2. Material accounting policies

2.1 Basis of preparation

The Standalone Financial Statements 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 Act and Presentation
requirements of the Division II of the schedule III to
the Act (Ind AS Compliant Schedule III).

These financial statements have been prepared on
a historical cost basis except for certain financial
assets and liabilities which have been measured
at fair value (refer accounting policy regarding
financial instruments) and defined benefit plans.

The Company has prepared the financial
statements on the basis that it will continue to
operate as going concern.

During the year, the Group has changed its policy
for rounding off presentation in the results from Rs
in lakhs to Rs in Crore, as the Management believes
it would result in better presentation. Accordingly,
the financial statements are presented in Indian
Rupees (inr) and all values are rounded to the
rupees in Crore 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 realized 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:

• Expected to be settled in normal operating cycle

• Held primarily for the purpose of trading

• 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
non-current assets and liabilities.

2.2 Summary of material accounting policies

a. Investment in Subsidiary associate and joint
ventures

A subsidiary is an entity that is controlled by
another entity.

An associate is an entity over which the Company
has significant influence. Significant influence
is the power to participate in the financial and
operating policy decisions of the investee but is
not control or joint control over those policies.

A joint venture is a type of joint arrangement
whereby the parties that have joint control of the
arrangement have rights to the net assets of the
joint venture. These investments are accounted
at cost of acquisition less impairment, if any is
recognised through the Profit and Loss Account.
Impairment of investments

The Company reviews its carrying value of
investments carried at cost annually, or more
frequently when there is indication for impairment.
If the recoverable amount is less than its carrying
amount, the impairment loss is recorded in the
Statement of Profit and Loss.

When an impairment loss subsequently reverses,
the carrying amount of the Investment is increased
to the revised estimate of its recoverable amount,

so that the increased carrying amount does not
exceed the cost of the Investment. A reversal of an
impairment loss is recognized immediately in P&L.

b. Foreign currencies

The Company''s Standalone financial statements
are presented in INR, which is also the Company''s
functional currency.

Transaction and balances:

Transactions in foreign currencies are initially
recorded by the Company at functional currency
spot rates at the date the transaction first qualifies
for recognition.

Monetary assets and liabilities denominated
in foreign currencies are translated at the
functional currency spot rates of exchange at the
reporting date.

Exchange differences arising on translation /
settlement of foreign currency monetary items are
recognised in profit or loss in the period in which
they arise.

c. Revenue from contract with customers

Revenue from contracts with customers is
recognised when control of the services are
transferred to the customer at an amount that
reflects the consideration to which the Company
expects to be entitled in exchange for those
services. The Company has generally concluded
that it is the principal in its revenue arrangements,
because it typically controls the services before
transferring them to the customer.

Container freight station (''CFS'') income

Income from Container Handling is recognised on
completion of performance obligation as per the
contract with customer.

I ncome from Ground Rent is recognised for the
period the container is lying in the Container
Freight Station as per the terms of arrangement
with the customers.

I ncome from auction sales, is recognised when
the Company auctions long standing cargo that
has not been cleared by customs. Revenue and
expenses for Auction sales are recognised when
auction is completed after obtaining necessary
approvals from appropriate authorities. Auction
sales include recovery of the cost incurred in
conducting auctions, accrued ground rent and
handling charges relating to long-standing cargo.

Reimbursement of cost is netted off with the
relevant expenses incurred, if incurred on behalf
of the customers.

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.

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

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 initially recognised for revenue
from services because the right to receive
the consideration is conditional on successful
completion of the service i.e. transfer of benefit
of services to the customer.. Upon completion
of services and acceptance by the customer,
the amount recognised as contract assets is
reclassified to trade receivables.

Contract asset includes the costs deferred for
Container freight stations operations relating to
import handling and transport activities where
the Company''s performance obligation is yet to
be completed.

d. Taxes

Tax expense comprises current tax expense and
deferred tax.

Current Income tax

Current income tax assets and liabilities are
measured at the amount expected to be
recovered from or paid to the taxation authorities
in accordance with the applicable tax laws. The tax
rates and tax laws used to compute the amount
are those that are enacted or substantively
enacted, 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 other comprehensive income or
in equity). Current tax items are recognised in
correlation to the underlying transaction either in
OCI or directly in equity.

Management periodically evaluates positions
taken in the tax returns with respect to situations
in which applicable tax regulations are subject to
interpretation and considers whether it is probable
that a taxation authority will accept an uncertain
tax treatment.

Deferred tax

Deferred tax is provided using balance sheet
approach 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:

In respect of taxable temporary differences
associated with investments in subsidiary 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 for all
deductible temporary differences and carry
forward of unused tax credits. 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 unused
tax credits.

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.
Unrecognised deferred tax assets are re-assessed
at each reporting date and are recognised to the
extent that it has become probable that future
taxable profits will allow the deferred tax asset to
be recovered.

Deferred tax assets and liabilities are measured
at the tax rates that are expected to apply in the
year when the asset is realised or the liability is
settled, based on tax rates (and tax laws) that
have been enacted or substantively enacted at
the reporting date.

Deferred tax relating to items recognised outside
statement of profit and loss is recognised
outside statement of profit and loss (either
in other comprehensive income or in equity).
Deferred tax items are recognised in correlation
to the underlying transaction either in OCI (Other
Comprehensive Income) or directly in equity.

The Company offsets deferred tax assets and
deferred tax liabilities if and only if it has a legally

enforceable right to set off current tax assets and
current tax liabilities and the deferred tax assets
and deferred tax liabilities relate to income taxes
levied by the same taxation authority on either the
same taxable entity or different taxable entities
which intend either to settle current tax liabilities
and assets on a net basis, or to realise the assets
and settle the liabilities simultaneously, in each
future period in which significant amounts of
deferred tax liabilities or assets are expected to
be settled or recovered.

Minimum Alternate Tax

According to section 115JAA of the Income Tax
Act, 1961, Minimum Alternative Tax (''MAT'') paid
over and above the normal income tax in a
subject year is eligible for carry forward for fifteen
succeeding assessment years for set-off against
normal income tax liability. The MAT credit asset
is assessed against the normal income tax during
the specified period.

Minimum alternate tax (mat) paid in a year is
charged to the statement of profit and loss as
current tax for the year. The deferred tax asset
is recognised for MAT credit available only to
the extent that it is probable that the concerned
Company will pay normal income tax during the
specified period, i.e., the period for which MAT
credit is allowed to be carried forward. In the year
in which the Company recognizes MAT credit
as an asset, it is created by way of credit to the
statement of profit and loss and shown as part
of deferred tax asset. The Company reviews the
“MAT credit entitlement" asset at each reporting
date and writes down the asset to the extent that
it is no longer probable that it will pay normal tax
during the specified period.

e. Property, plant and equipment

Freehold land is carried at historical cost. Plant and
Equipment are stated at cost less accumulated
depreciation / amortisation and impairment loss,
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 Plant and Equipment
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 less accumulated impairment loss, if any.

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 Plant and Machinery, 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.

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.

f. 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 accumulated 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.

Amortisation

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. 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.

g. Impairment of Non-Financial Assets

The Company assesses, at each reporting date,
whether there is an indication that an asset may
be impaired. If any indication exists, or when
annual impairment testing for an asset is required,
the Company estimates the asset''s recoverable
amount. An asset''s recoverable amount is the
higher of an asset''s or cash-generating unit''s
(cgu) fair value less costs of disposal and its
value in use. Recoverable amount is determined
for an individual asset, unless the asset does not
generate cash inflows that are largely independent
of those from other assets or Company of assets.
When the carrying amount of an asset or CGU
exceeds its recoverable amount, the asset is
considered impaired and is written down to its
recoverable amount.

An assessment is made at each reporting date
to determine whether there is an indication that
previously recognised impairment losses no
longer exist or have decreased. If such indication
exists, the Company estimates the asset''s or CGU''s
recoverable amount. A previously recognised
impairment loss is reversed only if there has been
a change in the assumptions used to determine
the asset''s recoverable amount since the last
impairment loss was recognised. The reversal
is limited so that the carrying amount of the
asset exceeds neither its recoverable amount
nor the carrying amount that would have
been determined, net of depreciation, had no
impairment loss been recognised for the asset
in prior years. Such reversal is recognised in the
Statement of Profit and Loss unless the asset is
carried at a revalued amount, in which case, the
reversal is treated as a revaluation increase.

h. Borrowing costs

Borrowing costs includes interest and amortisation
of ancillary cost in connection with borrowed
funds 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.

i. 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. The Company recognises lease liabilities
to make lease payments and right-of-use assets
representing the right to use the underlying assets.

i) Right-of-use assets

The Company recognises right-of-use assets
at the commencement date of the lease (i.e.,
the date the underlying asset is available
for use). Right of-use assets are measured
at cost, less any accumulated depreciation
and impairment losses, and adjusted for any
remeasurement of lease liabilities. The cost
of right-of-use assets includes the amount

of lease liabilities recognised, initial direct
costs incurred, and lease payments made at
or before the commencement date less any
lease incentives received.

Right of use assets are depreciated on a
straight line basis over the shorter of lease
term and the estimated useful lives of
the assets.

The Company does not have any Right-of-use
assets which are depreciated on a straight¬
line basis for the period shorter of the lease
term. The right-of- use assets are also subject
to impairment. Refer to the accounting
policies in section for Impairment of non¬
financial assets.

ii) Lease Liabilities

At the commencement date, the Company
recognises lease liabilities measured at
the present value of lease payments to be
made over the balance lease term. The lease
payments include fixed payments (including
in substance fixed payment) less any lease
incentive receivable, variable lease payments
that depends on an index or a rate, and
amounts expected to be paid under residual
value guarantees. Variable lease payments
that do not depend on an index or a rate
are recognised as expenses (unless they
are incurred to produce inventories) in the
period in which the event or condition that
triggers the payment occurs. In calculating
the present value of lease payments, the
Company uses its incremental borrowing rate
at the lease commencement date because
the interest rate implicit in the lease is not
readily determinable.

After the transition date, the amount of lease
liabilities is increased to reflect the accretion of
interest and reduced for the lease payments
made. In addition, the carrying amount of
lease liabilities is remeasured if there is a
modification, a change in the lease term, a
change in the lease payments (e.g., changes
to future payments resulting from a change in
an index or rate used to determine such lease
payments) or a change in the assessment of
an option to purchase the underlying asset.

iii) Short-term leases and leases of low-value assets

The Company applies the short-term lease
recognition exemption to its short-term leases
i.e., those leases that have a lease term of 12
months or less from commencement date. In

making this assessment, the Company also
factors below key aspects:

a. The assessment is conducted on an
absolute basis and is independent of
the size, nature of circumstances of
the lessee.

b. The assessment is based on the value
of the asset when new, regardless of the
asset''s age at the time of the lease.

c. The lessee can benefit from the use of the
underlying asset either independently
or in combination with other readily
available resources, and the asset is not
highly dependent on or interrelated with
other assets.

d. I f the asset is subleased or expected to
be subleased, the head lease does not
qualify as a lease of a low-value asset.

Lease payments on short-term leases and
leases of low-value assets are recognised as
expense over the lease term.

2. Material accounting policies

2.1 Basis of preparation

The Standalone Financial Statements have been prepared in
accordance with the Indian Accounting Standards (''Ind AS'')
notified under the Companies (Indian Accounting Standards)
(Amendment) Rules, 2015 (as amended) under the provisions
of the Act and Presentation requirements of the Division II of the
Schedule III to the Act (Ind AS Compliant Schedule III).

These financial statements have been prepared on a historical
cost basis except for: certain financial assets and liabilities
which have been measured at fair value (refer accounting
policy regarding financial instruments).

The financial statements are presented in Indian Rupees (INR)
and all values are rounded to the rupees in Lakhs 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 realized 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:

- Expected to be settled in normal operating cycle

- Held primarily for the purpose of trading

- 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 are 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 non-current
assets and liabilities.

.2 Summary of material accounting policies

a. Investment in Subsidiary and joint ventures: A subsidiary
is an entity that is controlled by another entity. A joint
venture is a type of joint arrangement whereby the parties
that have joint control of the arrangement have rights to
the net assets of the joint venture. These investments are
accounted at cost of acquisition less impairment, if any is
recognised through the Profit and Loss Account.

b. Foreign currencies

The Company''s Standalone financial statements are
presented in INR, which is also the Company''s functional
currency.

Transaction and balances:

Transactions in foreign currencies are initially recorded by
the Company at functional currency spot rates at the date
the transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign
currencies are translated at the functional currency spot
rates of exchange at the reporting date.

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

c. Revenue recognition

Revenue from contracts with customers is recognised
when control of the services are transferred to the
customer at an amount that reflects the consideration to
which the Company expects to be entitled in exchange for
those services.

Container freight station income

Income from Container Handling is recognised on
completion of performance obligation as per the contract
with customer.

Income from Ground Rent is recognised for the period the
container is lying in the Container Freight Station as per
the terms of arrangement with the customers.

Income from auction sales is recognised when the
Company auctions long standing cargo that has not
been cleared by customs. Revenue and expenses for
Auction sales are recognised when auction is completed
after obtaining necessary approvals from appropriate
authorities. Auction sales include recovery of the cost
incurred in conducting auctions, accrued ground rent and
handling charges relating to long-standing cargo.

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.

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

d. 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 asset includes the costs deferred for Container
freight stations operations relating to import handling and
transport activities where the Company''s performance
obligation is yet to be completed.

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.

e. Taxes

The Income tax expenses or credit for the period is the tax
payable on the current period''s taxable income based
on the applicable income tax rate for each jurisdiction
adjusted by changes in deferred tax assets and liabilities
attributable to temporary differences and to unused tax
losses.

Current and deferred tax is recognised in the statement of
profit and loss, except to the extent that it relates to items
recognised in other comprehensive income or directly
in equity. In this case, the tax is also recognised in other
comprehensive income or directly in equity, respectively.

Current Income tax

Current income tax assets and liabilities are measured
at the amount expected to be recovered from or paid to
the taxation authorities in accordance with the applicable
tax laws. The tax rates and tax laws used to compute
the amount are those that are enacted or substantively
enacted, 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 other
comprehensive income or in equity). Current tax items
are recognised in correlation to the underlying transaction
either in OCI or directly in equity. 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 liability approach 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:

In respect of taxable temporary differences associated
with investments in subsidiary 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.

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. Unrecognised deferred tax assets are re¬
assessed at each reporting date and are recognised to
the extent that it has become probable that future taxable
profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply in the year when the
asset is realised or the liability is settled, based on tax rates
(and tax laws) that have been enacted or substantively
enacted at the reporting date.

Deferred tax relating to items recognised outside
statement of profit and loss is recognised outside
statement of profit and loss (either in other comprehensive
income or in equity). Deferred tax items are recognised
in correlation to the underlying transaction either in OCI
(Other Comprehensive Income) or directly in equity.

The Company offsets deferred tax assets and deferred
tax liabilities if and only if it has a legally enforceable right
to set off current tax assets and current tax liabilities and
the deferred tax assets and deferred tax liabilities relate
to income taxes levied by the same taxation authority on
either the same taxable entity or different taxable entities
which intend either to settle current tax liabilities and
assets on a net basis, or to realise the assets and settle the
liabilities simultaneously, in each future period in which
significant amounts of deferred tax liabilities or assets are
expected to be settled or recovered.

Minimum Alternate Tax

According to Section 115JAA of the Income Tax Act, 1961,
Minimum Alternative Tax (''MAT'') paid over and above the
normal income tax in a subject year is eligible for carry
forward for fifteen succeeding assessment years for set¬
off against normal income tax liability. The MAT credit
asset is assessed against the normal income tax during
the specified period.

Minimum alternate tax (MAT) paid in a year is charged
to the statement of profit and loss as current tax for the
year. The deferred tax asset is recognised for MAT credit
available only to the extent that it is probable that the
concerned Company will pay normal income tax during
the specified period, i.e., the period for which MAT credit
is allowed to be carried forward. In the year in which the
Company recognizes MAT credit as an asset, it is created
by way of credit to the statement of profit and loss and
shown as part of deferred tax asset. The Company reviews
the “MAT credit entitlement” asset at each reporting date
and writes down the asset to the extent that it is no longer
probable that it will pay normal tax during the specified
period.

f. Property, plant and equipment

Freehold land is carried at historical cost. Plant and
Equipment are stated at cost less accumulated
depreciation / amortisation and impairment loss, 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.

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.

g. 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 accumulated 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.

Amortisation

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. 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.

h. Impairment of Non-Financial Assets

The Company assesses, at each reporting date, whether
there is an indication that an asset may be impaired. If
any indication exists, or when annual impairment testing
for an asset is required, the Company estimates the
asset''s recoverable amount. An asset''s recoverable
amount is the higher of an asset''s or cash-generating
unit''s (CGU) fair value less costs of disposal and its
value in use. Recoverable amount is determined for an
individual asset, unless the asset does not generate cash
inflows that are largely independent of those from other
assets or Company of assets. When the carrying amount
of an asset or CGU exceeds its recoverable amount, the
asset is considered impaired and is written down to its
recoverable amount.

In assessing the value in use, the estimated future cash
flows are discounted to their present value using a post¬
tax discount rate that reflects current market assessments
of the time value of money and the risks specific to the
asset. In determining fair value less costs of disposal,
recent market transactions are taken into account. If
no such transactions can be identified, an appropriate
valuation model is used.

The Company bases its impairment calculation on
detailed budgets and forecast calculations, which are
prepared separately for each of the Company''s CGUs to
which the individual assets are allocated. These budgets
and forecast calculations generally cover a period of
five years. For longer periods, a long-term growth rate is
calculated and applied to project future cash flows after
the fifth year.

After impairment, depreciation is provided on the revised
carrying amount of the asset over its remaining useful life.

An assessment is made at each reporting date to
determine whether there is an indication that previously
recognised impairment losses no longer exist or have
decreased. If such indication exists, the Company
estimates the asset''s or CGU''s recoverable amount. A
previously recognised impairment loss is reversed only
if there has been a change in the assumptions used to
determine the asset''s recoverable amount since the last
impairment loss was recognised. The reversal is limited
so that the carrying amount of the asset exceeds neither
its recoverable amount nor the carrying amount that
would have been determined, net of depreciation, had
no impairment loss been recognised for the asset in prior
years. Such reversal is recognised in the Statement of Profit
and Loss unless the asset is carried at a revalued amount,
in which case, the reversal is treated as a revaluation
increase.

i. 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. Borrowing costs consist of
interest and other costs that an entity incurs in connection
with the borrowing of funds.

j. 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. The Company
recognises lease liabilities to make lease payments and
right-of-use assets representing the right to use the
underlying assets.

i) Right-of-use assets

The Company recognises right-of-use assets at the

commencement date of the lease (i.e., the date the
underlying asset is available for use). Right of-use
assets are measured at cost, less any accumulated
depreciation and impairment losses and adjusted
for any remeasurement of lease liabilities. The
cost of right-of-use assets includes the amount
of lease liabilities recognised, initial direct costs
incurred and lease payments made at or before
the commencement date less any lease incentives
received. The Company does not have any Right-of-
use assets which are depreciated on a straight-line
basis for the period shorter of the lease term. The
right-of- use assets are also subject to impairment.
Refer to the accounting policies in section for
Impairment of non-financial assets.

ii) Lease Liabilities

The Company recognises lease liabilities measured
at the present value of lease payments to be made
over the balance lease term. In calculating the
present value of lease payments, the Company
uses its incremental borrowing rate at the lease
commencement date because the interest rate
implicit in the lease is not readily determinable. After
the transition date, the amount of lease liabilities
is increased to reflect the accretion of interest and
reduced for the lease payments made. In addition,
the carrying amount of lease liabilities is remeasured
if there is a modification, a change in the lease term,
a change in the lease payments (e.g., changes to
future payments resulting from a change in an index
or rate used to determine such lease payments).

iii) Short-term leases and leases of low-value assets

The Company applies the short-term lease
recognition exemption to its short-term leases i.e.,
those leases that have a lease term of 12 months or
less from the date of transition. It also applies the
lease of low-value assets recognition exemption to
leases that are considered to be low value. Lease
payments on short-term leases and leases of low-
value assets are recognised as expense over the
lease term.

2. Material accounting policies 2.1 Basis of preparation

The Standalone Financial Statements 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 Act and Presentation requirements of the Division II of the schedule III to the Act (Ind AS Compliant Schedule III).

These financial statements have been prepared on a historical cost basis except for: certain financial assets and liabilities which have been measured at fair value (refer accounting policy regarding financial instruments.

The financial statements are presented in Indian Rupees (INR) and all values are rounded to the rupees in lakhs 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 realized 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 noncurrent assets and liabilities.

2 Summary of material accounting policies

a. Investment in Subsidiary and joint ventures: A subsidiary is an entity that is controlled by another entity. A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture These investments are accounted at cost of acquisition less impairment, if any is recognised through the Profit and Loss Account.

b. Foreign currencies

The Company''s Standalone financial statements are presented in INR, which is also the Company''s functional currency.

Transaction and balances:

Transactions in foreign currencies are initially recorded by the Company at functional currency spot rates at the date the transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date.

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

c. Revenue recognition

Revenue from contracts with customers is recognised when control of the services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services.

Container freight station income

Income from Container Handling is recognised on completion of performance obligation as per the contract with customer.

Income from Ground Rent is recognised for the period the container is lying in the Container Freight Station as per the terms of arrangement with the customers.

Income from auction sales is recognised when the Company auctions long standing cargo that has not been cleared by customs. Revenue and expenses for Auction sales are recognised when auction is completed after obtaining necessary approvals from appropriate authorities. Auction sales include recovery of the cost incurred in conducting auctions, accrued ground rent and handling charges relating to long-standing cargo.

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.

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

d. 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 asset includes the costs deferred for Container freight stations operations relating to import handling and transport activities where the Company''s performance obligation is yet to be completed.

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.

e. Taxes

The Income tax expenses or credit for the period is the tax payable on the current period''s taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

Current and deferred tax is recognised in the statement of profit and loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

a. Current Income tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities in accordance with the applicable tax laws. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, 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 other comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity. 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 liability approach 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:

In respect of taxable temporary differences associated with investments in subsidiary 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.

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. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognised outside statement of profit and loss is recognised outside statement of profit and loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in OCI (Other Comprehensive Income) or directly in equity.

The Company offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

Minimum Alternate Tax:

According to section 115JAA of the Income Tax Act, 1961, Minimum Alternative Tax (''MAT'') paid over and above the normal income tax in a subject year is eligible for carry forward for fifteen succeeding assessment years for set-off against normal income

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.

g. 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 accumulated 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.

Amortisation

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. 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.

h. Impairment of Non-Financial Assets

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired.

If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or cash-generating unit''s (CGU) fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or Company of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing the value in use, the estimated future cash flows are discounted to their present value using a post-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used.

The Company bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately for each of the Company''s CGUs to which the individual assets are allocated. These budgets and forecast calculations generally cover a period of five years. For longer periods, a long-term growth rate is calculated and applied to project future cash flows after the fifth year.

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

An assessment is made at each reporting date to determine whether there is an indication that previously recognised impairment losses no longer exist or have decreased. If such indication exists, the Company estimates the asset''s or CGU''s recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset''s recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset exceeds neither its recoverable amount nor the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in the Statement of Profit and Loss unless the asset is carried at a revalued amount, in which case, the reversal is treated as a revaluation increase. i. 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. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

j. 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. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

i) Right-of-use assets

The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. The Company does not have any Right-of-use assets which are depreciated on a straight-line basis for the period shorter of the lease term. The right-of- use assets are also subject to impairment. Refer to the accounting policies in section for Impairment of non-financial assets.

ii) Lease Liabilities

The Company recognises lease liabilities measured at the present value of lease payments to be made over the balance lease term. In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the transition date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term,

a change in the lease payments (eg., changes to future payments resulting from a change in an index or rate used to determine such lease payments).

iii) Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases i.e., those leases that have a lease term of 12 months or less from the date of transition. It also applies the lease of low-value assets recognition exemption to leases that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense over the lease term.

Significant accounting policies

2.1 Basis of preparation

The Standalone Financial Statements (SFS) 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 the Division II of the schedule III to
Companies Act 2013(Ind AS Compliant Schedule III). These
SFS are prepared under the historical cost convention on
the accrual basis acquired under business combinations,
derivative financial instruments and certain other financial
assets and liabilities which have been measured at fair value
(refer accounting policy regarding financial instruments).
The SFS have been prepared on a going concern basis.

The financial statements are presented in INR and all values
are rounded to the nearest rupees in Lakhs 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 realized 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 non¬
current assets and liabilities.

2.2 Summary of significant accounting policies

a. Investment in Subsidiary and joint ventures : are

accounted at cost of acquisition, any impairment is
recognised through the Profit and Loss Account.

b. Foreign currencies

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

c. Revenue recognition

Revenue from contracts with customers is recognised
when control of the goods or services are transferred
to the customer at an amount that reflects the
consideration to which the Company expects to be
entitled in exchange for those goods or services.

Container freight station income

Income from Container Handling is recognised on
completion of its performance obligation.

Income from Ground Rent is recognised for the period
the container is lying in the Container Freight Station as
per the terms of arrangement with the customers.

Others

Reimbursement of cost is netted off with the relevant
expenses incurred, since the same are incurred on
behalf of the customers.

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.

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

d. 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

Contract asset includes the costs deferred for
Container freight stations operations relating to import
handling and transport activities where the Company''s
performance obligation is yet to be completed.

Additionally, 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.

e. Taxes

Current Income tax

Current income tax assets and liabilities are measured
at the amount expected to be recovered from or paid
to the taxation authorities in accordance with the
applicable tax laws. The tax rates and tax laws used
to compute the amount are those that are enacted or
substantively enacted, 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 other
comprehensive income or in equity). 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 liability approach 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:

a) 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.

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 for all deductible
temporary differences, the carry forward of unused
tax credits and any unused tax losses. 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, except:

a) When the deferred tax asset relating to the
deductible temporary difference arises from
the initial recognition of 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.

b) In respect of deductible temporary differences
associated with investments in subsidiaries,
associates and interests in joint ventures, deferred
tax assets are recognised only to the extent that
it is probable that the temporary differences will
reverse in the foreseeable future and taxable profit
will be available against which the temporary
differences 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. Unrecognised deferred tax assets are re¬
assessed at each reporting date and are recognised
to the extent that it has become probable that future
taxable profits will allow the deferred tax asset to be
recovered.

Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply in the year when
the asset is realised or the liability is settled, based on
tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.

Deferred tax relating to items recognised outside
statement of profit and loss is recognised outside
statement of profit and loss (either in other
comprehensive income or in equity). Deferred tax
items are recognised in correlation to the underlying
transaction either in OCI (Other Comprehensive
Income) or directly in equity.

The Company offsets deferred tax assets and deferred
tax liabilities if and only if it has a legally enforceable
right to set off current tax assets and current tax liabilities
and the deferred tax assets and deferred tax liabilities
relate to income taxes levied by the same taxation
authority on either the same taxable entity or different
taxable entities which intend either to settle current tax
liabilities and assets on a net basis, or to realise the
assets and settle the liabilities simultaneously, in each
future period in which significant amounts of deferred
tax liabilities or assets are expected to be settled or
recovered.

Minimum Alternate Tax:

According to section 115JAA of the Income Tax Act, 1961,
Minimum Alternative Tax (''MAT'') paid over and above
the normal income tax in a subject year is eligible for
carry forward for fifteen succeeding assessment years
for set-off against normal income tax liability. The MAT
credit asset is assessed against the normal income tax
during the specified period.

Minimum alternate tax (MAT) paid in a year is charged
to the statement of profit and loss as current tax for
the year. The deferred tax asset is recognised for MAT
credit available only to the extent that it is probable
that the concerned Company will pay normal income
tax during the specified period, i.e., the period for which
MAT credit is allowed to be carried forward. In the year
in which the Company recognizes MAT credit as an
asset, it is created by way of credit to the statement of
profit and loss and shown as part of deferred tax asset.
The Company reviews the "MAT credit entitlement"
asset at each reporting date and writes down the asset
to the extent that it is no longer probable that it will pay
normal tax during the specified period.

The net amount of tax recoverable from, or payable to,
the taxation authority is included as part of receivables
or payables in the balance sheet.

f. Property, plant and equipment

Property, Plant and Equipment are stated at cost
less accumulated depreciation / amortisation and
impairment loss, 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.

Assets individually costing less than '' 5000 are fully
depreciated in the year of acquisition.

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.

g. 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 accumulated
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.

Amortisation

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. 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

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.

h. Impairment of Non-Financial Assets

The Company assesses, at each reporting date, whether
there is an indication that an asset may be impaired.
If any indication exists, or when annual impairment
testing for an asset is required, the Company estimates
the asset''s recoverable amount. An asset''s recoverable
amount is the higher of an asset''s or cash-generating
unit''s (CGU) fair value less costs of disposal and its
value in use. Recoverable amount is determined for an
individual asset, unless the asset does not generate
cash inflows that are largely independent of those from
other assets or Company of assets. When the carrying
amount of an asset or CGU exceeds its recoverable
amount, the asset is considered impaired and is written
down to its recoverable amount.

In assessing the value in use, the estimated future
cash flows are discounted to their present value using
a post-tax discount rate that reflects current market
assessments of the time value of money and the risks
specific to the asset. In determining fair value less costs
of disposal, recent market transactions are taken into
account. If no such transactions can be identified, an
appropriate valuation model is used.

The Company bases its impairment calculation on
detailed budgets and forecast calculations, which are
prepared separately for each of the Company''s CGUs
to which the individual assets are allocated. These
budgets and forecast calculations generally cover a
period of five years. For longer periods, a long-term
growth rate is calculated and applied to project future
cash flows after the fifth year.

After impairment, depreciation is provided on the
revised carrying amount of the asset over its remaining
useful life.

An assessment is made at each reporting date to
determine whether there is an indication that previously
recognised impairment losses no longer exist or have
decreased. If such indication exists, the Company
estimates the asset''s or CGU''s recoverable amount.

A previously recognised impairment loss is reversed
only if there has been a change in the assumptions
used to determine the asset''s recoverable amount
since the last impairment loss was recognised. The
reversal is limited so that the carrying amount of the
asset exceeds neither its recoverable amount nor the
carrying amount that would have been determined,
net of depreciation, had no impairment loss been
recognised for the asset in prior years. Such reversal is
recognised in the Statement of Profit and Loss unless
the asset is carried at a revalued amount, in which
case, the reversal is treated as a revaluation increase.

i. 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. Borrowing costs consist
of interest and other costs that an entity incurs in
connection with the borrowing of funds.

j. 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. The
Company recognises lease liabilities to make lease
payments and right-of-use assets representing the
right to use the underlying assets.

i) Right-of-use assets

The Company recognises right-of-use assets at
the commencement date of the lease (i.e., the
date the underlying asset is available for use).
Right of-use assets are measured at cost, less any
accumulated depreciation and impairment losses,
and adjusted for any remeasurement of lease
liabilities. The cost of right-of-use assets includes
the amount of lease liabilities recognised, initial
direct costs incurred, and lease payments made
at or before the commencement date less any
lease incentives received. Company does not have
any Right-of-use assets which are depreciated
on a straight-line basis for the period shorter of
the lease term. The right-of- use assets are also
subject to impairment. Refer to the accounting
policies in section for Impairment of non-financial
assets.

ii) Lease Liabilities

The Company recognises lease liabilities measured
at the present value of lease payments to be made
over the balance lease term. In calculating the
present value of lease payments, the Company
uses its incremental borrowing rate at the lease
commencement date because the interest rate
implicit in the lease is not readily determinable.
After the transition date, the amount of lease
liabilities is increased to reflect the accretion of
interest and reduced for the lease payments made.
In addition, the carrying amount of lease liabilities
is remeasured if there is a modification, a change
in the lease term, a change in the lease payments
(e.g., changes to future payments resulting from a
change in an index or rate used to determine such
lease payments).

iii) Short-term leases and leases of low-value assets

The Company applies the short-term lease
recognition exemption to its short-term leases i.e.,
those leases that have a lease term of 12 months or
less from the date of transition. It also applies the
lease of low-value assets recognition exemption to
leases that are considered to be low value. Lease
payments on short-term leases and leases of low-
value assets are recognised as expense over the
lease term.