Note 1

Significant Accounting Policies

i.   Basis of brparation of financial statements:

These financial statements are brpared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards as brscribed under Section 133 of the Companies Act, 2013 ('Act') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI).

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

ii. Use of estimates:

The brparation 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 brparation 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 recognised in the periods in which the results are known / materialise.

iii Fixed Assets:

Fixed assets are stated at cost, less accumulated debrciation and impairment loss, if any. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

Other assets including the additions subsequent to revaluation are shown at cost, which includes capitalization of br-operative expenses and net of CENVAT credit availed wherever applicable.

iv. Borrowing Cost:

Borrowing costs are capitalized as part of qualifying fixed assets wherever it is possible that they will result in future economic benefits. Other borrowing costs are expensed.

v. Debrciation:

Debrciation is provided at the rates brscribed under Schedule II of the Companies Act, 2013 with 5% salvage value.

a) Method of Debrciation:

b) Debrciation on certain brmises are provided on composite cost where it is not possible to segregate the land

c) Assets costing less than Rs.5000 are fully debrciated.

vi. Investments (Long Term)

Investments in shares are stated at cost, net of permanent diminution in value wherever necessary.

vii. Inventories:

a) Stores and Spares used for running of trucks and other machineries valued at lower of cost and net realizable value .

b) Loose tools are valued after writing off certain percentage of cost.

viii. Excise Duty:

CENVAT credit on materials purchased and on input services used for providing output services are taken into account at the time of purchase/payment and CENVAT credit on purchase of capital items wherever applicable are taken into account as and when the assets are installed, to the credit of respective purchase and assets accounts. The CENVAT credits so taken are utilized for payment of service tax on output services provided. The unutilized CENVAT credit is carried forward in the books.

ix.Revenue Recognition:

Revenue is recognized on accrual method on rendering of services.

x. Foreign Currency transactions:

Foreign Currency transactions are recorded in the books at the rates brvailing on the date of transaction.

Foreign currency monetary items as on balance sheet date are translated at exchange rate in effect at the Balance Sheet date, The gains or losses from such transactions are included in the statement of profit and loss.

Any exchange gain or loss arising out of restatement of "Long Term Foreign Currency Monetary Item" is transferred to foreign currency translation reserve account and amortized to P&L over the term of loan as per AS-11(R) issued by the Central Government vide their notification no G.S.R 225(E) Dt. 31st March 2009.

The Foreign Currency Monetary Item shall be classified as "Short Term Foreign Currency Monetary Item" when it is expected to be realized within twelve months after the reporting date. On such reclassification of long term foreign currency monetary item into short term foreign currency monetary item, the relevant balance in foreign currency translation reserve account is recognised in profit and loss account.

xi. Retirement Benefits:

Short term employee benefits are charged off at the undiscounted amount in the year in which the related service is rendered.

Post employment and other long term employee benefits are charged off in the year in which the employee has rendered service. The amount charged off is recognised at the brsent value of the amounts payable determined using actuarial valuation method. Actuarial gains and losses in respect of post employment and other long term benefits are charged to Statement of Profit and Loss.

xii. Contingent Liabilities & Provisions:

All known liabilities of material nature have been provided for in the accounts except liabilities of a contingent nature, which have been disclosed at their estimated value in the notes on accounts in accordance with Accounting Standard- 29. As regards Provisions, it is only those obligations arising from past events existing independently of an enterprise's future actions that are recognized as provisions.

xiii. Segment Reporting

The accounting policies adopted for Segment reporting are in line with the Accounting Standard-17. The Company is primarily engaged in providing integrated logistics services which is considered as single business segment in terms of segment reporting as per AS 17. There being no services rendered outside India there are no separate geographical segments to be reported on.

xiv.Discontinuing Operations:

There are no discontinuing operations that have been reported in the current year financials and thus disclosure as per Accounting Standard - 24 is not applicable.

xv. Impairment of Assets:

The Company recognizes impairment of all assets other than the assets, which are specifically excluded under Accounting Standard-28 on Impairment of Assets after comparing the asset's recoverable value with its carrying amount in the books. In case the carrying amount exceeds recoverable value, impairment losses are provided for.

The company has introduced a policy of measuring impairment of its goodwill on an annual basis. While testing for impairment the company shall pay heed to market prospects, company profitability, EPS and performance indicators in determining the same. Any upward movement in goodwill shall not be considered on account of prudence.

xvi. Deferred Taxes:

a. Current Tax is determined in accordance with the Provisions of Income Tax Act, 1961.

b. Deferred tax is recognized for all the timing differences. Deferred tax assets are recognized when considered prudent.

Note 2: NOTES ON ACCOUNTS

1. Claims against the Company not acknowledged as debts Rs. 2,746.59 Lakh (Previous Year: Rs. 1,042.32 Lakh).

2. In accordance with Accounting Standard-29, the following are considered as Contingent liabilities and not provided for:

a) Sales Tax, Service Tax, Customs, Wealth Tax and Income tax demands together with penalties under appeal amounts to Rs. 5,409.95 Lakh (Previous Year: Rs. 5,376.34 Lakh.)

b) Guarantees given by the Company for loans taken by other bodies corporate (including subsidiary companies to complete their projects) is Rs.48,571 Lakh (Previous Year: Rs. 48,571 Lakh). Outstanding loan against such guarantees is Rs 29,986 Lakhs (Previous year: Rs 31,860 Lakhs)

c) Guarantees given by bankers for Performance of Contracts & Others is Rs.3,887.58 Lakh (Previous Year: Rs. 3,036.00 lakh)

d) Guarantees given by bankers for Performance of Contracts & Others on behalf of subsidiaries is Rs 3,036 Lakh (Previous Year: Rs 2,616 Lakhs)

3. Micro, Small and Medium Enterprises Development Act, 2006

As per the information available with the company, there are no dues payable to creditors covered under this Act.

4.  Corporate Social Responsibility

As per Section 135 of the Companies Act, 2013, a CSR committee has been formed by the company. As per the CSR policy of the Company, the activities as brscribed under Schedule VII of the Companies Act 2013 were permitted. The Company made a contribution of Rs 11 lakhs towards CSR activity to a trust imparting education.

12. Previous year's figures have been regrouped, reclassified and rearranged wherever necessary.

For and on Behalf of

M/s. CNGSN & Associates LLP

Chartered Accountants

FR No. 004915S

CN GANGADARAN

Partner

Membership No . 11205

Place: Chennai

Date: 27th May 2015

R Ram Mohan Chairman

Kush Desai Joint Managing Director

S. Ravinarayanan Director

Sumith R Kamath Chief Financial Officer

V Radhakrishnan Company Secretar

Place: Bengaluru

Date: 27th May 2015