Cargosol Logistics Ltd. कंपली की लेखा नीति

Mar 31, 2025

Note 1 - Statement on Significant Accounting Policies

1 Basis of Preparation:

Basis of accounting and preparation of financial statements:

These financial statements are prepared in accordance with Indian Generally Accepted
Accounting Principles (GAAP) under the historical cost convention on the accrual basis. GAAP
comprises mandatory accounting standards as prescribed under Section 133 of the Companies
Act, 2013 (‘the Act’) The accounting policies adopted in the preparation of financial statements
have been consistently applied. All assets and liabilities have been classified as current or non¬
current as per the company’s normal operating cycle and other criteria set out in the Schedule III
to the Companies Act, 2013. Based on the nature of operations and time difference between the
provision of services and realization of cash and cash equivalents, the company has ascertained
its operating cycle as 12 months for the purpose of current and noncurrent classification of assets
and liabilities.

2 Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles
requires estimates and assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and reported amounts of revenues and expenses
during the reporting period. Differences between actual results and estimated are recognized in
the period in which the results are known / materialized.

3 Property Plant and Equipments

Tangible Property plant and equipments are stated at actual cost of acquisition less accumulated
depreciation and impairment losses, if any. Cost includes all incidental expenses related to
acquisition and attributed to cost of bringing the asset to its working condition for its intended use.

Losses arising from the retirement of, and gains or losses arising from disposal of fixed assets
which are carried at cost are recognised in the Statement of Profit and Loss.

4 Depreciation

Depreciation on property, plant and equipment is provided using the written down value method
based on the life and in the manner prescribed in Schedule II to the Companies Act, 2013, and
is generally recognized in the statement of profit and loss. Cost of Lease hold is amortised over
the tenure of lease agreement. Freehold land is not depreciated. Incase where the cost of part of
asset is significant to total cost of the asset and useful life of that part is different from the useful
life of the remaining assets, the useful life of that significant part has been determined seperately.

Asset Life

Office Premises :- 60 years

Furniture and Fixtures :- 8 years

Office Equipment :- 5 years

Vehicles :- 8 years

Computer :- 3 years

Container :- 8 years

The depreciation methods, useful lives and residual values are reviewed at each financial year-
end and adjusted if appropriate. Based on technical evaluation and consequent advice, the
management believes that its estimates of useful lives as given above best represent the period
over which management expects to use these assets. Depreciation on additions (disposals) is
provided on a pro-rata basis i.e. from (upto) the date on which asset is ready for use (disposed
of).

5 Intangible Asset

The amortisation of an Intangible Assets is allocated on a systematic basis over the best estimate
of its useful life of the Intangible asset

6 Impairment of Property Plant and Equipment

The carrying values of assets / cash generating units are reviewed at each Balance Sheet date
for impairment. If any indication of impairment exists, the recoverable amount of such assets is
estimated and impairment is recognised if the carrying amount of these assets exceeds their
recoverable amount. The recoverable amount is the greater of the net selling price and their value
in use. Value in use is arrived at by discounting the future cash flows to their present value based
on an appropriate discount factor. When there is indication that an impairment loss recognised for
an asset in earlier accounting periods no longer exists or may have decreased, such reversal of
impairment loss is recognised in the Statement of Profit and Loss.

7 Borrowing cost

Borrowing costs include interest, amortisation of ancillary costs incurred and exchange differences
arising from foreign currency borrowings to the extent they are regarded as an adjustment to the
interest cost. Costs in connection with the borrowing of funds to the extent not directly related

to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the
tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining
to the period from commencement of activities relating to construction / development of the
qualifying asset up to the date of capitalisation of such asset is added to the cost of the assets.
Borrowing cost attributable to the fixed assets during construction/ exploration, renovation and
modernization are capitalized. Such borrowing costs are apportioned on the average balance of
capital work in progress for the year. Other borrowing costs are recognized as an expense in the
period in which they are incurred.

8 Revenue Recognition

Revenue from services rendered is recognized on completion of service and when reasonable
right of recovery is established and the revenue can be reliably measured and on accrual basis.

9 Other Income

Interest income is recognised on a time proportion basis taking into account the amount
outstanding and the rate applicable. Dividend income is recorded when the right to receive
payment is established.

10 Investments

Investments are classified into long term investments and current investments. Investments
which are intended to be held for one year or more are classified as long term investments
and investments which are intended to be held for less than one year are classified as current
investments. Long term investments are carried at cost less other than any temporary diminution
in value, determined separately for each investment. Current investments are carried at lower of
cost or fair value. The comparison of cost and fair value is done separately in respect of each
category of investment.

11 Employee Benefits

a) Provident Fund

The Contribution towards provident fund for employees is made to the regulatory authorities,
where the Company has no further obligations. Such benefits are classified as Defined
Contribution Schemes as the Company does not carry any further obligations, apart from
the contributions made on a monthly basis.

b) Gratuity and Leave Encashment

Liabilities in respect of gratuity and leave encashment (a defined benefit plan) are accounted
for on the basis of Actuarial Report which is in conformity with Accounting Standard (AS-15)
(Revised 2005) ‘Employee Benefits’ as notified by the Companies (Accounting Standards)
Rules, 2006 which requires that Gratuity Liabilities to be accounted for on accrual
basis.

12 Leases

Leases in which a significant portion of the risks and rewards of ownership are retained by the
lessor are classified as operating leases. Payments made under operating leases are charged to
the Statement of Profit and Loss on a straight-line basis over the period of the lease.

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Mar 31, 2024

1 Basis of Preparation:

Basis of accounting and preparation of financial statements:

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the
accrual basis. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act 2013 (“the Act’) The accounting policies
adopted in the preparation of financial statements have been consistently applied. All assets and liabilities have been classified as current or non-current as per the
company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act 2013. Based on the nature of operations and time difference
between the provision of services and realization of cash and cash equivalents, the company has ascertained its operating cycle as 12 months for the purpose of
current and noncurrent classification of assets and liabilities.

2 Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the
reported amount of assets and liabilities on the date of the financial statements and reported amounts of revenues and expenses during the reporting period.
Differences between actual results and estimated are recognized in the period in which the results are known / materialized.

3 Property Plant and Equipments

Tangible Property plant and equipments are stated at actual cost of acquisition less accumulated depreciation and impairment losses, if any. Cost includes all
incidental expenses related to acquisition and attrfouted to cost of bringing the asset to its working condition for its intended use.

Losses arising from the retirement of, and gains or losses arising from disposal of fixed assets which are carried at cost are recognised in the Statement of Profit and
Loss.

4 Depreciation

Depreciation on property, plant and equipment is provided using the written down value method based on the life and in the manner prescribed in Schedule II to the
Companies Act, 2013, and is generally recognized in the statement of profit and loss. Cost of Lease hold is amortised over the tenure of lease agreement. Freehold
land is not depreciated. Incase where the cost of part of asset is significant to total cost of the asset and useful life of that part is different from the useful life of the
remaining assets, the useful life of that significant part has been determined seperately.

Asset Life

Office Premises > 60 years

Furniture and Fixtures:- 8 years

Office Equipment:- 5 years

Vehicles:- 8 years

Computer:- 3 years

Container:- 8 years

The depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate. Based on technical evaluation and
consequent advice, the management believes that its estimates of useful lives as given above best represent the period over which management expects to use these
assets. Depreciation on additions (disposals) is provided on a pro-rata basis i.e. from (upto) the date on which asset is ready for use (disposed of).

5 Intangible Asset

The amortisation of an Intangfole Assets is allocated on a systematic basis over the best estimate of its useful life of
the Intangible asset

6 Impairment of Property Plant and Equipment

The carrying values of assets / cash generating units are reviewed at each Balance Sheet date for impairment. If any indication of impairment exists, the recoverable
amount of such assets is estimated and impairment is recognised if the carrying amount of these assets exceeds their recoverable amount The recoverable amount
is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an
appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have
decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss.

7 Borrowing cost

Borrowing costs include interest, amortisation of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are
regarded as an adjustment to the interest cost Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets
are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period
from commencement of activities relating to construction / development of the qualifying asset up to the date of capitalisation of such asset is added to the cost of the
assets.

Borrowing cost attributable to the fixed assets during construction/ exploration, renovation and modernization are capitalized. Such borrowing costs are apportioned
on the average balance of capital work in progress for the year. Other borrowing costs are recognized as an expense in the period in which they are incurred.

8 Revenue Recognition

Revenue from services rendered is recognized on completion of service and when reasonable right of recovery is established and the revenue can be reliably
measured and on accrual basis.

9 Other Income

Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.Dividend income is recorded when the
right to receive payment is established.

10 Investments

Investments are classified into long term investments and current investments. Investments which are intended to be held for one year or more are classified as long
term investments and investments which are intended to be held for less than one year are classified as current investments. Long term investments are carried at
cost less other than any temporary diminution in value, determined separately for each investment. Current investments are carried at lower of cost or fair value. The
comparison of cost and fair value is done separately in respect of each category of investment

11 Employee Benefits

a) Provident Fund

The Contribution towards provident fund for employees is made to the regulatory authorities, where the Company has no further obligations. Such benefits are
classified as Defined Contribution Schemes as the Company does not carry any further obligations, apart from the contributions made on a monthly basis.

b) Gratuity and Leave Encashment

Liabilities in respect of gratuity and leave encashment (a defined benefit plan) are accounted for on the basis of Actuarial Report which is in conformity with Accounting
Standard (AS-15) (Revised 2005) ''Employee Benefits’ as notified by the Companies (Accounting Standards) Rules, 2006 which requires that Gratuity Liabilities to be
accounted for on accrual basis.

12 Leases

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under
operating leases are charged to the Statement of Profit and Loss on a straight-line basis over the period of the lease.