Accounting Policies of Pranik Logistics Ltd. Company

Mar 31, 2025

1. Basis of Accounting

a. These financial statements have been prepared in accordance with the Generally Accepted accounting
principles in India (Indian GAAP) to comply with the accounting standards specified under section 133 of the
Companies Act,2013, as applicable. The Financial statements have been prepared under the historical cost
convention on accrual basis, except for certain financial instruments which are measured at fair value

b. The financial statements are prepared to comply in all material respects with the Accounting Standards
notified under the Companies (Accounting Standards) Rules 2006 (as amended) and the relevent provisions of
the Companies Act, 2013.

c. The preparation of the financial statements requires estimates and assumptions to be made that affect the
reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Differences between the actual results and estimates are
recognised in the period in which the results are known / materialised.

d. 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 the Schedule III to the Companies Act, 2013. Based on the nature of products
and the time between the 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.

2. Fixed Assets

a. Fixed Assets are stated at cost, less accumulated depreciation and impairment losses, if any. Cost includes
purchase price and any directly attributable cost of bringing the asset to its working condition for its intended
use.

b. Depreciation on Fixed Assets is calculated on Written Down Value Method based on the useful life and in the
manner prescribed in Schedule II to the Companies Act, 2013.

c. The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of
impairment based on internal/external factors. An impairment loss is recognised wherever the carrying amount
of an asset exceeds its recoverable amount. The recoverable amount is the higher of the asset''s net selling
price and value in use, which is determined by the present value of the estimated future cash flows.

3. Inventories

There is no inventory as the Company is engaged in service-based operations

A. Revenue Recognition

a. Income & Expenditure are accounted for on an accrual basis.

b. Sales are accounted on the basis of invoices raised and are net of GST, returns, discounts, credit card charges,
and incentives. Expenses incurred relating to services where invoicing is pending as on the balance sheet date
are treated as prepaid expenses.

c. Purchases are accounted for on receipt of goods, and services are net of GST, returns, discounts, claims, and
incentives.

d. Advertisement, publicity, and labour charges are net of reimbursements from the vendors.