Accounting Policies of Patel Integrated Logistics Ltd. Company

Mar 31, 2025

1.B. Significant Accounting Policies

a. Basis for preparation of Standalone Financial Statements:

These standalone financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as notified
under Section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules, 2015 (as amended),
and other relevant provisions of the Act. The financial statements have been prepared on the historical cost basis, except for
certain financial instruments which are measured at fair value.

i) Certain financial assets and liabilities

ii) Defined benefit plans - plan assets

The financial statements of the Company are presented in Indian Rupees (INR), which is also the functional currency of the
Company.

All financial information presented in the financial statements has been rounded off to the nearest rupee, unless otherwise stated.

b. Property, Plant and Equipment (including Capital work-in-progress):

i. Recognition and Measurement

Freehold land is carried at historical cost. Other items of Property, Plant and Equipment (PPE) are measured at historical cost
less accumulated depreciation and impairment losses, if any. The historical cost includes expenditure directly attributable to
the acquisition of the asset and bringing the asset to its intended use.

ii. Subsequent Expenditure

Subsequent costs are capitalised only if it is probable that the future economic benefits associated with the expenditure will
flow to the Company and the cost can be measured reliably. The carrying amount of replaced components is derecognised.
All other repair and maintenance expenses are charged to the Statement of Profit and Loss as incurred.

iii. Leased Assets

Assets acquired under finance leases on or after April 1,2001, are capitalised at the lower of the fair value of the leased asset
and the present value of minimum lease payments at the inception of the lease, in accordance with Ind AS 116 - Leases.

iv. Leasehold Land

Leasehold land acquired under long-term leases (typically 99 years) is classified as Property, Plant and Equipment and not
separately presented as a right-of-use asset, in accordance with the Company''s accounting policy and Ind AS 116.

v. Capital Work-in-Progress

Capital work-in-progress includes cost of PPE under installation or under active development which are not yet ready for
their intended use at the reporting date. These are carried at cost, comprising direct cost, related incidental expenses, and
attributable borrowing costs, if any.

c. Investment Property:

i. Recognition and Measurement

Investment property comprises land or buildings held to earn rentals or for capital appreciation or both, and not for use in the
production or supply of goods or services, for administrative purposes, or for sale in the ordinary course of business.

Investment property is initially measured at cost, including purchase price and any directly attributable expenditure (such as
professional fees, transaction taxes, and other incidental costs).

Subsequent to initial recognition, investment property is carried at cost less accumulated depreciation and accumulated
impairment losses, if any, in accordance with the cost model prescribed under Ind AS 40 - Investment Property.

ii. Depreciation

Depreciation on investment property is provided on a straight-line basis over the useful lives as prescribed in Part C of
Schedule II to the Companies Act, 2013. The residual values, useful lives, and method of depreciation are reviewed annually
and adjusted prospectively, if appropriate.

iii. Disposal

Any gain or loss arising from the disposal of an investment property is recognised in the Statement of Profit and Loss in the
period in which the property is derecognised, unless otherwise required by any other Ind AS.

d. Intangible Assets:

i. Recognition and Measurement

Intangible assets are recognised when it is probable that future economic benefits attributable to the asset will flow to
the Company and the cost of the asset can be measured reliably. Intangible assets are initially measured at cost and are
subsequently carried at cost less accumulated amortisation and accumulated impairment losses, if any.

ii. Amortisation

Intangible assets with finite useful lives are amortised over their estimated useful lives on a straight-line basis, commencing
from the date the asset is available for use. The amortisation period and method are reviewed at least at the end of each
financial year and adjusted prospectively if necessary.

iii. Derecognition

An intangible asset is derecognised upon disposal or when no future economic benefits are expected from its use or
disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net
disposal proceeds and the carrying amount of the asset, are recognised in the Statement of Profit and Loss in the period of
derecognition.

e. Depreciation / Amortization:

i. Method and Basis

Depreciation on Property, Plant and Equipment is provided on a straight-line basis, in accordance with the useful lives
prescribed under Part C of Schedule II to the Companies Act, 2013. The Company has not made any adjustments to the
useful lives as prescribed in the Schedule, unless otherwise stated.

ii. Timing of Depreciation

Depreciation is calculated on a pro-rata basis for additions and disposals, with reference to the date of addition or disposal of
the asset. Assets are depreciated from the date they are available for use and up to the date of disposal/derecognition.

iii. Leasehold Land

The cost of leasehold land is amortised over the residual lease period on a straight-line basis, in accordance with the terms
of the lease agreement.

iv. Review of Useful Lives

The residual values, useful lives, and method of depreciation are reviewed at the end of each financial year and adjusted
prospectively, if appropriate.

f. Impairment of non-financial assets (Property, plant and equipment and intangible assets):

The Company assesses at each reporting date whether there is any indication that a non-financial asset (including Property,
Plant and Equipment and Intangible Assets) or a group of assets forming a Cash-Generating Unit (CGU) may be impaired. If such
indications exist, the Company estimates the recoverable amount of the individual asset or CGU.

The recoverable amount is the higher of:

• Fair value less costs of disposal, and

• Value in use, which is the present value of estimated future cash flows expected to arise from the continuing use of the asset
or CGU, discounted using a pre-tax discount rate that reflects current market assessments of the time value of money and
risks specific to the asset or CGU.

If the carrying amount of the asset or CGU exceeds its recoverable amount, the difference is recognised as an impairment loss in
the Statement of Profit and Loss.

An impairment loss recognised in prior periods is reversed only if there has been a change in the assumptions used to determine
the asset''s recoverable amount since the last impairment loss was recognised. Such a reversal is recognised in the Statement
of Profit and Loss to the extent that the asset''s carrying amount does not exceed the carrying amount that would have been
determined, net of depreciation or amortisation, had no impairment loss been recognised earlier.

g. Financial Assets:

i. Financial Assets

A. Initial recognition and measurement

Financial assets are initially recognised when the Company becomes a party to the contractual provisions of the
instrument. All financial assets are initially measured at fair value, plus transaction costs that are directly attributable to
the acquisition of the financial asset, except in the case of financial assets measured at fair value through profit or loss
(FVTPL), where such costs are recognised in profit or loss.

Regular way purchase or sale of financial assets is recognised using trade date accounting, i.e., the date on which the
Company commits to purchase or sell the asset.

B. Subsequent measurement

The subsequent measurement of financial assets depends on the classification under the following categories:

a) Financial assets carried at amortised cost (AC)

A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold assets
to collect contractual cash flows, and the contractual terms give rise on specified dates to cash flows that are solely
payments of principal and interest (SPPI) on the principal amount outstanding.

Such assets are subsequently measured at amortised cost using the effective interest rate (EIR) method, less
impairment, if any.

b) Financial assets at fair value through other comprehensive income (FVTOCI)

A financial asset is classified as FVTOCI if it is held within a business model whose objective is achieved by both
collecting contractual cash flows and selling financial assets, and the asset meets the Solely Payment of Principal
and Interest (SPPI) criteria.

Changes in fair value of such assets are recognised in Other Comprehensive Income (OCI). Upon derecognition,
cumulative gains or losses previously recognised in OCI are reclassified to profit or loss.

Note: As the Company has not identified material fair value differences, such differences are currently not recognised
in OCI.

c) Financial assets at fair value through profit or loss (FVTPL)

Financial assets that do not meet the criteria for classification at amortised cost or FVTOCI are measured at FVTPL.
Gains or losses arising from changes in fair value of such assets are recognised in the Statement of Profit and Loss.

C. Investment in equity investments

Equity investments are measured at fair value. By default, changes in fair value are recognised in the Statement of
Profit and Loss. However, the Company may, on initial recognition, make an irrevocable election to present subsequent
changes in fair value in OCI for investments not held for trading. Such an election is made on an instrument-by-instrument
basis.

D. Impairment of financial assets

The Company applies the Expected Credit Loss (ECL) model for recognising impairment loss on financial assets
measured at amortised cost or at FVTOCI, in accordance with Ind AS 109.

For financial assets other than trade receivables, the Company applies a simplified approach and recognises 12-month
ECL, unless there is a significant increase in credit risk, in which case lifetime ECL is applied.

For trade receivables, the Company applies the simplified approach and recognises lifetime ECL from initial recognition.

The Company uses historical default rates, adjusted for forward-looking information, to estimate expected credit losses.
These assumptions are reviewed and updated at each reporting date.

ii. Financial Liabilities

(Applicable Standard: Ind AS 109 - Financial Instruments)

A. Initial Recognition and Measurement

Financial liabilities are initially recognised at fair value. In the case of borrowings and other interest-bearing financial
liabilities, the initial recognition is net of directly attributable transaction costs.

Fees and charges of a recurring nature related to financial liabilities are recognised directly in the Statement of Profit and
Loss as part of finance costs in the period in which they are incurred.

At the time of initial recognition, the Company assesses whether any financial liability needs to be designated as
measured at fair value through profit or loss (FVTPL). However, in the absence of any material impact on fair value
measurement, such financial liabilities are measured at amortised cost.

B. Subsequent Measurement

Subsequent to initial recognition, all financial liabilities are measured at amortised cost using the Effective Interest Rate
(EIR) method, except those classified as FVTPL.

Financial liabilities such as trade payables, borrowings, and other contractual obligations are generally classified under
this category.

For trade and other payables maturing within twelve months from the reporting date, the carrying amounts approximate
their fair value due to the short-term nature of these instruments.

The Company has not identified any significant fair value changes in financial liabilities designated at fair value through
other comprehensive income (FVTOCI), and accordingly, no gain or loss on such valuation is recognised.

iii. Membership shares of a Co-operative Housing Society
(Applicable Standard: Ind AS 109 - Financial Instruments)

Membership shares held in a Co-operative Housing Society, in respect of the office premises owned by the Company,
are classified as Non-Current Investments in the financial statements.

These shares are generally non-transferable, carry no market value, and are acquired as a statutory requirement to
obtain possession and rights of occupancy in the premises. Accordingly, such shares are carried at their nominal value
under Non-Current Investments - Other Investments, and are not subject to fair value changes.

iv. Profit / Loss on sale of Investments

(Applicable Standard: Ind AS 109 - Financial Instruments)

Profit or loss arising on the sale of Current or Non-Current Investments is computed using the First-In First-Out (FIFO)
method.

The gain or loss is measured as the difference between the net sale proceeds and the carrying amount of the investments,
determined on a FIFO basis. Such gain or loss is recognised in the Statement of Profit and Loss in the period in which
the sale occurs.

The classification of investments as Current or Non-Current is based on the management''s intention and the Company''s
expected holding period, in accordance with the criteria under Schedule III to the Companies Act, 2013.

h. Policy for Revenue Recognition:

(Applicable Standard: Ind AS 115 - Revenue from Contracts with Customers and Ind AS 109 - Financial Instruments, where
applicable)

i. General Recognition Principle

Revenue and expenses are recognised on an accrual basis, when it is probable that the economic benefits will flow to the
Company and the amount of revenue or cost can be measured reliably, except in cases involving significant uncertainty of
collection, in which case revenue is recognised on a receipt basis.

ii. Demurrage and Delivery Charges

Revenue towards demurrage charges, delivery charges, and recoveries from undelivered consignments is recognised only
when the amounts are ultimately realised, owing to inherent uncertainties in collection. Freight recoveries include amounts
certified by management as recoverable on undelivered consignments, along with other allied service charges accounted for
on a consistent basis.

iii. Co-loading and Cargo Division Income

Income from courier and cargo bookings (including co-loading arrangements) is recognised upon booking of load, when the
control over the service has been transferred and performance obligation is deemed satisfied as per contractual terms.

iv. Cargo Freight and Commission

Cargo freight charges are accounted for on a gross basis. Any commission income received in relation to freight services,
including those from Franchisees or Business Associates, is recognised under Revenue from Operations upon satisfaction of
performance obligations under respective agreements.

v. Gym Membership and Related Sales

Revenue from membership subscriptions for gym services is recognised at the time of enrolment, when the customer obtains
control of the service. Revenue from the sale of health supplements or gym equipment is recognised at the time of transfer of
control, typically on delivery or invoice date.

vi. Dividend Income

Dividend income from investments is recognised in accordance with Ind AS 109, when the Company''s right to receive
payment is established, which is generally upon receipt of dividend.

vii. Other Income

All other income is recognised on an accrual basis unless there is significant uncertainty regarding ultimate collection, in
which case it is recognised on a receipt basis.

viii. Expense Netting

Administrative and other expenses are presented net of recoveries, wherever applicable, in accordance with the principle of
reflecting true net cost incurred.

i. Employee Benefits:

(Applicable Standard: Ind AS 19 - Employee Benefits)

i. Short Term Employee Benefits

Short-term employee benefits are benefits (other than termination benefits) that are expected to be settled wholly within
twelve months after the end of the reporting period in which the employees render the related service.

These include salaries, wages, performance bonuses, and short-term compensated absences (e.g., casual and sick leave).
The undiscounted amount of such benefits is recognised as an expense in the Statement of Profit and Loss in the period in
which the related service is rendered by employees.

ii. Post-Employment Benefits

A. Defined Contribution Plans

The Company makes monthly contributions towards Provident Fund and Pension Fund with regulatory authorities,
which are considered defined contribution plans under Ind AS 19. The Company''s obligation is limited to the amount it
contributes.

Such contributions are recognised as an expense in the Statement of Profit and Loss in the period during which the
related services are rendered by employees.

B. Defined Benefit Plans

The following are considered defined benefit obligations:

a) Gratuity

The Company provides for gratuity to employees in accordance with the Payment of Gratuity Act, 1972, payable to
employees who have completed five years or more of continuous service, at the time of retirement, resignation, or
death. The gratuity amount is computed at 15 days'' basic salary for every completed year of service.

b) Leave Encashment (Earned Leave Benefit)

The Company also provides for encashment of unutilised earned leave, which accrues to employees and is eligible
for carry forward. This benefit is treated as a defined benefit plan as the leave liability is expected to be settled
beyond 12 months from the reporting date.

Both gratuity and leave encashment liabilities are actuarially valued at each reporting date using the Projected Unit
Credit Method, based on assumptions including salary escalation, attrition rates, mortality, and discount rates.

The present value of the defined benefit obligation is recognised as a liability in the Balance Sheet.

Actuarial gains and losses arising from changes in actuarial assumptions and experience adjustments are recognised
immediately in Other Comprehensive Income (OCI) and are not reclassified to profit or loss subsequently.

The valuations are carried out by an independent actuary and by a recognised insurance agency such as the Life
Insurance Corporation of India (LIC).

j. Foreign Currency Transactions:

(Applicable Standard: Ind AS 21 - The Effects of Changes in Foreign Exchange Rates)

Foreign currency transactions are recorded in the functional currency, i.e., Indian Rupees (INR), by applying the exchange rate
prevailing at the date of the transaction.

Monetary items denominated in foreign currencies (such as trade receivables, trade payables, loans, and bank balances) are
translated at the exchange rates prevailing on the reporting date (i.e., balance sheet date).

Exchange differences arising on:

• the settlement of such transactions, and

• the restatement of monetary items at the closing exchange rate are recognised as income or expense in the Statement of
Profit and Loss in the period in which they arise.

Non-monetary items that are measured at historical cost are not retranslated. Non-monetary items measured at fair value in a
foreign currency are translated using the exchange rate at the date when the fair value was measured.

k. Recoverability of Trade Receivable:

(Applicable Standards: Ind AS 109 - Financial Instruments, Ind AS 1 - Presentation of Financial Statements)

The Company exercises significant judgment in assessing the recoverability of overdue trade receivables, including the
determination of an appropriate loss allowance (impairment provision). This assessment involves consideration of various
qualitative and quantitative factors, including:

• The aging profile of receivables,

• The creditworthiness and historical payment behavior of customers,

• The expected timing and amount of future cash inflows,

• Any legal or recovery actions initiated, and

• Relevant forward-looking macroeconomic indicators affecting customer risk profiles.

In accordance with Ind AS 109, the Company applies the Expected Credit Loss (ECL) model using the simplified approach for trade
receivables, whereby a lifetime expected loss allowance is recognised from the time of initial recognition.

While ECL provisions and actual credit losses are recognised in the Statement of Profit and Loss in line with Ind AS requirements,
the Company may, in accordance with its approved reserve policy, transfer an equivalent or higher amount from the Contingency
Reserve to the Statement of Profit and Loss.

l. Taxes on Income:

(Applicable Standard: Ind AS 12 - Income Taxes)

i. Components of Tax Expense

Tax expense comprises current tax and deferred tax. It is recognised in the Statement of Profit and Loss, except to the extent
that it relates to items recognised in Other Comprehensive Income (OCI) or directly in equity, in which case the related tax
effect is also recognised in OCI or equity, respectively.

ii. Current Tax

Current tax is the amount of income tax payable on taxable profit for the year, computed in accordance with the applicable
tax laws and rates enacted or substantively enacted at the reporting date. Taxable profit differs from accounting profit as it
excludes income or expenses that are either taxable or deductible in other periods or not taxable/deductible at all.

iii. Deferred Tax

Deferred tax is recognised using the balance sheet approach, on temporary differences between the carrying amounts of
assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities are recognised for all taxable temporary differences.

Deferred tax assets are recognised for all deductible temporary differences, carry forward of unused tax credits, and unused
tax losses, to the extent it is probable that taxable profits will be available against which the deductible temporary differences
and 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 future taxable profit will be available to allow all or part of the asset to be recovered.

Deferred tax is measured at the tax rates and laws that have been enacted or substantively enacted by the reporting date and
are expected to apply in the period when the related asset is realised or the liability is settled. The measurement reflects the
tax consequences based on the manner in which the Company expects to recover or settle the carrying amount of its assets
and liabilities.

iv. Offsetting

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax assets against current
tax liabilities and the deferred taxes relate to income taxes levied by the same taxation authority on the same entity.

v. Minimum Alternate Tax (MAT)

MAT paid under Section 115JB of the Income-tax Act, 1961 is recognised as a deferred tax asset, if it is probable that future
taxable profit will be available against which MAT credit can be utilised. The asset is reviewed at each reporting date and
written down to the extent the realisability is no longer probable.

m. Indirect Tax Input Credit:

Input Tax Credit (ITC) on purchases of goods, services, and capital goods is recognised in the books in the period in which the
underlying goods or services are received and it is reasonably certain that the credit will be available under the applicable tax laws
(e.g., Goods and Services Tax Act, 2017).

ITC recognised is classified under Current Assets in the financial statements and is set off against the applicable output tax liability
in accordance with the provisions of the relevant tax laws and rules.

Unutilised ITC balances are carried forward to subsequent financial years to the extent eligible under the rules.

In cases where:

• Utilisation of credit is uncertain,

• Input credit is specifically disallowed, or

• Credit is not likely to be realised due to non-compliance or interpretation of law, the corresponding ITC is reversed in the
books and charged to the Statement of Profit and Loss in the period in which the related expense is incurred or disallowance
is determined.

n. Contingency Reserve:

A contingency reserve represents a portion of retained earnings appropriated by the Company to cover potential future losses
or unforeseen obligations. This reserve is created based on the Company''s internal policy and prudent financial management
practices and does not arise from any specific statutory requirement under Ind AS.

The contingency reserve is not created in response to any present obligation or probable outflow of resources as defined under
Ind AS 37 - Provisions, Contingent Liabilities and Contingent Assets, and therefore, it is not recognised as a provision or liability.
Instead, it is shown under ‘Other Equity'' in the financial statements.

The purpose of this reserve is to strengthen the Company''s financial position and ensure the availability of funds to absorb any
unexpected future losses, such as operational disruptions, claims, or contingencies not covered by existing provisions.

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Mar 31, 2024

1.A. Corporate Information

Patel Integrated Logistics Limited (“the Company”) is a listed entity incorporated in India. Equity Shares of the Company are listed on BSE Limited, National Stock Exchange of India Limited and The Calcutta Stock Exchange Association Limited.

The addresses of its registered office and principal place of business are disclosed in the introduction to the annual report.

The Company is in the business of Logistics Services, offering unified logistics solution through the extensive infrastructure of Offices and Delivery destinations across all over the Country. The Company provides various services to their client through its different divisions and products. The Company offers a complete range of logistics products, which includes business activities like Surface Transport, Warehousing, Air Cargo Consolidation etc. The Company also provides healthcare services which includes GYM Facility and Fitness Merchandise.

1.B. Significant Accounting Policies

a. Basis for preparation of Standalone Financial Statements:

The standalone financial statements have been prepared on the historical cost basis except for following assets and liabilities

which have been measured at fair value amount:

i) Certain financial assets and liabilities

ii) Defined benefit plans - plan assets

The Financial Statements of the Company have been prepared to comply with the Indian Accounting Standards (‘Ind AS''), including

the rules notified under the relevant provisions of the Companies Act, 2013.

Company''s Financial Statements are presented in Indian Rupees, which is also its functional currency and all values are rounded

to the nearest rupee.

b. Property, Plant and Equipment (including Capital work-in-progress):

i. Freehold land is carried at historical cost. All other items of property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the assets carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance expenses are charged to profit or loss during the reporting period in which they are incurred.

ii. Assets acquired on financial lease on or after April 1, 2001 are capitalised at their fair values at the inception of lease or if lower at the present value of the minimum lease payments.

iii. Land purchased on long term lease (99 years) is shown under Property, Plant and Equipment and not separately shown under Leased Assets.

iv. Assets acquired but not ready for use are classified under Capital work in progress and are stated at cost comprising direct cost and related incidental expenses.

c. Investment Property:

i. Investment property is the property that is not occupied by the Company, and which is held to earn rentals or for capital appreciation, or both. Upon initial recognition, an investment property is measured at cost, including directly attributable overheads, if any. Subsequent to initial recognition, investment property is measured at cost less accumulated depreciation and accumulated impairment loss, if any.

ii. Any gain or loss on disposal of an investment property is recognised in profit or loss, unless any other standard specifically requires otherwise.

iii. Company depreciates the investment property using the straight line method over the useful lives of assets as prescribed under Part C of Schedule II of the Act.

d. Intangible Assets:

i. Intangible Assets are stated at acquisition cost, net of accumulated amortisation and accumulated impairment losses, if any. Gains or losses arising from the retirement or disposal of an intangible asset are determined as the difference between the net disposal proceeds and the carrying amount of the asset and recognised as income or expense in the Statement of Profit and Loss.

e. Depreciation / Amortization:

i. Depreciation on all assets is provided under straight line method at the rates and in the manner prescribed under Part-C of Schedule II of the Companies Act, 2013 (the “Act”).

ii. Depreciation on additions to assets or sale or disposal of assets is calculated on a pro-rata basis from / to the date of addition / deduction.

iii. Cost of leasehold land is amortised over the residual period of the lease on straight line basis.

f. Impairment of non-financial assets - property, plant and equipment and intangible assets:

The Company assesses at each reporting date as to whether there is any indication that any property, plant and equipment and intangible assets or group of assets, called cash generating units (CGU) may be impaired. If any such indication exists the recoverable amount of an asset or CGU is estimated to determine the extent of impairment, if any. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the CGU to which the asset belongs.

An impairment loss is recognised in the Statement of Profit and Loss to the extent, asset''s carrying amount exceeds its recoverable amount. The recoverable amount is higher of an asset''s fair value less cost of disposal and value in use. Value in use is based on the estimated future cash flows, discounted to their present value using pre-tax discount rate that reflects current market assessments of the time value of money and risk specific to the assets.

The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

g. Financial Assets:

i. Financial Assets

A. Initial recognition and measurement

All financial assets and liabilities are initially recognized at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are adjusted to the fair value on initial recognition. Purchase and sale of financial assets are recognised using trade date accounting.

B. Subsequent measurement

a) Financial assets carried at amortised cost (AC)

A financial asset is measured at AC if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

b) Financial assets at fair value through other comprehensive income (FVTOCI)

A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

There is no significant impact on valuation of Financial Assets, having contractual inflow, at fair value through comprehensive income and hence such difference on valuation is not booked.

c) Financial assets at fair value through profit or loss (FVTPL)

A financial asset which is not classified in any of the above categories are measured at FVTPL.

C. Other equity investments

All other equity investments are measured at fair value, with value changes recognised in Statement of Profit and Loss, except for those equity investments for which the Company has elected to present the value changes in ‘Other Comprehensive Income''.

D. Impairment of financial assets

In accordance with Ind AS 109, the Company uses ‘Expected Credit Loss'' (ECL) model, for evaluating impairment of financial assets other than those measured at fair value through profit and loss (FVTPL).

Expected credit losses are measured through a loss allowance at an amount equal to:

• The 12-months expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date); or

• Full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument).

For trade receivables Company follows ‘simplified approach'' which requires expected lifetime losses to be recognised from initial recognition of the receivables. The Company uses historical default rates to determine impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are reviewed and changes in the forward looking estimates are analysed.

The Company uses 12 month ECL to provide for impairment loss where there is no significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.

ii. Financial Liabilities

A. Initial recognition and measurement

All financial liabilities are recognized at fair value and in case of loans, net of directly attributable cost. Fees of recurring nature are directly recognised in the Statement of Profit and Loss as finance cost.

There is no significant impact on valuation of Financial Liabilities at fair value through comprehensive income and hence no profit or loss on such valuation is booked.

B. Subsequent measurement

Financial liabilities are carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

There is no significant impact on valuation of Financial Liabilities at fair value through comprehensive income and hence such difference on valuation is not booked.

iii. Membership shares of a Co-operative Housing Society related to office premise are included under Non - Current Investments.

iv. Profit / Loss on sale of Current / Non - Current Investments is computed on FIFO basis.

h. Policy For Revenue Recognition:

i. Revenue / Income and Cost / Expenditure are generally accounted on accrual basis as they are earned / incurred, except those with significant uncertainties.

ii. Amounts recovered towards demurrage and delivery charges are accounted at the time when they are ultimately realised. Freight includes recoverable on undelivered consignments as certified by the management and recoveries for other allied services on a consistent basis.

iii. Income on account of Co-Loading and Cargo division is recognized on booking of courier & cargo load.

iv. Cargo Freight charges has been accounted on gross basis and commission received if any, against the same has been accounted as revenue from operation under the head commission including Franchisee/Business Associates.

v. Income on account of Membership Subscription on Gym Service is accounted at the time of enrollment of subscription. Revenue from sale of any health related supplements or gym equipment are accounted at the time of sale of such products.

vi. Dividend income from investment is recognised as and when received.

vii. Other incomes are accounted for on accrual basis except when the recovery is uncertain, it is accounted for on receipt basis.

viii. Administrative and other expenses are stated net of recoveries wherever applicable.

i. Employee Benefits:

i. 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 as an expense during the period when the employees render the services.

ii. Post-Employment Benefits

A. Defined Contribution Plans

A defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions to a separate entity. The Company makes specified monthly contributions towards Provident and Pension Fund. The Company''s contribution is recognised as an expense in the Statement of Profit and Loss during the period in which the employee renders the related service.

B. Defined Benefit Plans

The Company pays gratuity to the employees whoever has completed five years of service with the Company at the time of resignation/superannuation. The gratuity is paid @15 days basic salary for every completed year of service as per the Payment of Gratuity Act, 1972.

Company''s liability towards gratuity is determined by valuation carried out by the ‘Life Insurance Corporation of India'' as at each balance sheet date and is fully provided for in the Statement of Profit and Loss on the basis of aforesaid valuation. The valuation method used for measuring the liability is the Projected Unit Credit Method.

The liability for compensated absences is determined by valuation carried out by the ‘Life Insurance Corporation of India'' as at each balance sheet date and provided for in the Statement of Profit and Loss as incurred in the year in which services are rendered by employees. The valuation method used for measuring the liability is the Projected Unit Credit Method.

The gains and losses are recognized immediately in the Statement of Other Comprehensive Income.

j. Foreign Currency Transactions:

Transactions in foreign currencies if any, are recorded at the exchange rate prevailing on the date of the transaction. Monetary items denominated in foreign currencies are restated at the exchange rate prevailing on the balance sheet date. Exchange differences arising on settlement of the transaction and on account of restatement of monetary items are dealt with in the Statement of Profit and Loss.

k. Recoverability of Trade Receivable:

Judgments are required in assessing the recoverability of overdue trade receivables and determining whether a provision against those receivables is required. Factors considered include the amount and timing of anticipated future payments and any possible actions that can be taken to mitigate the risk of non-payment. Such provisions are made by providing for Contingencies Reserves and adjusted against such reserves on eventuality of such bad debts.

l. Taxes on Income:

Tax expense for the period comprises current and deferred tax. The tax currently payable is based on taxable profit for the period. Taxable profit differs from net profit as reported in the statement of profit and loss because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Company''s liability for current tax is calculated using tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying values of assets and liabilities in the standalone financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences. In

contrast, deferred tax assets are only recognised to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised.

The carrying value of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised based on the tax rates and tax laws that have been enacted or substantially enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying value of its assets and liabilities.

Deferred tax assets and liabilities are offset to the extent that they relate to taxes levied by the same tax authority and there are legally enforceable rights to set off current tax assets and current tax liabilities within that jurisdiction.

Current and deferred tax are recognised as an expense or income in the statement of profit and loss, except when they relate to items credited or debited either in other comprehensive income or directly in equity, in which case the tax is also recognised in other comprehensive income or directly in equity.

Deferred tax assets include Minimum Alternate Tax (MAT) paid in accordance with the tax laws in India, which is likely to give future economic benefits in the form of availability of set off against future income tax liability. MAT is recognised as deferred tax assets in the balance sheet when the asset can be measured reliably and it is probable that the future economic benefit associated with the asset will be realized.

m. Indirect Tax Input Credit:

Input Tax Credit on Purchases, Expenses and Capital Goods are accounted for the period in which the underlying service is received. Input Tax credit are treated as Current Assets and utilized to set off against Indirect Tax Liability as per the existing laws. Any balances or unutilized credit are carried forward in next year as per the Rules. When there is uncertainty in availing /utilizing the credits or where Input Tax Credit is expressly disallowed as Input, then such credit is reversed in books from Current Assets and expensed out in the year when such expense was incurred.

n. Contingency Reserve:

A contingency reserve is retained earnings that have been set aside to guard against possible future losses. A contingency reserve is needed in situations where a business occasionally suffers significant losses and needs reserves to offset those losses.

o. Provision and Contingencies:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

A Contingent Liability is disclosed when the Company has possible or present obligation where it is not certain that an outflow of resources will be required to settle it.

Claims in respect of which the Company is of the opinion that they are frivolous or is legally advised that they are unsustainable in law are not considered as Contingent Liability as the possibility of an outflow of resources embodying economic benefits is remote. Contingent Assets are neither recognized nor disclosed in the standalone financial statements.

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Mar 31, 2018

Notes on Standalone Financial Statements for the Year Ended 31st March, 2018

1.A. Corporate Information

Patel Integrated Logistics Limited (“the Company”) is a listed entity incorporated in India. Equity Shares of the Company are listed on BSE Limited, National Stock Exchange of India Limited and The Calcutta Stock Exchange Association Limited.

The addresses of its registered office and principal place of business are disclosed in the introduction to the annual report.

1.B. Significant Accounting Policies

a. Basis for preparation of Standalone Financial Statements:

First Time Adoption of IND AS :

The Company has adopted Ind AS with effect from 1st April, 2017 with comparatives being restated. Accordingly, the impact of transition has been provided in the Opening Reserves as at 1st April, 2016. The figures for the previous period have been restated, regrouped and reclassified wherever required to comply with the requirement of Ind AS and Schedule III.

The standalone financial statements of the Company have been prepared to comply with the Indian Accounting standards (''Ind AS''), including the rules notified under the relevant provisions of the Companies Act, 2013.

Upto the year ended March 31, 2017, the Company has prepared its standalone financial statements in accordance with the requirement of Indian Generally Accepted Accounting Principles (GAAP), which includes Standards notified under the Companies (Accounting Standards) Rules, 2006 and considered as “Previous GAAP”.

These statements are the Company''s first Ind AS standalone financial statements.

Company''s standalone financial statements are presented in Indian Rupees, which is also its functional currency.

The standalone financial statements have been prepared on the historical cost basis except for following assets and liabilities which have been measured at fair value amount:

i) Certain financial assets and liabilities

ii) Defined benefit plans - plan assets

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs.

b. Property, Plant and Equipment (including Capital work-in-progress):

i. Freehold land is carried at historical cost. All other items of property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent cost are included in the asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance expenses are charged to profit or loss during the reporting period in which they are incurred.

ii. Assets acquired on financial lease on or after April 1, 2001 are capitalized at their fair values at the inception of lease or, if lower at the present value of the minimum lease payments.

iii. Land purchased on long term lease (99 years) is shown under Property, Plant and Equipment, and not separately shown under Leased Assets.

iv. Assets acquired but not ready for use are classified under Capital work in progress and are stated at cost comprising direct cost and related incidental expenses.

v. On transition to Ind AS, the Company has elected to continue with the carrying value of all of its property, plant and equipment recognized as at 1st April, 2016 measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and equipment.

c. Investment Property:

i. Investment property is the property that is not occupied by the Company, and which is held to earn rentals or for capital appreciation, or both. Upon initial recognition, an investment property is measured at cost, including directly attributable overheads, if any. Subsequent to initial recognition, investment property is measured at cost less accumulated depreciation and accumulated impairment loss, if any.

ii. Any gain or loss on disposal of an investment property is recognized in profit or loss, unless any other standard specifically requires otherwise.

iii. Company depreciates the investment property using the straight line method over the useful lives of assets as prescribed under Part C of Schedule II of the Act.

iv. On transition to Ind AS, the Company has elected to continue with the carrying value of all of its investment properties recognized as at 1st April, 2016 measured as per the previous GAAP and use that carrying value as the deemed cost of investment properties.

d. Intangible Assets:

i. Intangible Assets are stated at acquisition cost, net of accumulated amortization and accumulated impairment losses, if any. Gains or losses arising from the retirement or disposal of an intangible asset are determined as the difference between the net disposal proceeds and the carrying amount of the asset and recognized as income or expense in the Statement of Profit and Loss.

ii. On transition to Ind AS, the Company has elected to continue with the carrying value of all of its intangible assets recognized as at 1st April, 2016 measured as per the previous GAAP and use that carrying value as the deemed cost of the intangible assets.

e. Depreciation / Amortization:

i. Depreciation on all assets is provided under straight line method at the rates and in the manner prescribed under Part-C of Schedule II of the Companies Act, 2013 (the “Act”).

ii. Depreciation on additions to assets or sale or disposal of assets is calculated on a pro-rata basis from / to the date of addition / deduction.

iii. Cost of leasehold land is amortized over the residual period of the lease on straight line basis.

f. Impairment of non-financial assets - property, plant and equipment and intangible assets:

The Company assesses at each reporting date as to whether there is any indication that any property, plant and equipment and intangible assets or group of assets, called cash generating units (CGU) may be impaired. If any such indication exists the recoverable amount of an asset or CGU is estimated to determine the extent of impairment, if any. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the CGU to which the asset belongs.

An impairment loss is recognized in the Statement of Profit and Loss to the extent, asset''s carrying amount exceeds its recoverable amount. The recoverable amount is higher of an asset''s fair value less cost of disposal and value in use. Value in use is based on the estimated future cash flows, discounted to their present value using pre-tax discount rate that reflects current market assessments of the time value of money and risk specific to the assets.

The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

g. Financial Assets:

i. Financial Assets

A. Initial recognition and measurement

All financial assets and liabilities are initially recognized at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are adjusted to the fair value on initial recognition. Purchase and sale of financial assets are recognized using trade date accounting.

B. Subsequent measurement

a) Financial assets carried at amortized cost (AC)

A financial asset is measured at amortized cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

b) Financial assets at fair value through other comprehensive income (FVTOCI)

A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

There is no significant impact on valuation of Financial Assets, having contractual inflow, at fair value through comprehensive income and hence such difference on valuation is not booked.

c) Financial assets at fair value through profit or loss (FVTPL)

A financial asset which is not classified in any of the above categories are measured at FVTPL.

C. Investment in Subsidiaries, Associates and Joint Ventures

The Company has accounted for its investments in subsidiaries, associates and joint venture at cost.

D. Other Equity Investments

All other equity investments are measured at fair value, with value changes recognized in Statement of Profit and Loss, except for those equity investments for which the Company has elected to present the value changes in ''Other Comprehensive Income''.

E. Impairment of financial assets

In accordance with Ind AS 109, the Company uses ''Expected Credit Loss'' (ECL) model, for evaluating impairment of financial assets other than those measured at fair value through profit and loss (FVTPL).

Expected credit losses are measured through a loss allowance at an amount equal to:

- The 12-months expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date); or

- Full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument)

For trade receivables Company follows ''simplified approach'' which requires expected lifetime losses to be recognized from initial recognition of the receivables. The Company uses historical default rates to determine impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are reviewed and changes in the forward looking estimates are analyzed.

The Company uses 12 month ECL to provide for impairment loss where there is no significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.

ii. Financial Liabilities

A. Initial recognition and measurement

All financial liabilities are recognized at fair value and in case of loans, net of directly attributable cost. Fees of recurring nature are directly recognized in the Statement of Profit and Loss as finance cost.

There is no significant impact on valuation of Financial Liabilities at fair value through comprehensive income and hence no profit or loss on such valuation is booked.

B. Subsequent measurement

Financial liabilities are carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

There is no significant impact on valuation of Financial Liabilities at fair value through comprehensive income and hence such difference on valuation is not booked.

iii. Membership shares of a Co-operative Housing Society related to office premise are included under Non - Current Investments.

iv. Profit / Loss on sale of Current / Non - Current Investments is computed on FIFO basis.

h. Policy For Revenue Recognition:

i. Revenue / Income and Cost / Expenditure are generally accounted on accrual basis as they are earned / incurred, except those with significant uncertainties.

ii. Amounts recovered towards demurrage and delivery charges are accounted at the time when they are ultimately realized. Freight includes recoverable on undelivered consignments as certified by the management and recoveries for other allied services on a consistent basis.

iii. Income on account of Co-Loading and Cargo division is recognized on booking of courier & cargo load.

iv. Cargo Freight charges has been accounted on gross basis and commission received if any, against the same has been accounted as revenue from operation under the head commission.

v. Dividend income from investment is recognized as and when received.

vi. Other incomes are accounted for on accrual basis except when the recovery is uncertain, it is accounted for on receipt basis.

vii. Administrative and other expenses are stated net of recoveries wherever applicable.

i. Employee Benefits:

i. 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 recognized as an expense during the period when the employees render the services.

ii. Post-Employment Benefits

A. Defined Contribution Plans

A defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions to a separate entity. The Company makes specified monthly contributions towards Provident and Pension Fund. The Company''s contribution is recognized as an expense in the Statement of Profit and Loss during the period in which the employee renders the related service.

B. Defined Benefit Plans

The Company pays gratuity to the employees whoever has completed five years of service with the Company at the time of resignation/superannuation. The gratuity is paid @15 days basic salary for every completed year of service as per the Payment of Gratuity Act, 1972.

Company''s liability towards gratuity is determined by actuarial valuation carried out by the independent actuary as at each balance sheet date and is fully provided for in the Statement of Profit and Loss on the basis of aforesaid valuation. The actuarial valuation method used for measuring the liability is the Projected Unit Credit method.

The liability for compensated absences is determined by actuarial valuation carried out by the independent actuary as at each balance sheet date and provided for in the Statement of Profit and Loss as incurred in the year in which services are rendered by employees. The actuarial valuation method used for measuring the liability is the Projected Unit Credit method.

The actuarial gains and losses are recognized immediately in the Statement of Other Comprehensive Income.

j. Foreign Currency Transactions:

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction. Monetary items denominated in foreign currencies are restated at the exchange rate prevailing on the balance sheet date. Exchange differences arising on settlement of the transaction and on account of restatement of monetary items are dealt with in the Statement of Profit and Loss.

k. Taxes on Income:

Tax expense for the period comprises current and deferred tax. The tax currently payable is based on taxable profit for the period. Taxable profit differs from net profit as reported in the statement of profit and loss because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Company''s liability
for current tax is calculated using tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying values of assets and liabilities in the standalone financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognized for all taxable temporary differences. In contrast, deferred tax assets are only recognized to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilized.

The carrying value of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realized based on the tax rates and tax laws that have been enacted or substantially enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying value of its assets and liabilities.

Deferred tax assets and liabilities are offset to the extent that they relate to taxes levied by the same tax authority and there are legally enforceable rights to set off current tax assets and current tax liabilities within that jurisdiction.

Current and deferred tax are recognized as an expense or income in the statement of profit and loss, except when they relate to items credited or debited either in other comprehensive income or directly in equity, in which case the tax is also recognized in other comprehensive income or directly in equity.

Deferred tax assets include Minimum Alternate Tax (MAT) paid in accordance with the tax laws in India, which is likely to give future economic benefits in the form of availability of set off against future income tax liability. MAT is recognized as deferred tax assets in the balance sheet when the asset can be measured reliably and it is probable that the future economic benefit associated with the asset will be realized.

l. Service Tax / GST Input Credit :

Service Tax / GST Input credit is accounted for in the books in the period in which the underlying service is received and when there is no uncertainty in availing /utilizing the credits. When input is not available for set-off against liabilities, the same is expensed out.

m. Provision and Contingencies:

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

A Contingent Liability is disclosed when the Company has possible or present obligation where it is not certain that an outflow of resources will be required to settle it.

Claims in respect of which the Company is of the opinion that they are frivolous or is legally advised that they are unsustainable in law are not considered as Contingent Liability as the possibility of an outflow of resources embodying economic benefits is remote. Contingent Assets are neither recognized nor disclosed in the standalone financial statements.

2.1 Building includes ? 250/- in respect of shares held in the Society.

2.2 Buildings worth ? 58,77,423/- included in Gross Block are revalued on the basis of the replacement value as at 30.06.1987 and the office premises worth ? 2,48,44,368/-included in Gross Block are revalued on the basis of the replacement value as at 31.03.1993. They are stated at revalued figures less accumulated depreciation.

2.3 The office building at Natasha 1st Floor, Bandra, Mumbai - 400 050 there is no marketable title of the property on account of litigation pending before the High Court.

2.4 Gross carrying of leasehold land represents amounts paid under certain lease-cum-sale agreements to acquire land including agreements where the Company has an option to purchase or renew the properties on expiry of the lease period.

14.1 During the FY 2017 - 18, the Company on 12th July, 2017 has allotted 6,49,311 equity shares of ''10/- each at a price of ''115/- per share (inclusive of share premium of ''105/- per share) against the conversion of equity warrants to Frontline Strategy Limited, upon its exercise of option for conversion of same number of Convertible Equity Warrants in accordance with the requirement of Chapter VII of the SEBI (ICDR) regulations 2009.

14.3 Rights, preferences and restrictions attached to the equity shares -

The Company has one class of equity shares having a par value of ''10/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend.

16.1 Secured Term Loan from Banks referred above are secured by way of hypothecation of trucks and motor cars.

16.2 Secured Term loan from Other Financial Institutions referred above is secured by office premises located at:

Unit No. 504, 5th Floor, The Crescent Business Park, Andheri Kurla Road, Sakinaka, Andheri (E), Mumbai - 400 072.

11 Flats at Bangalore

Land and Structure which is in Bangalore for Warehouse.

19.1 Working Capital Loans From Banks :

Secured by :

Pari Passu Hypothecation charges on all the present & future book debts (up to 120 days) and movable assets except those as statutorily earmarked and those acquired under hire purchase agreement.

Collateral Security -

- Personal Gurantee of Whole time Director designated as Executive Vice Chairman.

- Equitable Mortgage of following properties owned situated at Mumbai and Thane:

1) Basement, Ground, First, Second, Fifth and Sixth Floor of Patel House, Santacruz, Mumbai.

2) Unit No. 601 to 608 & 611 of The Avenue, Andheri, Mumbai.

3) Office No. 101 to 105 of Parijat Garden Commercial Complex, Thane.

4) Shop No. F/3/008 Ground Floor of EFF Jumbo CHS Ltd, Andheri, Mumbai.

5) Unit No. 31, Ground Floor of Adarsh Industrial Estate, Andheri, Mumbai.

The CSR committee constituted by the Board of Directors of the Company under section 135 of the Act supervise all the expenditure incurred for CSR purposes. The Company contributed to Rotary Club of Bombay Bandra Charitable Trust for purchase of blood bank vehicle for use of Tata Memorial Hospital.

Following is the information regarding projects undertaken and expenses incurred on CSR activities during the year ended 31 ^st March, 2018.

I. Gross amount required to be spent by the Company during the year - Rs, 14,12,322/- (Previous Year Rs, 14,76,535/-)

II. Following is the amount spent during the year on (by way of contribution to the trust and projects undertaken):

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Mar 31, 2016

1 Significant Accounting Policies

a. Basis for preparation of Financial Statements:

The financial statements of the Company have been prepared to comply in all material aspects with applicable accounting principles in India, the applicable Accounting Standards prescribed under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014, the provision of the Act (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI).

The preparation of the financial statements in conformity with generally accepted accounting principles requires the use of estimates and assumption that affect the reported amount of assets and liabilities as at the balance sheet date, reported amount of revenues and expenses during the year and disclosure of contingent liabilities as at that date. The estimates and assumption used in the financial statements are based upon the management''s evaluation of the relevant facts and circumstances as of the date of financial statements.

b. Fixed Assets and Depreciation:

i. All fixed assets are stated at cost of acquisition which includes amounts added on revaluation, less accumulated depreciation and impairment losses.

ii. Assets acquired on financial lease on or after April 1, 2001 are capitalized at their fair values.

iii. Depreciation / Amortization:

Depreciation on all assets, including those revalued, and those valued at market price is provided under straight line method at the rates and in the manner prescribed under Part-C of Schedule II of the Companies Act, 2013 (the “Act”).

iv. Depreciation on additions to assets or sale or disposal of assets is calculated on a pro-rata basis from / to the date of addition / deduction.

v. Computer Software’s are amortized over a period of three years, being the economic useful life as estimated by the management.

vi. Cost of leasehold land is amortized over the residual period of the lease.

vii. Assets taken on financial lease are depreciated over their useful life.

c. Impairment of Assets:

Impairment loss if applicable is provided to the extent the carrying amount of assets exceeds their recoverable amount and the same is charged to the Profit and Loss Account in the year in which an asset is identified as impaired.

d. Investments:

i. Non - Current Investments are stated at cost as they are made with long-term perspective. Provision for diminution, if any, in value of investments is made to recognize a decline other than temporary in the value of the investment and valuation is done on global basis.

ii. Membership shares of a Co-operative Housing Society related to office premise are included under Non -Current Investments.

iii. Profit / Loss on sale of Non - Current Investments is computed on FIFO basis.

e. Policy For Revenue Recognition:

i. Revenue / Income and Cost / Expenditure are generally accounted on accrual basis as they are earned / incurred, except those with significant uncertainties.

ii. Amounts recovered towards demurrage and delivery charges are accounted at the time when they are ultimately realized. Freight includes recoverable on undelivered consignments as certified by the management and recoveries for other allied services.

iii. Income on account of Co-Loading and Cargo division is recognized on booking of courier & cargo load.

iv. Cargo Freight charges has been accounted on gross basis and commission received if any, against the same has been accounted as revenue from operation under the head commission.

v. Dividend income from investment is recognized as and when received.

vi. Other incomes are accounted for on accrual basis except when the recovery is uncertain, it is accounted for on receipt basis.

vii. Claims made against the Company are evaluated as to type thereof, period for which they are outstanding and appropriate provision made. Claims are stated net of recoveries from Insurance Companies and others.

viii. Administrative and other expenses are stated net of recoveries wherever applicable.

f. Retirement Benefits (Staff Benefits):

i. The Company has taken a policy with Life Insurance Corporation of India under the Group Gratuity Scheme to cover gratuity liability to the extent of Rs. 10,00,000/- per employee and the premium is accrued on yearly basis. Additional liability if any, in excess of Rs. 10,00,000/- per employee is provided for on payment basis in respect of gratuity entitlement.

ii. Leave encashment is accounted on the basis of actuarial valuation as at the close of the financial year.

g. Foreign Currency Transactions:

i. Current Assets / Liabilities denominated in foreign currency are restated at the rates prevailing at the yearend or at the rates at which forward cover has been booked, whichever is applicable.

ii. Difference, if any, on settlement / restatement is taken to Profit and Loss Account.

h. Taxes on Income:

i. Current tax is determined as the amount of tax payable in respect of taxable income for the year.

ii. Deferred tax liabilities and assets are recognized at substantively enacted tax rates, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one year and are capable of reversal in one or more subsequent years. Deferred tax assets are recognized and carried forward only to the extent there is a reasonable certainty that sufficient future taxable income will be available against such deferred tax can be realized.

i. Service Tax Input Credit :

Service tax input credit is accounted for in the books in the period in which the underlying service is received and when there is no uncertainty in availing /utilizing the credits.

j. Provision and contingencies:

A provision is recognized when the company has legal and constructive obligation as a result of a past event, for which it is probable that cash outflow will be required and a reliable estimate can be made of the amount of the obligation. A contingent liability is disclosed when the company has possible or present obligation where it is not certain that an outflow of resources will be required to settle it.

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Mar 31, 2015

A. Basis for preparation of Financial Statements:

The accounts have been prepared to comply in all material aspects with applicable accounting principles in India, the applicable Accounting Standards prescribed under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014, the provision of the Act (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI).

The preparation of the financial statements in conformity with generally accepted accounting principles requires the use of estimates and assumption that affect the reported amount of assets and liabilities as at the balance sheet date, reported amount of revenues and expenses during the year and disclosure of contingent liabilities as at that date. The estimates and assumption used in the financial statements are based upon the management's evaluation of the relevant facts and circumstances as of the date of financial statements.

b. Fixed Assets and Depreciation:

i. All fixed assets are stated at cost of acquisition which includes amounts added on revaluation, less accumulated depreciation and impairment losses.

ii. Assets acquired on financial lease on or after April 1,2001 are capitalised at their fair values,

iii. Depreciation / Amortisation

Depreciation on all assets, including those revalued, and those valued at market price is provided under straight line method at the rates and in the manner prescribed under Part-C of Schedule II of the Companies Act, 2013 (the "Act"). Additional depreciation on account of revised method of calculation of depreciation amounting to Rs. 3,30,58,946/- (net off deferred tax of Rs. 1,58,77,396/-) is adjusted against retained earnings as at 1st April, 2014.

iv. Depreciation on additions to assets or sale or disposal of assets is calculated on a pro-rata basis from / to the date of addition / deduction.

v. Computer Softwares are amortised over a period of three years, being the economic useful life as estimated by the management.

vi. Cost of leasehold land is amortised over the residual period of the lease.

vii. Assets taken on financial lease are depreciated over their useful life.

c. Impairment of Assets:

Impairment loss if applicable is provided to the extent the carrying amount of assets exceeds their recoverable amount and the same is charged to the Profit and Loss Account in the year in which an asset is identified as impaired.

d. Investments:

i. Non - Current Investments are stated at cost as they are made with long-term perspective. Provision for diminution, if any, in value of investments is made to recognize a decline other than temporary in the value of the investment and valuation is done on global basis.

ii. Membership shares of a Co-operative Housing Society related to office premise are included under Non - Current Investments.

iii. Profit / Loss on sale of Non - Current Investments is computed on FIFO basis.

e. Policy For Revenue Recognition:

i. Revenue / Income and Cost / Expenditure are generally accounted on accrual basis as they are earned / incurred, except those with significant uncertainties.

ii. Amounts recovered towards demurrage and delivery charges are accounted at the time when they are ultimately realised. Freight includes recoverable on undelivered consignments as certified by the management and recoveries for other allied services.

iii. Income on account of Co-Loading and Cargo division is recognized on booking of courier & cargo load.

iv. Cargo Freight charges has been accounted on gross basis and commission received if any, against the same has been accounted as revenue from operation under the head commission.

v. Dividend income from investment is recognised as and when received.

vi. Other incomes are accounted for on accrual basis except when the recovery is uncertain, it is accounted for on receipt basis.

vii. Claims made against the Company are evaluated as to type thereof, period for which they are outstanding and appropriate provision made. Claims are stated net of recoveries from Insurance Companies and others.

viii. Administrative and other expenses are stated net of recoveries wherever applicable.

f. Retirement Benefits (Staff Benefits):

i. The Company has taken a policy with Life Insurance Corporation of India under the Group Gratuity Scheme to cover gratuity liability to the extent of Rs. 10,00,000/- per employee and the premium is accrued on yearly basis. Additional liability if any, in excess of Rs. 10,00,000/- per employee is provided for on payment basis in respect of gratuity entitlement.

ii. Leave encashment is accounted on the basis of actuarial valuation as at the close of the financial year.

g. Foreign Currency Transactions:

i. Current Assets / Liabilities denominated in foreign currency are restated at the rates prevailing at the year end or at the rates at which forward cover has been booked, whichever is applicable.

ii. Difference, if any, on settlement / restatement is taken to Profit and Loss Account.

h. Taxes on Income:

i. Current tax is determined as the amount of tax payable in respect of taxable income for the year.

ii. Deferred tax liabilities and assets are recognised at substantively enacted tax rates, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one year and are capable of reversal in one or more subsequent years. Deferred tax assets are recognised and carried forward only to the extent there is a reasonable certainty that sufficient future taxable income will be available against such deferred tax can be realised.

i. Provision and contingencies:

A provision is recognized when the company has legal and constructive obligation as a result of a past event, for which it is probable that cash outflow will be required and a reliable estimate can be made of the amount of the obligation.

A contingent liability is disclosed when the company has possible or present obligation where it is not certain that an outflow of resources will be required to settle it.

---

Mar 31, 2014

A. Basis for preparation of Financial Statements:

The accounts have been prepared to comply in all material aspects with applicable accounting principles in India, the applicable Accounting Standards notifi ed under Section 211[3c] of the Companies Act, 1956 and the relevant provisions thereof.

All assets and liabilities have been classifi ed as current or non-current as per the Company''s normal operating cycle and other criteria set out in Revised Schedule VI to the Companies Act, 1956.

Based on the nature of service and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current / non – current classifi cation of assets and liabilities.

The preparation of the financial statements in conformity with generally accepted accounting principles requires the use of estimates and assumption that affect the reported amounts of assets and liabilities as at the balance sheet date, reported amounts of revenues and expenses during the year and disclosure of contingent liabilities as at that date. The estimates and assumption used in the financial statements are based upon the managements evaluation of the relevant facts and circumstances as of the date of financial statements.

b. Fixed Assets and Depreciation:

i. All fixed assets are stated at cost of acquisition which includes amounts added on revaluation, less accumulated depreciation and impairment losses.

ii. Assets acquired on financial lease on or after April 1, 2001 are capitalised at their fair values.

iii. Depreciation / Amortisation

Depreciation on all assets, including those revalued, and those valued at market price is provided under straight line method at the rates and in the manner prescribed under Schedule XIV to the Companies Act, 1956.

iv. Depreciation on additions to assets or sale or disposal of assets is calculated on a pro-rata basis from / to the date of addition / deduction.

v. Computer Software is amortised over a period of three years, being the economic useful life as estimated by the management.

vi. Cost of leasehold land is amortised over the residual period of the lease.

vii. Assets taken on financial lease are depreciated over their useful life.

c. Impairment of Assets:

Impairment loss if applicable is provided to the extent the carrying amount of assets exceeds their recoverable amount and the same is charged to the Profit and Loss Account in the year in which an asset is identifi ed as impaired.

d. Investments:

i. Non – Current Investments are stated at cost as they are made with long-term perspective. Provision for diminution, if any, in value of investments is made to recognize a decline other than temporary in the value of the investment and valuation is done on global basis.

ii. Membership shares of a Co-operative Housing Society related to offi ce premise are included under Non - Current Investments.

iii. Profit / Loss on sale of Non – Current Investments is computed on FIFO basis.

e. Policy For Revenue Recognition:

i. Revenue / Income and Cost / Expenditure are generally accounted on accrual basis as they are earned / incurred, except those with signifi cant uncertainties.

ii. Amounts recovered towards demurrage and delivery charges are accounted at the time when they are ultimately realised. Freight includes recoverable on undelivered consignments as certifi ed by the management and recoveries for other allied services.

iii. Income on account of Co-Loading and Cargo division is recognized on booking of courier & cargo load.

iv. Cargo Freight charges has been accounted on gross basis and commission received if any, against the same has been accounted as revenue from operation under the head commission against cargo freight charges

v. Dividend income from investment is recognised as and when received.

vi. Other incomes are accounted for on accrual basis except when the recovery is uncertain, it is accounted for on receipt basis.

vii. Claims made against the Company are evaluated as to type thereof, period for which they are outstanding and appropriate provision made. Claims are stated net of recoveries from Insurance Companies and others.

viii. Administrative and other expenses are stated net of recoveries wherever applicable.

f. Retirement Benefits (Staff Benefits):

i. The Company has taken a policy with Life Insurance Corporation of India under the Group Gratuity Scheme to cover gratuity liability to the extent of Rs.10,00,000/- per employee and the premium is accrued on yearly basis. Additional liability if any, in excess of Rs.10,00,000/- per employee is provided for on payment basis in respect of gratuity entitlement.

ii. Leave encashment is accounted on the basis of actuarial valuation as at the close of the financial year.

g. Foreign Currency Transactions:

i. Current Assets / Liabilities denominated in foreign currency are restated at the rates prevailing at the year end or at the rates at which forward cover has been booked, whichever is applicable.

ii. Difference, if any, on settlement / restatement is taken to Profi t and Loss Account.

h. Taxes on Income:

i. Current tax is determined as the amount of tax payable in respect of taxable income for the year.

ii. Deferred tax liabilities and assets are recognised at substantively enacted tax rates, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one year and are capable of reversal in one or more subsequent years. Deferred tax assets are recognised and carried forward only to the extent there is a reasonable certainty that suffi cient future taxable income will be available against such deferred tax can be realised.

i. Provision and contingencies:

A provision is recognized when the company has legal and constructive obligation as a result of a past event, for which it is probable that cash outfl ow will be required and a reliable estimate can be made of the amount of the obligation. A contingent liability is disclosed when the company has possible or present obligation where it is not certain that an outfl ow of resources will be required to settle it. Contingent assets are neither recognized nor disclosed.

2.2 Rights, preferences and restrictions attached to the equity shares -

The Company has one class of equity shares having a par value of Rs.10/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend.

4.2 Term loan liability referred above is secured by office building.

7.1 Working Capital Loans From Banks : Secured by :

Pari Passu Hypothecation charges on all the present & future book debts ( Less than 90 Days ) and movable assets other than those acquired under hire purchase agreement. Collateral Security -

- Personal Gurantee of Wholetime Director designated as Executive Vice Chairman.

- Equitable Mortgage of certain properties :

a) owned and situated at Mumbai

b) owned by A S Patel Trust situated at Mumbai.

8.1 The Company has not received any intimation from its Vendors regarding their status under Micro, Small and Medium Enterprises Development Act, 2006 and hence the disclosure, if any under the said Act has not been made.

11.1 Building includes Rs. 250/- in respect of shares held in the Society.

11.3 Buildings worth Rs.58,77,423/- included in Gross Block are revalued on the basis of the replacement value as at 30.06.1987 and the office premises worth Rs.2,48,44,368/- included in Gross Block are revalued on the basis of the replacement value as at 31.03.1993. They are stated at revalued fi gures less accumulated depreciation.

11.4 Computer software - Refer note No. 1(b)(v).

---

Mar 31, 2013

A. Basis for preparation of Financial Statements:

The accounts have been prepared to comply in all material aspects with applicable accounting principles in India, the applicable Accounting Standards notifed under Section 211[3c] of the Companies Act, 1956 and the relevant provisions thereof.

All assets and liabilities have been classifed as current or non-current as per the Company''s normal operating cycle and other criteria set out in Revised Schedule VI to the Companies Act, 1956.

Based on the nature of service and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current / non - current classifcation of assets and liabilities.

The preparation of the fnancial statements in conformity with generally accepted accounting principles requires the use of estimates and assumption that affect the reported amounts of assets and liabilities as at the balance sheet date, reported amounts of revenues and expenses during the year and disclosure of contingent liabilities as at that date. The estimates and assumption used in the fnancial statements are based upon the managements evaluation of the relevant facts and circumstances as of the date of fnancial statements.

b. Fixed Assets and Depreciation:

i. All fxed assets are stated at cost of acquisition which includes amounts added on revaluation, less accumulated depreciation and impairment losses.

ii. Assets acquired on fnancial lease on or after April 1, 2001 are capitalised at their fair values.

iii. Depreciation / Amortisation

Depreciation on all assets, including those revalued, and those valued at market price is provided under straight line method at the rates and in the manner prescribed under Schedule XIV to the Companies Act, 1956.

iv Depreciation on additions to assets or sale or disposal of assets is calculated on a pro-rata basis from / to the date of addition / deduction.

v. Computer Software is amortised over a period of three years, being the economic useful life as estimated by the management.

vi. Cost of leasehold land is amortised over the residual period of the lease.

vii. Assets taken on fnancial lease are depreciated over their useful life.

c. Impairment of Assets:

Impairment loss if applicable is provided to the extent the carrying amount of assets exceeds their recoverable amount and the same is charged to the Proft and Loss Account in the year in which an asset is identifed as impaired.

d. Investments:

i. Non - Current Investments are stated at cost as they are made with long-term perspective. Provision for diminution, if any, in value of investments is made to recognize a decline other than temporary in the value of the investment and valuation is done on global basis.

ii. Membership shares of a Co-operative Housing Society related to offce premise are included under Non - Current Investments.

iii. Proft / Loss on sale of Non - Current Investments is computed on FIFO basis.

e. Policy For Revenue Recognition:

i. Revenue / Income and Cost / Expenditure are generally accounted on accrual basis as they are earned / incurred, except those with signifcant uncertainties.

ii. Amounts recovered towards demurrage and delivery charges are accounted at the time when they are ultimately realised. Freight includes recoverable on undelivered consignments as certifed by the management and recoveries for other allied services.

iii. Income on account of Co-Loading and Cargo division is recognized on booking of courier & cargo load.

iv. Income from Money transfer business is accounted for when the remittance amount is paid to the receiving party.

v. Dividend income from investment is recognised as and when received.

vi. Other incomes are accounted for on accrual basis except when the recovery is uncertain, it is accounted for on receipt basis.

vii. Claims made against the Company are evaluated as to type thereof, period for which they are outstanding and appropriate provision made. Claims are stated net of recoveries from Insurance Companies and others.

viii. Administrative and other expenses are stated net of recoveries wherever applicable.

f. Retirement Benefts (Staff Benefts):

i. The Company has taken a policy with Life Insurance Corporation of India under the Group Gratuity Scheme to cover gratuity liability to the extent of Rs.10,00,000/- per employee and the premium is accrued on yearly basis. Additional liability if any, in excess of Rs.10,00,000/- per employee is provided for on payment basis in respect of gratuity entitlement.

ii. Leave encashment is accounted on the basis of actuarial valuation as at the close of the fnancial year.

g. Foreign Currency Transactions:

i. Current Assets / Liabilities denominated in foreign currency are restated at the rates prevailing at the year end or at the rates at which forward cover has been booked, whichever is applicable.

ii. Difference, if any, on settlement / restatement is taken to Proft and Loss Account.

h. Taxes on Income:

i. Current tax is determined as the amount of tax payable in respect of taxable income for the year.

ii. Deferred tax liabilities and assets are recognised at substantively enacted tax rates, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one year and are capable of reversal in one or more subsequent years. Deferred tax assets are recognised and carried forward only to the extent there is a reasonable certainty that suffcient future taxable income will be available against such deferred tax can be realised.

i. Provision and contingencies:

A provision is recognized when the company has legal and constructive obligation as a result of a past event, for which it is probable that cash outfow will be required and a reliable estimate can be made of the amount of the obligation. A contingent liability is disclosed when the company has possible or present obligation where it is not certain that an outfow of resources will be required to settle it. Contingent assets are neither recognized nor disclosed.

---

Mar 31, 2012

A. Basis for preparation of Financial Statements:

The accounts have been prepared to comply in all material aspects with applicable accounting principles in India, the applicable Accounting Standards notified under Section 211[3c] of the Companies Act, 1956 and the relevant provisions thereof.

All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in Revised Schedule VI to the Companies Act, 1956.

Based on the nature of service and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current / non - current classification of assets and liabilities.

The preparation of the financial statements in conformity with generally accepted accounting principles requires the use of estimates and assumption that affect the reported amounts of assets and liabilities as at the balance sheet date, reported amounts of revenues and expenses during the year and disclosure of contingent liabilities as at that date. The estimates and assumption used in the financial statements are based upon the managements evaluation of the relevant facts and circumstances as of the date of financial statements.

b. Fixed Assets and Depreciation:

i. All fixed assets are stated at cost of acquisition includes amounts added on revaluation, less accumulated depreciation and impairment losses.

ii. Assets acquired on financial lease on or after April 1, 2001 are capitalised at their fair values.

iii. Depreciation / Amortisation

Depreciation on all assets, including those revalued, and those valued at market price is provided under straight line method at the rates and in the manner prescribed under Schedule XIV to the Companies Act, 1956.

iv. Depreciation on additions to assets or sale or disposal of assets is calculated on a pro-rata basis from / to the date of addition / deduction.

v. Computer Software is amortised over a period of three years, being the economic useful life as estimated by the management.

vi. Cost of leasehold land is amortised over the residual period of the lease.

vii. Assets taken on financial lease are depreciated over their useful life.

c. Impairment of Assets:

Impairment loss if applicable is provided to the extent the carrying amount of assets exceeds their recoverable amount and the same is charged to the Profit and Loss Account in the year in which an asset is identified as impaired.

d. Investments:

i. Non - Current Investments are stated at cost as they are made with long-term perspective. Provision for diminution, if any, in value of investments is made to recognize a decline other than temporary in the value of the investment and valuation is done on global basis.

ii. Membership shares of a Co-operative Housing Society related to office premise are included under Non - Current Investments.

iii. Profit / Loss on sale of Non - Current Investments is computed on FIFO basis.

e. Policy For Revenue Recognition:

i. Revenue / Income and Cost / Expenditure are generally accounted on accrual basis as they are earned / incurred, except those with significant uncertainties.

ii. Amounts recovered towards demurrage and delivery charges are accounted at the time when they are ultimately realised. Freight includes recoverable on undelivered consignments as certified by the management and recoveries for other allied services.

iii. Income on account of Co-Loading and Cargo division is recognized on booking of courier & cargo load.

iv. Income from Money transfer business is accounted for when the remittance amount is paid to the receiving party.

v. Dividend income from investment is recognised as and when received.

vi. Other incomes are accounted for on accrual basis except when the recovery is uncertain, it is accounted for on receipt basis.

vii. Claims made against the Company are evaluated as to type thereof, period for which they are outstanding and appropriate provision made. Claims are stated net of recoveries from Insurance Companies and others.

viii. Administrative and other expenses are stated net of recoveries wherever applicable.

f. Retirement Benefits (Staff Benefits):

i. The Company has taken a policy with Life Insurance Corporation of India under the Group Gratuity Scheme to cover gratuity liability to the extent of Rs.10,00,000/- per employee and the premium is accrued on yearly basis. Additional liability if any, in excess of Rs.10,00,000/- per employee is provided for on payment basis in respect of gratuity entitlement.

ii. Leave encashment is accounted on the basis of actuarial valuation as at the close of the financial year.

g. Foreign Currency Transactions:

i. Current Assets / Liabilities denominated in foreign currency are restated at the rates prevailing at the year end or at the rates at which forward cover has been booked, whichever is applicable.

ii. Difference, if any, on settlement / restatement is taken to Profit and Loss Account.

h. Taxes on Income:

i. Current tax is determined as the amount of tax payable in respect of taxable income for the year.

ii. Deferred tax liabilities and assets are recognised at substantively enacted tax rates, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one year and are capable of reversal in one or more subsequent years. Deferred tax assets are recognised and carried forward only to the extent there is a reasonable certainty that sufficient future taxable income will be available against such deferred tax and can be realised.

i. Provision and contingencies:

A provision is recognized when the company has legal and constructive obligation as a result of a past event, for which it is probable that cash outflow will be required and a reliable estimate can be made of the amount of the obligation. A contingent liability is disclosed when the company has possible or present obligation where it is not certain that an outflow of resources will be required to settle it. Contingent assets are neither recognized nor disclosed.

---

Mar 31, 2011

A. Basis of preparation:

The financial statements are prepared in compliance with the applicable mandatory Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI), applicable Accounting Policies in India and the relevant provisions of the Companies Act, 1956. The financial statements are prepared under the historical cost convention on accrual basis except stated otherwise.

b. Fixed Assets and Depreciation:

i. All fixed assets are stated at cost of acquisition less accumulated depreciation and impairment losses. Buildings worth Rs.58,77,423/- included in Gross Block are revalued on the basis of the replacement value as at 30.06.1987 and the office premises worth Rs.2,48,44,368/- included in Gross Block are revalued on the basis of the replacement value as at 31.03.1993. They are stated at revalued figures less accumulated depreciation.

ii. Assets acquired on financial lease on or after April 1, 2001 are capitalised at their fair values.

iii. Depreciation / Amortisation

Depreciation on all assets, including those revalued, and those valued at market price is provided under straight line method at the rates and in the manner prescribed under Schedule XIv to the Companies Act, 1956.

iv. Depreciation on additions to assets or sale or disposal of assets is calculated on a pro-rata basis from / to the date of addition / deduction.

v. Computer Software is amortised over a period of three years, being the economic useful life as estimated by the management.

vi. Cost of leasehold land is amortised over the residual period of the lease.

vii. Assets taken on financial lease are depreciated over their useful life.

c. Impairment of Assets:

Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amount and the same is charged to the Profit and Loss Account in the year in which an asset is identified as impaired.

d. Investments:

i. Investments are stated at cost as they are made with long-term perspective. Provision for diminution, if any, in value of investments is made to recognize a decline, other than temporary, in the value of the investment and valuation is done on global basis.

ii. Membership shares of a Co-operative Housing Society related to office premise are included under investments.

iii. Profit / Loss on sale of investments is computed on FIFO basis.

e. Income / Expenses:

i. Revenue / Income and Cost / Expenditure are generally accounted on accrual basis as they are earned / incurred, except those with significant uncertainties.

ii. Amounts recovered towards demurrage and delivery charges are accounted at the time when they are ultimately realised. Freight includes amount recoverable on undelivered consignments as certified by the management and recoveries for other allied services.

iii. Income on account of Co-Loading and Cargo division is recognized on booking of courier & cargo load.

iv. Income from Money transfer business is accounted for when the remittance amount is paid to the receiving party.

v. Dividend income from investment is recognised as and when received.

vi. Other incomes are accounted for on accrual basis except when the recovery is uncertain, it is accounted for on receipt basis.

vii. Claims made against the Company are evaluated as to type thereof, period for which they are outstanding and appropriate provision made. Claims are stated net of recoveries from Insurance Companies and others.

viii. Administrative and other expenses are stated net of recoveries wherever applicable.

f. Retirement Benefits (Staff Benefits):

i. The Company has taken a policy with Life Insurance Corporation of India under the Group Gratuity Scheme to cover gratuity liability to the extent of Rs.10,00,000/- per employee and the premium is accrued on yearly basis. Additional liability if any, in excess of Rs.10,00,000/- per Employee is provided for on payment basis in respect of gratuity entitlement.

ii. Leave encashment is accounted on the basis of actuarial valuation as at the close of the financial year.

g. Foreign Currency Transactions:

i. Current Assets / Liabilities denominated in foreign currency are restated at the rates prevailing at the year end or at the rates at which forward cover has been booked, whichever is applicable.

ii. Difference, if any, on settlement / restatement is taken to Profit and Loss Account.

h. Taxes on Income:

i. Current tax is determined as the amount of tax payable in respect of taxable income for the year.

ii. Deferred tax liabilities and assets are recognised at substantively enacted tax rates, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one year and are capable of reversal in one or more subsequent years. Deferred tax assets are recognised and carried forward only to the extent there is a reasonable certainty that sufficient future taxable income will be available against such deferred tax and can be realised.

i. Provision and contingencies:

A provision is recognized when the company has legal and constructive obligation as a result of a past event, for which it is probable that cash outfow will be required and a reliable estimate can be made of the amount of the obligation. A contingent liability is disclosed when the company has possible or present obligation where it is not certain that an outfow of resources will be required to settle it. Contingent assets are neither recognized nor disclosed.

---

Mar 31, 2010

A. Basis of preparation:

The fnancial statements are prepared in compliance with the applicable mandatory Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI), applicable Accounting Policies in India and the relevant provisions of the Companies Act, 1956. The fnancial statements are prepared under the historical cost convention on accrual basis except stated otherwise.

b. Fixed Assets and Depreciation:

i. All fxed assets are stated at cost of acquisition less accumulated depreciation and impairment losses. Buildings worth Rs.58,77,423/- included in Gross Block are revalued on the basis of the replacement value as at 30.06.1987 and the offce premises worth Rs.2,48,44,368/- included in Gross Block are revalued on the basis of the replacement value as at 31.03.1993. They are stated at revalued fgures less accumulated depreciation.

ii. Assets acquired on fnancial lease on or after April 1, 2001 are capitalised at their fair values.

iii. Depreciation / Amortisation

Depreciation on all assets, including those revalued, and those valued at market price is provided under straight line method at the rates and in the manner prescribed under Schedule XIV to the Companies Act, 1956.

iv. Depreciation on additions to assets or sale or disposal of assets is calculated on a pro-rata basis from / to the date of addition / deduction.

v. Computer Software is amortised over a period of three years, being the economic useful life as estimated by the management.

vi. Cost of leasehold land is amortised over the residual period of the lease.

vii. Assets taken on fnancial lease are depreciated over their useful life.

c. Impairment of Assets:

Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amount and the same is charged to the Proft and Loss Account in the year in which an asset is identifed as impaired.

d. Investments:

i. Investments are stated at cost as they are made with long-term perspective. Provision for diminution, if any, in value of investments is made to recognize a decline other than temporary in the value of the investment and valuation is done on global basis.

ii. Membership shares of a Co-operative Housing Society related to offce premise are included under investments.

iii. Proft / Loss on sale of investments is computed on FIFO basis.

e. Income / Expenses:

i. Revenue / Income and Cost / Expenditure are generally accounted on accrual basis as they are earned / incurred, except those with signifcant uncertainties.

ii. There is change in the presentation of turnover fgures of Air Freight & Surface Transport business. The gross billing on the customers are shown as turnover for both business, while the freight paid to the airlines in Air Freight business and commission paid to the agents in Surface Transport business are shown as operating expenses. Earlier to this, the net effects only were shown as turnover of Air Freight & Surface Transport business. Amounts recovered towards demurrage and delivery charges are accounted at the time when they are ultimately realised. Freight includes recoverable on undelivered consignments as certifed by the management and recoveries for other allied services.

iii. Income on account of Co-Loading and Cargo division is recognized on booking of courier & cargo load.

iv. Income from Money transfer business is accounted for when the remittance amount is paid to the receiving party.

v. Dividend income from investment is recognised as and when received.

vi. Other incomes are accounted for on accrual basis except when the recovery is uncertain, it is accounted for on receipt basis.

vii. Claims made against the Company are evaluated as to type thereof, period for which they are outstanding and appropriate provision made. Claims are stated net of recoveries from Insurance Companies and others.

viii. Administrative and other expenses are stated net of recoveries wherever applicable.

f. Retirement Benefts (Staff Benefts):

i. The Company has taken a policy with Life Insurance Corporation of India under the Group Gratuity Scheme to cover gratuity liability to the extent of Rs.3,50,000/- per employee and the premium is accrued on yearly basis. Additional liability if any, in excess of Rs.3,50,000/- per Employee is provided for on payment basis in respect of gratuity entitlement.

ii. Leave encashment is accounted on the basis of actuarial valuation as at the close of the fnancial year.

g. Foreign Currency Transactions:

i. Current Assets / Liabilities denominated in foreign currency are restated at the rates prevailing at the year end or at the rates at which forward cover has been booked, whichever is applicable.

ii. Difference, if any, on settlement / restatement is taken to Proft and Loss Account.

h. Taxes on Income:

i. Current tax is determined as the amount of tax payable in respect of taxable income for the year.

ii. Deferred tax liabilities and assets are recognised at substantively enacted tax rates, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one year and are capable of reversal in one or more subsequent years. Deferred tax assets are recognised and carried forward only to the extent there is a reasonable certainty that suffcient future taxable income will be available against such deferred tax can be realised.

iii. Fringe Beneft Tax paid for quarter ended June’09 is treated as advance tax paid for the fnancial year 2009-10.

i. Provision and contingencies:

A provision is recognized when the company has legal and constructive obligation as a result of a past event, for which it is probable that cash outfow will be required and a reliable estimate can be made of the amount of the obligation. A contingent liability is disclosed when the company has possible or present obligation where it is not certain that an outfow of resources will be required to settle it. Contingent assets are neither recognized nor disclosed.