a) Term loan obligation is repayable by Monthly Equated Installments beginning from the month subsequent to taking the loan. General repayment schedule is ranging from 3-5 years.
b) Term loan from Bank aggregating to Rs 2947.25 Lakhs ( Rs. -1597.56 lakhs as on 31st March,2017 and Rs.- 1270.46 Lakhs as on 1st April,2016 ) are secured/ to be secured by first charge on all immovable, movable assets of the Company on paripassu basis.
c) Secured loans from bank are secured by hypothecation of first and exclusive charge against respective equipment and vehicles.
a) Working Capital Loan from Bank of Rs. 2150.72 lakhs (Previous Year Rs. 822.49 lakhs) are secured by hypothecation of truck vehicles & book debts and mortgage by deposit of title deeds of Property & personal guarantee of directors.
b) Term loan obligation is repayable by Monthly Equated Installments beginning from the month subsequent to taking the loan.
c) Working Capital Demand loan is repayable on demand. Interest on loan utilised is payable on monthly basis.
d) Secured loans from bank are secured by hypothecation of first and exclusive charge against respective equipment and vehicles.
-There are no Micro, Small and Medium Enterprises, to whom the Company owes dues (including interest on outstandingdues) which are outstanding as at the Balance Sheet date. The above information has been determined to the extentsuch parties have been identified on the basis of information available with the Company. This has been relied upon by theauditors.
-The fair value of Trade payables is not materially different from the carrying value presented.
-These do not include any amounts due and outstanding to be credited to “Investors’ Education and Protection Fund”. -The fair value of Other Current Financial Liabilities is not materially different from the carrying value presented.
1 The Company’s activities during the year revolve around logistics service . Considering the nature of Company’s business and operations, as well as based on reviews of operating results by the chief operating decision maker to make decisions about resource allocation and performance measurement, there is only one reportable segment in accordance with the requirements of Ind AS - 108 - ‘‘Operating Segments’’, prescribed under Companies (Indian Accounting Standards) Rules, 2015.
2 As per Ind AS-19 “Employee Benefits”, the disclosure are given below:
(a) Defined Benefit Plan
The Company operates a defined benefit plan (the Gratuity plan) covering eliigible employees, which provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee’s salary and the tenure of employment.
3 Expenditure incurred on Employees who are in receipt of not less than 60,00,000 per year if employed through out the year and Rs. 5,00,000 per month if employed for the part of the month. : NIL
4. Additional information pursuant to the provisions of new schedule III to the Companies Act,2013 to the extent applicable, is given below:
Expenditure in Foreign currency: Nil CIF Value of Income & Expenses: Nil
5. Figures of the Previous years have been regrouped/reclassified wherever necessary to confirm to the current year classification and presentation.
6. Corporate Information
Chartered Logistics Limited (“the Company”) is a public company domiciled in India and Incorporated under the provision of the Companies Act, 1956 having its registered office at C - 1, Jay Tower, 4th Floor, Ankur Road, Naranpura ,Ahmedabad ,Gujarat ,380013. The Company is engaged in logistics service dealing in domestic transportation of goods. The operation of the Company is spread through various branches.
7. Significant accounting judgments, estimates and assumptions
The application of the Company’s accounting policies as described in Note 2, in the preparation of the Company’s financial statements require management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. The estimates and assumptions are based on historical experience and other factors that are considered to be relevant. The estimates and underlying assumptions are reviewed on an ongoing basis and any revisions thereto are recognised in the period in which they are revised or in the period of revision and future periods if the revision affects both the current and future periods. Actual results may differ from these estimates which could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.
Estimates and assumptions
The estimates at 1st April, 2016 and at 31st March, 2017 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies)
The estimates used by the company to present these amounts in accordance with Ind AS reflect conditions at 1st April, 2016, the date of transition to Ind AS and as of 31st March, 2017.
Key Sources of estimation uncertainty:
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. Existing circumstances and assumptions about future developments may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.
- Useful lives of property, plant and equipment.
Property, plant and equipment are depreciated over the estimated useful lives of the assets, after taking into account their estimated residual value. Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation to be recorded during any reporting period. The useful lives and residual values are based on the Company’s historical experience with similar assets and take into account anticipated technological changes. The depreciation for future periods is adjusted if there are significant changes from previous estimates.
II. Fair Value measurement
Management uses valuation techniques to determine the fair value of financial instruments (where active market quotes are not available) and non-financial assets. This involves developing estimates and assumptions consistent with how market participants would price the instrument. Management bases its assumptions on observable data as far as possible but this is not always available. In that case management uses the best information available. Estimated fair values may vary from the actual prices that would be achieved in an arm’s length transaction at the reporting date.
III. Provisions
Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the liability require the application of judgement to existing facts and circumstances, which can be subject to change. Since the cash outflows can take place many years in the future, the carrying amounts of provisions and liabilities are reviewed regularly and adjusted to take account of changing facts and circumstances.
IV. Defined benefit plans (Gratuity benefits)
Management’s estimate of the Defined benefit plans is based on a number of critical underlying assumptions such as standard rates of inflation, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the Defined benefit plans amount and the annual defined benefit expenses
V. Impairment
In assessing impairment, management estimates the recoverable amount of each asset or cash-generating unit based on expected future cash flows and uses an interest rate to discount them. Estimation uncertainty relates to assumptions about future operating results and the determination of a suitable discount rate.
VI. Taxes
Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies, including estimates of temporary differences reversing on account of available benefits from the Income Tax Act, 1961. Deferred tax assets recognised to the extent of the corresponding deferred tax liability.
8. First-time adoption of Ind-AS
The Company has adopted Ind AS from 1st April, 2017 and the date of transition to Ind AS is 1st April, 2016. These being the first financial statements in compliance with Ind AS, the impact of transition has been accounted for in opening reserves and comparable periods have been restated in accordance with Ind AS 101 - “First-time Adoption of Indian Accounting Standards”. The Company has presented a reconciliation of its equity under Previous GAAP to its equity under Ind AS as at 1st April, 2016 and 31st March, 2017 and of the total comprehensive income for the year ended 31st March, 2017 as required by Ind AS 101.
Following are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.
- Deemed cost of property, plant and equipment and intangible assets.
The Company has elected to continue with the carrying value of all its plant and equipment and intangible assets recognised as of 1st April, 2016 measured as per the previous GAAP and use that carrying value as its deemed cost on transition date.
I. Derecognition of financial assets and financial liabilities.
The Company has applied the derecognition requirements of financial assets and financial liabilities prospectively for transactions occurring on or after transition date.
II. Classification and measurement of financial assets.
The Company has assessed classification and measurement of financial assets on the basis of facts and circumstances that exist as on transition date.
IV. Impairment of financial assets
The Company has applied impairment requirements of Ind AS 109 retrospectively; however, as permitted by Ind AS 101, it has used reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the date that financial instruments were initially recognised in order to compare it with the credit risk at the transition date.
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