NOTE NO. 1 : SIGNIFICANT ACCOUNTING POLICIES

1.1Basis of Preparation of Financial Statements

The financial statements have been brpared on an accrual basis and under historical cost convention and in compliance in all material aspects with the applicable accounting principles in India, the applicable accounting standards issued by The Institute of Chartered Accountants of India and referred to Sec 129 & 133 of the Companies Act, 2013.

All the 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 Schedule III to the Companies Act, 2013. The Company has ascertained its operating cycle to be 12 months for the purpose of current, non-current classification of assets and liabilities.

1.2Use of Estimates

The brparation of financial statements require judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities including contingent liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between actual results and estimates are recognized in the period in which the results are known/ materialized.

1.3Inventories

Inventories are stated at lower of cost or net realizable value, except for consumables and spares which are determined at cost. Cost is determined using the FIFO method and comprises of the purchase price including duties and taxes, freight inward and other expenditure directly attributable to the acquisition but excluding the trade discounts and other rebates.

1.4Revenue recognition

In compliance with the requirement of accrual system of accounting, following standards have been set out and are being followed over the years -

a)Freight Income is accounted for, generally when goods are delivered by the Company to customers. Direct expenses on transportation of goods are accounted for when hired lorries deliver the goods at destination and in case of Company's own trucks on completion of trip.

b)Payments made to hired lorries at the time of commencement of trip for destination and freight received from customers in advance at the time of booking are charged to revenue as and when paid/ received.

c)In case of composite contract jobs, all receipts are accounted for on the basis of completion of job or a distinct part thereof if so provided for in contract and in case of transportation jobs where progressive work bills are raised as per contracts, on the basis of such bills, as the case may be.

d)In case of construction contracts, the company follows the percentage of completion method, based on the stage of completion at the balance sheet date taking into account the contract price by estimating total revenue as per AS-7 issued by The Institute of Chartered Accountants of India and total cost till completion of the contract and the profit so determined has been accounted for proportionate to the percentage of the actual work done.

e)Revenue from sale of goods is recognized when significant risk and rewards in respect of ownership thereof is transferred to the customers.

f)Income from dividend is recognized, when the right to receive such payment is established.

g)Income from Investments/Other Income is recognized on accrual basis.

h)Service Tax collected on freight and services income and works contract services are included in the respective heads. Value Added Tax collected on work contract services are also included in the respective heads.

i)Deductions made by parties including Tax Deducted at Source are accounted for in the year of actual deduction or communication, as the case may be, by the party.

Having regard to size of operations and the nature and complexities of Company's business, in management's opinion the above are the reasonable standards of applying the accrual system of accounting as required by the law.

1.5Tangible and Intangible Fixed Assets

a. Tangible Assets

Fixed assets are stated at cost or at revalued amounts, as the case may be, less accumulated debrciation and impairment losses, if any. Cost comprises the purchase price, improvement cost, self constructed cost thereto, and any attributable cost of bringing the asset to its working condition for its intended use.

b.Intangible Assets

Intangible assets are stated at cost on initial recognition, after which the same are stated at cost less accumulated debrciation/amortization and accumulated impairment loss, if any.

1.6Debrciation / Amortization Tangible Assets

a) Debrciation on Fixed Assets is provided on historical cost and where revaluation of assets has been made, on revalued amount as per Straight Line Method. Debrciation for the current year is provided based on useful life of the assets as brscribed in Schedule II to the Companies Act, 2013 except in respect of the following assets, where estimated useful life is different than those brscribed in Schedule II are used:

b) Premium on Leasehold Land is amortised over the period of lease term. Intangible Assets

Intangible Assets are amortized as per Accounting Standard - 26 issued by The Institute of Chartered Accountants of India. Hence, accordingly cost of computer software have been amortized over a period of 3 years.

1.7 Foreign Currency Transaction

a)Initial Recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

b)Conversion

Foreign currency monetary items are reported using the closing rate.

c)Exchange Differences

Exchange differences arising on the settlement of monetary items at rates different from those at which they were initially recorded during the year, or reported in brvious financial statements, are recognized as income or as expense in the year in which they arise, however exchange differences arising from foreign currency borrowings are regarded as an adjustment to interest cost to the extent of the differences between interest on local currency borrowing and interest on foreign currency borrowing

d) Forward Exchange Contracts not intended for trading or speculation purposes

The brmium or discount arising at the inception of forward exchange contracts is amortized as expense or income over the life of the contract. Exchange differences on such contracts are recognized in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or as expense for the year.

e)Hedging

The company has used foreign exchange future contracts to hedge its exposure to movements in foreign exchange rates related to interest on foreign currency denominated loans.

1.8Investments

Current Investments are stated at lower of cost and fair value. Long-term Investments intended to be held for more than a year are classified as non-current investments, and are carried at cost. However, provision for diminution in value, other than temporary, has been recognized, wherever necessary.

1.9Employee Benefits

All employee benefits falling due wholly within twelve months of rendering service are classified as short term benefits. The benefits like salaries, wages, Leave Encashment, etc are recognized in the period in which the employee renders the related service.

Defined Contribution Plan consists of Provident Fund Scheme and Employees' State Insurance Scheme. Company's contribution paid/payable during the year under the schemes are recognized as expense in the Statement of Profit and Loss. There are no other obligations other than the contribution made by the Company.

The Employees' Gratuity Scheme is the Defined Benefit Plan of the Company, The brsent value of the obligation under such plan is determined based on the actuarial valuation using the Projected Unit Credit Method. Actuarial gains and losses on such valuation are recognized immediately in the Statement of Profit and Loss. In case of funded defined benefit plan, the fair value of the plan assets is reduced from the gross obligation to recognize the obligation on net basis.

1.10 Leases

As a lessee

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 or other systematic basis more rebrsentative of the time pattern of the user's benefits.

As a lessor

The Company has leased certain tangible assets and such leases where the company has substantially retained all the risks and rewards of ownership are classified as Operating Leases. Lease Income on such operating leases are recognized in the Statement of Profit and Loss on a straight line basis over the lease term which is rebrsentative of the time pattern in which benefit derived from the use of the leased asset is diminished. Initial direct costs are recognized as an expense in the Statement of Profit and Loss in the period in which they are incurred.

1.11Earning per share

Basic & Diluted earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period as per Accounting Standard-20 issued by The Institute of Chartered Accountants of India.

1.12Taxation & Deferred Tax

Tax expense comprises both current and deferred tax charge or credit. Current tax is measured at the amount expected to be paid to the taxation authorities, using the applicable tax rates and tax laws. Minimum Alternate Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal Income Tax during the specified period. Deferred tax is recognized for the timing differences, subject to the consideration of prudence in respect of deferred tax assets and measured using the tax rates and tax laws enacted on the balance sheet date. Unrecognized deferred tax assets of earlier years are re-assessed and recognized to the extent that it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realized.

1.13Impairment of Assets

The carrying amount of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An asset is impaired when the carrying amount of the asset exceeds the recoverable amount. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. An impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of the recoverable amount.

1.14Provisions, Contingent Liabilities & Contingent Assets

Provisions are recognized for brsent obligation as a result of past events where it is probable that outflow of resources will be required to settle the obligation, and in respect of which a reliable estimate can be made at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent Liabilities not provided for are disclosed in the notes to the Financial Statements. Contingent Assets are neither recognized nor disclosed in the financial statements.

1.15Measurement of EBITDA

The Company has opted to brsent earnings before interest, tax, debrciation and amortization(EBIDTA) as a separate line item on the statement of Profit and Loss.

1.Adoption of Audited Financial Statements of the Company for the year ended 31st March, 2015 including audited Balance Sheet as at 31st March, 2015 and the Statement of Profit & Loss for the year ended on that date and the reports of the Board of the Directors and Auditors thereon.    

2.Appointment of a Director in place of Mr. Anand Kumar Agarwal, who retires by rotation and being eligible, offers himself for re-appointment.      

3.Ratification of the appointment of M/s. Agarwal Kejriwal & Co. as Statutory Auditors of the Company & to fix their remuneration. 

4.Appointment of Mr. Siddarth Kapoor as an Independent Director.       

5.Appointment of Mrs. Rachana Todi as an Independent Director.           

6.Ratification of the remuneration of Cost Auditors.       

Note: 1. This form of proxy in order to be effective should be duly completed and deposited at Registered Office of the Company not less than 48 hours before the commencement of the meeting. 2. For the Resolutions, Explanatory Statement and Notes, please refer to the Notice of the 42nd Annual General Meeting.