A. CORPORATE INFORMATION

Paradeep Parivahan Limited (“The Company”) which was originally incorporated on

Seventeenth Day of November Two Thousand under Companies Act, 1956 as Paradeep Parivahan Private Limited and upon an intimation made for conversion into public company under Section 18 of the Companies Act, 2013 on 03^rd June 2024 in India.

The equity shares of the Company were listed on the SME Platform of BSE Limited with effect from 24th March 2025, pursuant to an Initial Public Offering (IPO) of 45,78,000 equity shares of ? 10 each at a premium of ? 88 per share, aggregating to ? 4,486.44 lakhs.

The Company is engaged in activities of mainly Logistic and provision of related services.

B. MATERIAL ACCOUNTING POLICIESB.1 Basis of Preparation and Presentation

The Financial Statements have been prepared on the historical cost basis. The Financial Statements of the Company have been prepared to comply with the accounting standards (‘AS’), including the Rules notified under the relevant provisions of the Companies Act, 2013, (as amended from time to time) and Presentation and disclosure requirements of Division I of Schedule III to the Companies Act, 2013, (AS Compliant Schedule III) as amended from time to time. The Company follows indirect method prescribed in AS 3 -Statement of Cash Flows for presentation of its cash flows.

The Company’s Financial Statements are presented in Indian Rupees (INR), which is also its functional currency and all values are rounded to the nearest Lakhs (?00,000), except when otherwise indicated.

B.2 Uses of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The management believes that the estimates used in significant areas of preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are materialized.

B.3 Property, Plant, and Equipment

a) Tangible Fixed Assets: -

Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use and other incidental expenses incurred up to that date.

The Company has not revalued its fixed assets during the year.

b) Intangible Assets: -

Since the company has no material Intangible Assets disclosure of the accounting policy is not required.

B.4 Depreciation

Depreciation on Property, Plant and Equipment is provided using written down value method on depreciable amount. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013. The residual values, useful lives and methods of depreciation of Property, Plant and Equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

B.5_Revenue recognition

Sale of Goods: Revenue from sale of goods is recognized when significant risks and rewards of ownership are transferred to the customer, which generally coincides with delivery of goods.

Rendering of Services: Revenue is recognized on the basis of the stage of completion of the transaction at the reporting date, provided that no significant uncertainty exists regarding the amount of consideration.

Interest Income: Recognized on a time proportion basis, taking into account the amount outstanding and the applicable interest rate.

B.6 Valuation of Inventories

Inventories are valued at the lower of cost and the net realizable value after providing for obsolescence and other losses, where considered necessary. Cost is determined on the first in first out basis and includes all charges in bringing the goods to the point of sale, including other levies, transit insurance and receiving charges. Work in progress and finished goods include appropriate proportion of overheads and, where applicable taxes.

a) Traded Goods: At purchase cost, determined on a FIFO basis.

b) Stores and Spares: At cost, determined on a FIFO basis.

B.7 Current Investment

The Company’s liquidity is managed centrally with operating units forecasting their cash

and liquidity requirements. Treasury pools the cash surpluses from across the different operating units and then arranges to either fund the net deficit or invest the net surplus in a range of short-dated, secure and liquid instruments including short-term bank deposits, money market funds, reverse repos and similar instruments

B.8 Transaction of foreign currency: -

a) Legal and consultancy fees and other expenses paid in foreign currency are recorded at the exchange rate prevailing on the date of the transaction.

b) Monetary items denominated in foreign currencies outstanding at the balance sheet date are translated at the closing exchange rate. Exchange differences arising on settlement or restatement of such monetary items are recognized in the Statement of Profit and Loss.

c) Non-monetary items denominated in foreign currencies are recorded at the exchange rate on the date of the transaction and are not retranslated subsequently.

B.9 Taxation

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognized on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Additional depreciation claimed on plant & machinery while computing provision for Tax.

B.10 Segment reporting

a) The Company’s primary segment is based on business segment. The business

segments are identified based on the nature of products/services, the risk-return profile of individual segments, the organizational structure, and the internal reporting system.

b) Revenue, expenses, assets, and liabilities that are directly attributable to segments are reported under each reportable segment. Revenue and expenses which are attributable to the Company as a whole and are not allocable to segments on a reasonable basis are included under “Unallocated Revenue/Expenses.” Similarly, assets and liabilities which are not allocable to segments on a reasonable basis are shown as “Unallocated Assets/Liabilities.”

c) Inter-segment revenue is accounted for based on the transactions that take place between various segments at arms'' length prices.

d) The Company has followed AS-17.

B.11 Earnings per share: -

a) Earnings per share of the company is calculated as per the AS-20.

Basic earnings per share is calculated by dividing the net profit or loss attributable to equity shareholders for the period by the weighted average number of equity shares outstanding during the period.

b) Diluted earnings per share is calculated by adjusting the net profit or loss attributable to equity shareholders and the weighted average number of equity shares outstanding for the effects of all dilutive potential equity shares.

c) The Company presents both basic and diluted earnings per share on the face of the Statement of Profit and Loss.

B.12 Provisions

A provision is recognized when the company has a present obligation as a result of past events 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 their present value and are determined based on the 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 best estimates.

B.13 Input Tax Credit

Input credit is accounted for in the books in the period in which the underlying service is accounted and when there is no uncertainty in availing / utilizing the credits.

B.14 Prior period items: -

Prior period items (Except Income Tax) are recognized as per As-5, prior period (Except Income Tax) items are routed through profit and loss account amounting to NIL.

B.15 Micro, small and Medium Enterprises

The Company has received intimation from “suppliers” regarding status under the Micro,

small and Medium Enterprises Development Act 2006 and hence disclosures, if any, relating to amount unpaid as at the year-end together with the interest paid/payable as required under the said act have been furnished except from those confirmations not received.

B.16 Year End Balance Confirmation

In respect of confirmations of trade receivable, trade payables and loans & advances. Provisions are made for the adverse variation in carrying amounts of these balances are quantified. In the absence of any such confirmation the carrying amount is treated as not disputed and no adjustment made.

B.17 Employee Benefits

a) Short-term employee benefits are recognized as an expense when the related service is rendered.

b) Provident Fund and ESI contributions are accounted for on an accrual basis.

c) Gratuity and Leave Encashment are accounted for on an accrual basis based on actuarial valuation, where applicable as per applicable as per Accounting Standard 15.

B. MATERIAL ACCOUNTING POLICIES

B.1 Basis of Preparation and Presentation

The Financial Statements have been prepared on the historical cost basis.

The Financial Statements of the Company have been prepared to comply with
the Accounting standards (‘AS’), including the Rules notified under the relevant
provisions of the Companies Act, 2013, (as amended from time to time) and
Presentation and disclosure requirements of Division I of Schedule III to the
Companies Act, 2013, (AS Compliant Schedule III) as amended from time to
time. The Company follows indirect method prescribed in AS 3 - Statement of
Cash Flows for presentation of its cash flows.

The Company’s Financial Statements are presented in Indian Rupees (INR), which
is also its functional currency and all values are rounded to the nearest Lakhs
(^00,000), except when otherwise indicated

The preparation of the financial statements in conformity with Indian GAAP
requires the management to make estimates and assumptions considered in the
reported amounts of assets and liabilities (including contingent liabilities) and the
reported income and expenses during the year. The management believes that the
estimates used in significant areas of preparation of the financial statements are
prudent and reasonable. Future results could differ due to these estimates and the
differences between the actual results and the estimates are recognized in the periods
in which the results are materialized.

B.3 Property, Plant, and Equipment

a) Tangible Fixed Assets: -

Fixed assets are carried at cost less accumulated depreciation and impairment
losses, if any. The cost of fixed assets includes interest on borrowings
attributable to acquisition of qualifying fixed assets up to the date the asset is
ready for its intended use and other incidental expenses incurred up to that
date.

The Company has not revalued its fixed assets during the year.

b) Intangible Assets

Since the company has no material Intangible Assets disclosure of the
accounting policy is not required.

B.4 Depreciation

Depreciation on Property, Plant and Equipment is provided using written down
value method on depreciable amount. Depreciation is provided based on
useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.
The residual values, useful lives and methods of depreciation of Property, Plant
and Equipment are reviewed at each financial year end and adjusted
prospectively, if appropriate.

B.5 Revenue recognition

Sale of Goods: Revenue from sale of goods is recognized when significant
risks and rewards of ownership are transferred to the customer, which
generally coincides with delivery of goods.

Rendering of Services: Revenue is recognized on the basis of the stage of
completion of the transaction at the reporting date, provided that no significant
uncertainty exists regarding the amount of consideration.

Interest Income: Recognized on a time proportion basis, taking into account
the amount outstanding and the applicable interest rate.

B.6 Valuation of Inventories

Inventories are valued at the lower of cost and the net realizable value after
providing for obsolescence and other losses, where considered necessary. Cost is
determined on the first in first out basis and includes all charges in bringing the
goods to the point of sale, including other levies, transit insurance and receiving
charges. Work in progress and finished goods include appropriate proportion of
overheads and, where applicable taxes.

a) Traded Goods: At purchase cost, determined on a FIFO basis.

b) Stores and Spares: At cost, determined on a FIFO basis.

B.7 Current Investment

The Company’s liquidity is managed centrally with operating units forecasting
their cash and liquidity requirements. Treasury pools the cash surpluses from
across the different operating units and then arranges to either fund the net
deficit or invest the net surplus in a range of short- dated, secure and liquid
instruments including short-term bank deposits, money market funds, reverse
repos and similar instruments
B.8 Transaction of foreign currency: -

a) Legal and consultancy fees and other expenses paid in foreign currency are
recorded at the exchange rate prevailing on the date of the transaction.

b) Monetary items denominated in foreign currencies outstanding at the
balance sheet date are translated at the closing exchange rate. Exchange
differences arising on settlement or restatement of such monetary items are
recognized in the Statement of Profit and Loss.

c) Non-monetary items denominated in foreign currencies are recorded at the
exchange rate on the date of the transaction and are not retranslated
subsequently.

Current tax is the amount of tax payable on the taxable income for the year as
determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognized on timing differences, being the differences between
the taxable income and the accounting income that originate in one period and are
capable of reversal in one or more subsequent periods. Deferred tax is measured
using the tax rates and the tax laws enacted or substantially enacted as at the
reporting date. Additional depreciation claimed on plant & machinery while
computing provision for Tax.

B.10 Segment reporting

a) The Company’s primary segment is based on business segment. The business
segments are identified based on the nature of products/services, the risk-
return profile of individual segments, the organizational structure, and the
internal reporting system.

b) Revenue, expenses, assets, and liabilities that are directly attributable to
segments are reported under each reportable segment. Revenue and expenses
which are attributable to the Company as a whole and are not allocable to
segments on a reasonable basis are included under “Unallocated
Revenue/Expenses.” Similarly, assets and liabilities which are not
allocable to segments on a reasonable basis are shown as “Unallocated
Assets/Liabilities.”

c) Inter-segment revenue is accounted for based on the transactions that take
place between various segments at arms'' length prices.

d) The Company has followed AS-17.

B.11 Earnings per share: -

a) Earning per share of the company is calculated as per the AS-20.

Basic earnings per share is calculated by dividing the net profit or loss
attributable to equity shareholders for the period by the weighted average
number of equity shares outstanding during the period.

b) Diluted earnings per share is calculated by adjusting the net profit or loss
attributable to equity shareholders and the weighted average number of
equity shares outstanding for the effects of all dilutive potential equity
shares.

c) The Company presents both basic and diluted earnings per share on
the face of the Statement of Profit and Loss.