Accounting Policies of MFL India Ltd. Company

Mar 31, 2025

Note-1: Company overview

MFL India Ltd. is a company rendering logistics and supply chain services all over the country. The Indian logistics & supply chain sector is increasingly becoming attractive to foreign and domestic operators as well as strategic and financial investors. The company has the mission to extend its operations to every nook and corner of the country in the years to come as the logistics & supply chain sector is also growing with the growing India.

The Company is a public limited company incorporated on 28/11/1981 in India and has its registered at 94/4, UG-F, UG-9 VILLAGE PATPARGANJ, DELHI East Delhi DL 110091 IN. The Company has its listing on BSE Limited.

Note-2: Statement of compliance:

The standalone financial statements 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) notified under Section 133 of Companies Act, 2013, (the ‘Act’) and other relevant provisions of the Act.

Details of the Company’s accounting policies are included in Note 3.

Note-3: SIGNIFICANT POLICIES

a) Basis of preparation of financial statements

i. In accordance with the notification issued by the Ministry of Corporate Affairs, the Company is required to prepare its Financial Statements as per the Indian Accounting Standards (‘Ind AS’) prescribed under Section 133 of the Companies Act, 2013 read with rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 as amended by the Companies (Accounting Standards) Amendment Rules, 2016. Accordingly, the Company has prepared these Financial Statements which comprise the Balance Sheet as at 31st March, 2025, the Statement of Profit and Loss, the Statement of Cash Flows and the Statement of Changes in Equity for the year ended 31st March, 2025, and a summary of the significant accounting policies and other explanatory information (together hereinafter referred to as “Financial Statements”.

ii. The financial statements have been prepared under historical cost convention basis except for certain assets and liabilities measured at fair value at the end of each period.

iii. The financial statements are presented in Rs. In Lakhs except otherwise indicated.

b) Use of estimates and judgments

i) The preparation of the financial statements requires that the Management to make estimates and

assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The recognition, measurement, classification or disclosure of an item or information in the financial statements is made relying on these estimates.

ii) The estimates and judgments used in the preparation of the financial statements are continuously evaluated by the Company and are based on historical experience and various other assumptions and factors (including expectations of future events) that the Company believes to be reasonable under the existing circumstances. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

c) Property, plant and equipment

i) The cost of property, plant and equipment comprises its purchase price net of any trade discounts and

rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the asset ready for its intended use, including relevant borrowing costs for qualifying assets and any expected costs of decommissioning. Expenditure incurred after the property, plant and equipment have been put into operation, such as repairs and maintenance, are charged to Statement of Profit and Loss in the period in which the costs are incurred.

ii) An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the 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 the sale proceeds and the carrying amount of the asset and is recognized in Statement of Profit and Loss.

d) Other Intangible assets

i) Intangible assets with finite useful lives that are acquired separately are carried at cost less

accumulated amortization and accumulated impairment losses. Intangible assets with indefinite useful lives are carried at cost less accumulated impairment losses.

ii) Certain computer software costs are capitalized and recognized as intangible assets based on

materiality, accounting prudence and significant benefits expected to flow there from for a period longer than one year.

e) Depreciation / Amortization

a. Depreciation is recognized so as to write off the cost of assets (other than freehold land and properties under construction) less their residual values over their useful lives, using the straightline method.

b. Amortization is recognized on a straight-line basis over their estimated useful lives. The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.

c. Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets. However, when there is no reasonable certainty that ownership will be obtained by the end of the lease term, assets are depreciated over the shorter of the lease term and their useful lives.

d. Depreciation on tangible assets is provided as per the provisions of Part B of Schedule II of the Companies Act, 2013 based on useful life and residual value notified for accounting purposes by Electricity Regulatory Authorities.

e. Lease improvement costs are amortized over the period of the lease. Leasehold land acquired by the Company, with an option in the lease deed, entitling the Company to purchase on outright basis after a certain period at no additional cost is not amortized.

Estimated useful life of the assets are as follows:
	Class of Property, plant and equipment	Useful life
	Plant and equipment	08 years
	Furniture and fixtures	10 years
	Vehicles	08 years
	Office equipment	5 years

f. Useful life is either the period of time which the asset is expected to be used or the number of production or similar units expected to be obtained from the use of asset. The estimated useful life, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on prospective basis.

f) Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

g) Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and demand deposits with an original maturity of three months or less and highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value net of outstanding bank overdrafts as they are considered an integral part of the Company’s cash management.

h) Inventories:

Cost of inventories includes cost of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

Inventories of stores, spare parts, coal, fuel and loose tools are stated at the lower of weighted average cost and net realizable value. Net realizable value represents the estimated selling price for inventories in the ordinary course of business less all estimated costs of completion and estimated costs necessary to make the sale.

i) Revenue recognition:

i. Sale of Services

Revenue is recognized to the extent that it is probable that economic benefit will flow to the Company and that the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated rebates and other similar allowances.

Revenue from sale of logistics and other related services is recognized when substantial risks and rewards of ownership is transferred to the buyer under the terms of the contract.

ii. interest income

Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition.

i) Employee benefits

The Company has following post-employment plans:

a. Defined contribution plans - provident fund

I. Under defined contribution plans, provident fund, the Company pays pre-defined amounts to separate funds and does not have any legal or informal obligation to pay additional sums. Defined Contribution plan comprise of contributions to the employees’ provident fund set up as trust and certain state plans like Employees’ State Insurance. The Company’s payments to the defined contribution plans are recognized as expenses during the period in which the employees perform the services that the payment covers.

II. A liability for a termination benefit is recognized at the earlier of when the entity can no longer withdraw the offer of the termination benefit and when the entity recognizes any related restructuring costs.

j) Taxation

Income tax comprises current and deferred tax. Income tax expense is recognized in the statement of profit and loss except to the extent it relates to items directly recognized in equity or in other comprehensive income.

a) Current tax

Current tax is the amount of tax payable based on the taxable profit for the year. Taxable profit differs from ‘profit before tax’ as reported 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 Company’s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

b) Deferred Tax

Deferred tax is provided using the liability 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 liabilities are recognized for all taxable temporary differences, except when it is probable that the temporary differences will not reverse in the foreseeable future. Deferred Tax Asset are recognized as and when there is reasonable certainty of profits in future years.

k) Earnings per share

a. Basic earnings per share is computed by dividing the profit/ (loss) for the year by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for treasury shares, bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse share split (consolidation of shares).

b. Diluted earnings per share is computed by dividing the profit/ (loss) for the year 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 conversion 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.

l) Provisions, contingencies and commitments:

a. The Company has ongoing disputes with income tax authorities relating to deduction of expenses of certain items. The Company is in receipt of notice of demand dated 21/04/2021 under section 156 of the income tax Act, 1961 for AY 2018-2019 for a sum of Rs 13,45,99,730.00.The liability keeps on increasing on account of interest every year. The same also being contingent has not been reported. The Company has already filed an appeal to the Commissioner of Income Tax (Appeals), against the said order contesting the adverse decisions by the assessing officer. Taking into consideration the facts and circumstances of the case and the past experience of the management, it is of the opinion that the decision of the appellate authorities will be in the favor of the company and hence they have not recognized the said liabilities in the books of account of the company .

Future cash outflows in respect of the above would be determinable on finalization of judgments /decisions pending with various forum /authorities.

b. Provisions are recognized when the Company has a present obligation (legal or constructive)

as a result of a past event, and it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation

c. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

d. When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably

e. A disclosure for contingent liabilities is made where there is-

i. a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity; or

ii. a present obligation that arises from past events but is not recognized because:

iii. it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or

iv. The amount of the obligation cannot be measured with sufficient reliability.

f. A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.

g. Commitments include the amount of purchase order (net of advances) issued to parties for completion of assets.

h. Provisions, contingent liabilities, contingent assets and commitments are reviewed at each reporting period.

i. Provisions for onerous contracts are recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable costs of meeting the future obligations under the contract.

m) Financial instruments

Financial assets and financial liabilities are recognized when Company becomes a party to the contractual provisions of the instruments

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and finance fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in Statement of Profit and Loss.

a. Financial assets

Financial assets are recognized when the Company becomes a party to the contractual provisions of the instruments. Financial assets other than trade receivables are initially recognized at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognized at fair value, and transaction costs are expensed in the Statement of Profit and Loss.

b. Subsequent measurement

Financial assets, other than equity instruments, are subsequently measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss on the basis of both:

(a) the entity’s business model for managing the financial assets and

(b) The contractual cash flow characteristics of the financial asset.

c. Classification of financial assets

Debt instruments that meet the following conditions are subsequently measured at amortized cost (except for debt instruments that are designated at fair value through profit or loss on initial recognition):

a) the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and

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

Debt instruments that meet the following conditions are subsequently measured at fair value through other comprehensive income (except for debt instruments that are designated as fair value through profit or loss on initial recognition):

a) the asset is held within a business model whose objective is achieved both by collecting contractual cash flows and selling financial assets; and

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

Interest income is recognized in Statement of Profit and Loss for FVTOCI debt instruments. For the purposes of recognizing foreign exchange gains and losses, FVTOCI debt instruments are treated as financial assets measured at amortized cost. Thus, the exchange differences on the amortized cost are recognized in Statement of Profit and Loss and other changes in the fair value of FVTOCI financial assets are recognized in other comprehensive income and accumulated under the heading of ‘Reserve for debt instruments through other comprehensive income’. When the investment is disposed of, the cumulative gain or loss previously accumulated in this reserve is reclassified to Statement of Profit and Loss.

d. Effective interest method

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

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

e. Financial liabilities

All Financial liabilities are measured at amortized cost using effective interest method or fair value through profit and loss. However, financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the continuing involvement approach applies, financial guarantee contracts issued by the Company, and commitments issued by the Company to provide a loan at below-market interest rate are measured in accordance with the specific accounting policies set out below.

f. Financial liabilities subsequently measured at amortized cost

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

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

g. Derecognition of financial liabilities

The Company derecognizes financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or have expired. An exchange with a lender of debt instruments with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, a substantial modification of the terms of an existing financial liability (whether or not attributable to the financial difficulty of the debtor) is accounted for as an extinguishment of the original financial liability and the recognition of new financial liability. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in Statement of Profit and Loss.

h. Provision for liabilities and charges, Contingent liabilities and contingent assets

The assessments undertaken in recognizing provisions and contingencies have been made in accordance with the applicable Ind AS.

Provisions represent liabilities to the Company for which the amount or timing is uncertain. Provisions are recognized when the Company has a present obligation (legal or constructive), as a result of past events, and it is probable that an outflow of resources, that can be reliably estimated, will be required to settle such an obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows to net present value using an appropriate pre-tax discount rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Unwinding of the discount is recognized in the statement of profit and loss as a finance cost. Provisions are reviewed at each reporting date and are adjusted to reflect the current best estimate.

i. 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 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.

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Mar 31, 2024

Note-3: SIGNIFICANT POLICIES

a) Basis of preparation of financial statements

i. In accordance with the notification issued by the Ministry of Corporate Affairs, the
Company is required to prepare its Financial Statements as per the Indian Accounting
Standards (‘Ind AS’) prescribed under Section 133 of the Companies Act, 2013 read with
rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 as amended by the
Companies (Accounting Standards) Amendment Rules, 2016. Accordingly, the Company
has prepared these Financial Statements which comprise the Balance Sheet as at 31st
March, 2024, the Statement of Profit and Loss, the Statement of Cash Flows and the
Statement of Changes in Equity for the year ended 31st March, 2024, and a summary of
the significant accounting policies and other explanatory information (together hereinafter
referred to as “Financial Statements”.

ii. The financial statements have been prepared under historical cost convention basis except
for certain assets and liabilities measured at fair value at the end of each period.

iii. The financial statements are presented in Rs. In Lakhs except otherwise indicated.

b) Use of estimates and judgments

i) The preparation of the financial statements requires that the Management to make
estimates and assumptions that affect the reported amounts of assets and liabilities,
disclosure of contingent liabilities as at the date of the financial statements and the
reported amounts of revenue and expenses during the reporting period. The recognition,
measurement, classification or disclosure of an item or information in the financial
statements is made relying on these estimates.

ii) The estimates and judgments used in the preparation of the financial statements are
continuously evaluated by the Company and are based on historical experience and
various other assumptions and factors (including expectations of future events) that the
Company believes to be reasonable under the existing circumstances. Actual results could
differ from those estimates. Any revision to accounting estimates is recognized
prospectively in current and future periods.

c) Property, plant and equipment

i) The cost of property, plant and equipment comprises its purchase price net of any trade
discounts and rebates, any import duties and other taxes (other than those subsequently
recoverable from the tax authorities), any directly attributable expenditure on making the
asset ready for its intended use, including relevant borrowing costs for qualifying assets
and any expected costs of decommissioning. Expenditure incurred after the property, plant
and equipment have been put into operation, such as repairs and maintenance, are charged
to Statement of Profit and Loss in the period in which the costs are incurred.

ii) An item of property, plant and equipment is derecognized upon disposal or when no future
economic benefits are expected to arise from the continued use of the 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 the sale proceeds and the carrying amount of the
asset and is recognized in Statement of Profit and Loss.

d) Other Intangible assets

i) Intangible assets with finite useful lives that are acquired separately are carried at cost less
accumulated amortization and accumulated impairment losses. Intangible assets with
indefinite useful lives are carried at cost less accumulated impairment losses.

ii) Certain computer software costs are capitalized and recognized as intangible assets based
on materiality, accounting prudence and significant benefits expected to flow there from
for a period longer than one year.

e) Depreciation / Amortization

a. Depreciation is recognized so as to write off the cost of assets (other than freehold land
and properties under construction) less their residual values over their useful lives, using
the straight-line method.

b. Amortization is recognized on a straight-line basis over their estimated useful lives. The
estimated useful life and amortization method are reviewed at the end of each reporting
period, with the effect of any changes in estimate being accounted for on a prospective
basis.

c. Assets held under finance leases are depreciated over their expected useful lives on the
same basis as owned assets. However, when there is no reasonable certainty that
ownership will be obtained by the end of the lease term, assets are depreciated over the
shorter of the lease term and their useful lives.

d. Depreciation on tangible assets is provided as per the provisions of Part B of Schedule II
of the Companies Act, 2013 based on useful life and residual value notified for accounting
purposes by Electricity Regulatory Authorities.

e. Lease improvement costs are amortized over the period of the lease. Leasehold land
acquired by the Company, with an option in the lease deed, entitling the Company to
purchase on outright basis after a certain period at no additional cost is not amortized.

f. Useful life is either the period of time which the asset is expected to be used or the number
of production or similar units expected to be obtained from the use of asset. The estimated
useful life, residual values and depreciation method are reviewed at the end of each
reporting period, with the effect of any changes in estimate accounted for on prospective
basis.

Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of an
asset that necessarily takes a substantial period of time to get ready for its intended use or
sale are capitalized as part of the cost of the asset. All other borrowing costs are expensed
in the period in which they occur. Borrowing costs consist of interest and other costs that
an entity incurs in connection with the borrowing of funds. Borrowing cost also includes
exchange differences to the extent regarded as an adjustment to the borrowing costs.

Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and
demand deposits with an original maturity of three months or less and highly liquid
investments that are readily convertible into known amounts of cash and which are subject
to an insignificant risk of changes in value net of outstanding bank overdrafts as they are
considered an integral part of the Company’s cash management.

Inventories:

Cost of inventories includes cost of purchase, costs of conversion and other costs incurred
in bringing the inventories to their present location and condition.

Inventories of stores, spare parts, coal, fuel and loose tools are stated at the lower of
weighted average cost and net realizable value. Net realizable value represents the
estimated selling price for inventories in the ordinary course of business less all estimated
costs of completion and estimated costs necessary to make the sale.

Revenue recognition:

i. Sale of Services

Revenue is recognized to the extent that it is probable that economic benefit will flow to
the Company and that the revenue can be reliably measured. Revenue is measured at the
fair value of the consideration received or receivable. Revenue is reduced for estimated
rebates and other similar allowances.

Revenue from sale of logistics and other related services is recognized when substantial
risks and rewards of ownership is transferred to the buyer under the terms of the contract.

ii. interest income

Interest income from a financial asset is recognized when it is probable that the economic
benefits will flow to the Company and the amount of income can be measured reliably.
Interest income is accrued on a time basis, by reference to the principal outstanding and at
the effective interest rate applicable, which is the rate that exactly discounts estimated
future cash receipts through the expected life of the financial asset to that asset’s net
carrying amount on initial recognition.

i) Employee benefits

The Company has following post-employment plans:

a. Defined contribution plans - provident fund

I. Under defined contribution plans, provident fund, the Company pays pre-defined amounts
to separate funds and does not have any legal or informal obligation to pay additional
sums. Defined Contribution plan comprise of contributions to the employees’ provident
fund set up as trust and certain state plans like Employees’ State Insurance. The
Company’s payments to the defined contribution plans are recognized as expenses during
the period in which the employees perform the services that the payment covers.

II. A liability for a termination benefit is recognized at the earlier of when the entity can no
longer withdraw the offer of the termination benefit and when the entity recognizes any
related restructuring costs.

Taxation

Income tax comprises current and deferred tax. Income tax expense is recognized in the
statement of profit and loss except to the extent it relates to items directly recognized in
equity or in other comprehensive income.

a) Current tax

Current tax is the amount of tax payable based on the taxable profit for the year. Taxable
profit differs from ‘profit before tax’ as reported 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 Company’s current tax is calculated using tax rates
that have been enacted or substantively enacted by the end of the reporting period.

b) Deferred Tax

Deferred tax is provided using the liability 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 liabilities are recognized for all taxable
temporary differences, except when it is probable that the temporary differences will not
reverse in the foreseeable future.

Earnings per share

a. Basic earnings per share is computed by dividing the profit/ (loss) for the year by the
weighted average number of equity shares outstanding during the year. The weighted
average number of equity shares outstanding during the year is adjusted for treasury
shares, bonus issue, bonus element in a rights issue to existing shareholders, share split and
reverse share split (consolidation of shares).

b. Diluted earnings per share is computed by dividing the profit/ (loss) for the year 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 conversion 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.

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Mar 31, 2015

A. Basis of preparation of financial Statements

These financial statements have been prepared to comply with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013.

The financial statements are prepared on accrual basis under the historical cost convention,

B. Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires judgements, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period.

Accounting estimates could change from period to period. Actual results could differ from those estimates. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised.

C. Fixed Assets

Fixed Assets are stated at cost net of recoverable taxes, trade discounts and rebates less accumulated depreciation and impairment loss, if any. The cost of tangible Assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use.

Subsequent expenditures related to an item of fixed asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

D. Depreciation and Amortization

Depreciation is provided on the straight line method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013. For additions and disposals, depreciation is provided pro-rata for the period of use. The management had decided to amortize the goodwill over a period of ten years.

E. Revenue Recognition

Revenue from sale of Logistics & Supply Chain Services is recognized on accrual basis on completion of job and Transportation Sales are recognized when the vehicles are dispatched.

F. Interest

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

G. Taxation

Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates. Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed depreciation or losses, are recognized if there is virtual certainty that sufficient future taxable income will be available to realize the same.

H. Earning per share

Basic earning per share is computed by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by taking into account the aggregate of the weighted average number of equity shares outstanding during the period and the weighted average number of equity shares which would be issued on conversion of all the dilutive potential equity shares into equity shares.

I. Cash Flow Statement

Cash Flows are reported using indirect method as specified in Accounting Standard (AS-3) "Cash Flow Statement". The cash flows from operating, investing and financing activities of the company are segregated. Cash and Cash Equivalent comprises of cash in hand, balance in bank accounts and earmarked fixed deposits with bank.

J. Provisions, Contingent Liabilities and Contingent Assets

Provision is recognized in the accounts when there is a present obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Contingent liabilities are disclosed unless the possibility of outflow of resources is remote.

Contingent assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2014

1. Accounting Convention

The accounts have been prepared under the historical cost conventions to comply in all material aspects with applicable accounting principles in India, and are in accordance with Generally Accepted Accounting Principles and the Accounting Standards issued by Institute of Chartered Accountants of India to the extent applicable and the relevant provisions of the Companies Act, 1956. GAAP comprises mandatory Accounting Standard as prescribed by the companies (Accounting Standards) rules 2006, provisions of companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India.

The preparation of the financial statements in accordance with the generally accepted accounting principles requires that management makes estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities as of the date of financial statements and the reported amounts of revenue and expenses during the reporting period. Management believes that the estimates used in the preparation of financial statements are prudent and reasonable. The financial statements have been prepared under historical cost convention on an accrual basis. The Accounting policies have been consistently applied by the Company and are consistent with those used in the previous year. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

2. Fixed assets

Fixed assets are stated at cost less accumulated depreciation, impairment loss, if any. Cost of acquisition inclusive of inward freight, duties, taxes and incidental expenses related to acquisition, commissioning and installation incurred to bring the assets to its working condition for intended use.

3. Depreciation including amortization of intangible assets

Depreciation is provided on the straight-line method at the rates and in manner prescribed in Schedule XIV to the Companies Act, 1956 based on the estimated useful life of the asset as determined by the management. For additions and disposals, depreciation is provided pro-rata for the period of use. The management had decided to amortize the goodwill over a period of ten years.

5. Revenue recognition

Revenue from sale of services (Material Handeling) is recognized on accrual basis on completion of job.

Transportation Sales are recognized when the vehicles dispatched. Interest Income is recognized on time proportion basis.

6. Interest

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

7. Taxation

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of Income Tax Act, 1961 and based on the expected outcome of assessment/ appeals.

Deferred tax is recognized on timing difference between the accounting income and the taxable income for the period and quantified using the tax rates and laws enacted or substantively enacted on the Balance Sheet date.

8. Earnings per share

Basic earning per share is computed by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by taking into account the aggregate of the weighted average number of equity shares outstanding during the period and the weighted average number of equity shares which would be issued on conversion of all the dilutive potential equity shares into equity shares.

9. Cash Flow Statement:

Cash Flows are reported using the indirect method as specified in Accounting Standard (AS-3) "Cash Flow Statement". Cash and Cash Equivalent comprises of cash in hand, balance in bank accounts and earmarked fixed deposits with bank.

10. PROVISIONS: PROVISION AND CONTINGENT LIABILITIES:

Provision is recognized (for liabilities that can be measured by using a substantial degree of estimation) when:

a) the company has a present obligation as a result of a past event;

b) a probable outflow of resources embodying economic benefits is expected to settle the obligation; and

c) the amount of the obligation can be reliably estimated

Contingent liability is disclosed in case there is:

a) Possible obligation that arises from past events and existence of which will be confirmed only by the occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the enterprise; or

b) a present obligation arising past events but is not recognized

1. when it is not possible that an outflow of resources embodying economic benefits will be required to settle the obligation; or

2. A reliable estimate of the amount of the obligation cannot be made.

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Mar 31, 2012

1. Accounting Convention

The accounts have been prepared under the historical cost conventions to comply in all material aspects with applicable accounting principles in India, and are in accordance with Generally Accepted Accounting Principles and the Accounting Standards issued by Institute of Chartered Accountants of India to the extent applicable and the relevant provisions of the Companies Act, 1956. GAAP comprises mandatory Accounting Standard as prescribed by the companies (Accounting Standards) rules 2006, provisions of companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India. The preparation of the financial statements in accordance with the generally accepted accounting principles requires that management makes estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities as of the date of financial statements and the reported amounts of revenue and expenses during the reporting period. Management believes that the estimates used in the preparation of financial statements are prudent and reasonable. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

2. Fixed assets

Fixed assets are stated at cost less accumulated depreciation. Cost of acquisition inclusive of inward freight, duties, taxes and incidental expenses related to acquisition, commissioning and installation incurred to bring the assets to its working condition for intended use

3. Depreciation including amortization of intangible assets

Depreciation is provided on the straight-line method at the rates and in manner prescribed in Schedule XIV to the Companies Act, 1956 based on the estimated useful life of the asset as determined by the management. For additions and disposals, depreciation is provided pro-rata for the period of use. The management had decided to amortize the goodwill over a period of ten years.

4. Revenue recognition

Transportation Sales are recognized when the vehicles dispatched. Interest Income is recognized on time proportion basis. Sale of Aggregate The sale is booked as soon as goods are dispatched from the Crusher to parties.

5. Taxation

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of Income Tax Act, 1961 and based on the expected outcome of assessment/ appeals.

Deferred tax is recognized on timing difference between the accounting income and the taxable income for the period and quantified using the tax rates and laws enacted or substantively enacted on the Balance Sheet date.

6. Earnings per share

The basic earnings per share is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average no of equity shares outstanding the year. Diluted earning per share if computed in the case of the company will come same as the basic earning per share.

7. Cash Flow Statement:

Cash Flows are reported using the indirect method as specified in Accounting Standard (AS-3) "Cash Flow Statement". Cash and Cash Equivalent comprises of cash in hand, balance in bank accounts and earmarked fixed deposits with bank.

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Mar 31, 2010

A) That Company maintains its accounts on mercantile system of accounting and are in compliance with the accounting standard referred to the section 211 (3C) of the Companies Act, 1956.

b) Revenue Recognition

Income & Expenditure are accounted for as accrual basis.

c) Inventories

There are no Inventories at the close of the year.

d) Fixed Assets

Fixed Assets are stated at historical cost which includes expenditure incurred on acquisition , construction and installation.

e) Depreciation

Depreciation has been provided on straight line method at the rate prescribed in schedule XIV of the Companies Act, 1956 as amended by notification No. GSR 756 (E) dated 16th December, 1993.