Accounting Policies of Brace Port Logistics Ltd. Company

Mar 31, 2025

2 Summary of material accounting policies

This note provides a list of the material accounting policies adopted in the preparation of these Indian Accounting
standards (Ind-AS) standalone financial statements. These policies have been consistently applied to all the years.

2.01 Statement of compliance and basis of preparation

The standalone financial statements of the Company have been prepared in accordance with Indian Accounting
Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time
to time) and presentation and disclosure requirements of Division II of Schedule III to the Companies Act, 2013, (Ind
AS compliant Schedule III) as amended and other relevant provisions of the Act and accounting principles generally
accepted in India.

The standalone financial statements are presented in INR and all values are rounded to the nearest lacs, except
when otherwise stated.

2.02 Basis of presentation and preparation of separate standalone financial statements

The standalone financial statements have been prepared on the historical cost basis except for certain financial
instruments that are measured at fair values at the end of each reporting period, as explained in the accounting
policies below.

Historical cost is generally based on the fair value of the consideration given in exchange for services.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date, regardless of whether that price is directly observable or
estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes
into account the characteristics of the asset or liability if market participants would take those characteristics into
account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure
purposes in these standalone financial statements is determined on such a basis, except for leasing transactions that
are within the scope of Ind AS 116 ''Leases'' and measurements that have some similarities to fair value but are not fair
value or value in use in Ind AS 36 ''Impairment of Assets''.

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1,2, or 3 based on the
degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the
fair value measurement in its entirety, which are described as follows:

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can
access at the measurement date;

Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or
liability, either directly or indirectly; and

Level 3 inputs are unobservable inputs for the asset or liability.

2.03 Basis of measurement

The standalone financial statements have been prepared on a going concern basis using historical cost convention
and on an accrual method of accounting.

2.04 Current and non-current classification

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

> Expected to be realised or intended to be sold or consumed in normal operating cycle

> Held primarily for the purpose of trading

> Expected to be realised 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 non-current. A liability is 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 report¬
ing period

Current assets/liabilities include current portion of non-current financial assets/liabilities respectively. All other assets/
liabilities are classified as non-current. Deferred tax assets and liabilities are classified as non-current assets and
liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash
equivalents. The Company has identified twelve months as its operating cycle.

2.05 Recent accounting pronouncement

The Ministry of Corporate Affairs has amended the Companies (Indian Accounting Standards) Rules, 2015. These
amendments are as follows:

(i) Lease liability in sale and leaseback transaction- Amendments to Ind AS 116:

The amendment to Ind AS 116 introduces new guidance for seller-lessees in sale and leaseback transactions. It speci¬
fies that after the commencement date, seller-lessees must apply certain paragraphs to the right of use asset and
lease liability, ensuring no gain or loss is recognized for the right of use retained. Additionally, the amendment
includes new paragraphs in Appendix C, effective from April 1, 2024, requiring retrospective application to relevant
transactions. This aims to standardize the accounting treatment and enhance clarity in financial reporting for these
transactions.

(ii) Introduction of new Ind AS 117, Insurance contracts:

The amendment introduced new Ind AS 117, which provides comprehensive guidance on the accounting for
insurance contracts. This new standard is to apply for annual reporting periods starting on or after April 1, 2024. Ind
AS 117 aims to enhance transparency and comparability in standalone financial statements by standardising the
recognition, measurement, presentation, and disclosure of insurance contracts. The amendments had no significant
impact on the Company''s standalone financial statements.

2.06 Functional and presentation currency

These standalone financial statements are presented in Indian rupee (INR), which is the functional currency of the
Company.

2.07 Revenue recognition

Revenues are measured at the fair value of the consideration received or receivable. Revenue is reduced for estimat¬
ed customer returns, rebates, trade discounts and other similar allowances.

The new revenue standard supersedes current revenue recognition requirements under Ind AS. This new standard
requires revenue to be recognized when promised goods or services are transferred to customers in amounts that
reflect the consideration to which the Company expects to be entitled in exchange for those goods or services.

Sale of services

Incomes from multimodal transport services rendered are recognised on the completion of the services as per the
terms of contract. Revenue towards satisfaction of a performance obligation is measured at the amount of transac¬
tion price (net of variable consideration) allocated to that performance obligation. The transaction price of services
rendered is net of variable consideration on account of various discounts offered by the Company as part of the
contract.

Other income

Interest income is recognised on time proportion basis with reference to effective interest rate method.

2.08 Cash flow statement

Cash flows are reported using indirect method as set out in Ind AS -7 “Statement of Cash Flows", 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 based on the available information.

2.09 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an
original maturity of three months or less from the date of acquisition), highly liquid investments that are readily
convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

2.10 Property, plant and equipment

Property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impair¬
ment losses.

The initial cost of property, plant and equipment comprises its purchase price, including import duties and non-re-
fundable purchase taxes, and any directly attributable costs of bringing an asset to working condition and location
for its intended use. It also includes the initial estimate of the costs of dismantling and removing the item and restor¬
ing the site on which it is located, wherever applicable. Items such as spares are capitalized when they meet the
definition of property, plant and equipment.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted
for as separate items (major components) of property, plant and equipment. Likewise, on initial recognition, expendi¬
ture to be incurred towards major inspections and overhauls are identified as a separate component and depreciat¬
ed over the expected period till the next overhaul expenditure.

Subsequent costs and disposal

Subsequent expenditure related to an item of property, plant and equipment is added to its book value only if it
increases the future economic benefits from the existing asset beyond its previously assessed standard of perfor-
mance/life. All other expenses on existing property, plant and equipment, including day-to-day repair and mainte¬
nance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during
which such expenses are incurred.

Cains and losses on disposal of an item of property, plant and equipment are determined by comparing the
proceeds from disposal with the carrying amount of property, plant and equipment, and are recognized net within
other income/other expenses in statement of profit and loss.

Depreciation and amortisation

Depreciation on Property, plant and equipment has been provided on the straight-line method (SLM) to allocate
their cost, net of their residual values, as per useful life prescribed in Schedule II to the Act. Management’s assess¬
ment of independent technical evaluation/advice takes into account, inter alia, the nature of the assets, the estimat¬
ed usage of the assets, the operating conditions of the assets, past history of replacement and maintenance support.
The depreciation method, asset''s residual values and useful lives are reviewed, and adjusted if appropriate, at the end
of each reporting period prospectively.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are
expected to arise from the continued use of asset. Any gain or loss arising on the disposal or retirement of an item of
property, plant and equipment is determined as the difference between sales proceeds and the carrying amount of
the asset and is recognised in statement of profit Depreciation methods, useful lives and residual values are reviewed
at each financial year and changes in estimates, if any, are accounted for prospectively.

2.11 Impairment of tangible and intangible assets

At the end of each reporting period, the Company reviews the carrying amounts of all of its tangible and intangible
assets to determine whether there is any indication based on internal/ external factors that those assets have
suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order
to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount
of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset
belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated
to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for
which a reasonable and consistent allocation basis can be identified.

Recoverable amount is the higher of fair value less costs of disposal 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 assets for which the estimates of future
cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the
carrying amount of asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is
recognised immediately in statement of profit and loss.

When an impairment loss subsequently reverses, the carrying amount of the assets (or cash-generating unit) is
increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not
exceed the carrying amount that would have been determined had no impairment loss been recognised for the
asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in
statement of profit and loss.

Borrowing costs directly relating to the acquisition, construction or production of a qualifying capital project under
construction are capitalised and added to the project cost during construction until such time that the assets are
substantially ready for their intended use i.e. when they are capable of commercial production. Where funds are
borrowed specifically to finance a project, the amount capitalised represents the actual borrowing costs incurred.
Where surplus funds are available out of money borrowed specifically to finance a project, the income generated
from such current investments is deducted from the total capitalized borrowing cost. Where the funds used to
finance a project form part of general borrowings, the amount capitalised is calculated using a weighted average of
rates applicable to relevant general borrowings of the company during the year. Capitalisation of borrowing costs is
suspended and charged to profit and loss during the extended periods when the active development on the qualify¬
ing assets is interrupted.

2.12 Employee benefits

Employee benefits include provident fund, employee state insurance scheme, gratuity fund and compensated
absences.

Defined contribution plans

The Company’s contribution to provident fund and employee state insurance scheme are considered as defined
contribution plans and are charged as an expense based on the amount of contribution required to be made and
when services are rendered by the employees.

Defined benefit plans

The Company has a defined benefit plan (the "Gratuity Plan”). The Gratuity Plan provides a lump sum payment to
employees who have completed five years or more of service at retirement, disability or termination of employment,
being an amount based on the respective employee’s last drawn salary and the number of years of employment with
the Company.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows
by reference to market yields at the end of the reporting period on government bonds that have terms approximat¬
ing to the terms of the related obligation. The interest cost is calculated by applying the discount rate to the balance
of the defined benefit obligation. This cost is included in employee benefit expense in the statement of profit and
loss.

The liability or asset recognised in the balance sheet in respect of gratuity plan is the present value of the defined
benefit obligation at the end of the reporting period. The defined benefit obligation is calculated annually by actuar¬
ies using the projected unit credit

Short-term employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services
rendered by employees are recognised during the year when the employees render the service. These benefits
include compensated absences which are expected to occur within twelve months after the end of the period in
which the employee renders the related service.

The cost of short-term compensated absences is accounted as under:

(a) in case of accumulated compensated absences, when employees render the services that increase their entitle¬
ment of future compensated absences; and

(b) in case of non-accumulating compensated absences, when the absences occur. Long-term employee benefits
Compensated absences which are not expected to occur within twelve months after the end of the period in which
the employee renders the related service are recognised as a liability at the present value of the defined benefit
obligation as at the balance sheet date on the basis of actuarial valuation.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are
recognised in the period in which they occur, directly in other comprehensive income and are never reclassified to
statement of profit and loss. Changes in the present value of the defined benefit obligation resulting from plan
amendments or curtailments are recognised immediately in the statement of profit and loss as past service cost.

2.13 Leases

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys
the right to control the use of an identified asset for a period of time in exchange for consideration.

Company as a lessee

The Company’s lease asset classes primarily comprise of lease for land and building. The Company applies a single
recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets.
The Company recognises lease liabilities to make lease payments and right of use assets representing the right to
use the underlying assets.

i) Right of use assets

The Company recognises right of use assets at the commencement date of the lease (i.e., the date the underlying
asset is available for use). Right of use assets are measured at cost, less any accumulated depreciation and impair¬
ment losses, and adjusted for any remeasurement of lease liabilities. The cost of right of use assets includes the
amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the
commencement date less any lease incentives received. Right of use assets are depreciated on a straight-line basis
over the shorter of the lease term and the estimated useful lives of the building (i.e. 30 and 60 years) If ownership of
the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase
option, depreciation is calculated using the estimated useful life of the asset. The right of use assets are also subject
to impairment. Refer to the accounting policies in section ''Impairment of non-financial assets''.

ii) Lease Liabilities

At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of
lease payments to be made over the lease term. The lease payments include fixed payments (including in substance
fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and
amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of
a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the
lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not
depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the
period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease
commencement date because the interest rate implicit in the lease is not readily determinable. After the
commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for
the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification,
a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a
change in an index or rate used to determine such lease payments) or a change in the assessment of an option to
purchase the underlying asset.

(iii) Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have
a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies
the lease of low-value assets recognition exemption to leases that are considered to be low value. Lease payments on
short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease
term.

2.14 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordi¬
nary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings
per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if
any) as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating
to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving
basic earnings per share and the weighted average number of equity shares which could have been issued on the
conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conver¬
sion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive
equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later
date. Dilutive potential equity shares are determined independently for each period presented. The number of
equity shares and potentially dilutive equity shares are adjusted for share splits / reverse share splits and bonus
shares, as appropriate.

2.15 Taxes on income

Income tax expense comprises current and deferred tax. It is recognised in statement of profit and loss except to the
extent that it relates items recognised directly in equity or in Other Comprehensive Income.

Current income tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ''profit before tax'' as report¬
ed in the statement of profit and loss because of items of income or expense that are taxable or deductible in other
years and items that are never taxable or deductible. The current tax is calculated using tax rates and tax laws that
have been enacted or substantively enacted by the end of the reporting period.

Current tax assets and liabilities are offset only if, the Company:

i) has a legally enforceable right to set off the recognised amounts; and

ii) intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Deferred tax

Deferred tax is provided using the Balance sheet method on temporary differences between the tax bases of assets
and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits
and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will
be available against which the deductible temporary differences, and the carry forward of unused tax credits and
unused tax losses can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised.
Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has
become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset
is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted
at the reporting date.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

Current and deferred tax for the year

Current and deferred tax are recognised in statement of profit and loss, except when they relate to items that are
recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also
recognised in other comprehensive income or directly in equity respectively.

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Mar 31, 2024

Data not good