2.17. Provisions and Contingencies:

Provisions are recognized when the Company has a present
obligation as a result of a past event and it is probable that
an outflow of resources embodying economic benefits will
be required to settle the obligation and a reliable estimate
can be made of the amount of the obligation.

Contingent liability is:

(a) a possible obligation arising from past events
and whose existence will be confirmed only by
the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control
of the entity or

(b) a present obligation that arises from past events but
is not recognized because;

- it is not probable that an outflow of resources
embodying economic benefits will be required
to settle the obligation, or

- the amount of the obligation cannot be
measured with sufficient reliability.

The Company does not recognize a contingent
liability but discloses its existence and other required
disclosures in notes to the financial statements,
unless the possibility of any outflow in settlement
is remote.

2.18. Share based payments:

Equity- settled share-based payments to employees are
measured at the fair value of the employee stock options
at the grant date.

The fair value of option at the grant date is expensed over
the vesting period in which the service conditions are
fulfilled in employee benefits expense with a corresponding
increase in equity as "Share Based Payment Reserve”. In
case of forfeiture of unvested option, portion of amount
already expensed is reversed. In a situation where the
vested option forfeited or expires unexercised, the
related balance standing to the credit of the "Share Based
Payment Reserve” are transferred to the "General Reserve”.
When the options are exercised, the Company issues new

fully paid up equity shares of the Company. The proceeds
received and the related balance standing to credit of the
Share Based Payment Reserve, are credited to equity share
capital (nominal value) and Securities Premium.(Refer note
:52)

2.19. Segment Reporting:

Segments are identified based on the manner in which the
Chief Operating Decision Maker ('CODM’) decides about
resource allocation and reviews performance. Segment
results that are reported to the CODM include items
directly attributable to a segment as well as those that
can be allocated on a reasonable basis. Segment capital
expenditure is the total cost incurred during the period to
acquire property and equipment and intangible assets
other than goodwill.

2.20. Climate Related Matters:

The Company considers climate-related matters in
estimates and assumptions, where appropriate. This
assessment includes a wide range of possible impacts
on the Company due to both physical and transition risks.
Even though the Company believes its business model
and products will still be viable after the transition to a
low-carbon economy, climate-related matters increase
the uncertainty in estimates and assumptions. Even
though climate-related risks might not currently have a
significant impact on measurement, the Company is
closely monitoring relevant changes and developments,
such as new climate-related legislation.

2.21. Earnings per share:

(i) Basic earnings per share

Basic earnings per share are calculated by dividing the
net profit or loss before other comprehensive Income
for the period attributable to equity shareholders of
parent by the weighted average number of equity
shares outstanding during the period.

(ii) Diluted earnings per share:

Diluted earnings per share adjust the figures used in
the determination of basic earnings per share to take
into account:

• The after income tax effect of interest and
other financing costs associated with dilutive
potential equity shares, and

• The weighted average number of additional
equity shares that would have been outstanding
assuming the conversion of all dilutive potential
equity shares.

2.22. New and amended standards

The Ministry of Corporate Affairs (MCA) notified the Ind AS
117, Insurance Contracts, vide notification dated 12 August
2024, under the Companies (Indian Accounting Standards)
Amendment Rules, 2024, which is effective from annual
reporting periods beginning on or after 1 April 2024.

i. Ind AS 117 Insurance Contracts is a comprehensive
new accounting standard for insurance contracts
covering recognition and measurement, presentation

and disclosure. Ind AS 117 replaces Ind AS 104
Insurance Contracts. Ind AS 117 applies to all types of
insurance contracts, regardless of the type of entities
that issue them as well as to certain guarantees and
financial instruments with discretionary participation
features; a few scope exceptions will apply. Ind AS 117
is based on a general model, supplemented by:

• A specific adaptation for contracts with
direct participation features (the variable fee
approach)

• A simplified approach (the premium allocation
approach) mainly for short-duration contracts

The application of Ind AS 117 does not have material
impact on the Company’s separate financial
statements as the Company has not entered any
contracts in the nature of insurance contracts
covered under Ind AS 117.

ii. Ind AS 116 Leases - Lease Liability in a Sale and
Leaseback

The MCA notified the Companies (Indian Accounting
Standards) Second Amendment Rules, 2024, which
amend Ind AS 116, Leases, with respect to Lease
Liability in a Sale and Leaseback.

The amendment specifies the requirements that a
seller-lessee uses in measuring the lease liability
arising in a sale and leaseback transaction, to ensure
the seller-lessee does not recognise any amount
of the gain or loss that relates to the right of use it
retains.

The amendment is effective for annual reporting
periods beginning on or after 1 April 2024 and must
be applied retrospectively to sale and leaseback
transactions entered into after the date of initial
application of Ind AS 116.

The amendments do not have a material impact on
the Company’s financial statements, as the company
not have any sale and lease back transactions.

2.23. Significant accounting judgements, estimates and
assumptions:

The preparation of the Company financial statements
requires 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.
Uncertainty about these assumptions and estimates could
result in outcomes that require a material adjustment to the
carrying amount of assets or liabilities affected in future
periods. Some of the significant accounting judgement
and estimates are given below

i) Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and the
present value of the gratuity obligation are determined
using actuarial valuations. An actuarial valuation
involves making various assumptions that may differ

from actual developments in the future. These include
the determination of the discount rate, future salary
increases and mortality rates. All assumptions are
reviewed at each reporting date. The parameter most
subject to change is the discount rate. In determining
the appropriate discount rate for plans operated in
India, the management considers the interest rates of
government bonds in currencies consistent with the
currencies of the post-employment benefit obligation.

Future salary increases and gratuity increases are
based on expected future inflation rates for the
respective countries. The mortality rate is based on
publicly available mortality tables for the specific
countries. Those mortality tables tend to change only
at interval in response to demographic changes

ii) Fair value measurement of financial instruments

When the fair values of financial assets and financial
liabilities recorded in the balance sheet cannot be
measured based on quoted prices in active markets,
their fair value is measured using valuation techniques
including the discounted cash flow (DCF) model. The
inputs to these models are taken from observable
markets where possible, but where this is not feasible,
a degree of judgement is required in establishing
fair values. Judgements include considerations of
inputs such as liquidity risk, credit risk and volatility.
Changes in assumptions about these factors could
affect the reported fair value of financial instruments.
Refer Note 37 for further disclosures.

iii) Leases - Estimating the incremental borrowing rate

The Company cannot readily determine the interest
rate implicit in the lease, therefore, it uses its
incremental borrowing rate (IBR) to measure lease
liabilities. The IBR is the rate of interest that the
Company would have to pay to borrow over a similar
term, and with a similar security, the funds necessary
to obtain an asset of a similar value to the right-of-
use asset in a similar economic environment. The IBR
therefore reflects what the Company 'would have to
pay’, which requires estimation when no observable
rates are available. The Company estimates the IBR
using observable inputs (such as market interest
rates) when available and is required to make certain
entity-specific estimates (such as the credit rating).

iv) Property, plant and equipment

Property, plant and equipment represent a significant
proportion of the asset base of the Company. The
charge in respect of periodic depreciation is derived
after determining an estimate of an asset's expected
useful life and the expected residual value at the end
of its life. The useful lives and residual values of the
Company assets are determined by management
at the time the asset is acquired and reviewed
periodically, including at the end of each financial
year. The lives are based on historical experience
with similar assets.

18 Other Equity (contd)

A The description, nature, purpose and movement of each reserve under other equity are as follows:-

a) Securities Premium :

Securities premium represents the premium on issue of equity shares. The same can be utilised in accordance with the
provisions of the Companies Act, 2013.

b) General Reserve:

General reserve is the retained earnings of the Company, which are kept aside out of the Company's profit to meet future
obligations, if any.

c) Capital Reserve :

Capital Reserve includes amount received on allotment of convertible warrants was forfeited and transferred to Capital
Reserve Account.

d) Tonnage Tax Reserve (Utilised):

This reserve is a statutory reserve which is created and will be utilized in accordance with the provisions of Section 115VT
of Income tax Act 1961 to comply with the provisions of 'Tonnage Tax Scheme’ under Chapter XII-G.

e) Special Reserve:

The Hon’ble Andhra Pradesh High Court, approved the Scheme of Arrangement for amalgamation. ("The Scheme”) vide
its Order dated March 19, 2013 which interalia, permits creation of a capital reserve to be called Special Reserve to which
shall be credited excess of value of assets over value of liabilities on amalgamation of the subsidiaries amounting to
' 55,554 Lakhs to be utilized by the Company to adjust therefrom any capital losses arising from transfer of assets and
certain other losses, any balance remaining in the Special Reserve shall be available for adjustment against any future
permanent diminution in the value of assets and exceptional items etc. as specified in the Scheme as the Board of
directors may deem fit.

f) Retained Earnings:

Retained earnings comprise of net accumulated profit/(loss) of the Company, after declaration of dividend.

g) Share based payment Reserve:

The share based payment reserve is used to record the value of equity-settled share based payment transactions with
employees. The amount recorded in this reserve is transferred to securities premium upon exercise of stock appreciation
rights by employees. The amount outstanding in the "Share based payment reserve" will be transferred to "General
Reserve", when the options are lapsed / cancelled.

The Exceptional items (non-recurring) represents :

a) In January 2016, the Company had issued a Corporate Guarantee to IDFC Bank Limited ('IDFC’) on behalf of GI Hydro
Private Limited (formerly GATI Infrastructure Private Limited ('GIPL’)). In FY 2017-18, the Company recorded a liability of
' 2,360 lakhs due to the invocation of the Corporate Guarantee by IDFC. Subsequently, IDFC assigned all rights, title, and
interests in financial assistance of GIPL to Edelweiss Asset Reconstruction Company Limited ('Edelweiss’) under the
SARFAESI Act, 2002.

During the Previous financial year, GIPL has raised funds by issuing bonds and repaid its debts to Edelweiss and thereby on
January 12, 2024, Edelweiss has issued no-due certificate relinquishing the Corporate Guarantee issued by the Company.
Accordingly, the Company has reassessed its exposure and reversed the liability of ' 2,360 lakhs. This has been treated
as exceptional item (gain). Further the legal matters associated with this guarantee are disposed off during the Previous
financial year.

b) Gati Import Export Trading Limited (GIETL), a wholly owned subsidiary of the Company, has discontinued its operations
in FY 2021. Company’s investment in GIETL has been provided to extent of ' 192 lakhs as on March 31, 2025, out of this
' 4 lakhs was provided in financial year 2023-24 and further ' 5 lakhs is provided in the current financial year.

c) The Company has recorded a net gain of ' 555Lakhs from sale of its Non core Assets. Out of this, Net gain on sale of
assets which are disclosed under "Assets held for Sale” in the previous year is ' 289 lakhs (March 31, 2024 - Gain ' 308
lakhs).

d) A loss on write off in Property, Plant and Equipment is on account of discardment of Property, Plant and Equipment which
have outlived their useful life and those which are no longer required for business operations was Nil as on March 31, 2025
(March 31, 2024 - ' 1 lakhs).

e) During the financial year an impairment allowance of ' 193 lakhs has been provided in books on account of diminution in
the fair value of Property, plant & Equipment (March 31, 2024 - ' Nil).”

A) Neera Children Trust ('NCT') Vs. Gati Limited. & 29 Ors. (NCLT 535 of 2019), NCLT Hyderabad

Neera Children Trust (NCT) has filed a case alleging oppression and mismanagement against Gati Limited, its promoters, and
directors, with the case currently under the purview of the National Company Law Tribunal (NCLT) in Hyderabad. Various Interim
Applications (IAs) have been submitted by different parties during the proceedings, addressing matters such as maintainability,
waiver, the legality of postal ballots, shifting the registered office, and adding other respondents. In one significant development,
Gati Limited filed an IA requesting the relocation of its registered office from Telangana to Maharashtra, which was granted
by the NCLT on April 25, 2023.

As the litigation proceeds, Gati Limited's counter to the interim reliefs sought by NCT has been recorded.The case has seen
six IAs filed by various parties, focusing on issues of maintainability, waiver, the legality of the postal ballot, the shifting of
the head office, and the addition of other respondents. The Company’s counter to the interim reliefs sought by NCT has been
taken on record. Post the final hearing on November 7, 2024 the petition is posted for arguments by petitioner on June 12,
2025. According to the assessment by the learned counsel, there is a high possibility of obtaining a favorable order in this case.
However, the final resolution and its potential impact on Gati Limited's financial position depend on the NCLT's final verdict.

Until the NCLT reaches a decision, the ultimate impact on Gati Limited's financial standing cannot be determined with certainty.
The company is committed to monitoring the proceedings closely and will assess any potential financial implications as they
arise.

Defined benefits - Gratuity

The Company provides gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in
continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/ termination
is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of
years of service. The gratuity plan is a funded plan and the company makes contributions to recognised funds in India.

These defined benefit plans expose the Company to actuarial risks, such as currency risk, interest risk and market (investment)
risk.

The Company expects ' 20 lakhs to contribute to Gratuity Fund in the next year.

35. Disclosure as required under Ind AS 19 on Employee Benefits: (contd)

Defined benefits - Compensated absences

The Company provides for accumulation of leaves by certain categories of its employees. These employees can carry forward
a portion of the unutilised leaves and utilise them in future periods or receive cash in lieu thereof as per the Company’s policy.
The Company records a liability for such leaves in the period in which the employee renders the services that increases this
entitlement. The total liability recorded by the Company towards this obligation is ' 6 lakhs and ' 14 lakhs as at March 31, 2025
and March 31, 2024, respectively.

Inherent risk

The plan is defined benefit in nature which is sponsored by the Company and hence it underwrites all the risk pertaining to
the plan. In particular, this exposes the Company, to actuarial risk such as adverse salary growth, change in demographic
experience, inadequate return on underlying plan assets. This may result in an increase in cost of providing these benefits to
employees in future. Since the benefits are lump sum in nature, the plan is not subject to longevity risk.

The following tables analyse present value of defined benefit obligations, expense recognised in Statement of Profit and Loss,
actuarial assumptions and other information.

37. Financial instruments - fair values and risk management (contd)

C. Financial risk management

The Company has exposure to the following risks arising from financial instruments:

(i) Credit risk

(ii) Liquidity risk

(iii) Market risk

Risk management framework

The Company’s principal financial liabilities includes borrowings, Lease liabilities, trade payable and other financial liabilities.
The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets
include Loans, trade receivables, cash and cash equivalents and other financial assets that derive directly from its operations.

The Company’s activities expose it to credit risk, liquidity risk and market risk. The Company’s primary risk management focus
is to minimise potential adverse effects of market risk on its financial performance. The Company's exposure to credit risk is
influenced mainly by the individual characteristic of each customer and the concentration of risk from the top few customers.
The Company’s risk management assessment and policies and processes are established to identify and analyse the risks
faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same.
Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and
the Company’s activities.

(i) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to
meet its contractual obligations, and arises principally from the Company’s receivables from customers and loans given.
Credit risk arises from cash held with banks and financial institutions, as well as credit exposure to customers, including
outstanding accounts receivables. The maximum exposure to credit risk is equal to the carrying value of the financial
assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses
the credit quality of the counterparties, taking into account their financial position, past experience and other factors.

a) Trade receivables

As per simplified approach, the Company makes provision of expected credit losses on trade receivables using a provision
matrix to mitigate the risk of default payments and makes appropriate provisions at each reporting date whenever is for
longer period and involves higher risk. The Company uses expected credit loss model to assess the impairment loss or
gain in accordance with Ind AS 109. The Company uses a provision matrix to compute the credit loss allowance for trade
receivables.

(ii) Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable
price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability
of funding through an adequate amount of credit facilities to meet obligations when due. The Company's finance team
is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to
such risks are overseen by senior management. Management monitors the Company's liquidity position through rolling
forecasts on the basis of expected cash flows. Besides , it generally has certain undrawn credit facilities which can be
accessed as and when required ; such credit facilities are reviewed at regular intervals. Thus , no liquidity risk is perceived
at present.

The Company's approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet
its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or
risking damage to the Company's reputation.

The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date
based on contractual undiscounted payments.

(iii) Market Risk

Floating exchange rate

Floating exchange rate with reference to Market risk is the risk that changes in market prices - such as foreign exchange
rates and interest rates - will affect the Company’s income or the value of its holdings of financial instruments. The
objective of market risk management is to manage and control market risk exposures within acceptable parameters,
while optimising the return.

Foreign currency risk

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 total unhedged foreign currency exposure at the year end towards Trade Receivable & Trade
Payable is ' 10 Lakhs (Previous year ' 9 Lakhs) and ' 11 Lakhs (Previous Year ' 24 Lakhs) respectively. The Company does
not have significant foreign currency exposure and hence, is not exposed to any significant foreign currency risk.

Interest rate risk

Interest rate risk is 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 exposure to the risk of changes in market interest rates relates primarily
to the Company's long term and short term borrowing with floating interest rates. The Company constantly monitors the
credit markets and rebalances its financing strategies to achieve an optimal maturity profile and financing cost.

Sensitivity analysis

Fixed rate instruments that are carried at amortised cost are not subject to interest rate risk for the purpose of sensitive
analysis.

Equity risk

The Company’s quoted equity instruments are susceptible to market price risk arising from uncertainties about future
values of the investment securities. The reports on the equity portfolio are submitted to the Company’s senior management
on a regular basis. The senior management reviews and approves all equity investment decisions.

38. Capital management

The Company’s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investors,
creditors and market confidence and to sustain future development and growth of its business. In order to maintain the capital
structure the Company monitors the return on capital, as well as the level of dividends to equity shareholders. The Company
aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to all
its shareholders. For the purpose of the Company’s capital management, capital includes issued capital and all other equity
reserves attributable to the equity holders and debt includes borrowings and lease liabilities.

40. Segment Information

A Basis for segmentation

An operating segment is a component of the Company that engages in business activities from which it may earn revenues
and incur expenses, including revenues and expenses that relate to transactions with any of the Company’s other components,
and for which discrete financial information is available. All operating segments’ operating results are reviewed regularly by
the Company’s Chief Operating Decision Maker (CODM) to make decisions about resources to be allocated to the segments
and assess their performance.

The Company has two reportable segments, as described below, which is the Company’s primary business segment. These
business units are managed separately because they require different marketing strategies. For these business the Company’s
CODM (designation of the person who reviews) reviews internal management reports at quarterly basis.

Reportable segments - Operations

Continued Operations - Express Distribution ( Covers integrated E-commerce cargo logistics)

Discontinued Operations - Fuel Stations (Covers fuel stations dealing in petrol, diesel and lubricants, etc.)

B Information about reportable segments

Information regarding the results of each reportable segment is included below. Performance is measured based on segment
profit (before tax), as included in the internal management reports that are reviewed by the Company's CODM. Segment profit
is used to measure performance as management believes that such information is the most relevant in evaluating the results
of certain segments relative to other entities that operate within these industries. Inter-segment pricing is determined on an
arm’s length basis.

(i) This is to confirm that the above transactions are

(a) comprehensive and have been reviewed by Internal Auditors of the Company;

(b) in the ordinary course of Business and at arm's length;

(c) in compliance with applicable regulatory / statutory requirements including the Company's policy on Related Party
Transactions.

(ii) The Management confirms that requisite test to determine the arms length has been done and documented and where required
confirmation from the external experts has been obtained for such determination.

(iii) Related Party Transactions for which approval of the Audit Committee has been taken are well within the ambit of Omnibus
Approval given by the Audit committee.

(iv) The amounts outstanding are unsecured and will be settled in cash. No guarantees have been given in FY 2024-25.

(v) The remuneration of directors is determined by the Nomination & Remuneration Committee having regard to the performance
of individuals and market trends.

(vi) Wherever amounts are ""0"", the value is less than rupees fifty thousand.

(vii) Post employment benefits are actuarially determined on overall basis and hence not seperately provided.

1) Services to related parties

Services are rendered to related parties on the same terms as applicable to third parties in an arm’s length transaction and
in the ordinary course of business. Such services generally include payment terms requiring related party to make payment
within 30 days from the date of invoice.

2) Terms of receivable balances

Trade receivables outstanding balances are unsecured, interest free and require settlement in cash. No guarantee or other
security has been received against these receivables. The amounts are recoverable within 30 days from the invoice date (31
March 2024: 30 days from the invoice date). For the year ended 31 March 2025, the Group has not recorded any impairment on
receivables due from related parties (31 March 2024: Nil).

3) Terms of payable balances

Trade payables outstanding balances are unsecured, interest free and require settlement in cash. No guarantee or other security
has been given against these payables. The amounts are payable within 30 days from the reporting date (31 March 2024: 30
days from the reporting date).

4) Loans to related parties

The Company has given loan to its holding, subsidiary and fellow subsidiary to repayment of borrowings. The loan is unsecured,
repayable within 365 days and carries interest rates at the rate of 7.88% per annum. For the year ended 31 March 2025, the
Group has not recorded any impairment on loans due from the subsidiary (31 March 2024: Nil).

5) Compensation to KMP

The amounts disclosed in the table are the amounts recognised as an expense during the financial year related to KMP. The
amounts do not include expense, if any, recognised toward post-employment benefits and other long-term benefits of key
managerial personnel. Such expenses are measured based on an actuarial valuation done for each Company in the Group as
a whole. Hence, amounts attributable to KMPs are not separately determinable.

43. During the previous year, Company had signed an out of
court settlement with AIR India, pertaining to an ongoing
legal matter before the Hon'ble Delhi High Court. As a
result, Company has received a sum of ' 42 lakhs towards
the final settlement, which has been recognised as Other
Income. Pursuant to the settlement, the Hon'ble Delhi High
Court accepted the Company's petition for withdrawal
of the case and released the original bank guarantee,
amounting to 2,200 lakhs, which is equivalent to the
disputed arbitral award. The mentioned bank guarantee
has been released by the banking partner.

44. During the previous year, Allcargo Logistics Limited
("Parent Company”) has acquired a 30% stake (1,50,000
Equity Shares) in Gati Express & Supply Chain Private
Limited" (formerly known as Gati Kintetsu Express Private
Limited), a material subsidiary. The acquisition comprises
1,30,000 Equity Shares (26% stake) from KWE-Kintetsu
World Express (S) Pte Ltd and 20,000 Equity Shares
(4% stake) from KWE Kintetsu Express (India) Private
Limited. The name of the Subsidiary Company " Gati
Kintetsu Express Private Limited" has been changed to
"Gati Express & Supply Chain Private Limited" w.e.f. July
27, 2023, duly approved by the Registrar of Companies,
Mumbai, Ministry of Corporate Affairs.

45. During the previous year, the name of Company has
been changed to "Allcargo Gati Limited", pursuant to the
approval of the Board of Directors vide their Meeting held
on August 04, 2023 and the shareholders of the Company
at the Annual General Meeting held on September 04,
2023. The Registrar of Companies, Telangana, approved
and accordingly issued fresh certificate of incorporation
pursuant to the change of the name w.e.f. October 19,
2023.

46. Disclosure pursuant to Securities Exchange Board of
India (Listing Obligation and Disclosure Requirement and
Regulation 2015) and Section 186 of The Companies Act,
2013.

The Loans in the nature of loan to subsidiaries are as
follows; -
(All amounts in Indian Rupees Lakhs, unless otherwise stated)

⁽¹⁾ The Company had given interest free loan to a wholly
owned subsidiary "Gati Logistics Parks Limited (GLPL)”
amounting to 2,001 Lakhs towards financing a project in
an earlier year, where the operation is yet to commence.
During the earlier financial year, the company has received
repayment of loan amount to the tune of 558 lakhs and
balance loan receivable amount of 1,443 lakhs had been
provided as provision.

⁽²⁾ Gati Limited has extended an inter-corporate deposits
(ICDs) of ' 12,384 Lakhs to Gati Express and Supply Chain
Private Limited (formerly known as Gati Kintetsu Express
Private Limited) at an interest rate of 7.85% per annum, with
interest payable at the end of the 12 months tenure,' 6500
Lakhs to Allcargo Logistics Limited (Holding company) at
an interest rate of 7.95% per annum, with interest payable
at the end of the 12 months tenure and ' 3000 Lakhs to
Allcargo Supply Chain Private Limited(Fellow Subsidiary)
at an interest rate of 7.88% per annum, with interest payable
at the end of the 12 months tenure.

47. The management has decided to discontinue the
business of Fuel stations, which meets the criteria for
classification as a discontinued operation under Ind AS
105 - Non-current Assets Held for Sale and Discontinued
Operations. Accordingly, the amounts pertaining to
fuel stations segment have been disclosed under
"Discontinued Operations" in the financial statements,
and the corresponding figures for previous periods have
been restated. Corporate costs have not been allocated to
the discontinued operations.( Refer Note 39)

48. The Company completed the process of Qualified
Institution Placement ("QIP") during the year. The
placement document was filed on June 27, 2024 and after
receipt of proceeds of ' 16,928 lakhs, 16,760,800 equity
shares were allotted on June 28, 2024. The objective of
raising funds through QIP issue was to invest in material
subsidiary for repayment, in part, of certain outstanding
borrowings availed by the material subsidiary, building
new/ upgradation of operating units and funding
development of proprietary technology and any other
purposes as may be permissible under applicable law. A
part of the amount was used for the purpose for which
it was raised and the balance amount is invested in fixed
deposit pending utilization

49. The Board of Directors of the company have not
recommended any dividend for the current financial year
with an objective to conserve cash.

Notes :

1. The increase in the current ratio is primarily due to a rise in current assets, particularly intercorporate deposits and
unutilised bank balance post receipt on account of Qualified Institutional Placements.

2. The debt service coverage ratio has improved as a result of higher earnings and a significant reduction in debt.

3. The decline in return on equity is attributable to decline in profitability and issuance of equity share capital through a

Qualified Institutional Placement (QIP).

4. The inventory turnover ratio has reduced due to a reduction in average inventory compared to the previous year.

5. The increase in the trade payables turnover ratio is due to a decrease in account payables compared to the previous year.

6. The drop in the net capital turnover ratio is linked to increase in current assets.

7. The net profit ratio has decreased owing to lower net profits compared to the previous year.

8. The return on capital employed has fallen due to a decline in profitability and increase in capital employeed.

9. Increase in ROI is attributed to new investments in mutual funds and unutilized QIP funds investment in Fixed Deposits
Definitions:

(a) Earning for available for debt service = Net Profit after taxes Non-cash operating expenses like depreciation and other
amortisations Interest other adjustments like loss on sale of Fixed assets etc.

(b) Debt service = Interest & Lease Payments Principal Repayments

(c) Average inventory = (Opening inventory balance Closing inventory balance) / 2

(d) Net sales = Net sales consist of gross sales minus sales return

(e) Average trade receivables = (Opening trade receivables balance Closing trade receivables balance) / 2

(f) Net purchases = Net purchases consist of gross purchases minus purchase return

(f) Net credit purchases = Net credit purchases consist of gross credit purchases minus purchase return

(h) Working capital = Current assets - Current liabilities.

(i) Earning before interest and taxes = Profit before exeptional items and tax Finance costs

(j) Capital Employed = Total Equity Total Debt

(k) Return on Investment
(MV(T1) - MV(T0) - Sum [C(t)])

(MV(T0) Sum [W(t) * C(t)])

50. Financial performance ratios (contd.)

where,

T1 = End of time period ,T0 = Beginning of time period, t = Specific date falling between T1 and T0
MV(T1) = Market Value at T1, MV(T0) = Market Value at T0
C(t) = Cash inflow, cash outflow on specific date

W(t) = Weight of the net cash flow (i.e. either net inflow or net outflow) on day 't’, calculated as [T1 - t] / T1

51. Other statutory information

(i) The Company does not have any transactions with companies struck off during current or previous financial year.

(ii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period
during current or previous financial year.

(iii) The Company has not traded or invested in Crypto currency or Virtual Currency during current or previous financial year.

(iv) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government
authority during current or previous financial year.

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) during current or previous financial year with the understanding that the Intermediary shall:

(a) 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

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) during
current or previous financial year with the understanding (whether recorded in writing or otherwise) that the company
shall:

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

(vii) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered
or disclosed as income during current or previous financial 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.

(ix) The Company has not revalued it’s Property, Plant and Equipment (including Right of use assets) or intangible assets or
both during current or previous financial year.

(x) No proceedings have been initiated or are pending against the Company for holding any Benami property under the Benami
Transactions (Prohibition) Act, 1988 and rules made thereunder.

52. Employee share-based payment:

The Company has formulated employee share-based payment schemes with objective to attract and retain talent and align the
interest of employees with the Company as well as to motivate them to contribute to its growth and profitability. The Company
views employee stock options as instruments that would enable the employees to share the value they create for the Company
in the years to come. For the year ended March 31, 2025 the Company recognised total expenses of ' (51) lakhs (March 31,
2024 - ' 43 lakhs) related to Share based Payment schemes.

The Nomination and Remuneration Committee of the Board of Directors of the Company during the FY 2024-25 have granted
8,50,000 ESARs to the Employees of its Holding Company and Subsidiary Company. The necessary accounting for the above
has been made in the books of accounts in the respective years. At present, following employee share-based payment scheme
is in operation, details of which are given below:

52. Employee share-based payment: (contd.)

13 The volatility used in the Black-Scholes option-pricing model is the annualized standard deviation of the continuously
compounded rates of return on the stock over a period of time. The period considered for the working is commensurate with
the expected life of the options and is based on the daily volatility of the Company’s stock price on NSE.

14 There are no market conditions attached to the grant and vest.

53. The Company has used four accounting softwares for maintaining its books of account which has a feature of recording audit
trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software,
except in case of one software (Fuel Plus) audit trail is not enabled at the database level. Further, there are no instance of
audit trail feature being tampered with. Additionally, the audit trail of prior years has been preserved by the Company as per
the statutory requirements for record retention

There is no instance of audit trail feature being tampered with was noted in respect of the above accounting softwares.

54. The Board of Directors in their meeting held on December 21, 2023 had considered and approved the Scheme of Arrangement
involving Allcargo Logistics Limited (Parent Company), Allcargo ECU Limited (Fellow Subsidiary), Allcargo Gati Limited
(the Company), Gati Express & Supply Chain Private Limited (Subsidiary) and Allcargo Supply Chain Private Limited (Fellow
Subsidiary).

The Scheme involves merger of fellow subsidiary and subsidiary with the Company effective from appointed date of October
01, 2023 and the merger of the Company (post-merger of fellow subsidiary and subsidiary) with the Parent Company on the
date the Scheme becomes effective.

The Company had received approval from BSE and NSE post which the Company had made filings with the NCLT for approval.
As directed by the NCLT shareholders meeting has been held on February 18, 2025 and the scheme was approved by the
shareholders and scheme is currently pending for approval of NCLT Mumbai for final approval.

55. Subsequent to the reporting date, in April 2025, the Company completed the sale of land pertaining to its Indore Fuel Station
for a consideration of 750 lakhs. The transaction resulted in a profit of 709 lakhs. Since the sale was concluded after the
balance sheet date, the financial impact of this transaction has not been recognized in the financial statements for the year
ended March 31, 2025

56. During the Year Ended March 31, 2025, Income-Tax Authorities conducted search on the Company and its Subsidiaries
business premises and at the residence of one of its key management personnel. The Company extended full cooperation
to the Income-tax officials during the search and has provided all the requested information during search and is continuing
to provide information as and when sought by the authorities. Management has made necessary disclosures to the stock
exchanges in this regard on February 12, 2025. As on the date of issuance of these financial results, the Company has not
received any communication from the Income-Tax Authorities regarding the findings of their investigation. Pending final
outcome of update on this matter, no adjustments have been recognised in the Standalone financial statements.

As per our report of even date attached For and on behalf of the Board of Directors of Allcargo Gati Limited

(formerly known as Gati Limited)

CIN: L63011MH1995PLC420155

For S.R. BATLIBOI & ASSOCIATES LLP Shashi Kiran Shetty Ravi Jakhar

Chartered Accountants Chairman & Managing Director Director

ICAI Firm Registration No: 101049W/ DIN: 00012754 DIN: 02188690

E300004

Per Aniket A Sohani Deepak Jagdish Pareek Piyush Khandelwal

Partner Chief Financial Officer Company Secretary

Membership no: 117142 M. No.104166 M No. A65318

Place: Chicago, USA Place: Mumbai Place: Mumbai

Date: 15^th May 2025 Date: 15^th May 2025 Date: 15^th May 2025