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AVG Logistics Ltd. కంపెనీ అకౌంటింగ్ విధానాలు
Mar 31, 2025
1) Corporate information/background:
AVG Logistics Limited (''the Company'') was incorporated
on January 25, 2010 under the Companies Act,
1956. The Company is public limited Company
incorporated and domiciled in India and its CIN is
L60200DL2010PLC198327. The main objects of the
Company are transportation of goods including
warehousing and cold chain facility, warehousing and
other incidental activities there to. The Company is
also involved in trading business.The address of its
corporate office is 102, 1st Floor, Jhilmil Metro Station
Complex, Delhi - 110095. The Board of Directors
approved the standalone financial statements for the
year ended March 31,2025 and authorised for issue on
May 30, 2025.
2) Statement of compliance:
These standalone financial statements have been
prepared in accordance with the Indian Accounting
Standards (referred to as "Ind AS") prescribed under
section 133 of the Companies Act, 2013 read with the
Companies (Indian Accounting Standards) Rules as
amended from time to time.
3) Basis of preparation:
The standalone financial statements have been
prepared on accrual basis and the historical cost basis
as a going concern except for financial instruments
that are measured at fair values or at amortised cost,
wherever applicable, at the end of each reporting
period, as explained in the accounting policies below.
Historical cost is generally based on the fair value of
the consideration given in exchange for goods and
services.
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, regardless of whether that price
is directly observable or estimated using another
valuation technique. In estimating the fair value
of an asset or a liability, the Company takes into
account the characteristics of the asset or liability if
market participants would take those characteristics
into account when pricing the asset or liability at the
measurement date. Fair value for measurement and/
or disclosure purposes in this standalone financial
statements is determined on such basis, except for
share-based payment transactions that are within
the scope of Ind AS 102, leasing transactions that are
within the scope of Ind AS 116, and measurements
that have some similarities to fair value but are not fair
value, such as net realisable value in Ind AS 2 or value
in use in Ind AS 36.
In addition, for financial reporting purposes, fair value
measurements are categorised into Level 1 , 2 or 3
based on the degree to which the inputs to the fair value
measurements are observable and the significance of
the inputs to the fair value measurement in its entirety,
which are described as follows:
* Level 1 inputs are quoted prices (unadjusted) in active
markets for identical assets or liabilities that the entity
can access at the measurement date;
* Level 2 inputs are inputs, other than quoted prices
included within Level 1, that are observable for the
asset or liability, either directly or indirectly; and
* Level 3 inputs are unobservable inputs for the asset
or liability.
The standalone financial statements are prepared in
Indian Rupee (INR) and denominated in lakhs.
The material accounting policy information related to
preparation of the standalone financial statements
have been discussed in the respective notes.
(a) Inventories:
Inventories are valued at lower of cost and net
realisable value. 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.
(b) 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. The
Company has generally concluded that it is the principal
in its revenue arrangements because it typically
controls the goods or services before transferring
them to the customer.
(c) Rendering of services:
Incomes from logistics services rendered are recognised
on the completion of the services as per the terms of
contract. Revenue is recognized at the fair value of
consideration received or receivable, to the extent that
it is probable that the economic benefits will flow to the
Company and the revenue can be reliably measured.
(d) Warehouse income:
Warehouse rental income is recognised on a straight¬
line basis over the period of the lease agreements.
(e) Other income:
Dividend income from investments is recognised when
the right to receive payment has been established
(provided that it is probable that the economic benefits
will flow to the Company and the amount of income
can be measured reliably).
Interest income from a financial asset is recognised
when it is probable that the economic benefits will
flow to the Company and the amount of income can be
measured reliably. Interest income is accrued on a time
basis, by reference to the principal outstanding and at
the effective interest rate applicable, which is the rate
that exactly discounts estimated future cash receipts
through the expected life of the financial asset to that
asset''s net carrying amount on initial recognition.
(f) Leasing:
At inception of a contract, the Company assesses
whether a contract is, or contains, a lease. A contract
is, or contains, a lease if the contract conveys the right
to control the use of an identified asset for a period of
time in exchange for consideration. To assess whether
a contract conveys the right to control the use of an
identified asset, the Company assesses whether:
* The contract involves the use of an identified asset -
this may be specified explicitly or implicitly and should
be physically distinct or represent substantially all of
the capacity of a physically distinct asset. If the lessor
has a substantive substitution right, then the asset is
not identified.
* The Company has the right to obtain substantially
all of the economic benefits from use of the asset
throughout the period of use; and
* The Company as a lessee has the right to direct the
use of the asset. The Company has this right when it
has the decision-making rights that are most relevant
to changing how and for what purpose the asset is
used. In rare cases where the decision about how and
for what purpose the asset is used is predetermined,
the Company has the right to direct the use of the asset
if either:
a) the Company as a lessee has the right to operate
the asset; or
b) the Company as a lessee designed the asset
in a way that predetermines how and for what
purpose it will be used.
This policy is applied to contracts entered into, or
modified, on or after 01 April 2021.
As a lessee
The Company recognises a right-of-use asset and a
lease liability at the lease commencement date. The
right-of-use asset is initially measured at cost, which
comprises the initial amount of the lease liability
adjusted for any lease payments made at or before
the commencement date, plus any initial direct
costs incurred and an estimate of costs to dismantle
and remove the underlying asset or to restore the
underlying asset or the site on which it is located, less
any lease incentives received.
The right-of-use assets are subsequently depreciated
using the straight-line method from the commencement
date to the earlier of the end of the useful life of the
right-of-use asset or the end of the lease term. In
addition, the right-of-use asset is periodically reduced
by impairment losses, if any, and adjusted for certain
re-measurements of the lease liability.
The lease liability is initially measured at amortised cost
at the present value of the lease payments that are not
paid at the commencement date, discounted using
the interest rate implicit in the lease or, if that rate
cannot be readily determined, using the incremental
borrowing rate. The ROU of assets has been created
on the basis of lock in period of lease agreement more
than 12 months.
It is re -measured when there is a change in future lease
payments arising from a change in an index or rate,
if there is a change in the Company''s estimate of the
amount expected to be payable under a residual value
guarantee, or if the Company changes its assessment
of whether it will exercise a purchase, extension or
termination option.
When the lease liability is remeasured in this way, a
corresponding adjustment is made to the carrying
amount of the right-of-use asset, or is recorded in
profit or loss if the carrying amount of the right-of-use
asset has been reduced to zero.
Short-term leases and leases of low-value assets
The Company has elected not to recognise right-of-use
assets and lease liabilities for short-term leases that
have a lease term of 12 months or less and leases of
low-value assets. The Company recognises the lease
payments associated with these leases as an expense
on a straight-line basis over the lease term.
As a lessor
When the Company acts as a lessor, it determines at
lease inception whether each lease is a finance lease or
an operating lease.
Whenever the terms of the lease transfer substantially
all the risks and rewards of ownership to the lessee,
the contract is classified as a finance lease. All other
leases are classified as operating leases.
When the Company is an intermediate lessor, it
accounts for its interests in the head lease and the
sublease separately. The sublease is classified as a
finance or operating lease by reference to the right-of-
use asset arising from the head lease.
The Company recognises lease payments received
under operating leases as income on a straight- line
basis over the lease term as part of ''other income''.
As a lessee
Operating leases
The Company has elected not to apply the requirements
of Ind AS 116 to leases which are expiring within 12
months from the date of transition by class of asset
and leases for which the underlying asset is of low
value on a lease-by-lease basis. The Company has also
used the practical expedient provided by the standard
when applying Ind AS 116 to leases previously
classified as operating leases under Ind AS 17 and
therefore, has not reassessed whether a contract, is or
contains a lease, at the date of initial application, relied
on its assessment of whether leases are onerous,
applying Ind AS 37 immediately before the date of
initial application as an alternative to performing an
impairment review, excluded initial direct costs from
measuring the right of use asset at the date of initial
application and used hindsight when determining the
lease term if the contract contains options to extend or
terminate the lease. Single discount rate to a portfolio
of leases with similar characteristics.
On application of Ind AS 116, the nature of expenses
has changed from lease rent in previous periods to
depreciation cost for the right-to-use asset, and finance
cost for interest accrued on lease liability.
In case of sub-leases
I. When the intermediate lessor enters into a
sublease, the intermediate lessor (other than
operating lease):
1. Derecognises the ROU asset relating to the
head lease that it transfer to the sublessee and
recognises the net investment in the sublease.
2. Recognises any difference between the ROU asset
and the net investment in the sublease in profit or
loss.
3. Retains the lease liability relating to the head lease
in its balance sheet, which represent the lease
payments owned to the head lessor.
During the term of the sublease, the intermediate
lessor recognises both
- Finance income on the sublease; and
- Interest expenses on the head lease.
II. When the intermediate lessor enters into a
sublease, the intermediate lessor (operating
lease):
- There would be same treatment as in case of
finance lease.
(g) Foreign currencies:
Initial recognition
In preparing the financial statements of the Company,
transactions in currencies other than the entity''s
functional currency of Indian Rupees (foreign
currencies) are recognised at the rates of exchange
prevailing at the dates of the transactions.
Conversion:
(a) Foreign currency monetary assets and liabilities
at the year-end are translated at the year-end
exchange rates and the resultant exchange
differences are recognised in the Statement of
Profit and Loss.
(b) Non-monetary items, if any are measured in
terms of historical cost denominated in a foreign
currency, are reported using the exchange rate at
the date of the transaction. Non-monetary items,
which are measured at fair value or other similar
valuation denominated in a foreign currency, are
translated using the exchange rate at the date
when such value was determined.
Exchange differences:
The Company accounts for exchange differences
arising on translation/settlement of foreign currency
monetary items as below:
a. Realized gains and losses on settlement of foreign
currency transactions are recognised in the
Standalone Statement of Profit and Loss."
b. Foreign currency monetary assets and liabilities
at the year-end are translated at the year-end
exchange rates and the resultant exchange
differences are recognised in the Standalone
Statement of Profit and Loss"
(h) Borrowing costs:
Borrowing Cost that are attributable to the acquisition
or construction of qualifying assets are capitalised
as part of the cost of such assets. A qualifying asset
is one that necessarily takes a substantial period of
time to get ready for its intended use or sale. All other
borrowing costs are charged to revenue in the year
of incurrence. Borrowing costs consist of interest and
other costs that an entity incurs in connection with
the borrowing of funds. Borrowing cost also includes
exchange differences to the extent regarded as an
adjustment to the borrowing costs.
(i) Employee benefits:
Retirement benefit costs and termination benefits
i. Defined contribution plan:
Company''s contributions paid/payable during the
year to the superannuation fund, ESIC, provident
fund and labour welfare fund are recognised in
the Standalone Statement of Profit and Loss.
ii. Defined benefits plan:
For defined retirement benefit plans, the cost
of providing benefits is determined using the
projected unit credit method, with actuarial
valuations being carried out at the end of each
annual reporting period. Remeasurement,
comprising actuarial gains and losses, the effect
of the changes to the asset ceiling (if applicable)
and the return on plan assets (excluding net
interest), is reflected immediately in the Balance
Sheet with a charge or credit recognised in Other
Comprehensive Income in the period in which
they occur. Remeasurement recognised in Other
Comprehensive Income is reflected immediately
in retained earnings and is not reclassified to
profit or loss. Past service cost is recognised in
profit or loss in the period of a plan amendment.
Net interest is calculated by applying the discount
rate at the beginning of the period to the net
defined benefit liability or asset. Defined benefit
costs are categorised as follows.
a. Service cost (including current service cost,
past service cost, as well as gains and losses on
curtailments and settlements);"
b. Net interest expense or income; and"
c. Remeasurement.
The Company presents the first two components of
defined benefit costs in profit or loss in the line item
''Employee benefits expense''. Curtailment gains and
losses are accounted for as past service costs.
The retirement benefit obligation recognised in the
Balance Sheet represents the actual deficit or surplus
in the Company''s defined benefit plans. Any surplus
resulting from this calculation is limited to the present
value of any economic benefits available in the form
of refunds from the plans or reductions in future
contributions to the plans.
Short-term and other long-term employee benefits
A liability is recognised for benefits accruing to
employees in respect of wages and salaries.
Liabilities recognised in respect of short-term employee
benefits are measured at the undiscounted amount of
the benefits expected to be paid in exchange for the
related service.
Liabilities recognised in respect of other long-term
employee benefits are measured at the present value
of the estimated future cash outflows expected to be
made by the Company in respect of services provided
by employees up to the reporting date.
Compensated Absences
Accumulated compensated absences, which are
availed or encashed within 12 months from the end
of the year end are treated as short term employee
benefits. The obligation towards the same is measured
at the cost of accumulating compensated absences
as the additional amount to be paid as a result of the
unused entitlement as at the year end.
(j) Taxation:
I ncome tax expense represents the sum of the tax
currently payable and deferred tax.
Current tax:
The tax currently payable is based on taxable profit
for the year. Taxable profit differs from ''Profit before
tax'' as reported in the Statement of Profit and Loss
because of items of income or expense that are
taxable or deductible in other years and items that are
never taxable or deductible. The Company''s current
tax is calculated using tax rates that have been enacted
or substantively enacted by the end of the reporting
period.
Deferred tax:
Deferred tax is recognised on temporary differences
between the carrying amounts of assets and liabilities
in the financial statements and the corresponding
tax bases used in the computation of taxable profit.
Deferred tax liabilities are generally recognised for all
taxable temporary differences. Deferred tax assets
are generally recognised for all deductible temporary
differences to the extent that it is probable that taxable
profits will be available against which those deductible
temporary differences can be utilised. Such deferred
tax assets and liabilities are not recognised if the
temporary difference arises from the initial recognition
(other than in a business combination) of assets and
liabilities in a transaction that affects neither the
taxable profit nor the accounting profit.
Deferred tax liabilities are recognised for taxable
temporary differences associated with investments
in subsidiaries and associates, and interests in joint
ventures, except where the Company is able to control
the reversal of the temporary difference and it is
probable that the temporary difference will not reverse
in the foreseeable future. Deferred tax assets arising
from deductible temporary differences associated with
such investments and interests are only recognised to
the extent that it is probable that there will be sufficient
taxable profits against which to utilise the benefits of
the temporary differences and they are expected to
reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed
at the end of each reporting period and reduced to
the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of
the asset to be recovered.
Deferred tax liabilities and assets are measured at the
tax rates that are expected to apply in the period in
which the liability is settled or the asset realised, based
on tax rates (and tax laws) that have been enacted
or substantively enacted by the end of the reporting
period.
The measurement of deferred tax liabilities and assets
reflects the tax consequences that would follow from
the manner in which the Company expects, at the end
of the reporting period, to recover or settle the carrying
amount of its assets and liabilities.
Current and deferred tax for the year:
Current and deferred tax are recognised in profit
or loss, except when they relate to items that are
recognised in Other Comprehensive Income or directly
in equity, in which case, the current and deferred tax
are also recognised in Other Comprehensive Income
or directly in equity respectively.
(k) Property, plant and equipment:
All items of property, plant and equipment are stated
at cost less accumulated depreciation and accumulated
impairment losses, if any. Cost of acquisition is inclusive
of purchase price, levies and any directly attributable
cost of bringing the assets to its working condition for
the intended use. Subsequent costs are included in the
asset''s carrying amount or recognised as separate asset,
as appropriate, only when it is probable that the future
economic benefits associated with the item will flow to
the Company and cost of the item can be measured
reliably. The carrying amount of any component
accounted for as a separate asset is derecognised when
replaced. All other repairs and maintenance are charged
to Statement of Profit and Loss during the reporting
period in which they are incurred.
Depreciation on tangible assets is charged by the
Straight Line Method (SLM) in accordance with the
useful lives specified in Part - C of Schedule II of the
Companies Act, 2013 on a pro-rata basis except in the
case of:
The carrying amount is calculated after reducing 5% of
the value of property, plant and equipment as residual
value. The Company has used following useful lives to
provide depreciation of different class of its property,
plant and equipment
reviewed at the end of each reporting period, with the
effect of any changes in estimate being accounted for
on a prospective basis.
Intangible assets with indefinite useful lives that are
acquired separately are carried at cost less accumulated
impairment losses.
Useful lives of intangible assets:
The expenditure incurred is amortised over three
financial years equally commencing from the year in
which the expenditure is incurred.
The estimated useful lives, residual values and
depreciation method are reviewed at the end of each
reporting period, with the effect of any changes in
estimate accounted for on a prospective basis.
An item of property, plant and equipment is
derecognised upon disposal or when no future
economic benefits are expected to arise from the
continued use of the asset. Any gain or loss arising
on the disposal or retirement of an item of property,
plant and equipment is determined as the difference
between the sales proceeds and the carrying amount
of the asset and is recognised in profit or loss.
On transition to Ind AS, the Company has elected to
continue with the carrying value of all of its property,
plant and equipment measured as per the Previous
GAAP as at April 01, 2021 as its deemed cost on the
date of transition.
(l) Intangible assets:
Intangible assets acquired separately
The useful lives of intangible assets are assessed as
either finite or infinite. Intangible assets with finite
useful lives that are acquired separately are carried at
cost less accumulated amortisation and accumulated
impairment losses. Amortisation is recognised on a
straight-line basis over their estimated useful lives.
The estimated useful life and amortisation method are
Impairment of tangible and intangible assets:
The management of the Company assesses at each
Balance Sheet date whether there is any indication that
an asset may be impaired. If any such indication exists,
the management estimates the recoverable amount
of the asset. If such recoverable amount of the asset
is less than its carrying amount, the carrying amount
is reduced to its recoverable amount. The reduction is
treated as an impairment loss and recognised in the
Statement of Profit and Loss. If at the Balance Sheet
date there is an indication that if a previously assessed
impairment loss no longer exists, the recoverable
amount is reassessed, and the asset is reflected at
the recoverable amount subject to a maximum of
depreciated historical cost. A reversal of an impairment
loss is recognised immediately in profit or loss.
(m) Impairment of investments:
The Company assesses impairment of investments
in subsidiaries, associates and joint ventures which
are recorded at cost. At the time when there are any
indications that such investments have suffered a loss,
if any, is recognised in the statement of Profit and
Loss. The recoverable amount requires estimates of
operating margin, discount rate, future growth rate,
terminal values, etc. based on management''s best
estimate.
Mar 31, 2024
Material accounting policies and notes to accounts
1) . Corporate information/background:
AVG Logistics Limited (''the Company'') was incorporated on January 25, 2010 under the Companies Act, 1956. The Company is public limited company incorporated and domiciled in India and its CIN is L60200DL2010PLC198327. The main objects of the Company are transportation of goods including warehousing and cold chain facility, warehousing and other incidental activities there to. The Company is also involved in trading business.The address of its corporate office is 102, 1st Floor Jhilmil Metro Station Complex, Delhi - 110095. The Board of Directors approved the standalone financial statements for the year ended March 31,2024 and authorised for issue on May 29, 2024.
2) . Statement of compliance:
These standalone financial statements have been prepared in accordance with the Indian Accounting Standards (referred to as "Ind AS") prescribed under section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules as amended from time to time.
3) . Basis of preparation:
The standalone financial statements have been prepared on accrual basis and the historical cost basis as a going concern except for financial instruments that are measured at fair values or at amortised cost, wherever applicable, at the end of each reporting period, as explained in the accounting policies below.
Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.
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, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/ or disclosure purposes in this standalone financial statements is determined on such basis, except for share-based payment transactions that are within
the scope of Ind AS 102, leasing transactions that are within the scope of Ind AS 116, and measurements that have some similarities to fair value but are not fair value, such as net realisable value in Ind AS 2 or value in use in Ind AS 36.
In addition, for financial reporting purposes, fair value measurements are categorised into Level 1 , 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:
* Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
* Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and
* Level 3 inputs are unobservable inputs for the asset or liability.
The financial statements are prepared in Indian Rupee (INR) and denominated in lakhs.
The material accounting policy information related to preparation of the standalone financial statements have been discussed in the respective notes.
(a) Inventories:
Inventories are valued at lower of cost and net realisable value. 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.
(b) 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. The Company has generally concluded that it is the principal in its revenue arrangements because it typically controls the goods or services before transferring them to the customer.
(c) Rendering of services:
Incomes from logistics services rendered are recognised on the completion of the services as per the terms of
contract. Revenue is recognized at the fair value of consideration received or receivable, to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.
(d) Warehouse income:
Warehouse rental income is recognised on a straightline basis over the period of the lease agreements.
(e) Other income:
Dividend income from investments is recognised when the right to receive payment has been established (provided that it is probable that the economic benefits will flow to the company and the amount of income can be measured reliably).
Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset''s net carrying amount on initial recognition.
(f) Leasing:
At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:
* The contract involves the use of an identified asset -this may be specified explicitly or implicitly and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the lessor has a substantive substitution right, then the asset is not identified.
* The Company has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and
* The Company as a lessee has the right to direct the use of the asset. The Company has this right when it has the decision-making rights that are most relevant to changing how and for what purpose the asset is used. In rare cases where the decision about how and for what purpose the asset is used is predetermined,
the Company has the right to direct the use of the asset if either:
a) the Company as a lessee has the right to operate the asset; or
b) the Company as a lessee designed the asset in a way that predetermines how and for what purpose it will be used.
This policy is applied to contracts entered into, or modified, on or after 01 April 2021.
As a lessee
The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.
The right-of-use assets are subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liability.
The lease liability is initially measured at amortised cost at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, using the incremental borrowing rate. The ROU of assets has been created on the basis of lock in period of lease agreement more than 12 months.
It is re -measured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company''s estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension or termination option.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
Short-term leases and leases of low-value assets
The Company has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets. The Company recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.
As a lessor
When the Company acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease.
Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.
When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. The sublease is classified as a finance or operating lease by reference to the right-of-use asset arising from the head lease.
The Company recognises lease payments received under operating leases as income on a straight- line basis over the lease term as part of ''other income''.
As a lessee Operating leases
The Company has elected not to apply the requirements of Ind AS 116 to leases which are expiring within 12 months from the date of transition by class of asset and leases for which the underlying asset is of low value on a lease-by-lease basis. The Company has also used the practical expedient provided by the standard when applying Ind AS 116 to leases previously classified as operating leases under Ind AS 17 and therefore, has not reassessed whether a contract, is or contains a lease, at the date of initial application, relied on its assessment of whether leases are onerous, applying Ind AS 37 immediately before the date of initial application as an alternative to performing an impairment review, excluded initial direct costs from measuring the right of use asset at the date of initial application and used hindsight when determining the lease term if the contract contains options to extend or terminate the lease. Single discount rate to a portfolio of leases with similar characteristics.
On application of Ind AS 116, the nature of expenses has changed from lease rent in previous periods to depreciation cost for the right-to-use asset, and finance cost for interest accrued on lease liability.
In case of sub - leases
I. When the intermediate lessor enters into a
sublease, the intermediate lessor (other than operating lease) :
1. Derecognises the ROU asset relating to the head lease that it transfer to the sublessee and recognises the net investment in the sublease.
2. Recognises any difference between the ROU asset and the net investment in the sublease in profit or loss.
3. Retains the lease liability relating to the head lease in its balance sheet, which represent the lease payments owned to the head lessor.
During the term of the sublease, the intermediate lessor recognises both
- Finance income on the sublease and
- Interest Expenses on the head lease.
II. When the intermediate lessor enters into a sublease, the intermediate lessor (operating lease):
- There would be same treatment as in case of finance lease.
(g) Foreign currencies :
Initial recognition
In preparing the financial statements of the company, transactions in currencies other than the entity''s functional currency of Indian Rupees (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions.
Conversion:
(a) Foreign currency monetary assets and liabilities at the year-end are translated at the year-end exchange rates and the resultant exchange differences are recognised in the Statement of Profit and Loss.
(b) Non-monetary items, if any are measured in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of the transaction. Non-monetary items, which are measured at fair value or other similar valuation denominated in a foreign currency, are translated using the exchange rate at the date when such value was determined.
Exchange differences:
The Company accounts for exchange differences arising on translation/settlement of foreign currency monetary items as below:
a. Realized gains and losses on settlement of foreign currency transactions are recognised in the Statement of Profit and Loss.
b. Foreign currency monetary assets and liabilities at the year-end are translated at the year-end exchange rates and the resultant exchange differences are recognised in the Statement of Profit and Loss
(h) Borrowing costs:
Borrowing Cost that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use or sale. All other borrowing costs are charged to revenue in the year of incurrence. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.
(i) Employee benefits:
Retirement benefit costs and termination benefits
i. Defined contribution plan:
Company''s contributions paid/payable during the year to the superannuation fund, ESIC, provident fund and labour welfare fund are recognised in the Statement of Profit and Loss.
ii. Defined benefits plan:
For defined retirement benefit plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period. Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately in the Balance Sheet with a charge or credit recognised in Other Comprehensive Income in the period in which they occur. Remeasurement recognised in Other Comprehensive Income is reflected immediately
in retained earnings and is not reclassified to profit or loss. Past service cost is recognised in profit or loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset. Defined benefit costs are categorised as follows.
a. Service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements);
b. Net interest expense or income; and"
c. Remeasurement
The Company presents the first two components of defined benefit costs in profit or loss in the line item ''Employee benefits expense''. Curtailment gains and losses are accounted for as past service costs.
The retirement benefit obligation recognised in the Balance Sheet represents the actual deficit or surplus in the Company''s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans.
Short-term and other long-term employee benefits
A liability is recognised for benefits accruing to employees in respect of wages and salaries.
Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.
Liabilities recognised in respect of other long-term employee benefits are measured at the present value of the estimated future cash outflows expected to be made by the Company in respect of services provided by employees up to the reporting date.
Compensated Absences
Accumulated compensated absences, which are availed or encashed within 12 months from the end of the year end are treated as short term employee benefits. The obligation towards the same is measured at the cost of accumulating compensated absences as the additional amount to be paid as a result of the unused entitlement as at the year end.
(j) Taxation:
Income tax expense represents the sum of the tax currently payable and deferred tax.
Current tax:
The tax currently payable is based on taxable profit for the year. Taxable profit differs from ''Profit before tax'' as reported in the Statement of Profit and Loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company''s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax:
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current and deferred tax for the year:
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in Other Comprehensive Income or directly in equity, in which case, the current and deferred tax are also recognised in Other Comprehensive Income or directly in equity respectively.
(k) Property, plant and equipment:
All items of property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Cost of acquisition is inclusive of purchase price, levies and any directly attributable cost of bringing the assets to its working condition for the intended use. Subsequent costs are included in the asset''s carrying amount or recognised as separate asset, as appropriate, only when it is probable that the future economic benefits associated with the item will flow to the company and cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to Statement of Profit and Loss during the reporting period in which they are incurred.
Depreciation on tangible assets is charged by the Straight Line Method (SLM) in accordance with the useful lives specified in Part - C of Schedule II of the Companies Act, 2013 on a pro-rata basis except in the case of:
The carrying amount is calculated after reducing 5% of the value of property, plant and equipment as residual value. The Company has used following useful lives to provide depreciation of different class of its property, plant and equipment
financial years equally commencing from the year in which the expenditure is incurred.
The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.
On transition to Ind AS, the Company has elected to continue with the carrying value of all of its property, plant and equipment measured as per the Previous GAAP as at April 01, 2021 as its deemed cost on the date of transition.
(I) intangible assets:
intangible assets acquired separately
The useful lives of intangible assets are assessed as either finite or infinite. Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.
Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses.
Useful lives of intangible assets:
The expenditure incurred is amortised over three
Impairment of tangible and intangible assets:
The management of the Company assesses at each Balance Sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the management estimates the recoverable amount of the asset. If such recoverable amount of the asset is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and recognised in the Statement of Profit and Loss. If at the Balance Sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed, and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost. A reversal of an impairment loss is recognised immediately in profit or loss.
(m) Impairment of investments:
The Company assesses impairment of investments in subsidiaries, associates and joint ventures which are recorded at cost. At the time when there are any indications that such investments have suffered a loss, if any, is recognised in the statement of Profit and Loss. The recoverable amount requires estimates of operating margin, discount rate, future growth rate, terminal values, etc. based on management''s best estimate.
Mar 31, 2023
1 CORPORATE INFORMATION/BACKGROUND
AVG Logistics Limited (''the Company'') was incorporated on January 25, 2010 under the Companies Act, 1956. The main objects of the Company are transportation of goods, warehousing and other incidental activities there to. The Company is also involved in trading business. The registered office of the Company is situated in New Delhi. The Company''s equity shares got listed on April 11, 2018 on NSE-SME platform. The Equity Shares of the Company were listed on National Stock Exchange (''NSE'') and Bombay stock Exchange (''BSE'') on May 12, 2023.The IndAS financial statements for the year ended March 31, 2023 were approved by the Board of Directors on June 03, 2023.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
In accordance with the notification issued by the Ministry of Corporate Affairs, the Company has adopted Indian Accounting Standards (referred to as "Ind AS") notified under the Companies (Indian Accounting Standards) Rules, 2015 with effect from April 01, 2021. " The Company has adopted the Ind AS on voluntary basis for the period ended March 31,2022, with Comparative financials and date of transition April 01, 2021." In accordance with Ind AS 101 Firsttime Adoption of Indian Accounting Standards, the Company has presented a reconciliation from the presentation of financial statements under Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 ("Previous GAAP") to Indian Accounting Standards (Ind AS) read with Companies (Indian Accounting Standards) Rules, 2015 of shareholders'' equity as at March 31,2022 and April 01, 2021 and of the total comprehensive income for the year ended March 31,2022.These financial statements have been prepared in accordance with Ind AS notified under the Companies (Indian Accounting Standards) Rules, 2015 read with Section 133 of the Companies Act, 2013 (the "Act").
2.1 Basis of preparation of Financial Statements and Statement of Compliance with Ind AS
The financial statements have been prepared in accordance with Indian Accounting Standard as per the Companies (Indian Accounting Standards) Rules, 2015 as amended and notified under section 133 of the Companies Act, 2013 (the ''Act'').
The financial statements have been prepared on accrual basis and the historical cost basis as a going concern except for financial instruments that are measured at fair values or at amortised cost, wherever applicable, at the end of each reporting period, as explained in the accounting policies below.
Historical cost is generally based on the fair value of the consideration given in exchange for goods and services
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, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/ or disclosure purposes in this financial statement is determined on such basis, except for share-based payment transactions that are within the scope of Ind AS 102, leasing transactions that are within the scope of Ind AS 116, and measurements that have some similarities to fair value but are not fair value, such as net realisable value in Ind AS 2 or value in use in Ind AS 36.
In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:
* Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
* Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and
* Level 3 inputs are unobservable inputs for the asset or liability.
The financial statements are prepared in Indian Rupee (INR) and denominated in lakhs.
The principal accounting policies are set out below.
Inventories are valued at lower of cost and net realisable value. 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.
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. The Company has generally concluded that it is the principal in its revenue arrangements because it typically controls the goods or services before transferring them to the customer.
Incomes from logistics services rendered are recognised on the completion of the services as per the terms of contract. Revenue is recognised at the fair value of consideration received or receivable, to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.
Warehouse rental income is recognised on a straight-line basis over the period of the lease agreements.
Dividend income from investments is recognised when the right to receive payment has been established (provided that it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably).
Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset''s net carrying amount on initial recognition.
At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:
* The contract involves the use of an identified asset -this may be specified explicitly or implicitly and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the lessor has a substantive substitution right, then the asset is not identified.
* The Company has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and
* The Company as a lessee has the right to direct the use of the asset. The Company has this right when it has the decision-making rights that are most relevant to changing how and for what purpose the asset is used. In rare cases where the decision about how and for what purpose the asset is used is predetermined, the Company has the right to direct the use of the asset if either:
a) the Company as a lessee has the right to operate the asset; or
b) the Company as a lessee designed the asset in a way that predetermines how and for what purpose it will be used.
This policy is applied to contracts entered into, or modified, on or after April 01, 2021.
The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.
The right-of-use assets are subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In
addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liability.
The lease liability is initially measured at amortised cost at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, using the incremental borrowing rate. The ROU of assets has been created on the basis of lock in period of lease agreement more than 12 months.
It is re -measured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company''s estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension or termination option.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
Short-term leases and leases of low-value assets
The Company has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets. The Company recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.
When the Company acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease.
Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.
When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. The sublease is classified as a finance or operating lease by reference to the right-of-use asset arising from the head lease.
The Company recognises lease payments received under operating leases as income on a straight- line basis over the lease term as part of ''other income''.
The Company has elected not to apply the requirements of Ind AS 116 to leases which are expiring within 12 months from the date of transition by class of asset and leases for which the underlying asset is of low value on a lease-by-lease basis. The Company has also used the practical expedient provided by the standard when applying Ind AS 116 to leases previously classified as operating leases under Ind AS 17 and therefore, has not reassessed whether a contract, is or contains a lease, at the date of initial application, relied on its assessment of whether leases are onerous, applying Ind AS 37 immediately before the date of initial application as an alternative to performing an impairment review, excluded initial direct costs from measuring the right of use asset at the date of initial application and used hindsight when determining the lease term if the contract contains options to extend or terminate the lease. Single discount rate to a portfolio of leases with similar characteristics.
On application of Ind AS 116, the nature of expenses has changed from lease rent in previous periods to depreciation cost for the right-to-use asset, and finance cost for interest accrued on lease liability.
I. When the intermediate lessor enters into a sublease, the intermediate lessor (other than operating lease) :
1. Derecognises the ROU asset relating to the head lease that it transfer to the sublessee and recognises the net investment in the sublease.
2. Recognises any difference between the ROU asset and the net investment in the sublease in profit or loss.
3. Retains the lease liability relating to the head lease in its balance sheet, which represent the lease payments owned to the head lessor.
During the term of the sublease, the intermediate lessor recognises both
- Finance income on the sublease and
- Interest Expenses on the head lease.
II. When the intermediate lessor enters into a sublease, the intermediate lessor (operating lease):
- There would be same treatment as in case of finance lease.
2.6 Foreign currencies Initial recognition
In preparing the financial statements of the Company, transactions in currencies other than the entity''s functional currency of Indian Rupees (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions.
(a) Foreign currency monetary assets and liabilities at the year-end are translated at the year-end exchange rates and the resultant exchange differences are recognised in the Statement of Profit and Loss.
(b) Non-monetary items, if any are measured in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of the transaction. Non-monetary items, which are measured at fair value or other similar valuation denominated in a foreign currency, are translated using the exchange rate at the date when such value was determined.
The Company accounts for exchange differences arising on translation/settlement of foreign currency monetary items as below:
a. Realised gains and losses on settlement of foreign currency transactions are recognised in the Statement of Profit and Loss.
b. Foreign currency monetary assets and liabilities at the year-end are translated at the year-end exchange rates and the resultant exchange differences are recognised in the Statement of Profit and Loss
Borrowing Cost that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use or sale. All other borrowing costs are charged to revenue in the year of incurrence. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.
2.8.1 Retirement benefit costs and termination benefitsi. Defined Contribution Plan:
Company''s contributions paid/payable during the year to the superannuation fund, ESIC, provident fund and labour welfare fund are recognised in the Statement of Profit and Loss.
For defined retirement benefit plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period. Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately in the Balance Sheet with a charge or credit recognised in Other Comprehensive Income in the period in which they occur. Remeasurement recognised in Other Comprehensive Income is reflected immediately in retained earnings and is not reclassified to profit or loss. Past service cost is recognised in profit or loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset. Defined benefit costs are categorised as follows.
a. Service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements);
b. Net interest expense or income; and
c. Remeasurement
The Company presents the first two components of defined benefit costs in profit or loss in the line item ''Employee benefits expense''. Curtailment gains and losses are accounted for as past service costs.
The retirement benefit obligation recognised in the Balance Sheet represents the actual deficit or surplus in the Company''s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans.
2.8.2 Short-term and other long-term employee benefits
A liability is recognised for benefits accruing to employees in respect of wages and salaries. Liabilities recognised in respect of shortterm employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service. Liabilities recognised in respect of other longterm employee benefits are measured at the present value of the estimated future cash outflows expected to be made by the Company in respect of services provided by employees up to the reporting date.
I ncome tax expense represents the sum of the tax
currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from ''Profit before tax'' as reported in the Statement of Profit and Loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company''s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.
Deferred tax liabilities are recognised for taxable temporary differences associated with
investments in subsidiaries and associates, and interests in joint ventures, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
2.10.3 Current and deferred tax for the year
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in Other Comprehensive Income or directly in equity, in which case, the current and deferred tax are also recognised in Other Comprehensive Income or directly in equity respectively.
2.11 Property, Plant and Equipment
All items of property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Cost of acquisition is inclusive of purchase price, levies and any directly attributable cost of bringing the assets to its working condition for the intended use. Subsequent costs are included in the asset''s carrying amount or recognised as separate asset, as appropriate, only when it is probable that the future economic benefits associated with the item will flow to the Company and cost of the
item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to Statement of Profit and Loss during the reporting period in which they are incurred.
Depreciation on tangible assets is charged by the Straight Line Method (SLM) in accordance with the useful lives specified in Part - C of Schedule II of the Companies Act, 2013 on a pro-rata basis except in the case of:
The carrying amount is calculated after reducing 5% of the value of property, plant and equipment as residual value. The Company has used following useful lives to provide depreciation of different class of its property, plant and equipment
finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.
Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses.
2.12.2 Useful lives of intangible assets
The expenditure incurred is amortised over three financial years equally commencing from the year in which the expenditure is incurred.
|
Particulars |
Useful life (in years) |
|
Computer |
3 |
|
Building - RCC frame structure |
60 |
|
Building - other than RCC frame structure |
30 |
|
Furniture and fixtures |
10 |
|
Office equipment |
5 |
|
Vehicle |
8 |
|
Trucks (till September 30, 2020) |
6 |
|
Trucks (w.e.f. October 01, 2020) |
10 |
The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.
On transition to Ind AS, the Company has elected to continue with the carrying value of all of its property, plant and equipment measured as per the Previous GAAP as at April 01, 2021 as its deemed cost on the date of transition.
2.12 Intangible assets2.12.1 Intangible assets acquired separatelyThe useful lives of intangible assets are assessed as either finite or infinite. Intangible assets with
|
Particulars |
Useful life |
|
(in years) |
|
|
Computer Software |
|
|
-- ERP |
3 |
|
-- Other than ERP |
3 |
The management of the Company assesses at each Balance Sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the management estimates the recoverable amount of the asset. If such recoverable amount of the asset is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and recognised in the Statement of Profit and Loss. If at the Balance Sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed, and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost. A reversal of an impairment loss is recognised immediately in profit or loss.
2.14 Impairment of investmentsThe Company assesses impairment of investments in subsidiaries, associates and joint ventures which are recorded at cost. At the time when there are any indications that such investments have suffered a loss, if any, is recognised in the statement of Profit and Loss. The recoverable amount requires estimates of operating margin, discount rate, future growth rate, terminal values, etc. based on management''s best estimate.
2.15 Provisions, Contingent Liabilities and Contingent assets
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.
Financial assets and financial liabilities are recognised when a company becomes a party to the contractual provisions of the instruments
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.
All regular way purchases or sales of financial assets are recognised and derecognised on a settlement date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace.
All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the
financial assets.
2.17.1 Classification of financial assets
Debt instruments that meet the following conditions are subsequently measured at amortised cost (except for debt instruments that are designated as at fair value through profit or loss on initial recognition)
i. t he asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and
ii. the contractual terms of the instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
For the impairment policy on financial assets measured at amortised cost
I nvestments in subsidiaries: All investments in subsidiaries are valued at cost.
All other financial assets are subsequently measured at fair value.
2.17.2 Effective interest method
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.
Income is recognised on an effective interest basis for debt instruments other than those financial assets classified as at FVTPL. Interest income is recognised in profit or loss and is included in the "Other income" line item.
2.17.3 Financial assets at Fair value through Profit and Loss
Investments in equity instruments are classified as at FVTPL, unless the Company irrevocably elects on initial recognition to present subsequent changes in fair value in Other Comprehensive Income for investments in equity instruments which are not held for trading.
A financial asset that meets the amortised cost criteria or debt instruments that meet the FVTOCI criteria may be designated as at FVTPL upon initial recognition if such designation eliminates or significantly reduces a measurement or recognition inconsistency that would arise from measuring assets or liabilities or recognising the gains and losses on them on different bases.
Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains or losses arising on remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any dividend or interest earned on the financial asset and is included in the ''Other Income'' line item. Dividend on financial assets at FVTPL is recognised when the Company''s right to receive the dividend is established, it is probable that the economic benefits associated with the dividend will flow to the entity and the amount of dividend can be measured reliably.
2.17.4 Impairment of financial assets
The Company applies the expected credit loss model for recognising impairment loss on financial assets measured at amortised cost, trade receivables, other contractual rights to receive cash or other financial asset, and financial guarantees not designated as at FVTPL.
Expected credit losses are the weighted average of credit losses with the respective risks of default occurring as the weights. Credit loss is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive (i.e. all cash shortfalls), discounted at the original effective interest rate (or credit-adjusted effective interest rate for purchased or originated credit-impaired financial assets).
The Company measures the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition.
When making the assessment of whether there has been a significant increase in credit risk since initial recognition, the Company uses the change in the risk of a default occurring over the expected life of the financial instrument instead
of the change in the amount of expected credit losses. To make that assessment, the Company compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the date of initial recognition and considers reasonable and supportable information, that is available without undue cost or effort, that is indicative of significant increases in credit risk since initial recognition.
For trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 18, the Company always measures the loss allowance at an amount equal to lifetime expected credit losses.
Further, for the purpose of measuring lifetime expected credit loss allowance for trade receivables, the Company has used a practical expedient as permitted under Ind AS 109. This expected credit loss allowance is computed based on a provision matrix which takes into account historical credit loss experience and adjusted for forward-looking information.
2.17.5 Derecognition of financial assets
The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.
On derecognition of a financial asset in its entirety, the difference between the asset''s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognised in Other Comprehensive Income and accumulated in equity is recognised in profit or loss if such gain or loss would have otherwise been recognised in profit or loss on disposal of that financial asset.
On derecognition of a financial asset other than in its entirety (e.g. when the Company retains an option to repurchase part of a transferred asset), the Company allocates the previous carrying amount of the financial asset between the part it continues to recognise under continuing involvement, and the part it no longer recognises on the basis of the relative fair values of those parts on the date of the transfer. The difference between the carrying amount allocated to the part that is no longer recognised and the sum of the consideration received for the part no longer recognised and any cumulative gain or loss allocated to it that had been recognised in Other Comprehensive Income is recognised in profit or loss if such gain or loss would have otherwise been recognised in profit or loss on disposal of that financial asset. A cumulative gain or loss that had been recognised in Other Comprehensive Income is allocated between the part that continues to be recognised and the part that is no longer recognised on the basis of the relative fair values of those parts.
Financial liabilities are classified and measured at amortised cost or FVTPL
a) Initial Recognition and Subsequent measurement:
⢠Financial liabilities through fair value through profit or loss (FVTPL): A financial liability is classified as at FVTPL if it is classified as held-for-trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in Statement of Profit and Loss.
⢠Financial liabilities at amortised cost: Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in Statement of Profit and Loss.
I nterest bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in Statement of Profit and Loss
when the liabilities are derecognised as well as through the EIR amortisation process. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximates fair value due to the short maturity of these instruments.
b) Financial guarantee liability:
Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument.
2.17.7 Foreign exchange gains and losses
The fair value of financial assets denominated in a foreign currency is determined in that foreign currency and translated at the spot rate at the end of each reporting period.
⢠For foreign currency denominated financial assets measured at amortised cost and FVTPL, the exchange differences are recognised in profit or loss except for those which are designated as hedging instruments in a hedging relationship.
⢠Changes in the carrying amount of investments in equity instruments at FVTOCI relating to changes in foreign currency rates are recognised in Other Comprehensive Income.
⢠For the purposes of recognising foreign exchange gains and losses, FVTOCI debt instruments are treated as financial assets measured at amortised cost. Thus, the exchange differences on the amortised cost are recognised in profit or loss and other changes in the fair value of FVTOCI financial assets are recognised in Other Comprehensive Income.
2.18 Financial liabilities and equity instruments2.18.1 Classification as debt or equity
Debt and equity instruments issued by a company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by a company entity are recognised at the proceeds received, net of direct issue costs.
Repurchase of the Company''s own equity instruments is recognised and deducted directly in equity. No gain or loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the Company''s own equity instruments.
All financial liabilities are subsequently measured at amortised cost.
Financial liabilities that are not held-for-trading and are not designated as at FVTPL are measured at amortised cost at the end of subsequent accounting periods. The carrying amounts of financial liabilities that are subsequently measured at amortised cost are determined based on the effective interest method. Interest expense that is not capitalised as part of costs of an asset is included in the ''Finance costs'' line item.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.
The CEO monitors the operating results of the business segments separately for the purpose of making decisions about the allocation of resources and performance assessment. Segment performance is measured based on profit or loss and is measured consistently with profit or loss in Financial Statements.
Identification of Operating Segments
The operating segments have been identified based on its services and has two reportable segments, as follows:
i. Supply Chain Management - Goods transportation service including warehouse management service.
ii. Trading Business
Accounting of Operating Segments
Accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Revenue and expenses have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenues and expenses, which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis and inter-segment revenue and expenses, have been included under "Unallocated Corporate Expenses/ Eliminations".
Basic and diluted earnings per share is computed by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of Equity Shares outstanding during the year, in accordance with Ind AS 33.
3 CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
In the application of the Company''s accounting policies, which are described in note 2, the management is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only the period of the revision and future periods if the revision affects both current and future periods.
The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
(i) Useful lives of Property, Plant and Equipment
As described in note 2.11 above, the Company reviews the estimated useful lives of Property, Plant and Equipment at the end of each annual reporting period.
(ii) Defined Benefit Plans
The cost of the defined benefit plans and other post-employment benefits and the present value of such obligation are determined using actuarial valuations. An actuarial valuation involves making assumptions that may differ from actual developments in the future. These include the determination of discount rate, future salary increases, mortality rates and attrition rate. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.
(iii) Fair Value of financial assets and liabilities and investments
The Company measures certain financial assets and liabilities on fair value basis at each balance sheet date or at the time they are assessed for impairment. Fair value measurement that are based on significant unobservable inputs (Level 3) requires estimates of operating margin, discount rate, future growth rate, terminal values etc. based on management''s best estimate about future developments.
(iv) Leases
Ind AS 116 requires lessees to determine the lease term as the non- cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on a lease-by lease basis and there by assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset to operations taking into account the location of the underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances.
(v) Trade receivables
The Company determines the allowance for credit losses based on historical loss experience adjusted to reflect current and estimated
future economic conditions. The Company has considered subsequent recoveries, past trends, credit risk profiles of the customers based on their industry, macroeconomic forecasts and internal and external information available to estimate the probability of default in future and has taken into account estimates of possible effect from the pandemic relating to COVID-19.
4 STANDARDS (INCLUDING AMENDMENTS) ISSUED BUT NOT YET EFFECTIVE
The Ministry of Corporate Affairs has vide notification dated March 31, 2023 notified Companies (Indian Accounting Standards) Amendment Rules, 2023 (the ''Rules) which amends certain accounting standards, and are effective April 01,2023:
Ind AS 1 - Presentation of Financial Statements
The amendments require companies to disclose their material accounting policies rather than their significant accounting policies. Accounting policy information, together with other information, is material when it can reasonably be expected to influence decisions of primary users of general purpose financial statements.
Ind AS 12 - Income Taxes
The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences.
Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors
The amendments will help entities to distinguish between accounting policies and accounting estimates. The definition of a change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting estimates are monetary amounts in financial statements that are subject to measurement uncertainty". Entities develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty.
None of the amendments notified by MCA which are applicable from April 01, 2023 are expected to have any material impact on the financial statements of the Company.
5 DISCLOSURE PURSUANT TO IND AS 101 "FIRST TIME ADOPTION OF INDIAN ACCOUNTING STANDARDS"
First time adoption of Ind AS
The Company has adopted Indian Accounting Standards (referred to as "Ind AS") notified under the Companies (Indian Accounting Standards) Rules, 2015. The Company has adopted Ind AS with a transition date of April 01, 2021. Accordingly, financial statements for the year ended March 31,2023 together with the comparative information for the year ended March 31, 2022 and opening Ind AS balance sheet as at April 01, 2021 have been prepared in accordance with accounting policies as set out in Note 2 - "Significant accounting policies".
The Company has prepared its opening Ind AS balance sheet as at April 01, 2021 by recognising assets and liabilities whose recognition is required by Ind AS, derecognising assets and liabilities which are not permitted by Ind AS, reclassifying assets and liabilities as required by Ind AS, and applying Ind AS measurement principles, subject to certain optional exemptions and mandatory exceptions. The resulting difference between the carrying values of the assets and liabilities as at the transition date under Ind AS and Previous GAAP have been adjusted directly against "Other Equity".
The effect of the transition to Ind AS on Company''s financial position, financial performance and cash flows is set out below.
(a) Optional exemptions and mandatory exceptions
The Company has availed the following optional exemptions and mandatory exceptions on first time adoption of Ind AS as per Ind AS 101.
(i) Optional exemptions
Deemed cost for property, plant and equipment (PPE) and intangible assets (IA)
Previous GAAP carrying value to be considered as ''deemed cost'' as on transition date for property, plant and equipment and intangible assets.
The Company has opted to determine, whether a contract or arrangement existing at the date of transition contains a lease /sub-lease on the basis of facts and circumstances of each cases existing at the date of transition rather than at the inception of the arrangement.
Investments in joint ventures
Designation of investment in equity instruments
The Company has opted to designate equity investments as at deemed cost in its opening Ind AS financial for its investment in the joint ventures based on the facts and circumstances existing at the date of transition to Ind AS rather than at initial recognition.
(ii) Mandatory exceptions
Classification and measurement of financial assets
The Company has assess and determined the classification and measurement of financial assets on the basis of the facts and circumstances existing at the date of transition.
The following reconciliations provides the effect of transition to Ind AS from Indian GAAP in accordance with Ind AS 101, First-time Adoption of Indian Accounting Standards: -
Mar 31, 2018
NOTE -1
SIGNIFICANT ACCOUNTING POLICIES FOR THE YEAR ENDED 31ST MARCH. 2018.
1. Background and Nature of bus/ncss AVG
LOGISTICS LIMTED
(the company, CIN: L60200DL2010PLC198327) (formally known as AVG Logistics Private Limited) was incorporated on 25th January, 2010 under the Companies Act, 1956. The main object of the company is of transportation of goods and warehousing and other incidental activities there to. The registered office the company is situated in the state of New Delhi. As on the date of Balance Sheet, company''s equity share were in the process of getting listed on NSE- SME Platform. Further on 11.04.2018, the equity shares of Company got listed on Stock Exchanges. The financial statements for the year ended March 31, 2018 were approved by the Board of Directors on May 30,2018. 1. Significant Accounting Policies
⢠Basis of Accounting & Revenue Recognition
These financial statements have been prepared under the historical cost convention on a going concern basis, on the accrual basis of accounting. The financial statements have been prepared in accordance with the Generally Accepted Accounting Principles (GAAP) in India. Indian GAAP comprises mandatory accounting standards as specified under the section 133 of the Companies Act, 2013 read with Rule 7 of Companies (Accounts) Rules, 2014 and other accounting pronouncements of the Institute of Chartered Accountants of India. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.
⢠Use of estimates
The preparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expense during the year.
⢠Revenue Recognition
â¢> Revenues / Incomes and Cost / Expenditures are generally accounted on accrual basis, as and when they are earned or incurred. â¢> Revenues from sale of services are recognized on completion of related services, and are exclusive of service tax / GST as applicable. â¢> Overheads, which could be directly attributed to the units, are booked in the respective units.
⢠Property, Plant and Equipment
Property, Plant and Equipments are stated at cost, net of accumulated depreciation/ amortization and impairment losses, if any. The cost comprises the purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working conditions for the intended use. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately. This applies mainly to components for machinery. Any trade discounts and rebates are deducted in arriving at the purchase price. Subsequent expenditure related to an item of property, plant and equipment is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing property, plant and equipment, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the year during which such expenses are incurred. Gains or losses arising from de-recognition of PPE are measured as the difference between the net disposal proceeds and the carrying amount of asset and are recognized in the statement of profit and loss when the asset is derecognized.
⢠Depreciation on Property, plant and equipment
Leasehold land is amortized on a straight line basis over the period of the lease which is of 30 years.
The company identifies and determines cost of asset significant to the total cost of the asset having useful life that is materially different from that of the remaining life. Depreciation on Property, plant and equipment is calculated on a straight-line basis using the rates arrived at based on useful lives of the assets considering the guidelines of Part C of Schedule II to the Companies Act, 2013.
|
Asset Category |
Useful Life (in years) |
|
Furniture & Fitting |
10 Years |
|
Vehicles |
08 Years |
|
Office Equipments |
05 Years |
|
Computers |
03 Years |
|
Trucks |
06 Years |
⢠Inventories
Stock of Spare Parts, Tyre and Oil is valued at Lower of cost or Net realizable value. Cost comprises of purchase prices, expenses incurred to bring inventory to its present location and related taxes net of tax credit, if any, available. Cost is determined on a first-in-first-out method.
Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs necessary to make the sale
⢠Retirement and other Employees'' Benefits
Employer''s Contribution to the P.F. / E.S.I, are made at a pre determined rate and charged to profit and loss account. The company operates a defined benefit plan for its employees, viz., gratuity. The cost of providing benefits under this plan is determined on the basis of actuarial valuation at each year-end using the projected unit credit method. Actuarial gains and losses for the said defined benefit plan are recognized in full in the period in which they occur in the statement of profit and loss.
⢠Contingencies and Provisions
A provision is recognized when there is a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates.
⢠Borrowing Cost
Borrowing cost that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as a part of the cost of that asset subject to the provisions of impairment of the assets and other borrowing cost are recognized as an expenses in the period in which they are incurred.
⢠Investments
Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.
On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. If an investment is fully acquired or partly acquired, by issue of shares or other securities, the acquisition cost is the fair value of the securities issued.
Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long term investments are carried at cost . However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.
On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.
⢠Segment Reporting
The Company has identified Transportation business segments (industry practice) as its primary segment and warehousing business segments as its secondary segment. As the Company''s business activity falls primarily within a single primary business segment and a single geographical segment (within India), the disclosure requirements of Accounting Standard 17 - ''Segment Reporting'' in this regard are not applicable.
⢠Accounting forTaxation and Deferred Tax
Tax expense comprises of current and deferred taxes. Provision for current tax is made on the assessable income at the tax rate applicable to the relevant assessment year in accordance with the Income Tax Act, 1961 enacted in India and tax laws prevailing in the respective jurisdictions where the Company operates.
Deferred Income Taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years.
Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.
Deferred tax assets and deferred tax liabilities are offset, if a legal enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to same taxable entity and the same taxation authority.
Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current tax.
The company recognises MAT credit available as an asset only to the extent that there is convincing evidence that the 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 in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income Tax Act, 1961, the said asset is created by way of credit to the statement of profit and loss and shown as "MAT Credit Entitlement."
⢠Earning per share
The basic earning per equity share is computed by dividing the net profit or loss for the year attributable to the equity shareholders by the weighted average number of equity shares outstanding at the end of the year. The weighted average number of equity shares outstanding during the year is adjusted for events of bonus issue, that have changed the number of equity shares outstanding , without a corresponding change in resources.
For the purpose of calculating diluted earning per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares
⢠Impairment
In accordance with Accounting Standard 28 on ''Impairment of assets'', the carrying amount of the Company''s assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the assets'' recoverable amount is estimated. The recoverable amount of the assets (or where applicable that of the cash generating unit to which the asset belongs) is estimated at the higher of its net selling price and its value in use. An impairment loss is recognized whenever the carrying amount of the asset or cash-generating unit exceeds its recoverable amount.
Impairment losses, including impairment on inventories, are recognized in the statement of profit and loss.
After Impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.
⢠Leases
Where the company is lessee
Finance leases, which effectively transfer to the company substantially all the risks and benefits incidental to ownership of the leased item, are capitalized at the inception of the lease term at the lower of the fair value of the leased property or present value of minimum lease payments. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognized as finance cost in the statement of profit and loss. Lease management fees, legal charges and other initial direct cost of lease are capitalized.
A leased asset is depreciated on a straight-line basis over the useful life of the asset. However, if there is no reasonable certainty that the company will obtain the ownership by the end of the lease term, the capitalized asset is depreciated on a straight-line basis over the shorter of the estimated useful life of the asset or the lease term.
Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss on a straight-line basis over the lease term.
Where the company is the lessor
Leases in which the company transfers substantially all the risks and benefits of ownership of the asset are classified as finance leases. Assets given under finance lease are recognized as a receivable at an amount equal to the net investment in the lease. After initial recognition, the company apportions lease rentals between the principal repayment and interest income so as to achieve a constant periodic rate of return on the net investment outstanding in respect of the finance lease. The interest income is recognized in the statement of profit and loss. Initial direct costs such as legal costs, brokerage costs, etc. are recognized immediately in the statement of profit and loss.
Leases in which the company does not transfer substantially all the risks and benefits of ownership of the asset are classified as operating leases. Assets subject to operating lease are included in fixed assets. Lease income on an operating lease is recognized in the statement of profit and loss on a straight line basis over the lease term. Costs, including depreciation are recognized as an expense in the statement of profit and loss. Initial direct costs such as lease costs, brokerage costs, etc. are recognized immediately in the statement of profit and loss.
⢠Cash and Cash Equivalents
Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.
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మరింత సమాచారం AVG Logistics Ltd.
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AVG Logistics Ltd. టూల్స్
- బల్క్ డీల్స్
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AVG Logistics Ltd. కంపెనీ వివరాలు
- కంపెనీ ప్రొఫైల్
- కంపెనీ చరిత్ర
- నిర్వహణ బృందం
- క్యాపిటల్ స్ట్రక్చర్
- ప్రొడక్ట్ మిక్స్
- బ్యాంకర్/ఆడిటర్/రిజిస్ట్రార్
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కంపెనీ చరిత్ర
- బిఎస్ఇ ధర చరిత్ర
- ఎన్ఎస్ఇ ధర చరిత్ర
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AVG Logistics Ltd. ముఖ్య ఆర్థిక నిష్పత్తులు
- నిష్పత్తులు
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AVG Logistics Ltd. ఫలితాలు
- క్వార్టర్లీ ఫలితాలు
- హాఫ్ ఇయర్లీ ఫలితాలు
- 9నెలల ఫలితాలు
- వార్షిక ఫలితాలు
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AVG Logistics Ltd. ఆర్థిక డేటా
- ఆడిట్ ఫలితాలు
- క్యాష్ ఫ్లో
- బ్యాలెన్స్ షీట్
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AVG Logistics Ltd. నివేదికలు
- అకౌంటింగ్ విధానాలు
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Stock market: స్టాక్ మార్కెట్ ఊపు! ఒక్కరోజే 2000 పాయింట్లు జంప్..ఈ 5 కారణాలే కీలకం! -
Stock market Holidays: ఏప్రిల్లో వరుస సెలవులు.. స్టాక్ మార్కెట్ క్లోజ్ అయ్యే రోజులు ఇవే! -
భారీ నష్టాలతో ప్రారంభమైన స్టాక్ మార్కెట్.. కుప్పకూలిన సెన్సెక్స్, నిఫ్టీ ప్రధాన సూచీలు.. -
Stock market: ఇన్వెస్టర్ల కొంప ముంచిన మార్కెట్! ఒక్కరోజే రూ. 8 లక్షల కోట్లు ఆవిరి.. కారణాలివే! -
Stock market: తిరిగి పుంజుకున్న ఐటీ షేర్లు! బుల్ రన్ ఇలాగే కొనసాగుతుందా? -
Stock market: మార్కెట్ నష్టాల్లో కూడా లాభాల్లో ఉన్న ఏకైక రంగం ఇదే.. మీరు ఈ షేర్లు కొన్నారా? -
LPG Shortage: గ్యాస్ కొరత ఎఫెక్ట్..! ఆ 10 రంగాల షేర్లలో భారీ మార్పులు.. ఇన్వెస్టర్లు అలర్ట్! -
భారత స్టాక్ మార్కెట్లు పతనం.. చమురు ధరలు పెరగడంతో కుప్పకూలిన మార్కెట్ -
ఇరాన్ యుద్ధంతో స్టాక్ మార్కెట్లో భయాందోళన..728 పాయింట్లు పడిపోయిన గిఫ్ట్ నిఫ్టీ.. భారీగా పెరిగిన ఇండియా VIX.. -
Stock market: స్టాక్ మార్కెట్ ఇన్వెస్టర్లకు అలర్ట్.. సోమవారం భారీ పతనం తప్పదా? -
Sensex today: సెన్సెక్స్ సంచలనం: 20 నిమిషాల్లో 900 పాయింట్లు జంప్.. కారణం ఇదే! -
BSE: స్టాక్ మార్కెట్లో సరికొత్త ట్రెండ్.. సెన్సెక్స్లోనే కాకుండా ఇకపై వీటిలోనూ ట్రేడింగ్ చేయెచ్చు! -
మూడో రోజూ కుప్పకూలిన స్టాక్ మార్కెట్..రికార్డు కనిష్టానికి రూపాయి.. పెట్టుబడిదారుల్లో తీవ్ర ఆందోళన.. -
కుప్పకూలిన ఆసియా స్టాక్ మార్కెట్.. దెబ్బకు దక్షిణ కొరియా మార్కెట్లో నిలిచినపోయిన ట్రేడింగ్.. -
భారీ నష్టాలతో ప్రారంభమైన భారత స్టాక్ మార్కెట్..రూ. 9 లక్షల కోట్ల నష్టం.. సెన్సెక్స్, నిఫ్టీ పతనం.. -
Iran Israel war: ఇరాన్-ఇజ్రాయెల్ యుద్ధం! భారత ఆర్థిక వ్యవస్థకు, స్టాక్ మార్కెట్లకు ముప్పు తప్పదా?
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