AVG Logistics Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ

Mar 31, 2025

(n) 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.

(o) Financial instruments:

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.

(p) Financial assets:

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 market place.

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.

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. the 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.

Investments in subsidiaries: All investments in
subsidiaries are valued at cost.

All other financial assets are subsequently measured
at fair value.

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.

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.

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.

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 Liability:

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.

Interest 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 derecognized 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.

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.

(q) Financial liabilities and equity instruments:
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.

Equity instruments:

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.

Financial liabilities:

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.

(r) Segment accounting:

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 segment have been identified based on
its services and has one reportable segment, as follow:

i. Supply Chain Management - Goods transportation

service including warehouse management service.

Accounting of Operating Segment:

Accounting policies adopted for segment reporting are
in line with the accounting policies of the Company.
Revenue and expenses have been identified to segment
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".

(u) Earnings per share:

Basic earning per share is calculated by dividing
the profit for the year attributable to equity holders
by the weighted average number of equity shares
outstanding during the period. Diluted earning per
share is calculated by dividing the profit for the period
attributable to the equity holders after considering
the effect of dilution by weighted average number of
equity shares outstanding during the period plus the
weighted average number of equity shares that would
be issued on conversion of all the dilutive potential
equity shares into equity shares.

4) . Operating Cycle:

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 and Ind AS 1 - Presentation of
Financial Statements based on the nature of products and
the time between the acquisition of assets for processing
and their realisation in cash and cash equivalents.

5) . Use of estimates and judgements:

The preparation of standalone financial statements
in conformity with the recognition and measurement
principles of Ind AS requires management of the
Company to make estimates and judgements that affect
thereportedbalancesofassets andliabilities,disclosures
of contingent liabilities as at the date of standalone
financial statements and the reported amounts of
income and expenses for the periods presented.
Estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the
estimates are revised and future periods are affected.
The Company uses the following critical accounting
judgements, estimates and assumptions in preparation
of its standalone financial statements:

6) . Recent pronouncements:

Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time. For the year ended March
31, 2025, MCA has not notified any new standards or
amendments to the existing standards applicable to
the Company.

As at 31 March 2024, the fair value of the investment property is INR 4,336.00. The valuation is performed by an
accredited independent valuer. Valuer is a specialist in valuing this type of investment property and is a registered
valuer. In view of the management, fair value of the investment property as at 31 March 2025 would not be materially
varied. Hence fair valuation from registered valuer as at 31 March 2025 has not been made.

The valuation is based on "Land and Building method".

The Company has no restrictions on the realisability of its investment property and no contractual obligations to
purchase, construct or develop investment property or for repairs, maintenance and enhancements.

(c) Terms and rights attached to equity shares

The Company has one class of equity shares having a par value of INR 10 per share. Each shareholder Is eligible
for one vote per share held and dividend as and when declared by the Company. The dividend proposed by
the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting,
except in case of interim dividend which is paid as and when declared by the Board of Directors. In the event of
liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of
the Company, after distribution of all preferential amounts, in proportion to their shareholding.

This space has been intentionally left blank)

(d) A) The Board of Directors and the Shareholders, in their meetings held on July 15, 2023 and June 30, 2023

respectively, approved inter-alia issuance of 850,000 Share Warrants on preferential basis to Mr. Sanjay
Gupta, Promoter and 625,000 Share Warrants on preferential basis to Non-promoters in accordance with
Section 23, 42 and 62 of the Companies Act, 2013 read with Chapter V of SEBI (Issue of Capital and Disclosure
Requirement) Regulations, 2018. Consequently, the Company allotted 1,475,000 Warrants during the financial
year 2023-24 to the aforesaid Investors against receipt of 25% of issued price of INR 222.60 per Warrant
i.e. INR 55.65 per Warrant aggregating INR 820.84 lakhs. During the previous year, certain Non-promoter
Warrant holder have exercised their options of converting 335,000 Warrants by submitting the necessary
Warrant Exercise Application Form along with paying the balance consideration amount of INR 166.95 per

Warrant (i.e. 75% of the issue price) aggregating INR 559.28 lakhs. Accordingly, the Company had allotted
325,000 equity shares in the ratio of one Equity Share for each Warrant exercised, on February 27, 2024.
Further, during the current year, Promoter as well as Non-promoter Warrant holders have exercised their
options of converting 850,000 Warrants and 290,000 Warrants respectively, by submitting the necessary
Warrant Exercise Application Form along with paying the balance consideration amount of INR 166.95 per
Warrant (i.e. 75% of the issue price) aggregating INR 1,903.23 lakhs.

The total amount aggregating INR 1,903.23 lakhs has been utilised for the purpose of Purchase of property,
plant and equipment, meeting working capital requirements and other corporate purposes.

The Board of Directors and the Shareholders, in their meetings held on February 14, 2024 and February 7,
2024 respectively, approved inter-alia issuance of 300,000 Share Warrants on preferential basis to Mrs. Asha
Gupta, Promoter and 505,000 Share Warrants on preferential basis to Non-promoters in accordance with
Section 23, 42 and 62 of the Companies Act, 2013 read with Chapter V of SEBI (Issue of Capital and Disclosure
Requirement) Regulations, 2018. Consequently, the Company allotted 805,000 Warrants during the financial
year 2023-24 to the aforesaid Investors against receipt of 25% of issued price of INR 371 per Warrant i.e. INR
92.75 per Warrant aggregating INR 746.64 lakhs. During the current year, certain Non-promoter Warrant
holder have exercised their options of converting 260,000 Warrants by submitting the necessary Warrant
Exercise Application Form along with paying the balance consideration amount of INR 278.25 per Warrant
(i.e. 75% of the issue price) aggregating INR 723.45 lakhs. Accordingly, the Company had allotted 260,000
equity shares in the ratio of one Equity Share for each Warrant exercised, on October 5, 2024.

The total amount aggregating INR 723.45 lakhs has been utilised for the purpose of Purchase of property,
plant and equipment, meeting working capital requirements and other corporate purposes.

During the previous year, the Company has sold its investment in one of its associate namely NDR AVG Business Park
Private Limited on January 21, 2024 partially for cash consideration and partially against the allotment of units in NDR
InvIT Trust.

The Company received cash consideration of INR 2,102.57 lakhs against the sale of 69% of the total investment in NDR
AVG Business Part Private Limited leading to profit of INR 1,423.21 lakhs during the Quarter-4 for the previous financial
year, which being exceptional in nature has been disclosed as a separate line item. Also, against the sale of 31% of the
balance investment in the aforesaid associate, the Company has been allotted with 994,928 units of NDR InvIT Trust
costing INR 305.22 lakhs which has been fair valued through statement of profit and loss as at March 31, 2024 and
resulted in fair value gain of INR 702.65 lakhs.

46 Disclosure pursuant to Indian Accounting Standard (Ind AS) 108 "Operating Segment"

a. Basis of identifying operating segments:

Operating segments are identified as those components of the Company (a) that engage in business activities to
earn revenues and incur expenses (including transactions with any of the Company''s other components; (b) whose
operating results are regularly reviewed by the Chief Operating Decision Maker (CODM) to make decisions about
resource allocation and performance assessment; and (c) for which discrete financial information is available.

Primary segment

In the current year, the Company''s business activity falls in primarily into one segment only i.e. Logistic business.
The Company operates mainly in transportation, warehousing business and other value added services. The
Company has considered one reportable segment and considering transactions individually and collectively
for other small segments are less than 10% of total revenue, internal and external of all segments accordingly
separate disclosure are not required as per Ind AS 108, ''Segment Reporting''.

Geographical segment

Company operates in India only as a single geographical segment.

Two customers accounts for more than 10% of the revenue during the year ended 31 March 2025 (31 March 2024:
two customers).

48 Financial instruments
A. Fair values hierarchy

Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped
into three levels of a fair value hierarchy. The three levels are defined based on the observability of significant
inputs to the measurement, as follows:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity
instruments, units of mutual funds (open ended) and traded bonds that have quoted price. Open-ended mutual
funds are valued at Net Asset Value (NAV) declared by respective fund house and are classified under Level 1.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using
valuation techniques which maximise the use of observable market data rely as little as possible on entity specific
estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in
level 2, this level of hierarchy includes financial assets, measured using inputs other than quoted prices included
within Level 1 that are observable for the asset, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: This level of hierarchy includes financial instruments measured using inputs that are not based on
observable market data (unobservable inputs). Fair values are determined in whole or in part, using a valuation
model based on assumptions that are neither supported by prices from observable current market transactions
in the same instrument nor are they based on available market data.

The management assessed that cash and bank balance, trade receivables, trade payables and other current
financial assets and other current financial liabilities approximate their carrying amounts largely due to the short¬
term maturities of these instruments.

49 Financial risk management objectives and policies

The Company''s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The
Company continues to focus on a system-based approach to business risk management. The Company''s financial risk
management process seeks to enable the early identification, evaluation and effective management of key risks facing
the business. Backed by strong internal control systems, the current Risk Management Framework rests on policies
and procedures issued by appropriate authorities; process of regular internal reviews/audits to set appropriate risk
limits and controls; monitoring of such risks and compliance confirmation for the same.

a. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market prices comprise three types of risk: interest rate risk, foreign currency risk and price risk.
The Company has in place appropriate risk management policies to limit the impact of these risks on its financial
performance. The Company ensures optimization of cash through fund planning and robust cash management
practices.

(i) Interest rate risk

Interest rate risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates.

The Company is exposed to interest rate risk because Company borrow funds at both fixed and floating interest
rates. However, the risk is managed by the Company by maintaining an appropriate mix between fixed and
floating rate borrowings as majority of the borrowings are either fixed interest bearing or non-interest bearing.
Hence, Company''s net exposure to interest risk is minimal.

Details on derivatives instruments and unhedged foreign currency exposures

The year-end foreign currency exposures that have not been hedged by a derivative instrument is nil.

b. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or contract, leading
to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and
from its investing activities, including deposits with banks. Management has a credit policy in place and the exposure
to credit risk is monitored on an ongoing basis.

i. Financial assets for which loss allowance is measured using life time expected credit losses

The Company provides loss allowance on trade receivables using life time expected credit loss and as per simplified
approach.

ii. Financial assets for which loss allowance is measured using 12 month expected credit losses

All of the Company investments and loans at amortised cost are considered to have low credit risk, and the
loss allowance recognised during the period was therefore limited to 12 months expected losses. Management
considers instruments to be low credit risk when they have a low risk of default and the issuer has a strong
capacity to meet its contractual cash flow obligations in the near term at its own.

(i) Trade receivables

Customer credit risk is managed basis established policies of Company, procedures and controls relating to
customer credit risk management. Outstanding customer receivables are regularly monitored. The Company
does not hold collateral as security.

The Company maintains exposure to Investments, cash equivalents, other bank balances, loans, trade receivables
and other financial assets. The Company has set counter-parties limits based on multiple factors including financial
positions, credit ratings, etc.

The Company''s maximum exposure to credit risk as at March 31,2025 and March 31,2024 is the carrying value of
each class of financial assets.

c. Liquidity risk

Liquidity risk is the risk that the Company will encounter in meeting the obligations associated with its financial liabilities
that are settled by delivering cash or another financial asset. The approach of the Company to manage liquidity is to
ensure , as far as possible, that these will have sufficient liquidity to meet their respective liabilities when they are due,
under both normal and stressed conditions, without incurring unacceptable losses or risk damage to their reputation.

The Company''s objective is to provide financial resources to meet its business objectives in a timely, cost effective
and reliable manner. A balance between continuity of funding and flexibility is maintained through the use of funds
from parent Company. The Company also monitors compliance with its debt covenants. The maturity profile of the
Company''s financial liabilities based on contractual undiscounted payments is given in the table below:

d. Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and
all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s
capital management is to ensure that it maintains an efficient capital structure and healthy capital ratios in order to
support its business and maximise shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and
the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the
dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital
using a gearing ratio, which is net debt divided by total equity. The Company''s policy is to keep optimum gearing ratio.
The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and
cash equivalents (including other bank balances).

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure
that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure
requirements.

50 Disclosures pursuant to Indian Accounting Standard (Ind AS) 19 "Employee Benefits"

a) Defined contribution plans:

The Company makes Provident Fund and Employee State Insurance Scheme contributions which are defined
contribution plans, for qualifying employees. Under the schemes, the Company incorporated in India is required to
contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised INR 106.70 lakhs
for year ended March 31, 2025 and INR 78.98 lakhs for year ended March 31, 2024 for Provident Fund contributions
and INR 17.71 lakhs for year ended March 31,2025 and INR 14.99 lakhs for year ended March 31,2024 for Employee
State Insurance Scheme contributions in the Statement of Profit and Loss. The contributions payable to these plans by
the Company are at rates specified in the rules of the schemes.

b) Defined benefit plans:

Gratuity

The present value obligation is determined based on actuarial valuation using the projected unit credit method to
assess the Plan''s liabilities, including those related to death-in-service and incapacity benefits. Under the PUC method
a "projected accrued benefit" is calculated at the beginning of the year and again at the end of the year for each benefit
that will accrue for all active members of the Plan. The "projected accrued benefit" is based on the Plan''s accrual
formula and upon service as of the beginning or end of the year, but using a member''s final compensation, projected
to the age at which the employee is assumed to leave active service. The plan liability is the actuarial present value of
the "projected accrued benefits" as of the beginning of the year for active members.

Recognition of re-measurement items

Re-measurements arising from defined benefit plans comprise actuarial gains and losses on benefit obligations, the
return on plan assets in excess of what has been estimated and the effect of asset ceiling, if any, in case of over funded
plans. The Company recognises these items of re-measurements immediately in other comprehensive income and all
the other expenses related to defined benefit plans in employee benefit expenses in profit and loss account.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant.
In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the
sensitivity of the defined benefit obligation to significant actuarial assumptions the same methods (present value of
defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has
been applied as when calculating the defined benefit liability recognised in the balance sheet.

51 Leases
As lessee

(i) The Company has entered into various lease agreements for warehousing and logistics. Such lease contracts
include monthly fixed payments for rentals. The lease contracts are generally cancellable at the option of lessee
during the lease tenure after the completion of non-cancellable period. There are no significant restrictions
imposed under the lease contracts. The following table presents the reconciliation of changes in the carrying
value of Right-of-use assets (ROU) and lease liability for the year ended March 31,2025 and March 31,2024.

Reasons

@ Due to issue of equity shares during the current year, equity share capital and security premium has increased
due to which net capital turnover ration has decreased as compared to the previous year.

% Due to issue of equity shares during the current year, the Company has further regularised and has speed up
payments of creditors using these proceeds thereby leading to improvement in the payment period.

60 The Code on social security, 2020 (''Code'') relating to employee benefits during employment and post employment
benefits received presidential assent in September 2020. The code has been published in the Gazette of India. However,
the date on which the code will come into effect has not been notified. The Company will assess the impact of the code
when it comes into effect and will record any related impact in the period the code becomes effective.

61 There were no amounts which were required to be transferred to the Investor and Protection Fund by the Company.

62 The Company did not have any long-term contracts including derivative contracts for which there were any material
foreseeable losses.

63 The Company has used an accounting software for maintaining its books of accounts, which pertains to processing of
transactions, and which is managed and maintained by a third-party software service provider. However, in absence
of sufficient and appropriate audit evidence including SOC report, we are unable to comment on the statutory
requirements for record retention prescribed under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.

64 The figures for the corresponding previous year have been regrouped/reclassified wherever necessary, to make them
comparable. There are no other subsequent events that occurred after the reporting date.

As per our report of even date

For M S K A & Associates For and on behalf of the Board of Directors

Chartered Accountants AVG Logistics Limited

Firm Registration Number: 105047W CIN: L60200DL2010PLC198327

Naresh Anand Sanjay Gupta Asha Gupta Himanshu Sharma Mukesh Kumar Nagar

Partner Managing Director Director Chief Financial Officer Company Secretary

Membership No.: 503662 DIN: 00527801 DIN: 02864795

Place: Chandigarh Place: Delhi

Date: May 30, 2025 Date: May 30, 2025

---

Mar 31, 2024

(n) 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.

(o) Financial instruments:

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.

(p) Financial assets:

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.

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. the 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

Investments in subsidiaries: All investments in subsidiaries are valued at cost.

All other financial assets are subsequently measured at fair value.

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.

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.

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.

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 Liability:

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.

Interest 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 derecognized 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.

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.

(q) Financial liabilities and equity instruments:

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.

Equity instruments:

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.

Financial liabilities:

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.

(r) Segment accounting:

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 segment have been identified based on its services and has one reportable segment, as follow:

i. Supply Chain Management - Goods transportation service including warehouse management service.

Accounting of Operating Segment:

Accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Revenue and expenses have been identified to segment 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 intersegment revenue and expenses, have been included under "Unallocated Corporate Expenses/Eliminations".

(u) Earnings per share:

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.

4) . Operating Cycle:

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 and Ind AS 1 - Presentation of Financial Statements based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents.

5) . Use of estimates and judgements:

The preparation of standalone financial statements in conformity with the recognition and measurement principles of Ind AS requires management of the Company to make estimates and judgements that affect thereportedbalancesofassets andliabilities,disclosures of contingent liabilities as at the date of standalone financial statements and the reported amounts of income and expenses for the periods presented. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and future periods are affected. The Company uses the following critical accounting judgements, estimates and assumptions in preparation of its standalone financial statements:

6) . Recent pronouncements:

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Group.

Note:

1) As per records of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

(c) Terms/ rights attached to equity shares

The Company has only one class of equity shares having par value of INR 10 per share. Each shareholder is entitled to one vote per share held. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in ensuing Annual General Meeting, except in the case where interim dividend is distributed. During the current year Company paid the dividend of INR 1 per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(d) A) The Board of Directors and the Shareholders, in their meetings held on 14 February 2024 and 7 February

2024 respectively, approved inter-alia issuance of 300,000 Share Warrants on preferential basis to Mrs. Asha Gupta, Promoter and 505,000 Share Warrants on preferential basis to Non-promoters in accordance with Section 23, 42 and 62 of the Companies Act, 2013 read with Chapter V of SEBI (Issue of Capital and Disclosure

Requirement) Regulations, 2018. Consequently, the Company allotted 805,000 Warrants during the financial year 2023-24 to the aforesaid Investors against receipt of 25% of issued price of INR 371 per Warrant i.e. INR 92.75 per Warrant aggregating INR 746.64 lakhs. None of the Warrant holder have exercised their options of converting the Warrants.

B) During the year ended March 31, 2024, the Company received an amount of INR 5,741.04 lakhs on account of preferential issue of 1,547,449 equity shares of INR 10 each issued at INR 371 each (including security premium of INR 361).

The combined proceeds from A) and B) above has been utilised as follows:-

Purchase of property, plant and equipment and investment property amounting to INR 3,496.34 lakhs; Working capital utilisation to INR 2,897.78 lakhs; and Other corporate purposes to INR 93.56 lakhs.

The Board of Directors and the Shareholders, in their meetings held on July 15, 2023 and June 30, 2023 respectively, approved inter-alia issuance of 850,000 Share Warrants on preferential basis to Mr. Sanjay Gupta, Promoter and 625,000 Share Warrants on preferential basis to Non-promoters in accordance with Section 23, 42 and 62 of the Companies Act, 2013 read with Chapter V of SEBI (Issue of Capital and Disclosure Requirement) Regulations, 2018. Consequently, the Company allotted 1,475,000 Warrants during the financial year 2023-24 to the aforesaid Investors against receipt of 25% of issued price of '' 222.60 per Warrant i.e. '' 55.65 per Warrant aggregating '' 820.84 lakhs. During the year, certain Non-promoter Warrant holder have exercised their options of converting 335,000 Warrants by submitting the necessary Warrant Exercise Application Form along with paying the balance consideration amount of '' 166.95 per Warrant (i.e. 75% of the issue price) aggregating '' 559.28 lakhs. Accordingly, the Company has allotted 335,000 equity shares in the ratio of one Equity Share for each Warrant exercised, on February 27, 2024.

The total amount aggregating '' 1,380.12 lakhs has been utilised as follows:-

Purchase of property, plant and equipment '' 70.46 lakhs

Working capital utilisation to '' 1,300.65 lakhs; and

Other corporate purposes to '' 9.01 lakhs.

46 Disclosure pursuant to Indian Accounting Standard (ind AS) 108 "Operating Segment a. Basis of identifying operating segments:

Operating segments are identified as those components of the Company (a) that engage in business activities to earn revenues and incur expenses (including transactions with any of the Company''s other components; (b) whose operating results are regularly reviewed by the Chief Operating Decision Maker (CODM) to make decisions about resource allocation and performance assessment and (c) for which discrete financial information is available.

Primary segment

In the current year, the Company''s business activity falls in primarily into one segment only i.e. Logistic business. The Company operates mainly in Transportation, warehousing business and other value added services. The Company has considered one reportable segment and considering transactions individually and collectively for other small segments are less than 10% of total revenue, internal and external of all segments accordingly separate disclosure are not required as per Ind AS 108, ''Segment Reporting''.

48 Financial instruments

I. Capital management policy: -

a) The Company''s capital management objectives are: -

- to ensure the Company''s ability to continue as a going concern.

- to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.

b) For the purpose of Company''s capital management, capital includes issued share capital, equity and all other equity reserves. The Company monitors capital on the basis of the carrying amount of equity as presented on the face of the statement of financial position. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.

Note:

1) The above capital management disclosures are based on the information provided internally to key management personnel.

II. A. Fair values hierarchy

Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, units of mutual funds (open ended) and traded bonds that have quoted price. Open-ended mutual funds are valued at Net Asset Value (NAV) declared by respective fund house and are classified under Level 1.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2, this level of hierarchy includes financial assets, measured using inputs other than quoted prices included within Level 1 that are observable for the asset, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: This level of hierarchy includes financial instruments measured using inputs that are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

Fair value of financial assets and liabilities measured at amortised cost.

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable approximation of their fair values.

The company''s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The company continues to focus on a system-based approach to business risk management. The company''s financial risk management process seeks to enable the early identification, evaluation and effective management of key risks facing the business. Backed by strong internal control systems, the current Risk Management Framework rests on policies and procedures issued by appropriate authorities; process of regular internal reviews/audits to set appropriate risk limits and controls; monitoring of such risks and compliance confirmation for the same.

a. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: interest rate risk, foreign currency risk and price risk. The Company has in place appropriate risk management policies to limit the impact of these risks on its financial performance. The Company ensures optimization of cash through fund planning and robust cash management practices.

(i) Interest rate risk

Interest rate risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

Financial assets and liabilities of the company are either non-interest bearing or fixed interest bearing instruments, the company''s net exposure to interest risk on such instruments is negligible.

(ii) Price risk

The Company has invested its funds in equity instruments of the associate. The Company is not exposed to price risk.

Details on derivatives instruments and unhedged foreign currency exposures

The year-end foreign currency exposures that have not been hedged by a derivative instrument is nil.

b. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or contract, leading to a financial loss. The company is exposed to credit risk from its operating activities (primarily trade receivables) and from its investing activities, including deposits with banks. Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis.

i. Financial assets for which loss allowance is measured using life time expected credit losses

The Company provides loss allowance on trade receivables using life time expected credit loss and as per simplified approach.

ii. Financial assets for which loss allowance is measured using 12 month expected credit losses

All of the Company investments and loans at amortised cost are considered to have low credit risk, and the loss allowance recognised during the period was therefore limited to 12 months expected losses. Management considers instruments to be low credit risk when they have a low risk of default and the issuer has a strong capacity to meet its contractual cash flow obligations in the near term at its own.

(i) Trade receivables

Customer credit risk is managed basis established policies of company, procedures and controls relating to customer credit risk management. Outstanding customer receivables are regularly monitored. The Company does not hold collateral as security.

The Company maintains exposure to Investments, cash equivalents, other bank balances, loans, trade receivables and other financial assets. The company has set counter-parties limits based on multiple factors including financial positions, credit ratings, etc.

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the company. The primary objective of the Company''s capital management is to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and maximise shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total equity. The Company''s policy is to keep optimum gearing ratio. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents (including other bank balances).

c. Liquidity risk

Liquidity risk is the risk that the Company will encounter in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The approach of the Company to manage liquidity is to ensure , as far as possible, that these will have sufficient liquidity to meet their respective liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risk damage to their reputation.

The Company''s objective is to provide financial resources to meet its business objectives in a timely, cost effective and reliable manner. A balance between continuity of funding and flexibility is maintained through the use of funds from parent company. The Company also monitors compliance with its debt covenants. The maturity profile of the Company''s financial liabilities based on contractual undiscounted payments is given in the table below: -

50 Disclosures pursuant to Indian Accounting Standard (Ind AS) 19 "Employee Benefits

a) Defined contribution plans:

The Company makes Provident Fund, Employee State Insurance Scheme contributions which are defined contribution plans, for qualifying employees. Under the schemes, the Company incorporated in India is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised INR 78.98 lakhs for year ended March 31, 2024 and INR 77.21 lakhs for year ended March 31, 2023 for Provident Fund contributions and INR 14.99 lakhs for year ended March 31,2024 and INR 16.53 lakhs for year ended March 31,2023 for Employee State Insurance Scheme contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

b) Defined benefit plans:

Gratuity

The present value obligation is determined based on actuarial valuation using the projected unit credit method to assess the Plan''s liabilities, including those related to death-in-service and incapacity benefits. Under the PUC method a "projected accrued benefit" is calculated at the beginning of the year and again at the end of the year for each benefit that will accrue for all active members of the Plan. The "projected accrued benefit" is based on the Plan''s accrual formula and upon service as of the beginning or end of the year, but using a member''s final compensation, projected to the age at which the employee is assumed to leave active service. The plan liability is the actuarial present value of the "projected accrued benefits" as of the beginning of the year for active members.

Recognition of re-measurement items

Re-measurements arising from defined benefit plans comprise actuarial gains and losses on benefit obligations, the return on plan assets in excess of what has been estimated and the effect of asset ceiling, if any, in case of over funded plans. The Company recognises these items of re-measurements immediately in other comprehensive income and all the other expenses related to defined benefit plans in employee benefit expenses in profit and loss account.

* The gratuity plan is not funded. Hence, the disclosure of plan assets are not shown.

59 Additional regulatory information in schedule III:

(a) All the title deeds of immovable properties (other than properties where the company is the lessee and the lease agreement are duly executed in favour of the lessee) are in the name of the Company.

(b) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the year.

(c) Benami property: There are no proceedings being initiated or are pending against the Company for holding any benami property under the benami transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(d) Wilful defaulter: the Company has not been declared as wilful defaulter by any bank or financial institution or other lender.

(e) The Company does not have any transactions with Companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

(f) There are no charges or satisfaction which are yet to be registered with the registrar of Companies beyond the statutory period.

(g) The Company has complied with the number of layers prescribed under the Act.

(h) Additional information to be disclosed by way of notes to statement of profit and loss:

- The Company does not have any undisclosed income which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income-tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income-tax Act, 1961).

- The Company has not traded or invested in crypto currency or virtual currency during the year.

(i) Utilisation of borrowed funds and share premium

(i) The Company has not advanced or loaned or invested funds to any other person or entity, including foreign entities (intermediaries) with the understanding that the intermediary shall:

- directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (ultimate beneficiaries); or

- provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(ii) The Company has not received any fund from any person or entity, including foreign entities (funding party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

- directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or

- provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

Reasons

# With addition in current assets due increase of trade receivables and bank balance (on account of proceeds from issue of shares and warrants) and reduction of current liabilities with decrease of trade payables and other current liabilities ratio has improved compared to previous year.

@ With reduction in total debt due to repayment during the year and no additional borrowings availed during the year and increase in equity on account of profit and fresh issue of shares and warrants ratio has improved compared to previous year.

^A During last year Company has regularised its delayed repayments because of which repayments of loans were more compared to current year and during current year profit before tax has increased resulting improvement in ratio compared to previous year.

% During current year Company has speed up payments of creditors using proceeds from issues of shares and warrants resulting improvement in ratio compared to previous year.

** Due to issue of shares and warrants, capital has increased because of which ratios has decreased when compared to previous year.

*** Due to increase in profit because of increase in revenue as compared to expenses ratio has improved compared to previous year.

60 The Code on social security, 2020 (''Code'') relating to employee benefits during employment and post employment benefits received presidential assent in september 2020. The code has been published in the Gazette of India. However, the date on which the code will come into effect has not been notified. The Company will assess the impact of the code when it comes into effect and will record any related impact in the period the code becomes effective.

61 There were no amounts which were required to be transferred to the Investor and Protection Fund by the company.

62 The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

63 The figures for the corresponding previous year have been regrouped/reclassified wherever necessary, to make them comparable. There are no other subsequent events that occurred after the reporting date.

As per our report of even date

For M S K A & Associates For and on behalf of the Board of Directors

Chartered Accountants AVG Logistics Limited

Firm Registration Number: 105047W CIN:L60200DL2010PLC198327

Naresh Anand Sanjay Gupta Asha Gupta Himanshu Sharma Mukesh Kumar Nagar

Partner Managing Director Director Chief Financial Officer Company Secretary

Membership No.: 503662 DIN: 00527801 DIN: 02864795

Place: Chandigarh Place: Delhi

Date: 29 May 2024 Date: 29 May 2024

---

Mar 31, 2023

i. Under Ind AS financial assets and liabilities are measured at fair value at the inception and subsequently at amortised cost or at fair value based on their classification. Under I-GAAP the financial assets and liabilities were measured at cost net of allowance.

ii. IndAS 116

Right-of-use assets

Under previous GAAP, there is no such provision for creation of Right-of-use assets. As per the provision of Ind As 116, Company has to create Right-of-use assets. At date of transition, the Company have lease agreement where Company is lessee. Thus as per the requirement of Ind As 116, the Company has recognised Right-of-use assets and corresponding has recognised lease liability. Therefore Right-of-use assets amounting INR 421.33 as at April 01, 2021 (INR 15,639.24 as at March 31, 2022) has recognised. Right-of-use assets amounting INR 0.47 as at April 01,2021 has recognised on account of Security Deposit given.

Right-of-use assets amounting INR 31.82 as at April 01,2021 (INR 30.19 as at March 31,2022) has recognised on account of reclassification of leasehold land from Property plant and equipment.

Under previous GAAP, there is no such provision for creation of net investment on sublease. As per the provision of Ind As 116, Company has to create Net investments on sublease in the nature of finance lease. Thus as per the requirement of Ind As 116, the Company has recognise Net investments on sublease as at April 01, 2021 amounting INR 967.62 by derecognition of Right-of-use assets amounting INR 782.97 and corresponding adjustment in retained earnings by INR 184.65. There is net decrease in Net investments on sublease by INR 27.21 due to recognition of unearned finance income and reversal of net investment on sublease on account of receipt of rent payments.

As per Ind AS 116, Deferred lease income w.r.t sublease in the nature of finance lease, recognised under previous GAAP has been derecognised by corresponding adjustment in retained earnings by INR 192.93 as at April 01, 2021 (INR 208.89 as at March 31, 2022)

Correspondingly, depreciation amounting to INR 1167.59 has been charged to profit and loss statement for the period ended on March 31,2022)

Lease liability

Under previous GAAP lease is recognised on straight lines basis .As per the provision of Ind AS corresponding to Right-of-use assets, lease liability of INR 1,204.30 as at April 01,2021 (INR 17,181.13 as at March 31,2022) has been recognised. Correspondingly, interest on lease liability of INR 785.28 has been booked and payment of leases rental amounting INR 1,163.17 has been paid for the year ended on March 31, 2022.

Difference on date on transition between Rights of use assets and lease liability has been transferred to retained earnings.

iii. Security deposit

Under Indian GAAP, interest-free security deposit (that are payable in cash on completion of the lease term) are recorded at their transaction value. Under Ind AS, all financial liabilities are required to be recognised at fair value. Accordingly the Company has fair valued these security deposits under Ind AS. Difference between the fair value and transaction value of the security deposit has been recognised as deferred income. Consequently, the amount of security deposit as on March 31, 2022 has been decreased by INR (April 01, 2021: INR 31.18) with a corresponding increase in deferred income. The income for the year ended March 31,2022 and retained earnings as on April 01, 2021 has been increased by INR 3.05 and INR Nil, respectively due to unwinding of deferred income. Unwinding of deferred income in statement profit or loss is partially off-set by the notional interest expense of INR 1.86 during the year ended March 31, 2022 and in retained earnings by INR Nil as on April 01, 2021 with corresponding increase in security deposit.

Under Indian GAAP, as on March 31, 2022 the Company has classified 77.50 (April 01,2021: INR Nil ) as short term security deposit. Under Ind AS, as on March 31, 2022 short-term security deposits includes deposits which were measured at amortised cost due it long-term nature in the previous years. However, in current year the same has been classified as short-term as they will be settled within 12 months from the end of March 31, 2022.

iv. Lease equalisation reserve

Lease equalization reserve has been decreased with a corresponding adjustment in retained earnings as of April 01,2021 by INR 344.39 (INR 411.90 as at March 31,2022) pursuant to adoption of Ind AS. The income for the year ended March 31,2022 has been increased by INR 67.51 due to reversal of lease equalisation reserve.

Deferred tax

v. Under Previous GAAP, deferred taxes were accounted basis the income statement approach which required creation of deferred tax asset/liability on temporary differences between taxable income and accounting income. Under Ind AS, deferred taxes are accounted basis the balance sheet approach which requires creation of deferred tax asset/liability on temporary differences between the carrying amount of an asset/liability in the Balance Sheet and its corresponding tax base. Application of Ind AS has also resulted in recognition of deferred taxes on new temporary differences arising due to adjustments made on transition to Ind AS.

Defined benefit liabilities

vi. Both under Indian GAAP and Ind AS, the Company recognised costs related to its post-employment defined benefit plan on an actuarial basis. Under Indian GAAP, the entire cost, including actuarial gains and losses, are charged to Statement of Profit and Loss. Under Ind AS, re-measurements comprising of actuarial gains and losses are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI. Thus the employee benefit cost for the year ended March 31, 2022 is reduced by INR 3.06 and re-measurement gains/ losses on defined benefit plans of the corresponding amount has been recognised in the OCI, net of taxes.

vii. The previous year IGAAP figures have been reclassified/ regrouped to make them comparable with Ind AS presentation.

As per records of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

(c) Terms/ rights attached to equity shares

The Company has only one class of equity shares having par value of INR 10 per share. Each shareholder is entitled to one vote per share held. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in ensuing Annual General Meeting, except in the case where interim dividend isdistributed. However, the Company has not distributed any dividend during the current year and previous year. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(d) No class of shares have been allotted as fully paid up pursuant to contract without payment being received in cash, allotted as fully paid up by way of bonus shares or bought back by the Company during the period.

(e) The Company issued 1,477,271 equity shares of INR 10 each at a premium of INR 34 each, total amounting INR 650 Lakhs under preferential allotment dated August 29, 2020. The amount has been raised and utilised for working capital purposes.

40 EARNINGS PER SHARE

Basic earnings per share amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted average number of equity shares outstanding during the year. The Company does not have any outstanding potential equity shares.

43 DISCLOSURE PURSUANT TO INDIAN ACCOUNTING STANDARD (IND AS) 108 "OPERATING SEGMENTS"

a. Basis of identifying operating segments:

Operating segments are identified as those components of the Company (a) that engage in business activities to earn revenues and incur expenses (including transactions with any of the Company''s other components; (b) whose operating results are regularly reviewed by the Chief Operating Decision Maker (CODM) to make decisions about resource allocation and performance assessment; and (c) for which discrete financial information is available.

Primary segment

The Company has acquired the logistics business segment of PCG Logistics Private Limited, on April 30, 2022 for a consideration of INR 327.80 Lakhs which has been recognised in the books as intangibles assets. This acquisition has resulted in the expansion of the Company''s operations and the acquisition of new retail customers. The Company is primarily engaged in the business of logistics which constitutes a single business segment and accordingly disclosure requirements of Ind AS 108 ''Operating Segments'' are not required to be given. As defined in Ind AS 108, the Chief Operating Decision Maker (CODM), i.e. the Board of Directors, evaluates the performance of the Company and allocates resources based on the analysis of the various performance indicators or the Company as a single unit.

45 FINANCIAL INSTRUMENTSI. Capital Management Policy: -

a) The Company''s capital management objectives are: -

- to ensure the Company''s ability to continue as a going concern.

- to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.

b) For the purpose of Company''s capital management, capital includes issued share capital, equity and all other equity reserves. The Company monitors capital on the basis of the carrying amount of equity as presented on the face of the statement of financial position. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.

1. The above capital management disclosures are based on the information provided internally to key management personnel.

II. A. Fair Values hierarchy

Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: Quoted prices (unadjusted) in active markets for financial instruments.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data rely as little as possible on entity specific estimates.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

Fair value of financial assets and liabilities measured at amortised cost.

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable approximation of their fair values.

The management assessed that cash and bank balance, trade receivables, trade payables and other current financial assets and other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

46 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company''s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company continues to focus on a system-based approach to business risk management. The Company''s financial risk management process seeks to enable the early identification, evaluation and effective management of key risks facing the business. Backed by strong internal control systems, the current Risk Management Framework rests on policies and procedures issued by appropriate authorities; process of regular internal reviews/audits to set appropriate risk limits and controls; monitoring of such risks and compliance confirmation for the same.

a. Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: interest rate risk, foreign currency risk and price risk. The Company has in place appropriate risk management policies to limit the impact of these risks on its financial performance. The Company ensures optimisation of cash through fund planning and robust cash management practices.

(i) Interest rate risk

Interest rate risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

Financial assets and liabilities of the Company are either non-interest bearing or fixed interest bearing instruments, the Company''s net exposure to interest risk on such instruments is negligible.

(ii) Price risk

The Company has invested its funds in equity instruments of the associate. The Company is not exposed to price risk.

(iii) Foreign currency risk

The Indian Rupee is the Company''s most significant currency. As a consequence, the Company''s results are presented in Indian Rupee and exposures are managed against Indian Rupee accordingly. Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when revenue or expense is denominated in a foreign currency). The Company does not have any exposure in foreign current as at reporting date, therefore, the Company is not exposed to foreign currency risk.

Details On Derivatives Instruments And Unhedged Foreign Currency Exposures

The year-end foreign currency exposures that have not been hedged by a derivative instrument is Nil.

b. Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its investing activities, including deposits with banks. Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis.

i. Financial assets for which loss allowance is measured using life time expected credit losses

The Company provides loss allowance on trade receivables using life time expected credit loss and as per simplified approach.

ii. Financial assets for which loss allowance is measured using 12 month expected credit losses

All of the Company investments and loans at amortised cost are considered to have low credit risk, and the loss allowance recognised during the period was therefore limited to 12 months expected losses. Management considers instruments to be low credit risk when they have a low risk of default and the issuer has a strong capacity to meet its contractual cash flow obligations in the near term at its own.

(i) Trade receivables

Customer credit risk is managed basis established policies of company, procedures and controls relating to customer credit risk management. Outstanding customer receivables are regularly monitored. The Company does not hold collateral as security.

The Company maintains exposure to Investments, cash equivalents, other bank balances, loans, trade receivables and other financial assets. The Company has set counter-parties limits based on multiple factors including financial positions, credit ratings, etc.

The Company''s maximum exposure to credit risk as at March 31 2023, March 31 2022 and April 1 2021 is the carrying value of each class of financial assets.c. Liquidity Risk

Liquidity risk is the risk that the Company will encounter in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The approach of the Company to manage liquidity is to ensure , as far as possible, that these will have sufficient liquidity to meet their respective liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risk damage to their reputation.

d. Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and maximise shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total equity. The Company''s policy is to keep optimum gearing ratio. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents (including other bank balances).

I n order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.

47 DISCLOSURES PURSUANT TO INDIAN ACCOUNTING STANDARD (IND AS) 19 "EMPLOYEE BENEFITS"

a) Defined contribution plans:

The Company makes Provident Fund, Employee State Insurance Scheme contributions which are defined contribution plans, for qualifying employees. Under the schemes, the Company incorporated in India is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised INR 72.21 Lakhs year ended March 31,2023 and INR 70.36 Lakhs year ended March 31,2022 for Provident Fund contributions and INR 16.53 Lakhs year ended March 31, 2023 and INR 16.08 Lakhs year ended March 31, 2022 for Employee State Insurance Scheme contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

b) Defined benefit plans:

The present value obligation is determined based on actuarial valuation using the projected unit credit method to assess the Plan''s liabilities, including those related to death-in-service and incapacity benefits. Under the PUC method a "projected accrued benefit" is calculated at the beginning of the year and again at the end of the year for each benefit that will accrue for all active members of the Plan. The "projected accrued benefit" is based on the Plan''s accrual formula and upon service as of the beginning or end of the year, but using a member''s final compensation, projected to the age at which the employee is assumed to leave active service. The plan liability is the actuarial present value of the "projected accrued benefits" as of the beginning of the year for active members.

Recognition of re-measurement items

Re-measurements arising from defined benefit plans comprise actuarial gains and losses on benefit obligations, the return on plan assets in excess of what has been estimated and the effect of asset ceiling, if any, in case of over funded plans. The Company recognises these items of re-measurements immediately in other comprehensive income and all the other expenses related to defined benefit plans in employee benefit expenses in profit and loss account.

48 LEASES

First time adoption of Ind AS 116- Leases

Effective April 1,2021 the Company adopted Ind AS 116 "Leases" and applied the standard to all lease contracts existing on April 1,2021 using the modified retrospective method. Right-of-use of assets (ROU) are measured at cost comprising the amount of the initial measurement of lease liability, any lease payments made at or before the commencement date and any initial direct costs less any lease incentives received. Lease liabilities were recognised based on the present value of the remaining lease payments, discounted using the incremental borrowing rate at the date of initial application.

The weighted average incremental borrowing rate applied to lease liabilities as at April 1, 2021 is 10%.

As Lessee

(i) The Company has entered into various lease agreements for warehousing and logistics. Such lease contracts include monthly fixed payments for rentals. The lease contracts are generally cancellable at the option of lessee during the lease tenure after the completion of non-cancellable period. There are no significant restrictions imposed under the lease contracts. The following table presents the reconciliation of changes in the carrying value of Right-of-use assets (ROU) and lease liability for the year ended March 31, 2023 and March 31,2022.

i) A contract asset is the right to consideration in exchange for services transferred to the customer. If the Company performs by transferring services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the earned consideration that is conditional.

57 ADDITIONAL REGULATORY INFORMATION IN SCHEDULE III:

(a) All the title deeds of immovable properties (other than properties where the Company is the lessee and the lease agreement are duly executed in favour of the lessee) are in the name of the Company.

(b) The Company does not have any investment property, hence the question of disclosure and valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017 does not arise.

(c) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the year.

(d) The Company has not given any loans or advances to specified persons during the year.

(e) Benami property: There are no proceedings being initiated or are pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(f) The Company had borrowed secured loan from financial institutions and banks against current assets.

(g) Wilful defaulter: the Company has not been declared as wilful defaulter by any bank or financial institution or other lender.

(h) The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

(i) There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.

(j) The Company does not have subsidiary company hence question of Compliance under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 with number of layers of companies does not arise.

(k) There are no scheme of arrangements as on March 31,2023.

(l) The Comnpany has not raised any short term borrowings during the year.

(m) Additional information to be disclosed by way of notes to statement of profit and loss:

- The Company does not have any undisclosed income which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income-tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income-tax Act, 1961).

- The Company has not traded or invested in crypto currency or virtual currency during the year.

(n) Utilisation of borrowed funds and share premium

(i) The Company has not advanced or loaned or invested funds to any other person or entity, including foreign entities (intermediaries) with the understanding that the intermediary shall:

- directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (ultimate beneficiaries); or

- provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(ii) The Company has not received any fund from any person or entity, including foreign entities (funding party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

- directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or

- provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

58 DISCLOSURE AS REQUIRED BY SCHEDULE V OF THE SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATION, 2015A. Loans and advances in the nature of loans

Associate: Nil Joint Venture: Nil

B. Investment by the loanee: Nil

59 The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

60 There were no amounts which were required to be transferred to the Investor and Protection Fund by the Company.

61 Previous year figures have been regrouped/ reclassified to confirm presentation as per Ind AS and as required by Schedule III of the Act.

The accompanying notes are an Integral part of the financial statements.

---

Mar 31, 2018

NOTES TO FINACIAL STATEMENTS

a) Contingent Liabilities:

• Bank Guarantee issued by Banks in favour of company outstanding as on 31.03.2018 is Rs.844.14Lacs(P.Y. - Rs.422.23Lacs)

• Claim against company not acknowledged as debt. Rs. 7.5Lakhs.

• Claim against the company under Labour Law There are two cases pending before Labour Court filed by ex-employees of the Company. The quantum of liability cannot be ascertained and will be decided by the Labour Law Court in due course of time.

b) Current Assets and Loans & Advances

In the opinion of Board of Directors, the Current Assets, Loans & Advances received and payable are approximately of the value stated if, realized in the ordinary course of business. Provisions for all known and determined liabilities are adequate and not in excess of the amount reasonably required. Balance of Payables and receivable are subject to confirmation & reconciliation in the normal course of business.

c) Micro, Small and Medium Enterprises

As the company has no information about the status of vendor, the management is not able to identify the dues outstanding to micro and small enterprises covered under Micro, Small and Medium Enterprises Development Act, 2006.

d) Long Term Borrowings

Long terms borrowings shown are obligations under finance lease which are secured against fixed assets obtained under finance lease arrangements.

Details of Securities given against secured loans availed by the company:

S.No.	Name of the Lender	Type of Loan	Outstanding balance as on 31.03.2018	Securities created	Remaining EMI''sas on 31.03.2018	Rate of Interest (%)	EMI Amount
	HDB Financial			Hypothecation of Trucks		10.82-	44003-
1	Services Ltd	Truck Loan	9488557		28	12.00	60702
				Hypothecation of Trucks			44192-
			3143788		4	11.35	72984
2	Hinduja Leyland Finance Ltd	Truck Loan	6631200	Hypothecation of Trucks	17	14.12	35989
				Hypothecation of Trucks			73021-
			23679441		35	11.55	73024
				Hypothecation of Trucks			18840-
			2948165		9	12.29	51138
3	ICICI Bank Ltd.	Truck Loan		Hypothecation of Trucks			18751-
			4105113		14	11.51	44876
			1555536	Hypothecation of Trucks	27	10.01	32293
				Hypothecation of Trucks			24697-
			5141061		28	10.01	31450
				Hypothecation of Trucks			12636-
			10745927		40	11	68318
				Hypothecation of Trucks			14294-
			17023276		43	9.50	31812
			24780000	Hypothecation of Trucks	47	9.75	64164
				Hypothecation of Trucks			16311-
			4745940		12	13.56	48652
				Hypothecation of Trucks			31150-
	India Infoline Finance	Truck Loan	7315536		21	13.07	33610
	Ltd			Hypothecation of Trucks
			3536858		22	13.00	20172
				Hypothecation of Trucks			20172
			3926486		23	13.00	34725

5	Indusind Bank	Truck Loan	933275	Hypothecation of Trucks	1	12.03	39503-73557
			5925512	Hypothecation of Trucks	30	11.10	32084-35642
			7315066	Hypothecation of Trucks	32	11.10	32084-35668
6	Kotak Mahindra Bank Ltd	Car Loan	144468	Hypothecation of Car	14	10.00	10975
7	Kotak Mahindra Bank Ltd	Truck Loan	11563690	Hypothecation of Trucks	32	13.00	23039-31230
			7110679	Hypothecation of Trucks	33	12.50	16603-40965
8	Reliance Commercial Finance Ltd	Truck Loan	1898518	Hypothecation of Trucks	8	14.02	39170-34275
9	TATA Capital Financial Services Ltd	Truck Loan	3076372	Hypothecation of Trucks	26	13.35	13375-32650
10	Tata Motors Finance Ltd.	Truck Loan	405726	Hypothecation of Trucks	1	11.24	40960
			182408	Hypothecation of Trucks	2	11.16	18940
			29100000	Hypothecation of Trucks	47	9.01	49500
11	Union Bank of India	Car Loan	25214	Hypothecation of Car	2	10.00	12179
12	Volkswagen Finance Pvt Ltd	Car Loan	1374356	Hypothecation of Car	24	10.25	64111
13	Punjab National Bank	Car Loan	1507925	Hypothecation of Car	46-50	10.00	7000-28500
14	Union Bank of India	Car Loan	1755456	Hypothecation of Car	40-45	10.00	1910-13291
15	Punjab National Bank Ltd	Term Loan	5644416	Term Loan for Warehouse Construction as building and lease hold land as primary security	28	10.8	Repayment will start from 2019
16	Punjab National Bank Ltd	Cash Credit Limit	286972210	Hypothecation of Book Debts and Personal Properties of directors and guarantee by directors		10.5
17	Union Bank of India	Cash Credit Limit	9590313	Hypothecation of Book Debts and Personal Properties of directors and guarantee by directors		10.5

In accordance with the required Accounting Standard (AS - 18) on related party disclosure where control exists and where transactions have taken place and description of the relationship as identified and certified by the management are as follows:

(a) Name of the related parties where control exists

Description of Relationship	Name of the party
Enterprises over which the key management personal have the significant influence.	1. M A Enterprises - Partnership Firm - Directors are partner of the firm.
	2. PCG Logistics Pvt Ltd - Group Company - Common Directors
	3. NDR AVG Logistics - LLP (Associate concern)
Key Management Personnel
	1. Sanjay Gupta, Managing Director
	2. Asha Gupta, Director
	3. Shyam Sunder Soni, Independent Director
	4. Suresh Kumar Jain, Independent Director
	5. Biswanath Shukla, Independent Director
	6.Vinayak Gupta, VP, Relative of Director.
	7.Arun Kumar Goel, CFO (Joined on 20.01.2018)
	8. Parul Jain, Company Secretary (Joined on 20.01.2018

(b) Related parties and nature where transaction have been taken place:

Description of Relationship	Name of the party
Enterprises over which the key management personal have the significant influence.	M A Enterprises - Partnership Firm PCG Logistics Pvt Ltd - Group Company NDR AVG Logistics- LLP
Key Management Personnel
	1. Sanjay Gupta, Managing Director
	2. Asha Gupta, Director
	3. Shyam Sunder Soni, Independent Director
	4. Suresh Kumar Jain, Independent Director
	5. Biswanath Shukla, Independent Director
	6.Vinayak Gupta, VP, Relative of Director.
	7.Arun Kumar Goel, CFO (Joined on 20.01.2018)
	8. Parul Jain, Company Secretary (Joined on 20.01.2018

(c) Transactions during the year:

Nature of Transaction	Year ended 31.03.2018 (Rs.)	Year ended 31.03.2017 (Rs.)
I. Enterprises over which the key management personal having significant influence
Prem Crane & Transport Services	NIL	90,33,286
Slump Purchase by the company.	NIL	5,40,00,000
Expenses of Truck Hiring Charges
NDR AVG Logistics LLP
Investment as Partner in an LLP	1,55,00,000	NIL
M A Enterprises
Business Transactions (Rental income from office Premises)	70,800	NIL
PCG Loaistics Private Limited
Business Transactions (Lorry Freight)	28,87,411	NIL

II Key Management Personnel & Other
Shri Sanjay Gupta - Director Remuneration	72,00,000	60,00,000
Smt Asha Gupta - Director Remuneration	60,00,000	NIL
Niti Gupta - Remuneration	NIL	14,40,000
Sanjay Gupta - Rent (Office)	NIL	1,20,000
Vinayak Gupta - Salary	19,16,129	6,00,000
Arun Kumar Goel	5,37,096	NIL
Parul Jain	47,000	NIL
Asha Gupta - Payment towards Slump Purchase of Business	83,27,820	NIL
Shyam Sunder Soni - Director sitting fees	40,000	NIL
Suresh Kumar Jain -Director sitting fees	40,000	NIL
Biswanath Shukla - Director sitting fees	40,000	NIL
Closing Balances
MA Enterprises	70,800Dr	NIL
PCG Logistics Private Limited	20,37,436Dr	NIL
Asha Gupta	7,05,466 Cr	90,33,286 Cr
Sanjay Gupta	4,04,743 Cr	8,66,200 Cr
NDR AVG Logistics LLP	1,55,00,000 Dr	NIL
Shyam Sunder Soni - Director sitting fees	36,000 Cr	NIL
Suresh Kumar Jain -Director sitting fees	36,000 Cr	NIL
Biswanath Shukla - Director sitting fees	36,000 Cr	NIL

g) Capital Commitments:

	March 31, 2018	March 31, 2017
Estimated amount of contracts remaining to be executed on account of Capital Commitments (net of advances)	2,77,38,623	NIL

h) Employment benefits:

a. Contribution towards Provident fund

	March 31,2018	March 31,2017
Employer''s Contribution to Provident Fund	30,48,909	20,42,465

b.Gratuity

Gratuity has been recognized as defined benefit plan in accordance with Accounting Standard -15 ''Employee benefits'' as under:

• Change in present value of obligation

	March 31,2018	March 31,2017
a) Present value of obligation as at beginning of the year.	0	N.A
b) Past Service cost	42,13,723	N.A
c) Current service cost	11,78,705	N.A
d) Interest Cost	0	N.A
e) Benefits paid	0	N.A
f) Actuarial (gain) /loss on obligations	0	N.A
Present value of obligation as at end of the year	53,92,428	N.A

The amounts to be recognized in Balance Sheet

	March 31,2018	March 31,2017
a) Present value of obligation as at the end of the year	53,92,428	N.A
b) Fair value of plan assets as at end of the year	0	N.A
Net Liability recognized in Balance Sheet	53,92,428	N.A
-Current	13,98,625	N.A
-Non Current	39,93,803	N.A

* Expense recognized in the statement of Profit and Loss

	March 31,2018	March 31.2017
a) Current Service Cost	11,78,705	N.A
b) Past Service Cost	42,13,723	N.A
c) Interest Cost	0	N.A
d) Net Actuarial (gain)/ loss recognized in the year	0	N.A
Expenses recognized in the statement of Profit and Loss	53,92,428	N.A

S.no	Particulars	Year Ended
		March 31,2014	March 31,2015	March 31,2016	March 31,2017	March 31,2018
1	Present value of	N.A	N.A	N.A	N.A	53,92,428
	obligation at the end of the year
2	Fair Value of Plan assets at the end of the year	N.A	N.A	N.A	N.A	0
3	Funded Status	N.A	N.A	N.A	N.A	(53,92,428)
4	Actuarial gain / (loss) in PBO	N.A	N.A	N.A	N.A	0
5	Actual gain (loss) for the year- Plan Assets	N.A	N.A	N.A	N.A	N.A

Assumptions used to determine the benefit obligations:

	March 31,2018	March 31,2017
Discount Rate (per annum)	7.44 %	N.A
Rate of increase in compensation levels (per annum)	0.05 %	N.A
Rate of Return on Plan Assets	N.A	N.A
Expected Future Service (years)	22.68	N.A

i) There are no outstanding derivative instruments on March 31, 2018 and as on March 31, 2017.

j) The company has not contributed any funds towards CSR Liability in the absence of identification of the specified project under CSR Program.

k) The company has establish an SPV with NDR Warehousing Pvt. Ltd. in the name and style of "NDR IVG Logistics LLP" for warehousing Project in Delhi. The company has invested Rs. 1.55 Cr. in the said LLP uptill 31.03.2018 toward its capital contribution.

I) Figures for previous year have been regrouped or rearranged wherever considered necessary to confirm with current year figures.

FOR PRAKASH K PRAKASH	FOR AND ON BEHALF OF THE BOARD OF DIRECTORS OF
CHARTERED ACCOUNTANTS	AVG LOGISTICS LIMTED
CAI FlRM REG.NO:000415N
PRAKASH K GUPTA	PARUL JAIN	ARUN KUMAR GOEL
Partner	Company Secretary	CFO
Membership No. 080320
31.05.2018, New Delhi
	SANJAY GUPTA	ASHA GUPTA
	Managing Director	Director
	DIN : 00527801	DIN : 02864795