Notes to Accounts of Snowman Logistics Ltd.

Mar 31, 2025

l) Provisions, Contingent Liabilities and Contingent Assets
Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result
of past events, 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. When the
Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the
reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The
expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

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.

Decommissioning liability

The Company records a provision for decommissioning costs of a facility used for warehousing purposes and
trading of goods. Decommissioning costs are provided at the present value of expected costs (less realisable
value of assets) to settle the obligation using estimated cash flows and are recognised as part of the cost
of the particular asset. The cash flows are discounted at a current pre-tax rate that reflects the risks specific
to the decommissioning liability. The unwinding of the discount is expensed as incurred and recognised
in the statement of profit and loss as a finance cost. The estimated future costs of decommissioning are
reviewed annually and adjusted as appropriate. The impact of climate-related matters, such as changes in
environmental regulations and other relevant legislation, is considered by the Company in estimating the
decommissioning liability on the manufacturing facility. Changes in the estimated future costs or in the
discount rate applied are added to or deducted from the cost of the asset.

Onerous contracts

If the Company has a contract that is onerous, the present obligation under the contract is recognised and
measured as a provision. However, before a separate provision for an onerous contract is established, the
Company recognises any impairment loss that has occurred on assets dedicated to that contract.

An onerous contract is a contract under which the unavoidable costs (i.e., the costs that the Company cannot
avoid because it has the contract) of meeting the obligations under the contract exceed the economic
benefits expected to be received under it. The unavoidable costs under a contract reflect the least net cost
of exiting from the contract, which is the lower of the cost of fulfilling it and any compensation or penalties
arising from failure to fulfil it. The cost of fulfilling a contract comprises the costs that relate directly to the
contract (i.e., both incremental costs and an allocation of costs directly related to contract activities).

Contingent liability
Contingent liability is:

(a) a possible obligation arising from past events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
entity or

(b) a present obligation that arises from past events but is not recognized because;

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

- the amount of the obligation cannot be measured with sufficient reliability.

The Company does not recognize a contingent liability but discloses its existence and other required
disclosures in notes to the financial statements, unless the possibility of any outflow in settlement is remote.

Contingent asset

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed
only by- the occurrence or non-occurrence of one or more uncertain future events not wholly within the control
of the entity. The Company does not recognize the contingent asset in its standalone financial statements
since this may result in the recognition of income that may never be realised. Where an inflow of economic
benefits is probable, the Company disclose a brief description of the nature of contingent assets at the end
of the reporting period. However, when the realisation of income is virtually certain, then the related asset is
not a contingent asset and the Company recognize such assets.

Provisions, contingent liabilities and contingent assets are reviewed at each reporting date.

m) Retirement and other employee benefits

Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no
obligation, other than the contribution payable to the provident fund. The Company recognizes contribution
payable to the provident fund scheme as an expense, when an employee renders the related service. If
the contribution payable to the scheme for service received before the balance sheet date exceeds the
contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting the
contribution already paid. If the contribution already paid exceeds the contribution due for services received
before the balance sheet date, then excess is recognized as an asset to the extent that the pre-payment will
lead to, for example, a reduction in future payment or a cash refund.

Gratuity obligations

The Company operates a defined benefit gratuity plan in India, which requires contributions to be made
to a separately administered fund. The gratuity plan provides a lump sum payment to employees who
have completed four years and two hundred and forty days or more of service at retirement, disability or
termination of employment, being an amount based on the respective employee''s last drawn salary and the
number of years of employment with the Company.

The liabilities with respect to gratuity plan are determined by actuarial valuation on projected unit credit
method on the balance sheet date, based upon which the Company contributes to the gratuity Scheme.
The difference, if any, between the actuarial valuation of the gratuity of employees at the year end and the
balance of funds is provided for as assets/ (liability) in the books.

Past service costs are recognised in profit or loss on the earlier of:

a) The date of the plan amendment or curtailment, and

b) The date that the Company recognises related restructuring costs.

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The
Company recognizes the following changes in the net defined benefit obligation under employee benefit
expense in statement of profit and loss:

a) Service costs comprising current service costs, past-service costs, gains and losses on curtailments
and non-routine settlements

b) Net interest expense or income

Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts
included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts
included in net interest on the net defined benefit liability), are recognized immediately in the Balance Sheet
with a corresponding debit or credit to retained earnings through other comprehensive income in the period
in which they occur. Remeasurements are not reclassified to statement of profit and loss in subsequent
periods.

Compensated absences

Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-term
employee benefit. The Company measures the expected cost of such absences as the additional amount
that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date.
The Company recognizes expected cost of short-term employee benefit as an expense, when an employee
renders the related service.

The Company treats accumulated leave expected to be carried forward beyond twelve months, as long¬
term employee benefit for measurement purposes. Such long-term compensated absences are provided for
based on the actuarial valuation using the projected unit credit method at the reporting date. Remeasurement
gains/losses are immediately taken to the statement of profit and loss and are not deferred. The obligations

are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to
defer the settlement for at least twelve months after the reporting date.

n) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability
or equity instrument of another entity.

Financial assets

Initial recognition and measurement

Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value
through other comprehensive income (OCI), and fair value through profit or loss.

The classification of financial assets at initial recognition depends on the financial asset''s contractual cash
flow characteristics and the Company''s business model for managing them. With the exception of trade
receivables that do not contain a significant financing component or for which the Company has applied
the practical expedient, the Company initially measures a financial asset at its fair value plus, in the case
of a financial asset not at fair value through profit or loss, transaction costs. Trade receivables that do not
contain a significant financing component or for which the Company has applied the practical expedient are
measured at the transaction price determined under Ind AS 115. Refer to the accounting policies in section
Revenue from contracts with customers.

In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it
needs to give rise to cash flows that are ''solely payments of principal and interest (SPPI)'' on the principal
amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level.
Financial assets with cash flows that are not SPPI are classified and measured at fair value through profit or
loss, irrespective of the business model.

The Company''s business model for managing financial assets refers to how it manages its financial assets in
order to generate cash flows. The business model determines whether cash flows will result from collecting
contractual cash flows, selling the financial assets, or both. Financial assets classified and measured at
amortised cost are held within a business model with the objective to hold financial assets in order to collect
contractual cash flows while financial assets classified and measured at fair value through OCI are held
within a business model with the objective of both holding to collect contractual cash flows and selling.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

• Financial assets at amortised cost (debt instruments)

• Financial assets at fair value through other comprehensive income (FVTOCI) with recycling of cumulative
gains and losses (debt instruments)

• Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses
upon derecognition (equity instruments)

• Financial assets at fair value through profit or loss
Financial assets at amortised cost (debt instruments)

A ''financial asset'' is measured at the amortised cost if both the following conditions are met:

• The asset is held within a business model whose objective is to hold assets for collecting contractual
cash flows, and

• Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of
principal and interest (SPPI) on the principal amount outstanding.

This category is the most relevant to the Company. After initial measurement, such financial assets are
subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost
is calculated by taking into account any discount or premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation is included in other income in the profit or loss. The losses
arising from impairment are recognised in the profit or loss. The Company''s financial assets at amortized
cost includes trade and other receivables. For more information on receivables, refer to note 6A.

Financial assets at fair value through OCI (FVTOCI) (debt instruments)

A ''financial asset'' is classified as at the FVTOCI if both of the following criteria are met:

• The objective of the business model is achieved both by collecting contractual cash flows and selling
the financial assets, and

• The asset''s contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting
date at fair value. Fair value movements are recognized in the other comprehensive income (OCI). However,
the Company recognizes interest income, impairment losses and reversals and foreign exchange gain or
loss in the statement of profit and loss. Upon derecognition of the asset, cumulative gain or loss previously
recognised in OCI is reclassified from the equity to statement of profit and loss. Interest earned whilst
holding FVTOCI debt instrument is reported as interest income using the EIR method. The Company has not
designated any debt instrument as at FVTOCI.

Financial assets designated at fair value through OCI (equity instruments)

Upon initial recognition, the Company can elect to classify irrevocably its equity investments as equity
instruments designated at fair value through OCI when they meet the definition of equity under Ind AS 32
Financial Instruments: Presentation and are not held for trading. The classification is determined on an
instrument-by-instrument basis. Equity instruments which are held for trading and contingent consideration
recognised by an acquirer in a business combination to which Ind AS103 applies are classified as at FVTPL.

Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as
other income in the statement of profit and loss when the right of payment has been established, except
when the Company benefits from such proceeds as a recovery of part of the cost of the financial asset, in
which case, such gains are recorded in OCI. Equity instruments designated at fair value through OCI are not
subject to impairment assessment.

Financial assets at fair value through profit or loss

Financial assets in this category are those that are held for trading and have been either designated by
management upon initial recognition or are mandatorily required to be measured at fair value under Ind AS
109 i.e. they do not meet the criteria for classification as measured at amortised cost or FVOCI. Management
only designates an instrument at FVTPL upon initial recognition, if the designation eliminates, or significantly
reduces, the inconsistent treatment that would otherwise arise from measuring the assets or liabilities or
recognising gains or losses on them on a different basis. Such designation is determined on an instrument-
by-instrument basis.

Financial assets at fair value through profit or loss are carried in the balance sheet at fair value with net
changes in fair value recognised in the statement of profit and loss.

Interest earned on instruments designated at FVTPL is accrued in interest income, using the EIR, taking
into account any discount/ premium and qualifying transaction costs being an integral part of instrument.
Interest earned on assets mandatorily required to be measured at FVTPL is recorded using the contractual
interest rate. Dividend income on equity investments are recognised in the statement of profit and loss as
other income when the right of payment has been established.

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial
assets) is primarily derecognised (i.e. removed from the balance sheet) when:

• The rights to receive cash flows from the asset have expired, or

• The Company has transferred its rights to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party under a ''pass¬
through'' arrangement; and either (a) the Company has transferred substantially all the risks and rewards
of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and
rewards of the asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into
a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of
ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the
asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the
extent of the Company''s continuing involvement. In that case, the Company also recognises an associated
liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and
obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the
lower of the original carrying amount of the asset and the maximum amount of consideration that the
Company could be required to repay.

Impairment of financial assets

Further disclosures relating to impairment of financial assets are also provided in the following notes:

• Disclosures for significant assumptions - see note 30 and note 31

• Trade receivables and contract assets - see note 6A and 6G

The Company recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at
fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in
accordance with the contract and all the cash flows that the Company expects to receive, discounted at an
approximation of the original effective interest rate. The expected cash flows will include cash flows from
the sale of collateral held or other credit enhancements that are integral to the contractual terms.

ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase
in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that
are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has
been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses
expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

For trade receivables and contract assets, the Company applies a simplified approach in calculating ECLs.
Therefore, the Company does not track changes in credit risk, but instead recognises a loss allowance based
on lifetime ECLs at each reporting date. The Company has established a provision matrix that is based on
its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the
economic environment.

The Company considers a financial asset in default when contractual payments are 90 days past due.
However, in certain cases, the Company may also consider a financial asset to be in default when internal or
external information indicates that the Company is unlikely to receive the outstanding contractual amounts
in full before taking into account any credit enhancements held by the Company. A financial asset is written
off when there is no reasonable expectation of recovering the contractual cash flows.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or
loss, loans and borrowings, payables, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs.

The Company''s financial liabilities include trade and other payables, loans and borrowings including bank
overdrafts, financial guarantee contracts and derivative financial instruments.

Subsequent measurement

For purposes of subsequent measurement, financial liabilities are classified in two categories:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair value through profit or loss.

Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the
near term. This category also includes derivative financial instruments entered into by the Company that are
not designated as hedging instruments in hedge relationships as defined by Ind AS 109.

Gains or losses on liabilities held for trading are recognised in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated
as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities
designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in
OCI. These gains/ losses are not subsequently transferred to P&L. However, the Company may transfer the
cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the
statement of profit or loss. The Company has not designated any financial liability as at fair value through
profit and loss.

Financial liabilities at amortised cost (Loans and borrowings)

This is the category most relevant to the Company. After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are
recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation
process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or
costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement
of profit and loss.

This category generally applies to borrowings. For more information refer note 12A and 12B.

Financial guarantee contracts

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made
to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due
in accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially
as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the
guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined
as per impairment requirements of Ind AS 109 and the amount recognised less, when appropriate, the
cumulative amount of income recognised in accordance with the principles of Ind AS 115.

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different
terms, or the terms of an existing liability are substantially modified, such an exchange or modification is
treated as the derecognition of the original liability and the recognition of a new liability. The difference in the
respective carrying amounts is recognised in the statement of profit or loss.

Reclassification of financial assets

The Company determines classification of financial assets and liabilities on initial recognition. After initial
recognition, no reclassification is made for financial assets which are equity instruments and financial
liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change
in the business model for managing those assets. Changes to the business model are expected to be
infrequent. The Company''s senior management determines change in the business model as a result of
external or internal changes which are significant to the Company''s operations. Such changes are evident
to external parties. A change in the business model occurs when the Company either begins or ceases to
perform an activity that is significant to its operations. If the Company reclassifies financial assets, it applies
the reclassification prospectively from the reclassification date which is the first day of the immediately
next reporting period following the change in business model. The Company does not restate any previously
recognised gains, losses (including impairment gains or losses) or interest.

The following table shows various reclassification and how they are accounted for:

Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is
a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis
or realise the asset and settle the liability simultaneously.

o) Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits
with an original maturity of three months or less, that are readily convertible to a known amount of cash and
subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term
deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the
Company''s cash management.

p) Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of
financial year which are unpaid. The amounts are unsecured. Trade and other payables are presented as
current liabilities unless payment is not due within 12 months after the reporting period. They are recognised
initially at their fair value and subsequently measured at amortised cost using effective interest method.

q) Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the proceeds (net of transaction cost) and redemption
amount is recognised in profit or loss over the period of the borrowings using the effective interest rate
method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan
to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is
deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all
of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised
over the period of the facility to which it relates.

Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged,
cancelled or expired. The difference between the carrying amount of a financial liability that has been
extinguished or transferred to another party and the consideration paid, including any non-cash assets
transferred or liabilities assumed, is recognised in statement of profit and loss.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer
settlement of the liability for at least 12 months after the reporting period. Where there is a breach of a
material provision of a long-term arrangement on or before the end of the reporting period with the effect
that the liability becomes payable on demand on the reporting date, the entity does not classify the liability
as current, if the lender agreed, after the reporting period and before the approval of the financial statements
for issue, not to demand payment as a consequence of the breach.

r) Inventories

a) Basis of valuation:

Inventories are valued at lower of cost and net realizable value after providing cost of obsolescence, if
any. The comparison of cost and net realizable value is made on an item-by-item basis.

b) Method of Valuation:

(i) Cost of traded goods has been determined by using first in first out cost method and comprises all costs
of purchase, duties, taxes (other than those subsequently recoverable from tax authorities) and all other
costs incurred in bringing the inventories to their present location and condition.

(ii) Net realizable value is the estimated selling price in the ordinary course of business, less estimated
costs of completion and estimated costs necessary to make the sale.

s) Dividends

The Company recognises a liability to pay dividend to equity holders of the parent when the distribution is
authorised, and the distribution is no longer at the discretion of the Company. As per the corporate laws
in India, a distribution is authorised when it is approved by the shareholders. A corresponding amount is
recognised directly in equity.

t) Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss attributable to the equity holders of
the Company by the weighted average number of equity share outstanding during the financial year.

The weighted average number of equity shares outstanding during the period is adjusted for events such as
bonus issue, bonus element in a rights issue, share split, and reverse share split (consolidation of shares)
that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to
equity shareholders of the Company and the weighted average number of shares outstanding during the
period are adjusted for the effects of all dilutive potential equity shares.

u) Events after the reporting period

If the Company receives information after the reporting period, but prior to the date of approved for issue,
about conditions that existed at the end of the reporting period, it will assess whether the information affects
the amounts that it recognises in its separate financial statements. The Company will adjust the amounts
recognised in its financial statements to reflect any adjusting events after the reporting period and update
the disclosures that relate to those conditions in light of the new information. For non-adjusting events
after the reporting period, the Company will not change the amounts recognised in its separate financial
statements but will disclose the nature of the non-adjusting event and an estimate of its financial effect, or
a statement that such an estimate cannot be made, if applicable.

1.3.Significant accounting judgements, estimates and assumptions

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

Other disclosures relating to the Company''s exposure to risks and uncertainties includes:

• Capital management note 32

• Financial risk management note 31

• Sensitivity analyses disclosures notes 31

Judgements

In the process of applying the Company''s accounting policies, management has made the following judgements,
which have the most significant effect on the amounts recognised in the financial statements:

• Determining the lease term of contracts with renewal and termination options - Company as lessee

The Company determines the lease term as the non-cancellable term of the lease, together with any periods
covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by
an option to terminate the lease, if it is reasonably certain not to be exercised.

The Company has several lease contracts that include extension and termination options. The Company
applies judgement in evaluating whether it is reasonably certain whether or not to exercise the option to
renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive for
it to exercise either the renewal or termination. After the commencement date, the Company reassesses
the lease term if there is a significant event or change in circumstances that is within its control and affects
its ability to exercise or not to exercise the option to renew or to terminate (e.g., construction of significant
leasehold improvements or significant customisation to the right-of-use assets).

Estimates and judgements are continually evaluated. They are based on historical experience and other
factors, including expectations of future events that may have a financial impact on the company and that
are believed to be reasonable under the circumstances.

• Revenue from contracts with customers

The Company''s contracts with customers include promises to transfer service to the customers. Judgement
is required to determine the transaction price for the contract. The transaction price could be either a fixed
amount of customer consideration or variable consideration with elements such as schemes, incentives,
cash discounts, etc. The estimated amount of variable consideration is adjusted in the transaction price
only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue
recognised will not occur and is reassessed at the end of each reporting period.

Estimates of rebates and discounts are sensitive to changes in circumstances and the Company''s past
experience regarding returns and rebate entitlements may not be representative of customers'' actual returns
and rebate entitlements in the future.

Costs to obtain a contract are generally expensed as incurred. The assessment of this criteria requires the
application of judgement, in particular when considering if costs generate or enhance resources to be used
to satisfy future performance obligations and whether costs are expected to be recovered.

• Provisions and contingent liabilities

The Company exercises judgement in measuring and recognising provisions and the exposures to contingent
liabilities which is related to pending litigation or other outstanding claims. Judgement is necessary in
assessing the likelihood that a pending claim will succeed, or a liability will arise, and to quantify the possible
range of the financial settlement. Because of the inherent uncertainty in this evaluation process, actual
liability may be different from the originally estimated as provision. (Refer note 27)

Estimates and assumptions

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

• Useful lives and residual values of property, plant and equipment

The Company reviews the estimated residual values and expected useful lives of assets at least annually.
In particular, the Company considers the impact of health, safety and environmental legislation in its
assessment of expected useful lives and estimated residual values. Furthermore, the Company considers
climate-related matters, including physical and transition risks. Specifically, the Company determines
whether climate-related legislation and regulations might impact either the useful life or residual values.

• Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable
amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less
costs of disposal calculation is based on available data from binding sales transactions, conducted at arm''s
length, for similar assets or observable market prices less incremental costs for disposing of the asset. The
value in use calculation is based on a DCF model. The cash flows are derived from the budget for the next
five years and do not include restructuring activities that the Company is not yet committed to or significant
future investments that will enhance the asset''s performance of the CGU being tested. The recoverable
amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows
and the growth rate used for extrapolation purposes.

• Provision for expected credit loss of trade receivables

Trade receivables are typically unsecured and are derived from revenue earned from customers. Credit risk
has been managed by the Company through credit approvals, establishing credit limits and continuously
monitoring the creditworthiness of customers to which the Company grants credit terms in the normal
course of business. In accordance with Ind AS 109, the Company uses expected credit loss model to assess
the impairment loss or gain. The Company uses a provision matrix and forward-looking information and an
assessment of the credit risk over the expected life of the financial asset to compute the expected credit
loss allowance for trade receivables.

The provision matrix is initially based on the Company''s historical observed default rates. The Company
will calibrate the matrix to adjust the historical credit loss experience with forward-looking information. At
every reporting date, the historical observed default rates are updated and changes in the forward-looking
estimates are analysed.

The assessment of the correlation between historical observed default rates, forecast economic conditions
and ECLs is a significant estimate. The amount of ECLs is sensitive to changes in circumstances and of
forecast economic conditions. The Company''s historical credit loss experience and forecast of economic
conditions may also not be representative of customer''s actual default in the future. The information about
the ECLs on the Company''s trade receivables is disclosed in note 31.

• Recognition of deferred tax assets for carried forward losses and 35AD benefits

The Company has carried forward unused tax losses that are available for offset against future taxable profit.
Deferred tax assets are recognised only to the extent that it is probable that taxable profit will be available
against which the unused tax losses can be utilised. This involves an assessment of when those assets
are likely to reverse, and a judgement as to whether or not there will be sufficient taxable profits available
to offset the assets. This requires assumptions regarding future profitability, which is inherently uncertain.
To the extent assumptions regarding future profitability change, there can be an increase or decrease in the
amounts recognised in respect of deferred tax assets and consequential impact in the statement of profit
and loss. (Refer note 7)

• Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined
using actuarial valuations. An actuarial valuation involves making various assumptions that may differ
from actual developments in the future. These include the determination of the discount rate, future salary
increases and mortality rates. All assumptions are reviewed at each reporting date. Any changes in these
assumptions will impact the carrying amount of such obligations.

The calculation is most sensitive to changes in the discount rate. In determining the appropriate discount
rate for plans operated in India, the management considers the interest rates of government bonds where
remaining maturity of such bond correspond to expected term of defined benefit obligation.

The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality
tables tend to change only at interval in response to demographic changes. Future salary increases and
gratuity increases are based on expected future inflation rates for the respective countries. Refer note 26 for
the details of the assumptions used in estimating the defined benefit obligation.

• Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be
measured based on quoted prices in active markets, their fair value is measured using valuation techniques
including the DCF model. The inputs to these models are taken from observable markets where possible, but
where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include
considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these
factors could affect the reported fair value of financial instruments. (Refer note 30).

• Leases - estimating the incremental borrowing rate

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental
borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would have

to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of
a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what
the Company ''would have to pay'', which requires estimation when no observable rates are available. The
Company estimates the IBR using observable inputs (such as market interest rates) when available and is
required to make certain entity-specific estimates (such as the credit rating).

2.4 Changes in accounting policies and disclosures
New and amended standards

The Company applied for the first-time certain standards and amendments, which are effective for annual
periods beginning on or after 1 April 2024. The Company has not early adopted any standard, interpretation or
amendment that has been issued but is not yet effective.

(i) Ind AS 117 Insurance Contracts

The Ministry of Corporate Affairs (MCA) notified the Ind AS 117, Insurance Contracts, vide notification dated
12 August 2024, under the Companies (Indian Accounting Standards) Amendment Rules, 2024, which is
effective from annual reporting periods beginning on or after 1 April 2024.

Ind AS 117 Insurance Contracts is a comprehensive new accounting standard for insurance contracts
covering recognition and measurement, presentation and disclosure. Ind AS 117 replaces Ind AS 104
Insurance Contracts. Ind AS 117 applies to all types of insurance contracts, regardless of the type of entities
that issue them as well as to certain guarantees and financial instruments with discretionary participation
features; a few scope exceptions will apply. Ind AS 117 is based on a general model, supplemented by:

• A specific adaptation for contracts with direct participation features (the variable fee approach)

• A simplified approach (the premium allocation approach) mainly for short-duration contracts

The application of Ind AS 117 does not have material impact on the Company''s separate financial statements
as the Company has not entered any contracts in the nature of insurance contracts covered under Ind AS
117.

(ii) Amendments to Ind AS 116 Leases - Lease Liability in a Sale and Leaseback

''The MCA notified the Companies (Indian Accounting Standards) Second Amendment Rules, 2024, which
amend Ind AS 116, Leases, with respect to Lease Liability in a Sale and Leaseback.

The amendment specifies the requirements that a seller-lessee uses in measuring the lease liability arising
in a sale and leaseback transaction, to ensure the seller-lessee does not recognise any amount of the gain
or loss that relates to the right of use it retains.

The amendment is effective for annual reporting periods beginning on or after 1 April 2024 and must be
applied retrospectively to sale and leaseback transactions entered into after the date of initial application of
Ind AS 116.

The amendments do not have a material impact on the Company''s financial statements.

The below two amendments are not yet notified but expected to be notified soon.

(i) Amendments to Ind AS 7 and Ind AS 107 - Supplier Finance Arrangements

The MCA issued amendments to Ind AS 7 Statement of Cash Flows and Ind AS 107 Financial Instruments:
Disclosures which clarify the characteristics of supplier finance arrangements and require additional
disclosure of such arrangements. The disclosure requirements in the amendments are intended to assist
users of financial statements in understanding the effects of supplier finance arrangements on an entity''s
liabilities, cash flows and exposure to liquidity risk. The amendments have not had an impact on the financial
statements of the Company.

(ii) Amendments to Ind AS 1 - Classification of Liabilities as Current or Non-current

The MCA issued amendments to paragraphs 69 to 76 of Ind AS 1 to specify the requirements for classifying
liabilities as current or non-current. The amendments clarify:

• What is meant by a right to defer settlement

• That a right to defer must exist at the end of the reporting period

• That classification is unaffected by the likelihood that an entity will exercise its deferral right

• That only if an embedded derivative in a convertible liability is itself an equity instrument would the
terms of a liability not impact its classification

In addition, a requirement has been introduced to require disclosure when a liability arising from a loan
agreement is classified as non-current and the entity''s right to defer settlement is contingent on compliance
with future covenants within twelve months.

The amendments have not had an impact on the classification of Company''s liabilities.

2.5 Climate - related matters

The Company considers climate-related matters in estimates and assumptions, where appropriate. This
assessment includes a wide range of possible impacts on the Company due to both physical and transition risks.
Even though the Company believes its business model and products will still be viable after the transition to a low-
carbon economy, climate-related matters increase the uncertainty in estimates and assumptions underpinning
several items in the financial statements. Even though climate-related risks might not currently have a significant
impact on measurement, the Company is closely monitoring relevant changes and developments, such as new
climate-related legislation. The items and considerations that are most directly impacted by climate-related
matters are:

• Useful life of property, plant and equipment. When reviewing the residual values and expected useful lives of
assets, the Company considers climate-related matters, such as climate-related legislation and regulations
that may restrict the use of assets or require significant capital expenditures.

• Impairment of non-financial assets. The value-in-use may be impacted in several different ways by transition
risk in particular, such as climate-related legislation and regulations and changes in demand for the
Company''s products and services.

• Fair value measurement for land and buildings, the Company considers the effect of physical and transition
risks and whether investors would consider those risks in their valuation. The Company believes it is not
currently exposed to severe physical risks, but believes that investors, to some extent, would consider
impacts of transition risks in their valuation, such as increasing requirements for energy efficiency of
buildings due to climate-related legislation and regulations as well as tenants'' increasing demands for low-
emission buildings.

• Decommissioning liability the impact of climate-related legislation and regulations is considered in
estimating the timing and future costs of decommissioning liabilities, whenever applicable.

Further, title deeds in respect of certain immovable properties having gross and net book value of INR 1,298.86 lakhs

(March 31, 2024: INR 1,298.86 lakhs) included in property, plant, and equipment which are pledged with Axis Bank

and are not available with the Company. The same has been independently confirmed by the bank.

ii. Buildings include leasehold building and self constructed building on leasehold land with net book value of INR
12,201.72 lakhs (March 31, 2024: INR 14,238.54 lakhs).

iii. Contractual obligations: The Company has contractual commitments for the acquisition of property, plant and
equipment (refer note 27(c)).

iv. Assets pledged as security for borrowings: Refer note 34 and 35 for information on property, plant and equipment,
pledged as security by the Company.

v. The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible
assets or both during the current or previous year.

vi. The Company undertook three capex projects at the Lucknow, Krishnapatnam, and Kolkata locations during
the current year. The Lucknow project was capitalised in November 2024, while the Kolkata and Krishnapatnam
projects are expected to be completed in the next financial year. Borrowing costs capitalised during the year
ended March 31, 2025 was INR 139.00 lakhs (March 31,2024: Nil). The rate used for capitalisation was 8.55%
p.a., representing the effective interest rate of the specific borrowing. No borrowing costs have been capitalised
on other items of property, plant and equipment under construction.

vii. a) Capital work-in-progress as at March 31, 2025 mainly comprises construction cost of warehouse facility at
Kolkata location of INR 4,389.64 lakhs (March 31, 2024: INR 923.77 lakhs) and Krishnapatnam location of INR
894.23 lakhs (March 31, 2024: Nil) and an office at Delhi location of Nil ((March 31,2024: INR 451.54 lakhs).

Significant estimate

The Company has recognized deferred tax asset on carried forward losses under section 35AD of the Income-
tax Act, 1961.

In accordance with Finance (No. 2) Act, 2024 promulgated during the year, the Company has reassessed that
the effective tax rate of the Company will increase from 29.12% to 34.94% attracting a higher tax. Accordingly,
as per Ind AS, deferred tax assets have been remeasured as at year end and an additional deferred tax credit of
INR 551.47 lakhs has been recognized during the year ended March 31,2025. Accordingly profit after tax for the
year is higher by the same amount.

As at March 31, 2025, the Company has recognised deferred tax liabilities of INR 10,349.95 lakhs (March 31,
2024: INR 9,562.47 lakhs) and deferred tax assets of INR 13,530.20 lakhs (March 31, 2024: INR 12,416.53 lakhs)
on other temporary differences which will be adjusted for computation of future years taxable income.

The Company has unused losses under section 35AD as at March 31, 2025 of INR 19,322.68 lakhs (March 31,
2024: INR 23,370.25 lakhs) that are available for offsetting against future taxable profits of the Company and has

Note :

(i) On June 26, 2023, the Company entered into ATS with the said related party, GDL to purchase land of 1.71
acres at Krishnapatnam for a consideration of INR 230.85 lakhs against which the Company had paid 100%
advance of INR 230.85 lakhs and capitalized same in books. Also, on June 11,2024, the Company entered
into an Agreement to Sell ("ATS") with its related party, Gateway Distriparks Limited ("GDL'') to purchase land
of 7.63 acres and two warehouses at Krishnapatnam for a consideration of INR 2,000.00 lakhs against which
the Company had paid an advance of INR 1,800.00 lakhs. As at March 31,2025 the Company has spent total
amount of INR 3,088.23 lakhs (including capital advance) in respect of said project at Krishnapatnam.

While the Company has obtained the possession of land by paying more than 90% of the consideration
in earlier period, during the current year, the application for registration of the Sale Deed for the said land
parcels was rejected by the Collector and District Collector, Nellore on the grounds that a portion of the said
land was appearing as a government land in revenue records, which cannot be used for private purposes.

26 Disclosures under Ind AS 19

a) Post retirement benefit- defined contribution plans

The Company makes contributions to Provident Fund and Employee State Insurance Corporation (ESIC),
which are defined contribution plan, for qualifying employees. Under the schemes, the Company is required
to contribute a specified percentage of the payroll cost to fund the benefits. The Company has recognised
an amount of INR 198.81 lakhs (March 31,2024: INR 180.16 lakhs) for provident fund contributions and INR
1.88 lakhs (March 31,2024: INR 2.91 lakhs) for contribution to ESIC in the statement of profit and loss. The
contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

b) Post retirement benefit- defined benefit plan

The Company makes annual contribution to the Gratuity Funds Trust which is maintained by LIC of India, a
defined benefit plan for qualifying employees. The gratuity plan is governed by the Payment of Gratuity Act,
1972. Under the Act, employees who have completed prescribed time period of service as per relevant act
are entitled to specific benefit. The level of benefit provided depends on the member''s length of service and
salary at the retirement age. The employee is entitled to a benefit equivalent to 15 days of basic salary last
drawn for each completed year of service.

The present value of the obligation under such defined benefit plan is determined based on an actuarial
valuation as

---

Mar 31, 2024

l) Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of past events, 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. Provisions are not recognised for future operating losses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

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.

Onerous contracts

If the Company has a contract that is onerous, the present obligation under the contract is recognised and

measured as a provision. However, before a separate provision for an onerous contract is established, the Company recognises any impairment loss that has occurred on assets dedicated to that contract.

An onerous contract is a contract under which the unavoidable costs (i.e., the costs that the Company cannot avoid because it has the contract) of meeting the obligations under the contract exceed the economic benefits expected to be received under it. The unavoidable costs under a contract reflect the least net cost of exiting from the contract, which is the lower of the cost of fulfilling it and any compensation or penalties arising from failure to fulfil it. The cost of fulfilling a contract comprises the costs that relate directly to the contract (i.e., both incremental costs and an allocation of costs directly related to contract activities).

m) Retirement and other employee benefits

The Company pays provident fund and employee state insurance corporation to publicly administered provident and ESI funds as per local regulations. The Company has no further payment obligation, once the contribution have been paid. The Company recognizes contribution payable to the provident fund scheme as an expense, when an employee renders the related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution already paid. If the contribution already paid exceeds the contribution due for services received before the balance sheet date, then excess is recognized as an asset to the extent that the pre-payment will lead to, for example, a reduction in future payment or a cash refund.

Gratuity obligation

The Company operates a defined benefit gratuity plan in India, which requires contributions to be made to a separately administered fund. The liability recognised in the balance sheet in respect of defined benefit gratuity plan is the present value of the defined obligation at the end of the reporting period less the fair value of plan assets. The gratuity plan of the Company is funded. The cost of providing benefits under the defined benefit plan is determined using the projected unit credit method.

Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability), are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Remeasurements are not reclassified to profit or loss in subsequent periods.

Past service costs are recognised in profit or loss on the earlier of:

• The date of the plan amendment or curtailment, and

• The date that the Company recognises related restructuring costs.

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Company recognises the following changes in the net defined benefit obligation as an expense in the Standalone statement of profit and loss:

• Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine settlements; and

• Net interest expense or income.

Leave obligations

Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-term employee benefit. The Company measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date. The Company recognizes expected cost of short-term employee benefit as an expense, when an employee renders the related service.

The Company treats accumulated leave expected to be carried forward beyond twelve months, as longterm employee benefit for measurement purposes. Such long-term compensated absences are provided for based on the actuarial valuation using the projected unit credit method at the reporting date. Actuarial gains/ losses are immediately taken to the statement of profit and loss and are not deferred. The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer the settlement for at least twelve months after the reporting date.

n) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial assets

Initial recognition and measurement

Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through other comprehensive income (OCI), and fair value through profit or loss.

The classification of financial assets at initial recognition depends on the financial asset''s contractual cash flow characteristics and the Company''s business model for managing them. With the exception of trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient, the Company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient are measured at the transaction price determined under Ind AS 115. Refer to the accounting policies in section Revenue from contracts with customers.

In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to give rise to cash flows that are ''solely payments of principal and interest (SPPI)'' on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. Financial assets with cash flows that are not SPPI are classified and measured at fair value through profit or loss, irrespective of the business model.

The Company''s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. Financial assets classified and measured at amortised cost are held within a business model with the objective to hold financial assets in order to collect contractual cash flows while financial assets classified and measured at fair value through OCI are held within a business model with the objective of both holding to collect contractual cash flows and selling.

Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Company commits to purchase or sell the asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

• Financial assets at amortised cost (debt instruments)

• Financial assets at fair value through other comprehensive income (FVTOCI) with recycling of cumulative gains and losses (debt instruments)

• Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments)

• Financial assets at fair value through profit or loss

Financial assets at amortised cost (debt instruments)

A ''financial asset'' is measured at the amortised cost if both the following conditions are met:

• The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

• Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

This category is the most relevant to the Company. After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in other income in the profit or loss. The losses arising from impairment are recognised in the profit or loss. The Company''s financial assets at amortized cost includes trade and other receivables. For more information on receivables, refer to note 6A.

Financial assets at fair value through OCI (FVTOCI) (debt instruments)

A ''financial asset'' is classified as at the FVTOCI if both of the following criteria are met:

• The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and

• The asset''s contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognized in the other comprehensive income (OCI). However, the Company recognizes interest income, impairment losses & reversals and foreign exchange gain or loss in the statement of profit and loss. On de-recognition of the asset, cumulative gain or loss previously recognised in OCI is reclassified from the equity to statement of profit and loss. Interest earned whilst holding FVTOCI debt instrument is reported as interest income using the EIR method. The Company has not designated any debt instrument as at FVTOCI.

Financial assets designated at fair value through OCI (equity instruments)

Upon initial recognition, the Company can elect to classify irrevocably its equity investments as equity instruments designated at fair value through OCI when they meet the definition of equity under Ind AS 32 Financial Instruments: Presentation and are not held for trading. The classification is determined on an instrument-by-instrument basis. Equity instruments which are held for trading and contingent consideration recognised by an acquirer in a business combination to which Ind AS103 applies are classified as at FVTPL.

Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as other income in the statement of profit and loss when the right of payment has been established, except when the Company benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment.

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss are carried in the balance sheet at fair value with net changes in fair value recognised in the statement of profit and loss.

This category includes derivative instruments and listed equity investments which the Company had not irrevocably elected to classify at fair value through OCI. Dividends on listed equity investments are recognised in the statement of profit and loss when the right of payment has been established.

De-recognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e. removed from the balance sheet) when:

• The rights to receive cash flows from the asset have expired, or

• The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ''passthrough'' arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Company''s continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.

Impairment of financial assets

Further disclosures relating to impairment of financial assets are also provided in the following notes:

• Disclosures for significant assumptions - see note 30 and note 31

• Trade receivables and contract assets - see note 6A and 6G

The Company recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

For trade receivables and contract assets, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Company has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

The Company considers a financial asset in default when contractual payments are 90 days past due. However, in certain cases, the Company may also consider a financial asset to be in default when internal or external information indicates that the Company is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Company. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original EIR.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, financial guarantee contracts and derivative financial instruments.

Subsequent measurement

For purposes of subsequent measurement, financial liabilities are classified in two categories:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss.

Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments.

Gains or losses on liabilities held for trading are recognised in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/ losses are not subsequently transferred to P&L. However, the Company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of profit or loss. The Company has not designated any financial liability as at fair value through profit and loss.

Financial liabilities at amortised cost (Loans and borrowings)

This is the category most relevant to the Company. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.

This category generally applies to borrowings. For more information refer Note 12A and 12B.

Financial guarantee contracts

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognised less, when appropriate, the cumulative amount of income recognised in accordance with the principles of Ind AS 115.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.

Reclassification of financial assets

The Company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets. Changes to the business model are expected to be infrequent. The Company''s senior management determines change in the business model as a result of external or internal changes which are significant to the Company''s operations. Such changes are evident to external parties. A change in the business model occurs when the Company either begins or ceases to perform an activity that is significant to its operations. If the Company reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period following the change in business model. The Company does not restate any previously recognised gains, losses (including impairment gains or losses) or interest.

Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.

o) Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, that are readily convertible to a known amount of cash and subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash management.

p) Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year which are unpaid. The amounts are unsecured. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognised initially at their fair value and subsequently measured at amortised cost using effective interest method.

q) Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction cost) and redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates.

Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in statement of profit and loss.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. Where there is a breach of a material provision of a long-term arrangement on or before the end of the reporting period with the effect that the liability becomes payable on demand on the reporting date, the entity does not classify the liability as current, if the lender agreed, after the reporting period and before the approval of the financial statements for issue, not to demand payment as a consequence of the breach.

r) Inventories

a) Basis of valuation:

Inventories are valued at lower of cost and net realizable value after providing cost of obsolescence, if any. The comparison of cost and net realizable value is made on an item-by-item basis.

b) Method of Valuation:

(i) Cost of traded goods has been determined by using first in first out cost method and comprises all costs of purchase, duties, taxes (other than those subsequently recoverable from tax authorities) and all other costs incurred in bringing the inventories to their present location and condition.

(ii) Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

s) Dividends

The Company recognises a liability to pay dividend to equity holders of the parent when the distribution is authorised, and the distribution is no longer at the discretion of the Company. As per the corporate laws in India, a distribution is authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity.

t) Earnings per share

i. Basic earnings per share

Basic earnings per share is calculated by dividing the net profit or loss attributable to the equity holders of the Company by the weighted average number of equity share outstanding during the financial year.

The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share split, and reverse share split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources.

ii. Diluted earnings per share

Diluted earnings per share adjusts the figure used in the determination of basic earnings per share to take into account:

• the after income tax effect of interest and other financing costs associated with dilutive potential equity

shares, and

• the weighted average number of additional equity shares that would have been outstanding assuming the

conversion of all dilutive potential equity shares.

u) Contingent liabilities and contingent assets

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by- the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. The Company does not recognize the contingent asset in its financial statements since this may result in the recognition of income that may never be realised. Where an inflow of economic benefits are probable, the Company disclose a brief description of the nature of contingent assets at the end of the reporting period. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and the Company recognize such assets.

2.3. Changes in accounting policies and disclosures

New and amended standards

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Amendment Rules, 2023 dated 31 March 2023 to amend the following Ind AS which are effective for annual periods beginning on or after 1 April 2023. The Company applied for the first-time these amendments.

(i) Definition of Accounting Estimates - Amendments to Ind AS 8

The amendments clarify the distinction between changes in accounting estimates and changes in accounting policies and the correction of errors. It has also been clarified how entities use measurement techniques and inputs to develop accounting estimates.

The amendments had no impact on the Company''s financial statements.

(ii) Disclosure of Accounting Policies - Amendments to Ind AS 1

The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ''significant'' accounting policies with a requirement to disclose their ''material'' accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures.

The amendments have had an impact on the Company''s disclosures of accounting policies, but not on the measurement, recognition or presentation of any items in the Company''s financial statements.

(iii) Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to Ind AS 12

The amendments narrow the scope of the initial recognition exception under Ind AS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases.

The Company previously recognised for deferred tax on leases on a net basis. As a result of these amendments, the Company has recognised a separate deferred tax asset in relation to its lease liabilities and a deferred tax liability in relation to its right-of-use assets. Since, these balances qualify for offset as per the requirements of paragraph 74 of Ind AS 12, there is no impact in the balance sheet. There was also no impact on the opening retained earnings as at 1 April 2022.

Apart from these, consequential amendments and editorials have been made to other Ind AS like Ind AS 101, Ind AS 103, Ind AS 107, Ind AS 109 and Ind AS 115.

2.4. Significant accounting judgements, estimates and assumptions

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

Other disclosures relating to the Company''s exposure to risks and uncertainties includes:

• Capital management note 32

• Financial risk management note 31

• Sensitivity analyses disclosures note 31.

Judgements

In the process of applying the Company''s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the financial statements:

• Determining the lease term of contracts with renewal and termination options - Company as lessee

The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised.

The Company has several lease contracts that include extension and termination options. The Company applies judgement in evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive for it to exercise either the renewal or termination. After the commencement date, the Company reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects

its ability to exercise or not to exercise the option to renew or to terminate (e.g., construction of significant leasehold improvements or significant customisation to the leased asset).

Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the company and that are believed to be reasonable under the circumstances.

• Revenue from contracts with customers

The Company''s contracts with customers include promises to transfer service to the customers. Judgement is required to determine the transaction price for the contract. The transaction price could be either a fixed amount of customer consideration or variable consideration with elements such as schemes, incentives, cash discounts, etc. The estimated amount of variable consideration is adjusted in the transaction price only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur and is reassessed at the end of each reporting period.

Estimates of rebates and discounts are sensitive to changes in circumstances and the Company''s past experience regarding returns and rebate entitlements may not be representative of customers'' actual returns and rebate entitlements in the future.

Costs to obtain a contract are generally expensed as incurred. The assessment of this criteria requires the application of judgement, in particular when considering if costs generate or enhance resources to be used to satisfy future performance obligations and whether costs are expected to be recovered.

• Provisions and Contingent Liabilities

The Company exercises judgement in measuring and recognising provisions and the exposures to contingent liabilities which is related to pending litigation or other outstanding claims. Judgement is necessary in assessing the likelihood that a pending claim will succeed, or a liability will arise, and to quantify the possible range of the financial settlement. Because of the inherent uncertainty in this evaluation process, actual liability may be different from the originally estimated as provision. (Refer Note 27)

• Estimates and assumptions

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

• Estimated useful life of tangible and intangible assets

The charge in respect of periodic depreciation is derived after determining an estimate of an asset''s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Company''s assets are determined by management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology. For the relative size of the Company''s tangible and intangible assets, refer Note 3 and 4.

• Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm''s

length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model. The cash flows are derived from the budget for the next five years and do not include restructuring activities that the Company is not yet committed to or significant future investments that will enhance the asset''s performance of the CGU being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes.

• Provision for expected credit loss of trade receivables

Trade receivables are typically unsecured and are derived from revenue earned from customers. Credit risk has been managed by the Company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. In accordance with Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix and forward-looking information and an assessment of the credit risk over the expected life of the financial asset to compute the expected credit loss allowance for trade receivables.

The provision matrix is initially based on the Company''s historical observed default rates. The Company will calibrate the matrix to adjust the historical credit loss experience with forward-looking information. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed.

The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is a significant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions. The Company''s historical credit loss experience and forecast of economic conditions may also not be representative of customer''s actual default in the future. The information about the ECLs on the Company''s trade receivables is disclosed in note 31.

• Recognition of deferred tax assets for carried forward losses and 35AD benefits

The Company has carried forward unused tax losses that are available for offset against future taxable profit. Deferred tax assets are recognised only to the extent that it is probable that taxable profit will be available against which the unused tax losses can be utilised. This involves an assessment of when those assets are likely to reverse, and a judgement as to whether or not there will be sufficient taxable profits available to offset the assets. This requires assumptions regarding future profitability, which is inherently uncertain. To the extent assumptions regarding future profitability change, there can be an increase or decrease in the amounts recognised in respect of deferred tax assets and consequential impact in the statement of profit and loss. (Refer note 7)

• Estimation of defined benefit obligation

The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. All assumptions are reviewed at each reporting date. Any changes in these assumptions will impact the carrying amount of such obligations.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds where remaining maturity of such bond correspond to expected term of defined benefit obligation.

The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates for the respective countries. Refer note 26 for the details of the assumptions used in estimating the defined benefit obligation.

• Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. (Refer Note 30).

• Leases - estimating the incremental borrowing rate

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Company ''would have to pay'', which requires estimation when no observable rates are available. The Company estimates the IBR using observable inputs (such as market interest rates) when available and is required to make certain entity-specific estimates (such as the credit rating).

Significant estimate

Company has recognized deferred tax asset on brought forward losses and deduction available under section 35AD of the Income Tax Act, 1961.

The tax impact for the above purpose has been arrived at by applying a tax rate of 29.12% (31 March 2023: 29.12%) being the prevailing tax rate for Indian Companies under the Income Tax Act, 1961.

At 31 March 2024, the Company has recognised deferred tax liability of INR 9,562.47 lakhs (31 March 2023: INR 9,462.70 lakhs ) and deferred tax assets of INR 12,416.53 lakhs (31 March 2023: INR 13,157.24 lakhs) on other temporary differences which will be adjusted for computation of future years taxable income.

The Company has unused section 35AD losses as at 31 March 2024 of INR 23,370.25 lakhs (March 31, 2023: INR 28,640.82 lakhs) that are available for offsetting against future taxable profits of the company and has recognised deferred tax asset as at 31 march 2024 of INR 6,805.41 (31 March 2023: INR 8,341.82 lakhs) on unused section 35AD losses (refer note 27(a)).

26 Disclosures under Ind AS 19

a) Post retirement benefit- defined contribution plans

The Company makes contributions to Provident Fund and Employee State Insurance Corporation (ESIC), which are defined contribution plan, for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll cost to fund the benefits. The Company has recognised an amount of INR 180.16 lakhs (31 March 2023: INR 159.84 lakhs) for provident fund contributions and INR 2.91 lakhs (31 March 2023: INR 4.07 lakhs) for contribution to ESIC in the statement of profit and loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

b) Post retirement benefit- defined benefit plan

The Company makes annual contribution to the Gratuity Funds Trust which is maintained by LIC of India, a defined benefit plan for qualifying employees. The gratuity plan is governed by the Payment of Gratuity Act,

1972. Under the Act, employees who have completed prescribed time period of service as per relevant act are entitled to specific benefit. The level of benefit provided depends on the member''s length of service and salary at the retirement age. The employee is entitled to a benefit equivalent to 15 days of salary last drawn for each completed year of service.

The present value of the obligation under such defined benefit plan is determined based on an actuarial valuation as at the reporting date using the "projected unit credit" method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligations are measured at the present value of the estimated future cash flows. Actuarial gains and tosses (net of tax) are recognised immediately in the Other Comprehensive Income (OCI).

Risk Exposure

These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.

Investment risk

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. The Gratuity plan is funded with Life Insurance Corporation of India (LIC). The Company does not have any liberty to manage the fund provided to LIC.

Interest risk

A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan''s debt investments.

Longevity risk

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants during their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Salary risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

ii) Property tax matters:

The order dated 06 February 2023 demanding INR 12.68 lakhs was received by the Company from Panvel Municipal Corporation (PMC) for its warehouse for the payment of property taxes at an incremental rate retrospectively from the years 2016 to 2022. The Company draws reference to provisions of Section 129A of the Maharashtra Municipal Corporation Act, 1949 and recalculated the amount and paid INR 8.42 lakhs to PMC as "Deposit under Protest". Though the Company has made a provision on deposit paid under protest to PMC and a legal case has also been filed against the demand in Bombay High Court through Taloja Industrial Association (TMA) on behalf of the entire Taloja Industries against exorbitantly high property tax by PMC and the liability which may rise is assessed contingent.

During the current year, the Company has paid balance amount of the demand to PMC along with penalty.

iii) Goods and Service Tax/VAT matters:

The order dated 16 September 2016 u/s 51(7)(c) of the Punjab Value Added Tax Act, 2005 demanding INR 8.42 lakhs was issued by the Assistant Commissioner of taxes. The Company has gone to appeal against the order and believes that the Company is entitled to credits and hence no provision for the aforesaid demand/notices has been made in the financial statements as at March 31, 2024.

Note:

i) The Company maintains gratuity trust with LIC for the purpose of administering the gratuity payment to its employees (M/S Snowman Logistics Limited Employees Gratuity Fund). During the year, the Company contributed INR 2.01 Lakhs (31 March 2023 INR 0.92 Lakhs) to the fund. As at 31 March 2024, the fair value of plan assets was at INR 103.91 lakhs (31 March 2023: INR 133 Lakhs).

E) Loans to/from related parties

No loan has been given/ received to/ from any related parties.

F) Terms and conditions of transactions with related parties

a. Services provided from/to related parties are made in terms equivalent to those that prevail at arm''s length transaction. Other reimbursement of expenses to/from related parties is on cost basis.

b. All other transactions were made on normal commercial terms and conditions and at market rates. c All outstanding balances are unsecured and are repayable/ receivable in cash.

G) There are no guarantees provided on/received for any related party receivables or payables.

H) For the year ended 31 March 2024, the Company has not recorded any impairment of receivables relating to amount owed by related parties (31 March 2023: INR Nil). This assessment is undertaken each financial year through examining the financial position of the related parties and the market in which they operate.

29 Segment information

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker ("CODM") of the Company. The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Chairman and Chief Executive Officer of the Company.

As per Ind AS 108 "Operating segments" the Company has four reportable segments as below :

Warehousing services:

Warehousing services comprises of temperature controlled warehousing service operating across locations servicing customers on pan-India basis.

Transportation services:

The transportation generally facilitates inter-city transport of products and includes door to door service i.e. last mile distribution.

This part of the business provides dry transportation facility also to the customers using the temperature controlled facilities so that the customer gets a one stop solution for all the warehousing requirement.

Consignment agency services:

The Company provides retail distribution through a consignment agency model for customers.

Trading and distribution:

Company now offer sourcing, vendor development, inventory planning and procurement services. Company now also hold inventory and sell on just in time basis to the customers. Company use in-house IT technology to ensure this model efficient and system driven with complete visibility to stake holders.

No operating segments have been aggregated to form the above reportable reporting segments.

The management of the Company monitors the operating results of its segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on the profit/loss and is measured consistently with profit/loss in the financial statements and also the company''s financing (including finance costs and other income) and income taxes are managed on company basis and are not allocated to operating segments.

Adjustments and elimination

Finance cost and other income are not allocated to individual segments as the underlying instruments are managed on a Company basis.

Current taxes, deferred taxes and certain financial assets and liabilities are not allocated to those segments as they are also managed on an overall basis.

30 Fair value

Set out below is a comparison by class of the carrying amounts and fair value of the Company''s financial instruments, other than those with carrying amounts that are reasonable approximations of fair values:

The management assessed that trade receivables, cash and cash equivalents, other bank balances, loan, other financial assets, trade payables, other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

(i) There is an active market for the Company''s quoted investments.

(ii) The fair values of the Company''s interest-bearing borrowings and loans are determined by using DCF method using discount rate that reflects the issuer''s borrowing rate as at the end of the reporting period. The own non-performance risk as at 31 March 2024 was assessed to be insignificant.

(iii) The fair value of security deposit has been estimated using DCF model which consider certain assumptions viz. forecast cash flows, discount rate, credit risk and volatility.

(iv) The fair value of other financial assets and liabilities that are not traded in an active market is determined using unobservable inputs in the model, of which the significant unobservable inputs are disclosed in the tables below. Management regularly assesses a range of reasonably possible alternatives for those significant unobservable inputs and determines their impact on the total fair value.

Fair value hierarchy

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

31 Financial risk management

The Company''s principal financial liabilities, comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations and to provide guarantees to support its operations. The Company''s principal financial assets include trade and other receivables, and cash and cash equivalents that derive directly from its operations. The Company''s financial risk management is an integral part of how to plan and execute its business strategies.

The Company is exposed to market risk, liquidity risk and credit risk. The Company''s senior management oversees the management of these risks. The senior professionals working to manage the financial risks and the appropriate financial risk governance framework for the Company are accountable to the Board of Directors and the Audit Committee. Thi

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Mar 31, 2023

• Provisions and Contingent Liabilities

The Company exercises judgement in measuring and recognising provisions and the exposures to contingent liabilities which is related to pending litigation or other outstanding claims. Judgement is necessary in assessing the likelihood that a pending claim will succeed, or a liability will arise, and to quantify the possible range of the financial settlement. Because of the inherent uncertainty in this evaluation process, actual liability may be different from the originally estimated as provision. (Refer Note 27)

Estimates and assumptions

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

• Estimated useful life of tangible and intangible assets

The charge in respect of periodic depreciation is derived after determining an estimate of an asset''s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Company''s assets are determined by management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology. For the relative size of the Company''s tangible and intangible assets, refer Note 3 and 4.

• Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm''s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model. The cash flows are derived from the budget for the next five years and do not include restructuring activities that the Company is not yet committed to or significant future investments that will enhance the asset''s performance of the CGU being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes.

• Provision for expected credit loss of trade receivables

Trade receivables are typically unsecured and are derived from revenue earned from customers. Credit risk has been managed by the Company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. In accordance with Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix and forward-looking information and an assessment of the credit risk over the expected life of the financial asset to compute the expected credit loss allowance for trade receivables.

The provision matrix is initially based on the Company''s historical observed default rates. The Company will calibrate the matrix to adjust the historical credit loss experience with forward-looking information. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed.

The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is a significant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions. The Company''s historical credit loss experience and forecast of economic conditions may also not be representative of customer''s actual default in the future. The information about the ECLs on the Company''s trade receivables is disclosed in Note 31.

• Recognition of deferred tax assets for carried forward losses and 35AD benefits

The Company has carried forward unused tax losses that are available for offset against future taxable profit. Deferred tax assets are recognised only to the extent that it is probable that taxable profit will be available against which the unused tax losses can be utilised. This involves an assessment of when those assets are likely to reverse, and a judgement as to whether or not there will be sufficient taxable profits available to offset the assets. This requires assumptions regarding future profitability, which is inherently uncertain. To the extent assumptions regarding future profitability change, there can be an increase or decrease in the amounts recognised in respect of deferred tax assets and consequential impact in the statement of profit and loss. (Refer Note 7)

• Estimation of defined benefit obligation

The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined

using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. All assumptions are reviewed at each reporting date. Any changes in these assumptions will impact the carrying amount of such obligations.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds where remaining maturity of such bond correspond to expected term of defined benefit obligation.

The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates for the respective countries. Refer note 26 for the details of the assumptions used in estimating the defined benefit obligation.

• Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. (Refer Note 30).

• Leases - estimating the incremental borrowing rate

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Company ''would have to pay'', which requires estimation when no observable rates are available. The Company estimates the IBR using observable inputs (such as market interest rates) when available and is required to make certain entity-specific estimates (such as the credit rating).

2.4 Changes in accounting policies and disclosures

A. New and amended standards

The Company applied for the first-time certain standards and amendments, which are effective for annual periods beginning on or after 1 April 2022.

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standard) Amendment Rules 2022 dated March 23, 2022, to amend the following Ind AS which are effective from April 01, 2022.

(i) Onerous Contracts - Costs of Fulfilling a Contract - Amendments to Ind AS 37

An onerous contract is a contract under which the unavoidable of meeting the obligations under the contract costs (i.e., the costs that the Group cannot avoid because it has the contract) exceed the economic benefits expected to be received under it.

The amendments specify that when assessing whether a contract is onerous or loss-making, an entity needs to include costs that relate directly to a contract to provide goods or services including both incremental costs (e.g., the costs of direct labour and materials) and an allocation of costs directly related to contract activities (e.g., depreciation of equipment used to fulfil the contract and costs of contract management and supervision). General and administrative costs do not relate directly to a contract and are excluded unless they are explicitly chargeable to the counterparty under the contract.

These amendments had no impact on the financial statements of the Company.

(ii) Reference to the Conceptual Framework - Amendments to Ind AS 103

The amendments replaced the reference to the ICAI''s "Framework for the Preparation and Presentation of Financial Statements under Indian Accounting Standards" with the reference to the "Conceptual Framework for Financial Reporting under Indian Accounting Standard" without significantly changing its requirements. The amendments also added an exception to the recognition principle of Ind AS 103 Business Combinations to avoid the issue of potential ''day 2'' gains or losses arising for liabilities and contingent liabilities that would be within the scope of Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets or Appendix C, Levies, of Ind AS 37, if incurred separately. The exception requires entities to apply the criteria in Ind AS 37 or Appendix C, Levies, of Ind AS 37, respectively, instead of the Conceptual Framework, to determine whether a present obligation exists at the acquisition date.

The amendments also add a new paragraph to IFRS 3 to clarify that contingent assets do not qualify for recognition at the acquisition date.

These amendments had no impact on the financial statements of the Company as there were no contingent assets, liabilities or contingent liabilities within the scope of these amendments that arose during the period.

(iii) Property, Plant and Equipment: Proceeds before Intended Use - Amendments to Ind AS 16

The amendments modified paragraph 17(e) of Ind AS 16 to clarify that excess of net sale proceeds of items produced over the cost of testing, if any, shall not be recognised in the profit or loss but deducted from the directly attributable costs considered as part of cost of an item of property, plant, and equipment.

The amendments are effective for annual reporting periods beginning on or after 1 April 2022. These amendments had no impact on the financial statements of the Company as there were no sales of such items produced by property, plant and equipment made available for use on or after the beginning of the earliest period presented.

(iv) Ind AS 101 First-time Adoption of Indian Accounting Standards - Subsidiary as a first-time adopter

The amendment permits a subsidiary that elects to apply the exemption in paragraph D16(a) of Ind AS 101 to measure cumulative translation differences for all foreign operations in its financial statements using the amounts reported by the parent, based on the parent''s date of transition to Ind AS, if no adjustments were made for consolidation procedures and for the effects of the business combination in which the parent acquired the subsidiary. This amendment is also available to an associate or joint venture that uses exemption in paragraph D16(a) of Ind AS 101.

The amendments are effective for annual reporting periods beginning on or after 1 April 2022 but do not apply to the financial statements.

(v) Ind AS 109 Financial Instruments - Fees in the ''10 per cent'' test for derecognition of financial liabilities

The amendment clarifies the fees that an entity includes when assessing whether the terms of a new or modified financial liability are substantially different from the terms of the original financial liability. These fees include only those paid or received between the borrower and the lender, including fees paid or received by either the borrower or lender on the other''s behalf.

In accordance with the transitional provisions, the Company applies the amendment to financial liabilities that are modified or exchanged on or after the beginning of the annual reporting period in which the entity first applies the amendment (the date of initial application). These amendments had no impact on the standalone financial statements of the Company as there were no modifications of the Company''s financial instruments during the period.

(vi) Ind AS 41 Agriculture - Taxation in fair value measurements

The amendment removes the requirement in paragraph 22 of Ind AS 41 that entities exclude cash flows for taxation when measuring the fair value of assets within the scope of Ind AS 41.

The amendments are effective for annual reporting periods beginning on or after 1 April 2022. The amendments had no impact on the standalone financial statements of the Company as it did not have assets in scope of IAS 41 as at the reporting date.

B. Standards issued but not yet effective

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Amendment Rules, 2023 dated 31 March 2023 to amend the following Ind AS which are effective from 01 April 2023.

(i) Definition of Accounting Estimates - Amendments to Ind AS 8

The amendments clarify the distinction between changes in accounting estimates and changes in accounting policies and the correction of errors. It has also been clarified how entities use measurement techniques and inputs to develop accounting estimates.

The amendments are effective for annual reporting periods beginning on or after 1 April 2023 and apply to changes in accounting policies and changes in accounting estimates that occur on or after the start of that period.

The amendments are not expected to have a material impact on the Company''s financial statements.

(ii) Disclosure of Accounting Policies - Amendments to Ind AS 1

The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ''significant'' accounting policies with a requirement to disclose their ''material'' accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures.

The amendments to Ind AS 1 are applicable for annual periods beginning on or after 1 April 2023. Consequential amendments have been made in Ind AS 107.

The Company is currently revisiting their accounting policy information disclosures to ensure consistency with the amended requirements.

(iii) Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to Ind AS 12

The amendments narrow the scope of the initial recognition exception under Ind AS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences.

The amendments should be applied to transactions that occur on or after the beginning of the earliest comparative period presented. In addition, at the beginning of the earliest comparative period presented, a deferred tax asset (provided that sufficient taxable profit is available) and a deferred tax liability should also be recognised for all deductible and taxable temporary differences associated with leases and decommissioning obligations. Consequential amendments have been made in Ind AS 101. The amendments to Ind AS 12 are applicable for annual periods beginning on or after 1 April 2023.

The Company is currently assessing the impact of the amendments.

i) Income Tax Matters:

1. The Assessing Officer (A.O) vide order u/s 147 read with 143(3) dated 19 December 2006 has disallowed amount of INR 4.62 lakhs by reducing the subsidy received from NHB, from cost of asset stating that the subsidy is directly related to asset. However, the Company draws reference to explanation 10 to Sec 43(1) which applies only if cost of asset is met directly or indirectly by Government or agency stated therein and not in respect of subsidy given to help Company setup business. The company has filed an appeal on same grounds placing its reliance on Apex court decision in case of "CIT vs. PJ.Chemicals" and the appeal is still pending as on the end of reporting date. The Company has assessed that the outflow on account of this assessment is only possible in nature and it may liable contingently.

2. The A.O vide order u/s 143(3) dated 10 December 2009 disallowed expenditure of INR 11 lakhs relating to Fruits and Vegetable project due to "insufficient and inadequate explanation and deficiencies in details" against which the Company has stated that the loss was incurred under a pilot project which has been started as a joint venture with two other Companies. The project suffered a loss and the parties have written off loss in their respective profit/loss ratio in their books. The Company has filed an appeal with CIT(A) and the liability if any which may rise is assessed contingent.

3. The A.O. vide order u/s 143(3) dated 10 December 2009 has disallowed expenditure of INR 4.78 lakhs under head computers @ 60% stating the reason of insufficient details and explanations against which the Company has drawn reference to asset wise listing of additions reported under Form 3CD of Income Tax Act which was not considered before disallowing. The Company has filed an appeal with CIT(A) and the liability if any which may rise is assessed contingent.

4. The A.O. vide order u/s 143(3) dated 10 December 2009 has disallowed income which had arisen from sale of land located at Derabassi for INR 27.52 lakhs, the sale deed of its purchase transaction indicates the land is agricultural in nature. The A.O. contended that the land is not "agricultural land" and has disallowed the income against which the Company preferred an appeal to CIT(A) which is pending as at end of reporting period and liability if any which may arise is assessed contingent.

5. The Company has an appeal pending before CIT(A) in respect of disallowance of depreciation which arose due to difference in rate of depreciation adopted by A.O. and the Company in respect of years A.Y.2003-04, 2007-08 and the amount in dispute is INR 4.19 lakhs and INR 3.62 lakhs for the two years repectively.The outflow if any is assessed contingent.

6. The Company has an appeal pending before CIT(A) for the AY 2007-08 in respect of disallowance of expenditure being treated as penal nature by the A.O. to the tune of INR 2.27 lakhs. The Company assesses the aforesaid expenditure to be contingent.

7. The A.O. vide order u/s 143(3) dated 10 December 2009 has disallowed unabsorbed depreciation losses on the basis that there was a change in the shareholding pattern exceeding the limit specified in Section 79 of the Act. Subsequently vide rectification order dated 04 April 2012, claim of unabsorbed depreciation to the extent of INR 1,767.66 lakhs has been allowed by the A.O. The balance unabsorbed depreciation to the extent of INR 758.29 lacs was not granted on the grounds that the relevant files were not transferred from Kochi Income Tax office to Bangalore IT department. The Company has filed an appeal before CIT(A) and the liability if any which may rise is assessed contingent.

8. The A.O. vide order u/s 143(3) dated 10 December 2009 has disallowed bad debts written off amounting to INR 53.54 lakhs. The Company has filed an appeal before CIT(A) and the liability if any which may rise is assessed contingent.

ii) Property Tax Matters:

The order dated 06 February 2023 demanding INR 12.68 lakhs was received by the Company from Panvel Municipal Corporation (PMC) for its warehouse for the payment of property taxes at an incremental rate retrospectively from the years 2016 to 2022. The Company draws reference to provisions of Section 129A of the Maharashtra Municipal Corporation Act, 1949 and recalculated the amount and paid INR 8.42 lakhs to

PMC as "Deposit under Protest". Though the company has made a provision on deposit paid under protest to PMC and a legal case has also been filed against the demand in Bombay High Court through Taloja Industrial Association (TMA) on behalf of the entire Taloja Industries against exorbitantly high property tax by PMC and the liability which may rise is assessed contingent.

iii) Goods and Service Tax/VAT Matters:

1. The order dated 16 September 2016 u/s 51(7)(c) of the Punjab Value Added Tax Act, 2005 demanding INR 8.42 lakhs was issued by the Assistant Commissioner of taxes alleging that goods were not reported at the check post of Information Collection Centre at the time of entering the goods at Punjab, however Company has able to substantiate that the goods were duly reported at the check post by the driver of vehicle while entering at Punjab. On the same ground Company has gone to appeal against the order and assessed the liability as contingent.

2. The show cause notice dated 10 August 2022 u/s 61 of CGST Act, 2017 and WBGST Act, 2017 intimating discrepancy of INR 31.44 lakhs was issued by West Bengal Goods and Service Tax department alleging short payment of outward tax liability and excess availment of Input tax credit in GST returns for the financial year 2017-18. The clarifications filed by the company are yet to be adjudicated by the department and hence the company assessed the liability as contingent.

3. The order dated 29 March 2021 under Kerela Value Added Tax Act, 2005 demanding INR 120.19 lakhs was issue by the Assistant Commissioner of taxes alleging excess credit claimed in annual return and short payment of tax during financial year 2015-16. The company has paid under protest an amount of INR 18.78 lakhs and has filed an appeal with Deputy Commissioner (Appeals). During the current year the Company has applied for settlement of this matter under Kerela Amnesty Scheme 2022, which was accepted by the department on 22 September 2022 and the matter stands disposed.

On the basis of current status of individual case for respective years and as per legal advice obtained by the Company, wherever applicable, the Company is confident of winning the above cases and is of view that no provision is required in respect of these cases.

28.Related party transactions

A) Name of related parties and related parties relationship :

Investing party in respect of which the Company is an associate:

Gateway Distriparks Limited (Formerly known as Gateway Rail Freight Limited)

Entities in which directors / investing party have control/significant influence

Gateway Distriparks Limited (Formerly known as Gateway Rail Freight Limited)

Gateway Distriparks (Kerala) Limited (GDKL)

Container Gateway Limited (CGL)

Kashipur Infrastructure and Freight Terminal Private Limited (KIFTPL)

Prism International Private Ltd. (PIPL)

Perfect Communication Private Limited (PCL)

Newsprint Trading & Sales Corporation (NTSC)

Star Cineplex Private Limited (SCPL)

Rocksolid Enterprises Private Limited (REPL)

Star Data Infra & Services Private Limited (SDISPL)

Key Management Personnel/ Executive Directors:

Mr. Sunil Nair, CEO and Whole time Director

Mr. A M Sundar, CFO, Company Secretary and Compliance Officer (Retired w.e.f 31 July 2022) Mr. Kannan S, CFO (w.e.f 01 August 2022, till 06 August 2022)

Mr. N Balakrishna, CFO (w.e.f 24 January 2023)

Mr. Kiran P George, Company Secretary & Compliance Officer (w.e.f 01 August 2022)

B) Directors of the Company

Independent and Non-Executive Directors

Mr. Prem Kishan Dass Gupta (Non-Executive)

Mrs. Mamta Gupta (Non-Executive till 16 August 2021)

Mr. Shabbir Hakimuddin Hassanbhai (Non-Executive Independent till 14 August 2021)

Mr. Bhaskar Avula Reddy (Non-Executive Independent)

Mr. Arun Kumar Gupta (Non-Executive Independent)

Mr. Anil Aggarwal (Non-Executive Independent)

Mr. Ishaan Gupta (Non-Executive )

Mr. Samvid Gupta (Non-Executive)

Mrs. Shukla Wassan (Non-Executive Independent till 15 May 2022)

Mrs. Vanita Yadav (Non-Executive Independent w.e.f 25 April 2022)

Post retirement benefit plan

M/S Snowman Logistics Limited Employees Gratuity Fund

Note:

i) No balances are outstanding at the end of the reporting year in relation to transactions with the above related parties.

ii) The Company maintains gratuity trust with LIC for the purpose of administering the gratuity payment to its employees (M/S Snowman Logistics Limited Employees Gratuity Fund). During the year, the Company contributed INR 0.91 Lakhs (31 March 2022 INR 2.19 Lakhs) to the fund. As at 31 March 2023, the fair value of plan assets was at INR 132.98 Lakhs (31 March 2022: INR 176.18 Lakhs).

E) Loans to/from related parties

No loan has been given/ received to/ from any related parties.

F) Terms and conditions of transactions with related parties

a. Services provided from/to related parties are made in terms equivalent to those that prevail at arm''s length transaction. Other reimbursement of expenses to/from related parties is on cost basis.

b. All other transactions were made on normal commercial terms and conditions and at market rates.

c. All outstanding balances are unsecured and are repayable/ receivable in cash.

d. There are no guarantees provided on/received for any related party receivables or payables.

29.Segment Information''s

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief

Operating Decision Maker ("CODM") of the Company. The CODM, who is responsible for allocating resources

and assessing performance of the operating segments, has been identified as the Chairman and Chief Executive Officer of the Company.

As per Ind AS 108 "Operating segments" the Company has four reportable segments as below :

Warehousing services:

Warehousing services comprises of temperature controlled warehousing service operating across locations servicing customers on pan-India basis.

Transportation services:

"The transportation generally facilitates inter-city transport of products and includes door to door service i.e. last mile distribution.

This part of the business provides dry transportation facility also to the customers using the temperature controlled facilities so that the customer gets a one stop solution for all the warehousing requirement."

Consignment agency services:

The Company provides retail distribution through a consignment agency model for customers.

Trading and distribution:

Company now offer sourcing, vendor development, inventory planning and procurement services. Company now also hold inventory and sell on just in time basis to the customers. Company use in-house IT technology to ensure this model efficient and system driven with complete visibility to stake holders.

No operating segments have been aggregated to form the above reportable reporting segments.

The management of the Company monitors the operating results of its segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on the profit/loss and is measured consistently with profit/loss in the financial statements and also the company''s financing (including finance costs and other income) and income taxes are managed on company basis and are not allocated to operating segments.

31. Financial risk management

The Company''s principal financial liabilities, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations and to provide guarantees to support its operations. The Company''s principal financial assets include trade and other receivables, and cash and cash equivalents that derive directly from its operations. The Company''s financial risk management is an integral part of how to plan and execute its business strategies.

The Company is exposed to market risk, liquidity risk and credit risk. The Company''s senior management oversees the management of these risks. The senior professionals working to manage the financial risks and the appropriate financial risk governance framework for the Company are accountable to the Board of Directors and the Audit Committee. This process provides assurance to the Company''s senior management that the Company''s financial risk taking activities are governed by appropriate policies and procedures and that the financial risks are identified, measured and managed in accordance with the Company policies and risk objective. The Board of Directors reviews and agrees to policies for managing each of these risks, which are summarised below:

i) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk. Financial instruments affected by market risk include borrowings, deposits and equity investments.

The Company management evaluates and exercise control over process of market risk management. The Board recommends risk management objective and policies which includes management of cash resources, borrowing strategies and ensuring compliance with market risk limits and policies.

ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligations with variable interest rates.

The Company manages its funding requirements through borrowings from different banks. In order to optimize the Company''s position with regards to interest income and interest expense, the Company performs a comprehensive corporate interest rate risk by using different type of economic product of floating rate of borrowings in its total borrowings. The Company has obtained vehicle loan at fixed rate of interest and the remaining borrowings at floating rate of interest.

iii) Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions. Trade receivables are typically unsecured and are derived from revenue earned from customers located in India. Credit risk has always been managed by the Company through continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. In accordance with Ind AS 109, the Company uses expected credit loss model to assess the impairment loss.

Credit Risk Management

Financial instruments and cash deposits

The Company maintains exposure in cash and cash equivalents and term deposits with banks. The Company has diversified portfolio of investment with various number of counter-parties which have good credit ratings, good reputation and hence the risk is reduced. Individual risk limits are set for each counter-party based on financial position, credit rating and past experience. Credit limits and concentration of exposures are actively monitored by the Company. For banks and financial institutions, only high rated banks/institutions are accepted. The Company''s maximum exposure to credit risk as at 31 March 2023 and 31 March 2022 is the carrying value of each class of financial assets.

Trade receivables and other financial assets

Trade receivables are typically unsecured and are derived from revenue earned from customers. Other financial assets are unsecured receivables. It comprises of Interest accrued on fixed deposits, security deposits, other deposits, and deposits with bank with maturity period more than 12 months.

Credit risk has been managed by the Company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. Receivables are deemed to be past due or impaired with reference to the Company''s normal terms and conditions of business. These terms and conditions are determined on a case to case basis with reference to the customer''s credit quality and prevailing market conditions. The Company based on past experiences

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries

(vi) Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(vii) Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(viii) Valuation of PP&E, intangible asset and investment property

The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

(ix) Registration of charges or satisfaction with Registrar of Companies

The Company do not have any charge or satisfaction which is yet to be registered with the Registrar of Companies beyond the statutory period.

(ix) Utilisation of borrowings availed from banks and financial institutions

The borrowings obtained by the company from banks and financial institutions have been applied for the purposes for which such loans were was taken.

(x) Details of benami property held

The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

37. During the current year, Income Tax Department conducted a survey under section 133A of the Income Tax Act, 1961 at Company''s corporate office and one of its locations and have taken certain documents and information for further investigation. The business and operations of the Company continued without any disruptions and no demands have been raised on the Company as of date. Pending final outcome of the above matter(s), management believes that no adjustments are required to be made to these financial statements in this regard.

38. During the year, names of two employees of the Investor company were brought to the attention of the management as having a conflict of interest in connection with certain capital contracts awarded by the Company to three entities whose promoters are relatives of such employees. The management of the Company has conducted a detailed investigation in respect of the above matter involving independent experts and quality testing of all the projects where these parties were involved to assess if there has been any unlawful gains made by such employees of the Investor company. Basis the outcome of the investigation, the management has not identified any adverse observations or a material inconsistency including on the quality of the projects executed and the management has concluded that any potential loss to the Company in respect of the capex projects undertaken is inconsequential to these financial statements of the Company.

39. The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/interpretation have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will

record any related impact in the period the Code becomes effective. Based on a preliminary assessment, the entity believes the impact of the change will not be significant.

40. The figures for the corresponding previous year have been regrouped / reclassified wherever necessary, to make them comparable.

As per our report of even date

For S.R. Batliboi & Co. LLP For and on behalf of the Board of Directors of

Chartered Accountants Snowman Logistics Limited

ICAI firm registration number: 301003E/E300005

per Vishal Sharma Prem Kishan Dass Gupta Sunil Nair

Partner Chairman CEO and Whole Time Director

Membership number: 096766 DIN: 00011670 DIN: 03454719

Place: New Delhi Place: New Delhi Place: New Delhi

Date: May 26, 2023 Date: May 26, 2023 Date: May 26, 2023

N Bala Krishna Kiran P George

Chief Financial Officer Company Secretary

Membership no: 239908 Membership no: 49320

Place: New Delhi Place: New Delhi

Date: May 26, 2023 Date: May 26, 2023

---

Mar 31, 2018

1. Corporate Information

Snowman Logistics limited (the "Company") is a public company domiciled in India and is incorporated in India in 1993, under the provisions of Companies Act applicable in India, is engaged in the business of in providing integrated cold chain solution to users in India. Its shares are listed on two recognised stock exchanges in India. The registered office of the Company is located at Plot No. M8, Taloja Industrial Area, MIDC, Raigad, Navi Mumbai, Maharashtra - 410206.

The Company''s infrastructure comprises of compartmentalized temperature - controlled warehouses in all major cities of the country and a fleet of temperature controlled trucks. The company is focused on its core business of temperature controlled warehousing for frozen and chilled products with transportation division acting as an enabler.

Information on related party relationship of the Company is provided in note 28.

The financial statements were authorised for issue in accordance with a resolution of the directors on 15 May 2018.

Notes:

i. Title deed of Freehold Land situated at Kolkata with carrying value of INR 2.22 lakhs (31 March 2017: INR 2.22 lakhs) is yet to be transferred in the name of the Company.

ii. Represents payments made for acquiring land on lease at various locations for perpetual lease as per the lease deeds.

iii. Includes self constructed building with net book value of INR 18,795.08 lakhs (31 March 2017: INR 19,915.88 lakhs) on leasehold land.

iv. Contractual obligations: Refer to note 27 for disclosure of contractual commitments for the acquisition of property, plant and equipment.

v. Capital work-in-progress (CWIP) includes civil works mainly related to warehouse under constuction.

vi. Assets pledged as Security for borrowings: Refer note 41 for information on property, plant and equipment, pledged as security by the Company.

vii. Capitalised costs Borrowing cost:

Buildings include INR 88.92 lakhs (31 March 2017: INR 359.30 lakhs) towards borrowing costs capitalised during the year. The rate used to determine the amount of borrowing costs eligible for capitalisation was 8.40% (31 March 2017: 8.40%), which is the effective interest rate of the specific borrowing.

Others:

The company incurred expenditure of salary, travelling costs and other miscellaneous expenses during the course of construction of warehouse which have been capitalised. Below is the breakup :

1. Fixed deposits of INR 80.27 lakhs (31 March 2017: INR 31.72 lakhs) held as lien by bank against bank guarantee.

2. Cash at banks earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for varying periods of between one day and three months, depending on the immediate cash requirements of the Company, and earn interest at the respective short-term deposit rates.

3. At 31 March 2018, the Company has available INR 150 lakhs (31 March 2017: INR 3,300 lakhs) of undrawn borrowing facilities.

4. For the purpose of the statement of cash flows, cash and cash equivalents comprise the following:

1. Fixed deposits of INR 1.10 lakhs (31 March 2017: INR 16.80 lakhs) held as lien by bank against bank guarantee.

2. Security deposits are non interest bearing and are expected to be settled as per terms of respective agreements. The carrying value may be affected by changes in the credit risk of the counterparties.

Significant estimate

Company has recognized deferred tax asset on brought forward losses and deduction available under section 35AD of the Income Tax Act, 1961.

The tax impact for the above purpose has been arrived at by applying a tax rate of 34.61% (31 March 2017: 34.61%) being the prevailing tax rate for Indian Companies under the Income Tax Act, 1961.

At 31 March 2018, the Company has recognised deferred tax liability of INR 11,216.42 lakhs (31 March 2017: INR 12,012.91 lakhs) and deferred tax assets of INR 16,627.29 lakhs (31 March 2017: INR 17,423.78 lakhs) on other temporary differences which will be adjusted for computation of future years taxable income.

The Company has unused section 35AD losses of INR 46,874.58 lakhs (March 31, 2017: INR 48,487.48 lakhs) that are available for offsetting against future taxable profits of the company.

The Company has recognised deferred tax asset of INR 15,882.22 lakhs on unused section 35AD losses of INR 45,715.75 lakhs based on analysis of taxable income in near future.

On remaining unused section 35AD losses of INR 1,158.83 lakhs deferred tax assets have not been recognised as there are no tax planning opportunities or other evidence of recoverability in the near future.

During 31, March 2018 the Company had decided to rescind operations at its warehouses at Hyderabad and was under discussion with prospective buyers for sale of its assets and the sale was expected to be completed by 31 March 2019.

Accordingly the asset belongs to hyderabad location were classified from property, plant and equipment to Assets Held for Sale under current assets.

Assets classified as held for sale during the reporting period are measured at lower of its carrying amount and fair value less cost to sell at the time of reclassification. Fair value of the assets were determined using the market approach. This is a level 2 measurement and key inputs under this approach are price per asset comparable for the assets in similar business and technology.

Terms/rights attached to equity shares

The company has only one class of equity shares having par value of INR 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(ii) Shares reserved for issue under options

Information relating to Snowman logistics limited employee option plan, including details of options issued, exercised and lapsed during the financial year and options outstanding at the end of the reporting period, is set out in Note 26.

Nature and purpose of other reserves Securities premium reserve

Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.

Share options outstanding account

The share options outstanding account is used to recognise the grant date fair value of options issued to employees under Snowman Logistics Limited Employee Stock Option Plan (Refer Note 26).

* Security deposits from customers are as per the terms of agreement.

** Retention money relates to vendors for construction of warehouse as per terms of agreement.

*** There are no amounts due and outstanding to be credited to Investor Education and Protection Fund.

During the year under review, the CSR Committee had outlined a road map on the CSR expenditure. However due to the corrective actions taken in terms of change in the business model and strategy, the company has reported a loss during the year. Hence the board in the best interest of the stakeholders opted to defer any expenditure on CSR activities. Moving forward the Company will endeavor to spend on CSR activities in accordance with the prescribed limits.

2. Exceptional Items

During the year 2016-17, the company terminated the contract with a major customer in the Food Services Division. The contract was signed for a three year period in 2015-16. The contract required the company to procure, store and distribute food products used by the customer in its catering business. Since the volumes envisaged by the company were not being met, the division was incurring losses. The management found it prudent to cut losses by rescinding the contract rather than go with it for 2 more years. The company had to incur a loss of INR 265.91 lakhs on account of exit costs, which has been shown as an exceptional item in the financials for the year ended March 31, 2017.

3. Income tax

The major components of income tax expense for the year ended 31 March 2018 and 31 March 2017 are :

Significant estimate

Company has recognized deferred tax asset on brought forward losses and deduction available under section 35AD of the Income Tax Act, 1961.

Deduction under Section 35AD of the Income Tax Act, 1961 has been claimed on eligible amount capitalised during the year, based on future business projections made by the management.

The tax impact for the above purpose has been arrived at by applying a tax rate of 34.60% (31 March 2017: 34.60%) being the prevailing tax rate for Indian Companies under the Income Tax Act, 1961.

4. Earnings per Share

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted average number of Equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

a) Post retirement benefit- defined contribution plans

The company has recognised an amount of INR 102.02 lakhs (31 March 2017: INR 83.36 lakhs) as expenses under the defined contribution plans in the Statement of Profit and Loss in respect of contribution to Provident Fund.

b) Post retirement benefit- defined benefit plan

The company makes provision for gratuity based on actuarial valuation done on projected unit credit method at each Balance Sheet date.

The Company makes annual contribution to the Gratuity Fund Trust which is maintained by LIC of India, a defined benefit plan for qualifying employees. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment as per provisions of Payment of Gratuity Act, 1972. The benefit vests after 5 years of continuous service.

The present value of the defined benefit obligation and the related current service cost are measured using the projected unit credit method with actuarial valuation being carried out at the Balance Sheet date.

1) The discount rate is based on the prevailing market yields of Indian Government securities as at the Balance Sheet date for the estimated term of the obligation.

2) The expected return on plan assets is based on market expectations,at the beginning of the period,for returns over the entire life of the related obligation.The expected return on plan assets reflects changes in the fairvalue of plan assets held during the period as a result of actual contributions paid in to the fund and actual benefits paid out of the fund.

3) The salary escalation rate is the estimate of future salary increase considered taking into account the inflation, seniority, promotion and other relevant factors.

The sensitivity analyses above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

The average duration of the defined benefit plan obligation at the end of the reporting period is 25.94 years (31 March 2017: 25.42 years) Expected contributions to post employment benefits for the year ended March 31, 2019 are INR 107.00 lakhs for the funded plan.

5. Employee Stock Option Plan

Snowman Logistics Limited Stock Option Plan 2012 (ESOP 2012)

Pursuant to the resolution passed by the Shareholders at the Extraordinary General Meeting held on April 24, 2012, the Company had introduced new ESOP scheme for eligible directors and employees of the Company. Under the scheme, options for 51,45,350 (fifty one lakh forty five thousand three hundred and fifty) shares would be available for being granted to eligible employees of the Company and each option (after it is vested) will be exercisable for one equity share of INR 10.60, INR 15.40 and INR 18.30. Compensation Committee finalises the specific number of options to be granted to the employees. Vesting of the options shall take place over a maximum period of 3 years with a minimum vesting period of 1 year from the date of grant.

ii) Income Tax Matters:

1. The AO vide order u/s 147 read with 143(3) dated 19/12/06 has disallowed amount of Rs.4,62,500/- by reducing the subsidy received from NHB, from cost of asset stating that the subsidy is directly related to asset. However the company draws reference to Expl.10 to Sec 43(1) which applies only if cost of asset is met directly or indirectly by government or agency stated therein and not in respect of subsidy given to help company setup business. The company has filed an appeal for AY 2003-04 on same grounds placing its reliance on Apex court decision in case of "CIT vs. PJ.Chemicals" and the appeal is still pending as on the end of reporting date. The Company has assessed that the outflow on account of this assessment is only possible in nature and it may liable contingently.

2. The A.O vide order u/s 143(3) dated 10/12/2009 disallowed expenditure of Rs.11,00,000/- relating to Fruits and Vegetable project due to "insufficient and inadequate explanation and deficiencies in details" against which the company has stated that the loss was incurred under a pilot project which has been started as a joint venture with two other companies. The project suffered a loss and the parties have written off loss in their respective profit/loss ratio in their books. The company has preferred an appeal for AY 2007-08 against the A.O.order with CIT(A) and the company assesses the liability to be contingent.

3. The A.O. vide order u/s 143(3) dated 10/12/2009 has disallowed expenditure under head computers@ 60% stating the reason of insufficient details and explanations against which the company has drawn reference to asset wise listing of additions reported under Clause 14 of 3CD supported by Annexure B which was not considered before disallowing.The company has filed an appeal for AY 2007-08 with CIT (A) and the liability if any which may arise is assessed contingent.

4. The A.O. vide order u/s 143(3) dated 10/12/2009 has disallowed income which had arisen from sale of Land located at Derabassi for Rs.39,00,000/-,the sale deed of its purchase transaction indicates the land is agricultural in nature. The A.O. contended that the land is not "agricultural land" and has disallowed the income against which the company preferred an appeal for AY 2007-08 to CIT(A) which is pending as at end of reporting period and liability if any which may arise is assessed contingent.

5. The Company has an appeal pending before CIT(A) in respect of Disallowance of Depreciation which arose due to Difference in Rate of Depreciaton adopted by A.O. and the company in respect of years A.Y.2003-04,2007-08 and the amount in dispute is Rs.4,19,430/- and 3,62,151/- for the two years respsectively.The outflow if any is assessed contingent.

6. The Company has an appeal pending before CIT(A) for the AY 2007-08 in respect of disallowance of expenditure being treated as penal nature by the A.O. to the tune of Rs.2,27,465/- .The company assesses the aforesaid expenditure to be contingent.

iii) Wealth Tax Matters:

The order dated 16(3) r.w.s 17 of the Wealth Tax Act 30.12.2008 demanding INR 3.02 Lakhs was issued by the A.O alleging that the vacant land owned by the Company falls under the purview of the W.T Act and therfore would be chargeable to the same. The A.O also contended that the motor vehicle which disclosed by the Company after adjusting the vehicle loan would be considered chargeable to the W.T Act. Subsequently the Company has an appeal pending before Asst. Commissioner of Wealth Taxes for the AY 2002-03 for granting relief against the order. The company assesses the liability contingent."

iv) Indirect Tax Matters:

1. The order dated 30U/S 51 (7)(c) of the Punjab Value Added Tax Act, 2005 demanding INR 8.42 lakhs was issued by the Asst. Commissioner of taxes alleging that goods were not reported at the check post of Information Collection Centre at the time of entering the goods at Punjab, however company has able to substantiate that the goods were duly reported at the check post by the driver of vehicle while entering at Punjab. On the same ground company has gone to appeal for AY 2016-17 against the order and assessed the liability contingent.

2. The Assistant Commissioner, VAT Special Circle, Department of Commercial taxes, Kerala issued Assessment order for the year 2011-12 demanding INR 26.92 lakhs (Including Interest of INR 10.07 lakhs) mentioning the irregularities regarding suppression of total turnover INR 63.93 lakhs, difference of INR 1.76 lakhs in audited statement and online return and for concealment of INR 3.67 lakhs in online return. The company has preferred an appeal with the Deputy Commissioner Appeals against the assessment order received.

On the basis of current status of individual case for respective years and as per legal advice obtained by the Company, wherever applicable, the Company is confident of winning the above cases and is of view that no provision is required in respect of these cases.

6. Segment Informations

As per Ind AS 108 "Operating segments" the company has three reportable segments as below :

Warehousing services:

Warehousing services comprises of temperature controlled warehousing service operating across locations servicing customers on pan-India basis.

Transportation services:

The transportation generally facilitates inter-city transport of products and includes door to door service i.e. last mile distribution.

This part of the business provides dry Transportation facility also to the customers using the temperature controlled facilities so that the customer gets a one stop solution for all the warehousing requirement.

Consignment agency services:

The company provides retail distribution through a consignment agency model for customers.

No operating segments have been agreegated to form the above reportable reporting segments.

The management of the company monitors the operating results of its segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on the profit / loss and is measured consistently with profit / loss in the financial statements and also the company''s financing (including finance costs and finance income) and income taxes are managed on company basis and are not allocated to operating segments.

Adjustments and elimination

Finance income and costs, and fair value gains and losses on financial assets are not allocated to individual segments as the underlying instruments are managed on a company basis.

Current taxes, deferred taxes and certain financial assets and liabilities are not alocated to those segments as they are also managed on a group basis.

7. Fair values

Setout below is a comparison by class of the carrying amounts and fair value of the company''s financial instruments, other than those with carrying amounts that are reasonable approximations of fair values:

The management assessed that trade receivables, cash and cash equivalents, other bank balances, loan, other financial assets, trade payables, other financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The fair value of the company''s interest bearing-borrowings are determined by using DCF method using discount rate that reflects the issuer''s borrowing rate as at the end of the reporting period. The own non-performance risk was assessed to be insignificant.

Fair value hierarchy

Level 1: This hierarchy includes financial assets/ liabilities measured using quoted prices.

Level 2: The fair value of financial assets/ liabilities that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an assets/ liabilities are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the assets/ liabilities is included in level 3.

The following table provides the fair value measurement hierarchy of the company''s assets and liabilities.

8. Financial risk management

The Company''s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s risk management is carried out by a corporate finance team under the policies approved by the Board of Directors. The Board provides written principles for overall risk management as well as policies covering specific areas, such as credit risk, interest rate risk and investment of excess liquidity.

i) Market Risk- Interest Rate Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument may fluctuate due to change in market price. The value of a financial instruments may change as result of change in interest rates and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including payable, deposits, loans & borrowings.

The Company management evaluates and exercise control over process of market risk management. The Board recommends risk management objective and policies which includes management of cash resources, borrowing strategies and ensuring compliance with market risk limits and policies.

The sensitivity analysis in the following sections relate to the position as at 31 March 2018 and 31 March 2017.

The analyses exclude the impact of movements in market variables on: the carrying values of gratuity and other post-retirement obligations and provisions. The analysis for the contingent consideration liability is provided in note 27.

The Company assumes that the sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31 March 2018 and 31 March 2017.

ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligations with interest rates.

The Company manages its interest rate risk by having a portfolio of loans and borrowings. In order to optimize the Company''s position with regards to interest income and interest expense, the Company performs a comprehensive corporate interest rate risk by using different type of economic product of floating rate of borrowings in its total portfolio.

iii) Credit Risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to INR 4,435.99 lakhs, INR 3,528.22 lakhs as of 31 March 2018, 31 March 2017 respectively. Trade receivables are typically unsecured and are derived from revenue earned from customers located in India. Credit risk has always been managed by the company through continuously monitoring the creditworthiness of customers to which the company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the company uses expected credit loss model to assess the impairment loss or gain.

Credit Risk Management Financial instruments and cash deposits

The Company maintains exposure in cash and cash equivalents and term deposits with banks. The Company has diversified portfolio of investment with various number of counter-parties which have good credit ratings, good reputation and hence the risk is reduced. Individual risk limits are set for each counter-party based on financial position, credit rating and past experience. Credit limits and concentration of exposures are actively monitored by the Company. For banks and financial institutions, only high rated banks/institutions are accepted. The Company''s maximum exposure to credit risk as at 31 March 2018 and, 31 March 2017 is the carrying value of each class of financial assets as disclosed in note 30.

Trade receivables and other financial assets

Trade receivables are typically unsecured and are derived from revenue earned from customers. Other financial assets are unsecured receivables. It comprises of Interest accrued on fixed deposits, security deposits, other deposits, and deposits with bank with maturity period more than 12 months.

Credit risk has been managed by the Company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix and forward-looking information and an assessment of the credit risk over the expected life of the financial asset to compute the expected credit loss allowance for trade receivables. There are no significant credit risk pertaining to other finacial assets.

Total maximum credit exposure on trade receivable and other financial assets as at 31 March 2018 is INR 6,285.51 lakhs (31 March 2017 is INR 5,414.58 lakhs)

iv) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the dynamic nature of the underlying businesses, company''s finance team maintains flexibility in funding by maintaining availability under committed credit lines.

Maturities of financial liabilities

The table below analyses the company''s financial liabilities into relevant maturity groupings based on their contractual maturities for all nonderivative financial liabilities:

9. Capital Management

Risk Management

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to maintain optimum capital structure to reduce cost of capital and to maximize the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants which otherwise would permit the banks to immediately call loans and borrowings. To maintain or adjust the capital structure, the Compamy may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents.

Consistent with others in the industry, the company monitors capital on the basis of the following gearing ratio:

Net debt (total borrowings net of cash and cash equivalents) divided by total equity (as shown in the balance sheet)

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.

The company has satisfied all financial debt covenants prescribed in the terms of bank loan except as mentioned below:

HDFC

a) Minimum Debt Service Coverage Ratio (DSCR) of 1.35 times to be maintained during the tenure of the loan whereas as on 31 March 2018 it is 1.08 times.

IFC

a) Financial debt should not exceed INR 80 Million whereas as on 31 March 2018 it is INR 1,312.42 million.

b) Current ratio of atleast 1.33 times should be maintained whereas as on 31 March 2018 it is 0.89 times.

c) Historic debt service coverage ratio of not less than 1.50 times whereas as on 31 March 2018 it is 1.08 times.

There is no impact of the breach of covenants and the same has been duly communicated to the bank.

10. Offsetting financial assets and financial liabilities

Collateral against borrowings

Trade receivables and non-current assets of the Group are pledged as security against debt facilities from the lender. For carrying amount of assets pledged as security refer note 30.

11. Other Matter

During a routine stock audit in Visakhapatnam, management became aware of the shortage of stocks amounting to INR 183.00 lakhs for the year 2017. A FIR was filed in this regard and upon investigation by the police it was found that most of the suspects in this case were former employees of the Company. All the suspects were booked under the provisions of CrPC and the matter is in progress at the Court. The internal auditors were assigned the work to conduct a stock verification to authenticate the value of the goods lost. This event is not considered as a material event since the value involved or the impact does not exceed 5% of the turnover or revenue or total income; or does not exceed 10% of the networth (lower threshold shall be taken as a trigger) as per the materiality policy of the Company. The above thresholds are determined on the basis of audited financial statements of the Company''s last audited financial year. Necessary corrective action has been taken for improving the systems and processes in place to ensure that a similar situation does not occur. The customers who lost the material have been compensated appropriately and continue to do business with the Company.

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Mar 31, 2017

1. Capital Management (a) Risk Management

The Company''s objective when managing capital are to :

Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

Consistent with others in the industry, the company monitors capital on the basis of the following gearing ratio:

Net debt (total borrowings net of cash and cash equivalents) divided by total equity (as shown in the balance sheet)

(i) Loan Covenants

Loan covenants related to HDFC Bank Ltd

No further borrowings without No Objection Certificate (NOC) from HDFC

Prior approval to be sought for any change in share holding pattern/ Management of the Company

No Guarantee to be issued by the company without Bank''s NOC

No loans to be extended by the company without prior approval from HDFC bank

All Cash flows/ Cash Management Services (CMS)/ Foreign currency transactions and any other business of the company should be routed through HDFC Bank

Maximum Total Outstanding Liability (TOL)/Total Net Worth (TNW) to be maintained at 1 times during the tenor of the loan.

Minimum Debt Service Coverage Ratio (DSCR) of 1.35 times to be maintained during the tenure of the loan.

Fixed asset cover to be maintained at >=2

Financial projections to be met with 10% variation

Majority holding by Gateway Distriparks Limited (GDL) to be maintained.

Loan covenants related to International Finance Corporation (IFC)

Financial debt should not exceed INR 80 Million Following financial ratios to be maintained:

a) Current ratio of at least 1.33

b) Liabilities to tangible net worth ratio of not more than 1.50

c) Historic debt service coverage ratio of not less than 1.50

d) Fixed asset coverage ratio of not less than 2

As represented by the Company there has been no breach of above covenants during the year.

2. Disclosures under Indian accounting standard 19

a) Post Retirement Benefit- Defined Contribution Plans

The Company has recognized an amount of INR 83.36 (2016: INR 99.18) as expenses under the defined contribution plans in the Statement of Profit and Loss in respect of contribution to Provident Fund for the year ended March 31, 2017.

b) Post Retirement Benefit- Defined Benefit Plan

The Company makes provision for gratuity based on actuarial valuation done on projected unit credit method at each Balance Sheet date.

The Company makes annual contribution to the Gratuity Fund Trust which is maintained by LIC of India, a defined benefit plan for qualifying employees. The Scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment as per provisions of Payment of Gratuity Act, 1972. The benefit vests after 5 years of continuous service.

The present value of the defined benefit obligation and the related current service cost are measured using the projected unit credit method with actuarial valuation being carried out at the Balance Sheet date.

3. Related party transactions

In compliance with Ind AS 24 - "Related Party Disclosures", as notified under Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016 the required disclosures are given in the table below:

(a) Name of related parties and related parties relationship

Associates:

1. Gateway Distriparks Limited

2. Gateway East India Private Limited

3. Gateway Distriparks (South) Private Limited

4. Gateway Distriparks (Kerala) Limited

5. Gateway Rail Freight Limited.

6. Chandra CFS and Terminal Operators Private Limited Key Management Personnel/ Executive Directors:

Mr. Sunil Nair, CEO and Whole time Director (appointed w.e.f. December 1, 2016)

Mr. A M Sundar, CFO, Company Secretary and Compliance Officer Mr. Ravi Kannan, CEO and Director (resigned w.e.f. February 2, 2016)

Mr. Pradeep Kumar Dubey, COO and Director (resigned w.e.f. November 9, 2016)

b) Directors of the Company Independent and Non-Executive Directors

Mr. Prem Kishan Dass Gupta (Non-Executive)

Mrs. Mamta Gupta (appointed w.e.f. November 5, 2015) (Non-Executive)

Mr. Tomoyuki Masuda (appointed w.e.f. April 28, 2015) (Non-Executive Independent)

Mr. Michael Philip Pinto (resigned w.e.f. August 14, 2016) (Non-Executive Independent)

Mr. Saroosh Cowasjee Dinshaw (resigned w.e.f. August 14, 2016) (Non-Executive Independent) Mr. Shabbir Hakimuddin Hassanbhai (Non-Executive Independent)

Mr. AKT Chari (Non-Executive Independent)

Mr. Bhaskar Avula Reddy (appointed w.e.f. April 26, 2016) (Non-Executive Independent)

Mr. Arun Gupta Kumar (appointed w.e.f. April 26, 2016) (Non-Executive Independent)

Mr. Gopinath Pillai (resigned w.e.f. October 27, 2015) (Non-Executive)

Mrs. Chitra Gowri Lal (resigned w.e.f. August 19, 2015) (Non-Executive Independent)

Note: Provision for leave encashment and group gratuity, which is based on actuarial valuation done on overall company basis, is excluded.

4. Segment Information

(i) Snowman Logistics limited is engaged in providing integrated cold chain solution to users in India. The company''s infrastructure comprises of compartmentalized temperature - controlled warehouses in all major cities of the country and a fleet of temperature controlled trucks. The company is focused on its core business of temperature controlled warehousing for frozen and chilled products with transportation division acting as an enabler. The Company''s Management examines the business from two perspectives as followed:

Temperature controlled service

This part of the business comprises of the temperature controlled warehousing service and temperature controlled transportation service operating across locations servicing customers on pan-India basis. Company''s warehousing/ transportation solutions offer services across a spectrum of temperature from ambient to chilled and frozen (i.e. 25°C to -20°C).

Ambient Services

This part of the business provides dry warehousing facility also to the customers using the temperature controlled facilities so that the customer gets a one stop solution for all the warehousing requirement. These warehouses provide dock stuffing/destuffing, palletized storage facilities and are equipped with latest machinery and skilled manpower.

5. Exceptional Item

During the year 2016-17, the Company terminated the contract with a major customer in the Food Services Division. The contract was signed for a three year period in 2015-16. The contract required the Company to procure, store and distribute food products used by the customer in its catering business. Since the volumes envisaged by the Company were not being met, the division was incurring losses. The management found it prudent to cut losses by rescinding the contract rather than go with it for 2 more years. The Company had to incur a loss of Rs.265.91 on account of exit costs, which has been shown as an exceptional item in the financials for the year ended March 31, 2017.

6. First time adoption of Ind AS

1. Transition to Ind AS

These are the company''s first financial statements prepared in accordance with Ind AS.

The Company has adopted Indian Accounting Standards (Ind AS) as notified by the Ministry of Corporate Affairs with effect from April 1, 2016, with a transition date of April 1, 2015. These financial statements for the year ended March 31, 2017 are the first the Company has prepared under Ind AS. For all periods upto and including the year ended March 31, 2016, the Company prepared its financial statements in accordance with the previously applicable Indian GAAP (hereinafter referred to as "IGAAP")

The adoption of Ind AS has been carried out in accordance with Ind AS 101, First-time Adoption of Indian Accounting Standards. Ind AS 101 requires that all Ind AS standards and interpretations that are issued and effective for the first Ind AS financial statements be applied retrospectively and consistently for all financial years presented. Accordingly, the Company has prepared financial statements which comply with Ind AS for year ended March 31, 2017, together with the comparative information as at and for the year ended March 31, 2016. The Company''s opening Ind AS Balance Sheet has been prepared as at April 1, 2015, the date of transition to Ind AS.

In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (IGAAP). An explanation of how the transition from IGAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows is set out in the following tables and notes.

A. Exemptions and exceptions availed

In preparing these Ind AS financial statements, the Company has availed certain exemptions and exceptions in accordance with Ind AS 101, as explained below. The resulting difference between the carrying values of the assets and liabilities in the financial statements as at the transition date under Ind AS and IGAAP have been recognized directly in equity (retained earnings or another appropriate category of equity). This note explains the adjustments made by the Company in restating its IGAAP financial statements, including the Balance Sheet as at April 1, 2015 and the financial statements as at and for the year ended March 31, 2016.

A.1 Ind AS optional exemptions

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous IGAAP to Ind AS.

A. 1. 1. Deemed cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the IGAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets. Accordingly, the company has elected to measure all of its property, plant and equipment and intangible assets at their IGAAP carrying value.

A. 1.2 Share based payment transactions

Ind AS 101 permits a first-time adopter not to apply Ind AS 102 Share-based payment to equity instruments that vested before date of transition to Ind AS. Accordingly, the company has elected not to apply the Ind AS 102 Share-based payments to employee stock options which were vested before transition date of April 1, 2015.

A.2 Ind AS mandatory exceptions

The company has applied the following exceptions from full retrospective application of Ind AS mandatorily required under Ind AS 101: A.2.1 Estimates

An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with IGAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at April 1, 2015 are consistent with the estimates as at the same date made in conformity with IGAAP.

7. Reconciliations between IGAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliations from IGAAP to Ind AS.

b: Notes to first-time adoption:

Note 8: Remeasurements of post-employment benefit obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognized in other comprehensive income instead of profit or loss. Under the IGAAP, these remeasurements were forming part of the profit or loss for the year. As a result of this change, the profit for the year ended March 31, 2016 decreased by INR 1.72. There is no impact on the total equity as at March 31, 2016.

Note 9 : Security deposits

Under the previous GAAP, interest free security deposits (that are refundable in cash on completion of the lease term) are recorded at their transaction value. Under Ind AS, all financial assets are required to be recognized at fair value. Accordingly, the Company has fair valued these security deposits under Ind AS. Difference between the fair value and transaction value of the security deposit has been recognized as prepaid rent.

Note 10: Proposed dividend

Under the previous GAAP, dividends proposed by the Board of Directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognized as a liability. Under Ind AS, such dividends are recognized when the same is approved by the shareholders in the general meeting. Accordingly, the liability for proposed dividend of INR NIL as at March 31, 2016 (April 1, 2015 INR 1,002.32) included under provisions has been reversed with corresponding adjustment to retained earnings. Consequently, the total equity increased by an equivalent amount.

Note 6: Retained earnings

Retained earnings as at April 1, 2015 has been adjusted consequent to the Ind AS transition adjustments

Note 11: Other comprehensive income

Under Ind AS, all items of income and expense recognized in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in profit or loss but are shown in the statement of profit and loss as "other comprehensive income" includes remeasurements of defined benefit plans, foreign exchange differences arising on translation of foreign operations, effective portion of gains and losses on cash flow hedging instruments and fair value gains or (losses) on FVOCI equity instruments. The concept of other comprehensive income did not exist under IGAAP.

Note 12: Rent equalization

Ind AS 17 Leases covers lease related to land and accordingly rental payments towards the lease are equalised for rent free period and corresponding rent equalization liability is accounted for such rent free period.

Note 9: Capitalization of Borrowing Cost

Under Ind AS 23 Borrowing Costs, borrowing costs that are directly attributable to obtaining qualifying assets are those borrowing costs that would have been avoided if the expenditure on the qualifying asset had not been made. If cash was not spent on other qualifying assets, it could be directed to repay this specific loan, accordingly borrowing cost in relation to avoidable cost is capitalized during 2015-16.

Note 10: Revenue from Operations

The Company has evaluated its contract with one of the customer''s, wherein in substance company is acting as an agent. Accordingly, the Company has recognized revenue only to the extent of the net amount received/ receivable under the arrangement in return for its performance under the contract. Under IGAAP, the transaction was accounted on gross basis. This has resulted in reduction in sales and cost of sales by INR 1,526.28. This has no impact on the loss for the year.

Note 11: Deferred Tax

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax base of assets and liabilities and their carrying amounts in the financial statements. Also, deferred tax has been recognized on the adjustments made on transition to Ind AS.

Note 12: Leases

Land Leases for a term of less than 30 years are considered as operating leases and classified under prepayments under other non-current assets.

Note 13: Other Income

Liabilities no longer required written back has been adjusted against the respective expense head in statement of profit and loss.

14. Previous year figures

The previous year’s figures have been reclassified to conform to this year''s classification.

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Mar 31, 2016

(d) Rights, preferences and restrictions attached to shares:

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. In the event of liquidation, the equity share holders are eligible to receive the remaining assets of the company after distribution of all preferential amounts in proportion to their share holding.

1. Shifting of Registered Office

The Company vide resolution passed in the Board of Directors meeting dated February 2, 2016 and the members of the Company vide postal ballot and e-voting have resolved to shift the registered office of the Company from the state of Karnataka to the state of Maharashtra, Mumbai. The Company is in the process of filling the application with the Registrar of Companies and Regional Director.

2. Previous year figures

The previous year’s figures have been reclassified to conform to this years'' classification.

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Mar 31, 2015

General Information

Snowman Logistics Limited (the 'Company') is engaged in cold chain business in India. Snowman offers a range of complete and unique facilities for transportation, storage,handling and retail distribution of frozen and chilled products.

The Company had changed its name from Snowman Frozen Foods Limited to Snowman Logistics Limited and obtained a fresh certificate of incorporation dated March 17, 2011. The equity shares of the Company were listed on The National Stock Exchange of India Limited and Bombay Stock Exchange of India Limited on September 12, 2014.

1. Share capital

Rights, preferences and restrictions attached to shares:

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. In the event of liquidation, the equity share holders are eligible to receive the remaining assets of the company after distribution of all preferential amounts in proportion to their share holding.

(g) Shares reserved for issues under options

Refer Note 35 for details of shares to be issued under the Employees Stock Option Plan.

2. Reserves and surplus

Nature of security and terms of repayment for secured borrowings:

Nature of security Terms of Repayment

i) Term loan from Bank (HDFC Principal is repayable (for each Bank) amounting to Rs.479,000,000 disbursement) in 20 equal quarterly (2014:Rs.609,000,000)is secured instalments starting from by paripassu charge on all assets August 2013. namely fixed and current assets present and future of the company.

ii) Term loans from International Principal is repayable in 12 half Finance Corporation (IFC)amounting yearly instalments starting from to Rs. 425,001,668 (2014:Rs. January 2015. 450,000,000) are secured by paripassu charge on all assets namely fixed and current assets present and future of the company.

3. Contingent liabilities

Bank guarantees:

Financial Guarantee 2,160,212 7,458,070

Performance Guarantee 12,900,000 259,472

Income Tax Matters (Amount paid under protest Rs. NIL) 770,643 770,643 (2014: Rs. 574,603)

Wealth Tax Matters (Amount paid under protest Rs. NIL) 301,833 301,833 (2014: Rs. 301,833)

Sales Tax Matters (Amount paid under protest Rs. NIL) 1,255,044 1,255,044 (2014: Rs. 480,051) 17,387,732 10,045,062

Note:

It is not practicable for the Company to estimate the timings of cash outflows, if any in respect of the above pending resolution of the respective proceedings.

4. Disclosures under Accounting Standard 15

a) Post Retirement Benefit- Defined Contribution Plans

The Company has recognised an amount of Rs. 8,058,827 (2014: Rs. 7,521,055) as expenses under the defined contribution plans in the Statement of Profit and Loss in respect of contribution to Provident Fund for the year ended March 31, 2015.

b) Post Retirement Benefit- Defined Benefit Plan

The Company makes provision for gratuity based on actuarial valuation done on projected unit credit method at each Balance Sheet date.

The Company makes annual contribution to the Gratuity Fund Trust which is maintained by LIC of India, a defined benefit plan for qualifying employees. The Scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment as per provisions of Payment of Gratuity Act, 1972. The benefit vests after 5 years of continuous service.

The present value of the defined benefit obligation and the related current service cost are measured using the projected unit credit method with actuarial valuation being carried out at the BalanceSheet date.

(c) Other employee benefit plan:

The liability for leave encashment and compensated balances as at year end is Rs. 2,066,683 (2014: Rs. 2,453,240).

5. Employee stock option plan

Snowman Logistics Limited Stock Option Plan 2012 (ESOP 2012):

Pursuant to the resolution passed by the Shareholders at the Extraordinary General Meeting held on April 24, 2012, the Company had introduced new ESOP scheme for eligible Directors and employees of the Company. Under the scheme, options for 5,145,350 (fifty one lakh forty five thousand three hundred and fifty) shares would be available for being granted to eligible employees of the Company and each option (after it is vested) will be exercisable for one equity share of Rs. 10.60, Rs. 15.40 and Rs.18.30. Compensation Committee finalises the specific number of options to be granted to the employees. Vesting of the options shall take place over a maximum period of 3 years with a minimum vesting period of 1 year from the date of grant.

6. Related party disclosures

(a) Names of related parties and nature of relationship:

Holding company:

Gateway Distriparks Limited (till September 9, 2014 and associate company thereafter).

Associates:

1. Gateway East India Private Limited

2. Gateway Distriparks (South) Private Limited (amalagamated with Gateway Distriparks Limited w.e.f. March 12, 2015)

3. Gateway Distriparks (Kerala) Limited

4. Gateway Rail Freight Limited.

5. Chandra CFS and Terminal Operators Private Limited

Key management personnel (KMP):

Mr. Ravi Kannan, CEO and Director

Mr. A M Sundar, CFO, Company Secretary and Compliance Officer

7. (a) Amount utilised for share issue expenses

Amount utilised for share issue expenses Rs. 138,440,409 includes payments made to merchant bankers, attorneys, consultants and registrars towards Initial Public Offering of shares.

8. Previous year figures

The previous years figures have been reclassified to conform to this years' classification.