Significant accounting policies

1. Basis of preparation of financial statements

The financial statements are prepared under the historical cost
convention, on an accrual basis. These are in abidance with the
Generally Accepted Accounting Principles in India (''Indian GAAP'') and
in compliance with the Accounting standards given in the Companies
(Accounting Standards) Rules, 2006 which still continues to apply
under Section 133 of the Companies Act, 2013 read with rule 7 of the
Companies (Accounts) Rules, 2014 and other relevant provisions of the
Companies Act, 2013 (''the Act''), ) and guidelines issued by the
Securities and Exchange Board of India (SEBI) to the extent notified
and applicable.
2. Use of estimates
For preparing of the financial statements in abidance with GAAP in
India, it is required that the management make justifiable & prudent
estimates and assumptions which in turn will affect the reported
amounts of assets and liabilities and the disclosures relating to
conditional liabilities as at the date of the financial statements. Actual
results could be different from those estimates and any revision
required to accounting estimates is recognised prospectively in current
and future periods.
3. Revenue recognition
Recognition of revenue is to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
readily measured. Income is reported only when the service is
completed in compliance with the contracts entered into with the 2nd
party or the customer. Revenue generated from sale of services
(freight & forwarding) is recognized on accrual basis after the
completion of job. In case there is a chance that total contract costs
will exceed total mentioned revenue in contract, the expected loss is
immediately recognised as an expense.
Interest income is reported using method of time proportion based on
the rates given in the transaction.
Dividend income is recognised only when the right to receive dividend
is established.
4. Fixed assets and depreciation/amortisation
Fixed assets are reported at cost minus accumulated
depreciation/amortisation and impairment losses, in case any. The cost
of the fixed asset comprises of purchase price and any other
attributable cost such as freight, duties and expenses for
commissioning which are incurred in bringing the asset to its working
condition. Other assets including those additions which are made after
the revaluation are shown at cost. These includes capitalization of preoperative expenses and total CENVAT credit availed in places where it
is applicable.

Depreciation on fixed assets is done using the straight line method of

depreciation. The minimum depreciation rates considered are the rates
prescribed in Schedule XIV to the Companies Act, 1956.
5. Intangible assets and amortisation
Intangible assets mostly comprises of goodwill on amalgamation in
the nature of merger and computer soft wares. These are reported
when the assets are recognizable/identifiable and are within the
control of the Company and it is probable that the economic benefits
in future attributable to the asset will flow to the Company and also
the cost of the asset can be measured reliably. Those intangible assets
which are acquired are recorded at the consideration paid. The
amortization of these assets is done using the straight-line method
over time, accepted by management as the period during which they
will get the economic benefits from the use of assets.
6. Impairment of assets
The Companies looks at each balance sheet date where there is an
indication that an asset may be impaired. The Company estimates the
recoverable amount of the asset in case any such impairment exists.
The recoverable amount reported is the greater of the value in use and
the net selling price. The expected future cash flows are converted to
their present value based on an appropriate discount factor in
assessing value in use. In case the carrying amount of asset is more
than the recoverable amount, it is reduced to its recoverable amount.
This reduction is reported under impairment loss, in the profit & loss
statement. In case there is an indication that an impairment loss which
was previously assessed no longer exists, the recoverable amount is
reassessed and the asset is reflected at the recoverable amount.
7. Investments
Current investments are those which that are readily realisable and
intended to be held for less than a year from the acquisition date.
Remaining investments are reported as long- term investments.
However, those investments which are expected to be realised within
a year after the date of reporting also comes under ''current assets'' as
current portion of long-term investment in accordance with the
current/ non-current differentiation scheme of Schedule III to the Act.
Long-term investments are carried at cost minus any other-thantemporary reduction in value, established separately for every
individual investment. Share related Long Term Investments are stated
at cost.
For Current investments, they are carried at smaller of fair value &
cost. For each category of investment, a comparison is made of fair
value and cost. Any decrement in the carrying amount are charged or
credited to the profit and loss statement.
8. Inventories
Inventories of spares & stores are valued at the lower of cost or net
realisable value. First in first out basis is used to determine the cost

and is inclusive of all the charges incurred for bringing the inventories
to their current location & condition.
9. Investment property
These are investment in land or buildings held for rental purpose or
not intended to be occupied for use by, or in of the Companys
operations. Measurement of such property is done at cost on initial
recognition. The costs are inclusive of other expenditures that are
attributable directly to the construction or acquisition of the
investment. Any profit or loss on disposal of such property is reported
in the profit and loss statement.
10. Borrowing costs
Those borrowing costs which are attributable to the construction,
acquisition or production of qualifying assets are capitalized and are
treated as direct cost. Those assets which necessarily requires a
substantial period of time to get ready for its intended use or sale are
called qualifying assets. In case the active development is delayed
more than the reasonable time (caused by other than temporary
interruption), capitalisation of borrowing costs is suspended in the
period. All other borrowing costs are charged as expense in the profit
and loss statement.
11. Taxation
Income tax expenses includes current income tax and deferred tax
charge. Current tax provisions are changed annually based on the tax
liability calculated in compliance with the Income Tax Act, 1961.
The deferred tax charge & the corresponding deferred tax assets &
liabilities are reported using the rates given on the balance sheet date.
Deferred tax assets are reported only when there is justifiable surety
that the assets can be realised in future.
Minimum Alternative Tax (MAT) credit is reported as an asset in
compliance with the recommendations given by the Institute of
Chartered Accountants of India. The said asset is created by way of a
credit to the profit and loss statement and is written as MAT Credit
Entitlement. The carrying amount of MAT Credit Entitlement is written
down in case there is no longer convincing evidence that the company
during the given period will pay normal Income Tax.
12. Operating lease
Payments of leases are reported as expenses on a straight-line basis
in the profit and loss statement over the lease term unless another
systematic method is more fitting to the time pattern in which the
benefits derived from the leased asset. Assets which are given under
operating lease are included in fixed assets. Costs, including
depreciation which are suffered in earning the income from lease are
reported as expenses. The direct costs incurred initially, specifically for
an operating lease are deferred and reported in the profit and loss
statement over the lease term in proportion to the reporting of income

from lease.
13. Earnings per share (EPS)
The Basic Earning Per Share(EPS) is calculated by dividing the net
profit traceable to the equity shareholders for the given year by the
average number(weighted) of equity shares outstanding during the
given year. Diluted EPS is calculated by dividing the net profit
traceable to the equity shareholders by the weighted average number
of equity plus the equivalent to dilutive equity shares outstanding
during the given year, excluding those where the results would be antidilutive.
14. Provisions and contingent liabilities

The Companies create provisions where there is current

commitment/obligation due to some past event that most likely
requires a resource outflow and a reliable estimate is possible of the
amount of the commitment. A disclosure for a contingent liability is
made when there is a possible or a current commitment that may, but
probably will not require an outflow of resources. No provision is made
when there is a possible commitment due to which the likelihood of
resource outflow is remote. Those assets which are conditional or
contingent are not reported in the financial statements.