per Rent agreement.

I. Employees Benefits

The company follows an actuarial valuation annually for the Gratuity accrual to its employees, wherein the incremental value of the liability ascertained at the year end is provided in the books. However during the current year in view of only 10 continuing employees & appointment of few new employees the actuarial valuation was not considered to be necessary and a reasonable estimation was made in respect of the same, over the certified amount as at 31/03/2004.

Whereas in respect of the dues of the employees discharged under voluntary separation scheme, implemented in Kolkata and various other branches, dues if any on gratuity a/c has been considered as a current liability wherein there shall be on further accrual over and above balance as ascertained on 31/03/2003.

J. Provision for Current and Deferred Tax

Due to brought forward and unabsorbed depreciation of the previous years is so huge that the current year tax is nil but deferred tax liabilities is Rs 113500. But Provision for MAT tax is ascertained and the same is carried forward for future entitlement.

K. Provisions, Contingent Liabilities and Contingent Assets

The disputes and time barred obligations pending before the courts of law, has not been provided for in the books, since the Management is reasonably certain that such claims will not be sustained and are unlikely to have any further material implication on the financial conditions of the company. The estimated amount of such claims not acknowledged as debts aggregates to Rs. 25,80,000/- (Previous year 27, 10,000/-). In respect of the damages imposed upon by the Provident Fund authorities for certain delay in depositing the monthly contributions, currently under review, the company reasonably believes that genuine grounds for such lapses exists, considering which substantial relief will be extended in favour of the company and as such the incidence of the liability is not readily ascertainable and hence are considered to be of contingent nature.

N. Earnings in Foreign Exchange

There had been foreign exchange outgo of EURO 4539.68 equivalent to Rs. 373776/- and USD 26787.81 equivalent to Rs 1633011.44 during the financial year 2014-2015.

P. Managerial Remuneration

The Managing Director and the Executive Director are paid remuneration approved by the General Body of the company, within the limits prescribed under the Companies Act, 2013. None of them are paid any commission or whatsoever other than their contractual entitlement approved as above. The non – executive Directors waived the fees for every meeting attended by them. The following amounts were paid to the directors during the year under review:

Q. Segment Information

The Company has identified three reportable segments viz. Transportation Operations, Trading of Petroleum Products and Travel Division. Segments have been identified and reported taking into account nature of products and services, the differing risks and returns and the internal business reporting systems. The accounting policies for segment reporting are in line with the accounting policy of the Company.

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Mar 31, 2014

A. Basis of Preparation of Financial Statement

The financial statements are prepared under the historical cost convention, except for certain fixed assets which are revalued, in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956.

B. Use of Estimates

The preparation of financial statements require estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

C. Own fixed Assets

Fixed Assets are stated at cost and includes amounts added on revaluation in certain cases determined in the year 1993.

D. Depreciation

Depreciation on fixed assets is provided on straight line method in the manner prescribed in Schedule XIV to the Companies Act, 1956.

E. Foreign Currency Transactions

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transactions.

F. Investments

Long Term Investments are stated at cost. However, in cases of quoted securities any changes of Market price are ignored considering the same to be temporary reversible in the long run.

G. Inventories

Items of inventories are measured at lower of cost and net realizable value, in conformity with AS-2. Cost of inventories comprises of cost of purchase.

H. Revenue Recognition

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operation includes Sale of goods, Services, Commission, Interest and Rent income. Sale of goods is recognized at the time of sale.

Service in relation to transportation business is recognized at the time of delivery of goods to the ultimate consignee. Commission in relation to Travel Division is recognized on the basis of ticket and package sold to the customer. The system has been changed from past years. In the past year Travel Division revenue has been shown on the basis of total turnover. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable. Rent income is recognized on monthly basis as per Rent agreement.

I. Employees Benefits

The company follows an actuarial valuation annually for the Gratuity accrual to its employees, wherein the incremental value of the liability ascertained at the year end is provided in the books. However during the current year in view of only 10 continuing employees & appointment of few new employees the actuarial valuation was not considered to be necessary and a reasonable estimation was made in respect of the same, over the certified amount as at 31/03/2004.

Whereas in respect of the dues of the employees discharged under voluntary separation scheme, implemented in Kolkata and various other branches, dues if any on gratuity a/c has been considered as a current liability wherein there shall be on further accrual over and above balance as ascertained on 31/03/2003.

J. Provision for Current and Deferred Tax

Due to brought forward and unabsorbed depreciation of the previous years is so huge that the current year tax and deferred tax are nil. But Provision for MAT tax is ascertained and the same is carried forward for future entitlement.

K. Provisions, Contingent Liabilities and Contingent Assets

The disputes and time barred obligations pending before the courts of law, has not been provided for in the books, since the Management is reasonably certain that such claims will not be sustained and are unlikely to have any further material implication on the financial conditions of the company. The estimated amount of such claims not acknowledged as debts aggregates to Rs. 25,80,000/- (Previous year 27, 10,000/-). In respect of the damages imposed upon by the Provident Fund authorities for certain delay in depositing the monthly contributions, currently under review, the company reasonably believes that genuine grounds for such lapses exists, considering which substantial relief will be extended in favour of the company and as such the incidence of the liability is not readily ascertainable and hence are considered to be of contingent nature.

N. Earnings in Foreign Exchange

There had been foreign exchange outgo of USD 6442.05 equivalent to Rs. 3,93,316 during the financial year 2013-2014.

P. Managerial Remuneration

The Managing Director and the Executive Director are paid remuneration approved by the General Body of the company, within the limits prescribed under Schedule XIII of the Companies Act, 1956. None of them are paid any commission or whatsoever other than their contractual entitlement approved as above. The non – executive Directors waived the fees for every meeting attended by them. The following amounts were paid to the directors during the year under review:

Q. Segment Information

The Company has identified three reportable segments viz. Transportation Operations, Trading of Petroleum Products and Travel Division. Segments have been identified and reported taking into account nature of products and services, the differing risks and returns and the internal business reporting systems. The accounting policies for segment reporting are in line with the accounting policy of the Company.

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Mar 31, 2010

1) The accounting practices followed by the Company are consistent and in consonance with the Indian Generally Accepted Accounting Principles. The financial statements prepared are by and large are in accordance with the Accounting Standards referred to in the Sec. 211(3) (c) of the Companies Act, 1956.

2) FIXED ASSETS:-

(i)The fixed Assets are stated either at their cost or in certain cases as at their revalued amount determined in the year 1993.

3) INVESTMENT:-

The Investments being long term in nature are carried over at its cost of acquisition. However, in cases of quoted securities any changes of market price are ignored considering the same to be temporary and reversible in the long run.

4) INVENTORIES:-

The closing stock of the materials is valued at their cost of purchase, being lower than its realizable market value, in conformity with AS-2.

5) DEFERRED REVENUE EXPENDITURE:-

The Company had successfully discharged its entire surplus manpower primarily at Kolkata and at the various unproductive branches, through a scheme of Voluntary Separation which had been accepted by the employees concerned, following some initial resistance demonstrated by the Trade Unions. Since the benefit arising there from is expected to prevail over a period of time, the cost incurred had been amortized over a 5 year term, in conformity with the Income Tax regulations applicable, whereas 1/5th has been charged to the current year Profit & Loss a/c aggregating to Rs.2,92,993/- (Previous year Rs.5,85,986/-).

6) RETIREMENT BENEFITS:-

The Company follows an actuarial valuation annually for the Gratuity accrual to its employees, wherein the incremental value of the liability ascertained at the year end is provided in the books. However during the current year in view of only 10 continuing employees & appointment of few new employees the actuarial valuation was not considered to be necessary and a reasonable estimation was made in respect of the same, over the certified amount as at 31.03.04.

Whereas in respect of the dues of the employees discharged under Voluntary separation scheme, implemented in Kolkata and various other branches, dues if any on Gratuity A/c has been considered as a current liability wherein there shall be no further accrual over and above balance as ascertained on 31.03.03.

7) CONTIGENT LIABILITIES:-

(i) The disputed and time barred obligations pending before the Courts of Law, has not been provided for in the books, since the Management is reasonably certain that such claims will not be sustained and are unlikely to have any further material implication on the financial conditions of the Company. The estimated amount of such claims not acknowledged as Debts aggregates to Rs. 29,60,000/- (previous Year Rs. 38,40,000/-).

(ii) In respect of the damages imposed upon by the Provident Fund authorities for certain delay in depositing the monthly contributions, currently under review, the Company reasonably believes that genuine grounds for such lapses exists, considering which substantial relief will be extended in favour of the Company and as such the incidence of the liability is not readily ascertainable and hence are considered to be of contingent nature.

8) PROVISIONS & RESERVES:-

(i) Of the total amount of Sundry Debtors, a significant amount happens to be outstanding for more than 6 months. Of this segment balances not showing any movements despite the necessary steps for their recovery over 4 years are provided for as Reserve for Bad Debts in nature aggregating to Rs. 9,54,413/- (Previous year Rs. 34,35,480/-).

(ii) The Company is in default in respect of payment of ESI contributions pertaining to the period 2002-2003 aggregating to an amount of Rs. 2,68,058/- (previous year Rs. 2,68,058/-). The said amount was not provided earlier and upon issue of assessment Notice for the same in the current year, it has been provided in the books.

(iii) In respect of Provident Fund no contributions are outstanding.

9) MANAGERIAL REMUNERATION:-

14) FOREIGN CURRENCY TRANSACTION:- There are no earnings in Foreign Currency during the year ended 31.03.10