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A Oneindia Venture

Nifty 25,760.50 +2.68%

22k Gold ₹ 13,910 /gm

Sensex 83,848.61 +2.67%

Nifty 25,760.50 +2.68%

22k Gold ₹ 13,910 /gm

Sensex 83,848.61 +2.67%

Nifty 25,760.50 +2.68%

22k Gold ₹ 13,910 /gm

Accounting Policies of Transindia Real Estate Ltd. Company

Mar 31, 2025

2. Material accounting policies

2.1 Basis of preparation

These financial statements are prepared under the
historical cost convention on the accrual basis except for
certain financial instruments which have been measured
at fair value (refer accounting policy regarding financial
instruments). The Company has prepared the financial
statements on the basis that it will continue to operate as
going concern. The financial statements are presented
in INR and all values are rounded to the nearest lakhs
(INR 00,000) except when otherwise indicated. The
financial statements provide comparative information
in respect of the previous period.

Current versus non-current classification

The Company presents assets and liabilities in
the balance sheet based on current / non-current
classification.

An asset is treated as current when it is:

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

- Held primarily for the purpose of trading,

- Expected to be realized within twelve months after the
reporting period, or

- Cash or cash equivalent unless restricted from being
exchanged or used to settle a liability for at least twelve
months after the reporting period.

All other assets are classified as non-current.

A liability is treated as current when it is:

- It is expected to be settled in normal operating cycle,

- It is held primarily for the purpose of trading,

- It is due to be settled within twelve months after the
reporting period, or

- There is no unconditional right to defer the settlement of
the liability for at least twelve months after the reporting
period.

All other liabilities as classified as non-current.

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

Deferred tax assets and liabilities are classified as nonÂ¬
current assets and liabilities.

2.2 Summary of material accounting policies

a. Business combinations:

Business combinations under common control are
accounted in accordance with Appendix C of IND
AS 103 as per the pooling of interest method and
the Ind AS Transition Facilitation Group Clarification
Bulletin 9 (ITFG 9). ITFG 9 clarifies that, the carrying
values of assets and liabilities as appearing in
the standalone financial statements of the units/
divisions being combined shall be recognised as
follows: -

i) The assets and liabilities of the combining
units/divisions are reflected at their carrying
amounts.

ii) No adjustments are made to reflect fair values
or recognise any new assets or liabilities.
The only adjustments that are made are to
harmonise accounting policies.

iii) The difference, if any, between the amounts
recorded as share capital and the value of net
assets of transferor is transferred to capital
reserves.

iv) The financial information contained in the
financial statements in respect of prior periods
is restated as if the business combination had
occurred from the beginning of 1^st day of the
preceding year, irrespective of the actual date
of business combination.

b. Fair value measurement

The Company measures financial instruments at
fair value at each balance sheet date.

Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at the
measurement date. The fair value measurement
is based on the presumption that the transaction
to sell the asset or transfer the liability takes place
either:

-In the principal market for the asset or liability, or

-In the absence of a principal market, in the most
advantageous market for the asset or liability.

The principal or the most advantageous market
must be accessible by the Company.

The fair value of an asset or a liability is measured
using the assumptions that market participants
would use when pricing the asset or liability,
assuming that market participants act in their
economic best interest.

A fair value measurement of a non-financial asset
takes into account a market participant''s ability to
generate economic benefits by using the asset in
its highest and best use or by selling it to another
market participant that would use the asset in its
highest and best use.

The Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximising the use of relevant observable inputs
and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is
measured or disclosed in the financial statements
are categorised within the fair value hierarchy,
described as follows, based on the lowest level input
that is significant to the fair value measurement as
a whole:

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

- Level 2 - Valuation techniques for which the
lowest level input that is significant to the fair value
measurement is directly or indirectly observable.

- Level 3 - Valuation techniques for which the
lowest level input that is significant to the fair value
measurement is unobservable.

For assets and liabilities that are recognised in
the financial statements on a recurring basis, the
Company determines whether transfers have
occurred between levels in the hierarchy by reÂ¬
assessing categorisation (based on the lowest
level input that is significant to the fair value
measurement as a whole) at the end of each
reporting period.

External valuers are involved for valuation of
significant assets, such as properties and unquoted
financial assets, and significant liabilities, such as
contingent consideration.

For the purpose of fair value disclosures, the
Company has determined classes of assets and
liabilities on the basis of the nature, characteristics
and risks of the asset or liability and the level of the
fair value hierarchy as explained above.

c. Revenue recognition

The Company recognises revenue as per the criteria
laid down in Ind AS 115 ''Revenue from contracts
with customers''. The revenue recognition is being
done on satisfaction of performance obligations
contained in the contracts at a point in time and
subsequently over time when the Company has
enforceable right for payment for performance
completed to date.

Revenue is recognised upon transfer of control
of promised products/services to customer in
an amount that reflects the transaction price

i.e. consideration which the Company expects
to receive in exchange for those products. The
amount recognised as revenue is exclusive of GST.

Income from Logistics Park

Rental income arising from leasing of warehouses
is accounted on execution of lease agreements
or contracts with customers. The recognition
of revenue is being done as per the transaction
price mentioned against identified Performance
obligations (Fixed rentals) contained in agreements
and the same is accounted on a straight-line basis
over the lease term.

Reimbursement of cost is recognized as income
under the head Common Area Management
(''CAM'') charges as agreed and as mentioned in
the agreements/contracts. Electricity and water
charges are recovered based on actual allocable/
usage basis.

Income from Equipment hiring solutions

Income from hiring of equipment including trailers
and re-stackers is recognised on the basis of their
actual usage and also on the basis of containers/
TEUs handled by equipment at the site as specified
in the contracts. The same were treated as
identified performance obligations as mentioned
in the agreements.

Others

Interest income is recognised on time proportion
basis. Interest income is included in finance income
in the Statement of Profit and Loss.

Dividend income is recognised when the Company''s
right to receive the payment is established i.e. in
case of an interim dividend when it is approved by
the board of directors and in case of final dividend
when it is approved by shareholders.

Gain /loss on dilution of equity investments in
subsidiary companies is accounted when loss of
control over the said entities gets triggered as per
the requirements of accounting standard.

Exceptional income/expense is recognised when
the nature of income/expense is non-recurring in
nature.

Rental income arising from operating leases
on investment properties is accounted for on a
straight-line basis over the lease terms.

Business support charges are recognized as and
when the related services are rendered.

d. Foreign currencies

The Company''s financial statements are presented
in INR. Transactions in foreign currencies are initially
recorded by the Company at the spot rate on the
date the transaction first qualifies for recognition.

All monetary items outstanding at year end
denominated in foreign currency are converted into
Indian Rupees at the reporting date exchange rate.
Non-monetary items, which are measured in terms
of historical cost denominated in a foreign currency,
are reported using the exchange rate at the date
of the transaction and non-monetary items which
are carried at fair value or other similar valuation
denominated in a foreign currency are reported
using the exchange rates that existed when the
values were determined.

Exchange differences arising on settlement of
foreign currency items are recognised as income
or expenses in the period in which they arise.

e. Contract balances

Contract balances include trade receivables,
contract assets and contract liabilities.

Trade receivables

A receivable represents the Company''s right to an
amount of consideration that is unconditional (i.e.,
only the passage of time is required before payment
of the consideration is due). Trade receivables are
separately disclosed in the financial statements.

Contract assets

A contract asset is the right to consideration in
exchange for goods or services transferred to the
customer. If the Company performs by transferring
services to a customer before the customer pays
consideration or before payment is due, a contract
asset is recognised for the earned consideration
that is conditional.

Contract liabilities

A contract liability is the obligation to transfer
services to a customer for which the Company
has received consideration (or an amount of
consideration is due) from the customer. If a
customer pays consideration before the Company
transfers services to the customer, a contract
liability is recognised when the payment is made or
the payment is due (whichever is earlier). Contract
liabilities are recognised as revenue when the
Company performs under the contract.

f. Taxes

Current Income tax

Current income tax assets and liabilities are
measured at the amount expected to be refunded
from or paid to the taxation authorities using the tax
rates and tax laws that are in force at the reporting
date.

Current income tax relating to items recognised
outside the Statement of Profit and Loss is
recognised outside the Statement of Profit and
Loss (either in OCI or in equity). Current tax items
are recognised in correlation to the underlying
transaction either in OCI or directly in equity.

The Company offsets current tax assets and current
tax liabilities where it has a legally enforceable right
to set off the recognised amounts and where it
intends either to settle on a net basis, or to realise
the assets and settle the liabilities simultaneously.

Management periodically evaluates positions
taken in the tax returns with respect to situations
in which applicable tax regulations are subject to
interpretation and establishes provisions where
appropriate.

Deferred Tax

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

Deferred tax liabilities are recognised for all taxable
temporary differences, except:

(i) When the deferred tax liability arises from
the initial recognition of goodwill or an
asset or liability in a transaction that is not a
business combination and, at the time of the
transaction, affects neither the accounting
profit nor taxable profit or loss.

(ii) In respect of taxable temporary differences
associated with investments in subsidiaries,
associates and interests in joint ventures,
when the timing of the reversal of the
temporary differences can be controlled and
it is probable that the temporary differences
will not reverse in the foreseeable future.

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

The carrying amount of deferred tax assets is
reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of
the deferred tax asset to be utilised. Deferred tax
assets and liabilities are offset when they relate to
income taxes levied by the same taxation authority
and the relevant entity intends to settle its current
tax assets and liabilities on a net basis.

Deferred tax relating to items recognised outside
the Statement of Profit and Loss is recognised
outside the Statement of Profit and Loss. Such

deferred tax items are recognised in correlation to
the underlying transaction either in OCI or directly
in equity.

Deferred tax assets and liabilities are measured
using substantively enacted tax rates expected to
apply to taxable income in the years in which the
temporary differences are expected to be received
or settled.

g. Non-current assets held for sale and discontinued
operations (refer note 32)

The Company classifies non-current assets and
disposal groups as held for sale if their carrying
amounts will be recovered principally through a sale
rather than through continuing use.

Non-current assets and disposal groups classified
as held for sale are measured at the lower of their
carrying amount and fair value less costs to sell.
Costs to sell are the incremental costs directly
attributable to the disposal of an asset (disposal
group), excluding finance costs and income tax
expense.

The criteria for held for sale classification is regarded
as met only when the sale is highly probable,
and the asset or disposal group is available for
immediate sale in its present condition. Actions
required to complete the sale/ distribution should
indicate that it is unlikely that significant changes to
the sale will be made or that the decision to sell will
be withdrawn. Management must be committed to
the sale and the sale expected within one year from
the date of classification.

For these purposes, sale transactions include
exchanges of non-current assets for other
non-current assets when the exchange has
commercial substance. The criteria for held for sale
classification is regarded met only when the assets
or disposal group is available for immediate sale in
its present condition, subject only to terms that are
usual and customary for sales of such assets (or
disposal groups), its sale is highly probable; and it
will genuinely be sold, not abandoned. The group
treats sale of the asset or disposal group to be
highly probable when:

- The appropriate level of management is committed
to a plan to sell the asset (or disposal group)

- An active program to locate a buyer and complete
the plan has been initiated (if applicable),

- The asset (or disposal group) is being actively
marketed for sale at a price that is reasonable in
relation to its current fair value,

- The sale is expected to qualify for recognition as
a completed sale within one year from the date of
classification, and

- Actions required to complete the plan indicate that
it is unlikely that significant changes to the plan will
be made or that the plan will be withdrawn.

Assets and liabilities classified as held for sale
are presented separately from other items in the
balance sheet.

h. Property, plant and equipment

Freehold land is carried at historical cost. Any
improvments done to Freehold land is also included
in the cost of asset. Other property, plant and
equipment is stated at cost, net of accumulated
depreciation and accumulated impairment losses,
if any. Cost comprises the purchase price and
any cost attributable to bringing the asset to its
working condition for its intended use. Borrowing
cost relating to acquisition of tangible assets which
take substantial period of time to get ready for its
intended use are also included to the extent they
relate to the period till such assets are ready to be
put to use. Capital work in progress is stated at
cost.

When significant parts of plant and equipment
are required to be replaced at intervals, the
Company depreciates them separately based on
their specific useful lives. Likewise, when a major
inspection is performed, its cost is recognised in
the carrying amount of the plant and equipment
as a replacement if the recognition criteria are
satisfied. All other repair and maintenance costs
are recognised in statement of profit and loss as
incurred.

The Company, based on internal assessment and
management estimate, depreciates certain items
of Heavy Equipments and Office Equipment over
estimated useful lives which are different from
the useful life prescribed in Schedule II to the
Companies Act, 2013. The management believes
that these estimated useful lives are realistic and
reflect fair approximation of the period over which
the assets are likely to be used.

An item of property, plant and equipment and any
significant part initially recognised is derecognised
upon disposal or when no future economic
benefits are expected from its use or disposal. Any
gain or loss arising on derecognition of the asset
(calculated as the difference between the net
disposal proceeds and the carrying amount of the
asset) is included in the statement of profit and loss
when the asset is derecognised.

The residual values, useful lives and methods of
depreciation of property, plant and equipment are
reviewed at each financial year end and adjusted
prospectively, if appropriate.

Intangible assets

excluding capitalised development costs, are not
capitalised and the related expenditure is reflected
in profit or loss in the period in which the expenditure
is incurred.

Intangible assets with finite lives are amortised
over the useful economic life and assessed for
impairment whenever there is an indication that
the intangible asset may be impaired. Computer
software is amortised on a straight-line basis over
a period of 6 years basis the life estimated by the
management. The amortisation period and the
amortisation method for an intangible asset with
a finite useful life are reviewed at least at the end
of each reporting period. Changes in the expected
useful life or the expected pattern of consumption
of future economic benefits embodied in the asset
are considered to modify the amortisation period or
method, as appropriate, and are treated as changes
in accounting estimates. The amortisation expense
on intangible assets with finite lives is recognised
in the Statement of Profit and Loss unless such
expenditure forms part of carrying value of another
asset.

An intangible asset is derecognised upon disposal
(i.e., at the date the recipient obtains control) or
when no future economic benefits are expected
from its use or disposal. Any gain or loss arising
upon derecognition of the asset (calculated as the
difference between the net disposal proceeds and
the carrying amount of the asset) is included in
the Statement of Profit and Loss when the asset
is derecognised.

j. Investment property

Investment properties are properties held to
earn rentals or for capital appreciation, or both.
Investment properties are stated at cost, net
of accumulated depreciation and accumulated
impairment losses, if any.

The cost includes purchase price, any directly
attributable cost of bringing the asset to its working
condition for the intended use. It also includes the
cost of replacing parts and borrowing costs for
long-term construction projects if the recognition
criteria are met. When significant parts of the
investment property is required to be replaced and
if they forms the integral part of the investment
property, then the Company depreciates them

over the remaining useful lives. But if such parts are
separately identifiable then Company depreciates
them over the specific useful life. All other repair and
maintenance costs are recognised in statement of
profit and loss as incurred.

Investment Property Under Development includes
accumulated cost incurred for purchases/
construction/improvement of property including
allocation of indirect cost and borrowing cost net
of income from temporary investments of surplus
funds.

Depreciation is calculated on a straight-line basis
over the estimated useful lives of the assets as
follows:

Investment properties are measured initially
and subsequently at cost, though the Company
measures investment property using cost-based
measurement, the fair value of investment property
is disclosed in the notes. Fair values are determined
based on an annual evaluation performed by an
accredited external independent valuer or on the
basis of appropriate ready reckoner value or based
on recent market transactions.

Investment properties are derecognised either
when they have been disposed of or when they are
permanently withdrawn from use and no future
economic benefit is expected from their disposal.
The difference between the net disposal proceeds
and the carrying amount of the asset is recognised
in statement of profit and loss in the period of
derecognition.

Transfers are made to (or from) investment
properties only when there is a change in use.
Transfers between investment property, owner-
occupied property and inventories do not change
the carrying amount of the property transferred and
they do not change the cost of that property for
measurement or disclosure purposes.

k. Borrowing costs

Borrowing costs includes interest and amortisation
of ancillary cost over the period of loans which
are incurred in connection with arrangements of
borrowings.

Borrowing costs directly attributable to the
acquisition, construction or production of an
asset that necessarily takes a substantial period
of time to get ready for its intended use or sale are
capitalised as part of the cost of the asset. All other
borrowing costs are expensed in the period in which
they occur.

Commencement, cessation and suspension of
capitalisation

Borrowing costs incurred are capitalised to the cost
of asset if following conditions are satisfied:

a) Asset is a qualifying asset- A qualifying asset
is an asset that takes a substantial period of
time to get ready for its intended use.

b) Intended use of asset (end use). If asset hold is
used for :- For the owner''s business occupation,
it will be recognised as a part of PPE. For rental/
annuity purposes, it will be recognised as
investment property.

c) The activities related to the acquisition,
construction, and production of a qualifying
asset that necessarily require a substantial
period of time to bring the asset to its intended
use are in progress

Borrowing costs shall cease to be capitalised
when substantially all the activities necessary to
prepare the qualifying asset for its intended use are
complete. However, borrowing cost incurred while
asset acquired for specific purposes is held without
any associated development activity do not qualify
for capitalisation.

l. Leases

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

Company as a lessee

The Company applies a single recognition and
measurement approach for all leases, except for
short term leases and leases of low value assets.
On the commencement of the lease, the Company,
in its Balance Sheet, recognises the right of use
asset at cost and lease liability at present value
of the lease payments to be made over the nonÂ¬
cancellable lease term.

Subsequently, the right of use asset are measured
at cost less accumulated depreciation and any
accumulated impairment loss. Lease liability are
measured at amortised cost using the effective

interest method. The lease payment made, are
apportioned between the finance charge and the
reduction of lease liability and are recognised as
expense in the Statement of Profit and Loss.

Lease deposits given are a financial asset and are
measured at amortised cost under Ind AS 109 since
it satisfies Solely Payment of Principal and Interest
(SPPI) condition. The difference between the
present value and the nominal value of deposit is
considered as prepaid rent and recognised over the
non-cancellable lease term. Unwinding of discount
is treated as finance income and recognised in the
Statement of Profit and Loss.

Company as a lessor

Leases in which the Company does not transfer
substantially all the risks and rewards incidental
to ownership of an asset is classified as operating
leases. Rental income arising is accounted for on a
straight-line basis over the lease terms. Initial direct
costs incurred in negotiating and arranging an
operating lease are added to the carrying amount of
the leased asset and recognised over the lease term
on the same basis as rental income. Contingent
rents are recognised as revenue in the period in
which they are earned.

Leases are classified as finance leases when
substantially all of the risks and rewards of
ownership transfer from the Company to the lessee.
Amounts due from lessees under finance leases
are recorded as receivables at the Company''s net
investment in the leases. Finance lease income
is allocated to accounting periods so as to reflect
a constant periodic rate of return on the net
investment outstanding in respect of the lease.

m. Inventories

Inventories of stores and spares are valued at cost
or net realisable value whichever is lower. The cost
is determined on first in first out basis and includes
all charges incurred for bringing the inventories to
their present condition and location.

Net realisable value is the estimated selling price
in the ordinary course of business, less estimated
cost necessary to make sale.

Mar 31, 2024

2. Material accounting policies

2.1 Basis of preparation

These financial statements are prepared under the historical cost convention on the accrual basis except for certain financial instruments which have been measured at fair value (refer accounting policy regarding financial instruments). The Company has prepared the financial statements on the basis that it will continue to operate as going concern. The financial statements are presented in INR and all values are rounded to the nearest lakhs ( INR 00,000) except when otherwise indicated. The financial statements provide comparative information in respect of the previous period.

Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current / non-current classification.

An asset is treated as current when it is:

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

- Held primarily for the purpose of trading,

- Expected to be realised within twelve months after the reporting period, or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is treated as current when it is:

- It is expected to be settled in normal operating cycle,

- It is held primarily for the purpose of trading,

- It is due to be settled within twelve months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other liabilities as classified as non-current.

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

Deferred tax assets and liabilities are classified as noncurrent assets and liabilities.

2.2 Summary of material accounting policies

a. Business combinations:

Business combinations under common control are accounted in accordance with Appendix C of IND AS 103 as per the pooling of interest method and the Ind AS Transition Facilitation Group Clarification Bulletin 9 (ITFG 9). ITFG 9 clarifies that, the carrying values of assets and liabilities as appearing in the standalone financial statements of the units/ divisions being combined shall be recognised by the combined entity as follows: -

i) The assets and liabilities of the combining units/divisions are reflected at their carrying amounts.

ii) No adjustments are made to reflect fair values or recognise any new assets or liabilities. Adjustments are only made to harmonise accounting policies.

iii) The difference, if any, between the amounts recorded as share capital and the value of net assets of transferor is transferred to capital reserves.

iv) The financial information contained in the financial statements in respect of prior periods is restated as if the business combination had occurred from the beginning of the preceding period, irrespective of the actual date of business combination.

b. Fair value measurement

The Company measures financial instruments at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

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

- Level 2 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

- Level 3 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by reassessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

External valuers are involved for valuation of significant assets, such as properties and unquoted financial assets, and significant liabilities, such as contingent consideration.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

c. Revenue recognition

The Company recognises revenue as per the criteria laid down in Ind AS 115 ''Revenue from contracts with customers''. The revenue recognition is being done on satisfaction of performance obligations contained in the contracts at a point in time and subsequently over time when the Company has enforceable right for payment for performance completed to date.

Revenue is recognised upon transfer of control of promised products/services to customer in an amount that reflects the transaction price i.e. consideration which the Company expects to receive in exchange for those products. The amount recognised as revenue is exclusive of GST.

Income from Logistics Park

Rental income arising from leasing of warehouses is accounted on execution of lease agreements or contracts with customers. The recognition of revenue is being done as per the transaction price mentioned against identified Performance obligations (Fixed rentals) contained in agreements and the same is accounted on a straight-line basis over the lease term.

Reimbursement of cost is recognised as income under the head Common Area Management (''CAM'') charges as agreed and as mentioned in the agreements/contracts. Electricity and water charges are recovered based on actual allocable/ usage basis.

Income from Equipment hiring solutions

Income from hiring of equipment including trailers and re-stackers is recognised on the basis of their actual usage and also on the basis of containers/ TEUs handled by equipment at the site as specified in the contracts. The same were treated as identified performance obligations as mentioned in the agreements.

Others

Interest income is recognised on time proportion basis. Interest income is included in finance income in the Statement of Profit and Loss.

Dividend income is recognised when the Company''s right to receive the payment is established i.e. the date on which shareholders approve the dividend.

Gain /loss on dilution of equity investments in subsidiary companies is accounted when loss of control over the said entities gets triggered as per the requirements of accounting standard.

Exceptional income/expense is recognised when the nature of income/expense is non-recurring in nature.

Rental income arising from operating leases on investment properties is accounted for on a straight-line basis over the lease terms.

Business support charges are recognised as and when the related services are rendered.

d. Foreign currencies

The Company''s financial statements are presented in INR. Transactions in foreign currencies are initially recorded by the Company at the spot rate on the date the transaction first qualifies for recognition.

All monetary items outstanding at year end denominated in foreign currency are converted into Indian Rupees at the reporting date exchange rate. Non-monetary items, which are measured in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of the transaction and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

Exchange differences arising on settlement of foreign currency items are recognised as income or expenses in the period in which they arise.

e. Contract balances

Contract balances include trade receivables, contract assets and contract liabilities.

Trade receivables

A receivable represents the Company''s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due). Trade receivables are separately disclosed in the financial statements.

Contract assets

A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Company performs by transferring services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the earned consideration that is conditional.

Contract liabilities

A contract liability is the obligation to transfer services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Company performs under the contract.

f. Taxes

Current Income tax

Current income tax assets and liabilities are measured at the amount expected to be refunded from or paid to the taxation authorities using the tax rates and tax laws that are in force at the reporting date.

Current income tax relating to items recognised outside the Statement of Profit and Loss is recognised outside the Statement of Profit and Loss (either in OCI or in equity). Current tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

The Company offsets current tax assets and current tax liabilities where it has a legally enforceable right to set off the recognised amounts and where it intends either to settle on a net basis, or to realise the assets and settle the liabilities simultaneously.

Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred Tax

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

Deferred tax liabilities are recognised for all taxable temporary differences, except:

(i) When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.

(ii) In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

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

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the relevant entity intends to settle its current tax assets and liabilities on a net basis.

Deferred tax relating to items recognised outside the Statement of Profit and Loss is recognised outside the Statement of Profit and Loss. Such deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be received or settled.

g. Non-current assets held for sale and discontinued

operations (refer note 33)

The Company classifies non-current assets and disposal groups as held for sale if their carrying

amounts will be recovered principally through a sale rather than through continuing use.

Non-current assets and disposal groups classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Costs to sell are the incremental costs directly attributable to the disposal of an asset (disposal group), excluding finance costs and income tax expense.

The criteria for held for sale classification is regarded as met only when the sale is highly probable, and the asset or disposal group is available for immediate sale in its present condition. Actions required to complete the sale/ distribution should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn. Management must be committed to the sale and the sale expected within one year from the date of classification.

For these purposes, sale transactions include exchanges of non-current assets for other non-current assets when the exchange has commercial substance. The criteria for held for sale classification is regarded met only when the assets or disposal group is available for immediate sale in its present condition, subject only to terms that are usual and customary for sales of such assets (or disposal groups), its sale is highly probable; and it will genuinely be sold, not abandoned. The group treats sale of the asset or disposal group to be highly probable when:

- The appropriate level of management is committed to a plan to sell the asset (or disposal group)

- An active program to locate a buyer and complete the plan has been initiated (if applicable),

- The asset (or disposal group) is being actively marketed for sale at a price that is reasonable in relation to its current fair value,

- The sale is expected to qualify for recognition as a completed sale within one year from the date of classification, and

- Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

Assets and liabilities classified as held for sale are presented separately from other items in the balance sheet.

h. Property, plant and equipment

Freehold land is carried at historical cost. Other property, plant and equipment is stated at cost,

net of accumulated depreciation and accumulated impairment losses, if any. Cost comprises the purchase price and any cost attributable to bringing the asset to its working condition for its intended use. Borrowing cost relating to acquisition of tangible assets which take substantial period of time to get ready for its intended use are also included to the extent they relate to the period till such assets are ready to be put to use. Capital work in progress is stated at cost.

When significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in statement of profit and loss as incurred.

Depreciation

Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets as follows:

The Company, based on internal assessment and management estimate, depreciates certain items of Heavy Equipment and Office Equipment over estimated useful lives which are different from the useful life prescribed in Schedule II to the Companies Act, 2013. The management believes that these estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used.

(calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit and loss when the asset is derecognised.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

i. Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulate impairment losses. Internally generated intangibles, excluding capitalised development costs, are not capitalised and the related expenditure is reflected in profit or loss in the period in which the expenditure is incurred.

Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. Computer software is amortised on a straight-line basis over a period of 6 years basis the life estimated by the management. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the Statement of Profit and Loss unless such expenditure forms part of carrying value of another asset.

Estimated economic useful lives of the intangible assets as follows:

An intangible asset is derecognised upon disposal (i.e., at the date the recipient obtains control) or when no future economic benefits are expected from its use or disposal. Any gain or loss arising upon derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the Statement of Profit and Loss when the asset is derecognised.

j. Investment property

An investment in land or building, which is not intended to be occupied substantially for use by, or in the operations of the Company, is classified as investment property. Investment properties are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any.

The cost includes the cost of replacing parts and borrowing costs for long-term construction projects if the recognition criteria are met. When significant parts of the investment property are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. All other repair and maintenance costs are recognised in statement of profit and loss as incurred.

Investment Property Under Development includes accumulated cost incurred for purchase/ construction of property including allocation of indirect cost net of income from temporary investments of surplus funds.

Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets as follows:

Investment properties are measured initially and subsequently at cost, though the Company measures investment property using cost-based measurement, the fair value of investment property is disclosed in the notes. Fair values are determined based on an annual evaluation performed by an accredited external independent valuer or on the basis of appropriate ready reckoner value or based on recent market transactions.

Investment properties are derecognised either when they have been disposed of or when they are permanently withdrawn from use and no future economic benefit is expected from their disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognised in statement of profit and loss in the period of derecognition.

Transfers are made to (or from) investment properties only when there is a change in use.

Transfers between investment property, owner-occupied property and inventories do not change the carrying amount of the property transferred and they do not change the cost of that property for measurement or disclosure purposes.

k. Borrowing costs

Borrowing costs includes interest and amortisation of ancillary cost over the period of loans which are incurred in connection with arrangements of borrowings.

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur.

Commencement, cessation and suspension of capitalisation

Borrowing costs incurred are capitalised to the cost of asset if following conditions are satisfied:

a) Asset is a qualifying asset- A qualifying asset is an asset that takes a substantial period of time to get ready for its intended use.

b) Intended use of asset (end use). If asset hold is used for :-

- For the owner''s occupation, it will be recognised as a part of PPE.

- For rent/annuity purposes, it will be recognised as investment property.

c) Whether all the activities are completed which are substantially necessary to prepare the qualifying Asset for its intended use.

Borrowing costs shall cease to be capitalised when substantially all the activities necessary to prepare the qualifying asset for its intended use are complete. However, borrowing cost incurred while asset acquired for specific purposes is held without any associated development activity do not qualify for capitalisation.

l. Leases

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

Company as a lessee

The Group applies single recognition and measurement approach for all leases, except for

short term leases and leases of low value assets. On the commencement of the lease, the Group, in its Balance Sheet, recognises the right of use asset at cost and lease liability at present value of the lease payments to be made over the noncancellable lease term.

Subsequently, the right of use asset are measured at cost less accumulated depreciation and any accumulated impairment loss. Lease liability are measured at amortised cost using the effective interest method. The lease payment made, are apportioned between the finance charge and the reduction of lease liability and are recognised as expense in the Statement of Profit and Loss.

Lease deposits given are a financial asset and are measured at amortised cost under Ind AS 109 since it satisfies Solely Payment of Principal and Interest (SPPI) condition. The difference between the present value and the nominal value of deposit is considered as prepaid rent and recognised over the non-cancellable lease term. Unwinding of discount is treated as finance income and recognised in the Statement of Profit and Loss.

Company as a lessor

Leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of an asset is classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned.

Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from the Company to the lessee. Amounts due from lessees under finance leases are recorded as receivables at the Company''s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the net investment outstanding in respect of the lease.

m. Inventories

Inventories of stores and spares are valued at cost or net realisable value whichever is lower. The cost is determined on first in first out basis and includes all charges incurred for bringing the inventories to their present condition and location.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated cost necessary to make sale.

Mar 31, 2023

1. Corporate Information

Transindia Real Estate Limited (Formerly known as Transindia Realty & Logistics Parks Limited) (hereinafter referred to as ''TRL''), is engaged in the business of Leasing of land and Commercial Properties, Logistics Park, Warehousing, real estate development and leasing activities, Engineering and equipment hiring solutions and other related businesses.

The Company is a limited Company incorporated and domiciled in India and incorporated under the provisions of the Companies Act, 2013 and has its registered office at 4^th floor, A Wing, Allcargo house, CST road, Kalina, Santacruz (east), Mumbai - 400098, Maharashtra, India.

Our Company was incorporated on December 03, 2021 as a Limited Company under the Companies Act, 2013 with the Registrar of Companies, Mumbai, Maharashtra The Corporate Identification Number of our Company is U61200MH2021PLC372756. The standalone financial statements were authorised for issue in accordance with a resolution of the Board of Directors on June 15, 2023.

Demerger-

Demerger of businesses related to Leasing of land and Commercial Properties, Logistics Park, Warehousing, real estate development and leasing activities, Engineering and equipment hiring solutions from Allcargo Logistics Limited through Scheme of arrangement

In accordance with the Scheme of Arrangement (Scheme) between and Allcargo Logistics Limited as approved by Hon''ble National Company Law Tribunal on 5 January 2023, Construction and Leasing of Logistics Park, Leasing of land and Commercial Properties, Engineering and equipment hiring solutions were demerged and transferred to the Company with effect from the Appointed date of April 1, 2022 (appointed date), in consideration of 24,56,95,524 equity shares of the Company of '' 2 each fully paid up for every equity shares held in AllCargo Logistics Limited (ALL) of '' 2 each fully paid up. The effective date of the Scheme was 01^st April 2022.

The Scheme will enable the Company to explore the potential business opportunities more effectively and efficiently.

Pursuant to the scheme of demerger approved by NCLT, 24,56,95,524 equity shares of '' 2 each face value are issuable to the shareholders of Allcargo Logistics Limited as per 1:1 share exchange ratio as consideration for the transfer of assets and liabilities to the Company.

The Shareholders of the Company at its Extra Ordinary General Meeting held on March 01, 2023, approved the

sub-division (split) of the face value of the equity shares of the Company from '' 10/- to '' 2/- Per equity Share. Along with issuance and allotment of equity shares by the TRL in accordance with the scheme of demerger as above, the initial issued and paid-up equity capital of TRL comprising of 35 equity share of '' 2 each amounting to '' 70 have been cancelled subsequently. Subsequent to 31 December, 2022, the authorised share capital of the Company have been increased to '' 5,500 Lakhs.

As per the provisions of the Scheme, transfer of the above business into the Company have been accounted in the Financial Statements at book values as appearing in the books of the Demerged Company as on the close of business on the day immediately prior to the appointed dated in compliance to the Indian Accounting Standards (Ind AS) specified in Annexure to the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time.

As and from the appointed date, upto and including the effective date ALL shall carry on and deemed to have carried on its business and activities and shall stand possessed of all assets and properties in trust for the Company and shall account for the same to the Company.

2. Significant accounting policies

2.1 Basis of preparation

The financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) (Amendment) Rules, 2015 (as amended from time to time) under the provisions of the Companies Act, 2013 (the ''Act'') and presentation requirements of Division II of Schedule III to the Companies Act, 2013, (Ind AS compliant Schedule III), as applicable to the financial statements. These financial statements are prepared under the historical cost convention on the accrual basis except for derivative financial instruments and certain other financial assets and liabilities which have been measured at fair value (refer accounting policy regarding financial instruments). The financial statements have been prepared on a going concern basis.

The financial statements are presented in INR and all values are rounded to the nearest lakhs (INR 00,000) except when otherwise indicated.

Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current / non-current classification.

An asset is treated as current when it is:

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

- Held primarily for the purpose of trading,

- Expected to be realised within twelve months after the reporting period, or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is treated as current when it is:

- It is expected to be settled in normal operating cycle,

- It is held primarily for the purpose of trading,

- It is due to be settled within twelve months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period

All other liabilities as classified as non-current.

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

Deferred tax assets and liabilities are classified as noncurrent assets and liabilities.

2.2 Summary of significant accounting policies

a. Business combinations:

Business combinations are accounted for using the Common control business combination. The business combinations involving entities or businesses that are controlled by the group are accounted using the pooling of interest method as follows: -

i) The assets and liabilities of the combining entities are reflected at their carrying amounts.

ii) No adjustments are made to reflect fair values, or recognise any new assets or liabilities. Adjustments are only made to harmonise accounting policies.

iii) The difference, if any, between the amounts recorded as share capital and the value of net assets of transferor is transferred to capital reserves.

iv) The financial information in the financial statements in respect of prior periods is restated as if the business combination had occurred from the beginning of the preceding period in the financial statements, irrespective of the actual date of combination. However, where the business combination had occurred after that date, the prior period information is restated only from that date.

b. Fair value measurement

The Company measures financial instruments, such as, derivatives at fair value at each balance sheet date.