Dhanuka Infra Realty Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

2 SIGNIFICANT ACCOUNTING POLICIES
a Basis of Preparation

These financial statements have been prepared in accordance with the Generally Accepted Accounting
Principles in India (''Indian GAAP'') to comply with the Accounting Standards specified under Section
133 of the Companies Act, 2013, as applicable. The financial statements have been prepared under the
historical cost convention on accrual basis, except for certain financial instruments which are
measured at fair value.Cash Flow Statement is prepared as per Indirect method as prescribed in AS-3.
All figures are rounded off in nearest hundred.

b Use of estimates

The preparation of financial statements requires the management of the Company to make estimates
and assumptions that affect the reported balances of assets and liabilities and disclosures relating to
the contingent liabilities as at the date of the financial statements and reported amounts of income and
expense during the year. Examples of such estimates include provisions for doubtful receivables,
provision for income taxes, the useful lives of depreciable fixed assets and provision for impairment.
Future results could differ due to changes in these estimates and the difference between the actual
result and the estimates are recognised in the period in which the results are known / materialise.

c Property, Plant and Equipment

Property, Plant and Equipment are stated at cost, less accumulated depreciation / amortisation. Costs
include all expenses incurred to bring the asset to its present location and condition.

d Depreciation / amortisation

In respect of Property, Plant and Equipment (other than freehold land and capital work-in-progress)
acquired during the year, depreciation/amortisation is charged on a straight line basis so as to write¬
off the cost of the assets over the useful lives.

e Leases

Assets taken on lease by the Company in its capacity as lessee, where the Company has substantially
all the risks and rewards of ownership are classified as finance lease. Such a lease is capitalised at the
inception of the lease at lower of the fair value or the present value of the minimum lease payments
and a liability is recognised for an equivalent amount. Each lease rental paid is allocated between the
liability and the interest cost so as to obtain a constant periodic rate of interest on the outstanding
liability for each year.

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest
with the lessor, are recognised as operating leases. Lease rentals under operating leases are
recognised in the statement of profit and loss on a straight-line basis.

f Impairment

At each balance sheet date, the management reviews the carrying amounts of its assets included in
each cash generating unit to determine whether there is any indication that those assets were
impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to
determine the extent of impairment. Recoverable amount is the higher of an asset''s net selling price
and value in use. In assessing value in use, the estimated future cash flows expected from the
continuing use of the asset and from its disposal are discounted to their present value using a pre-tax
discount rate that reflects the current market assessments of time value of money and the risks
specific to the asset. Reversal of impairment loss is recognised as income in the statement of profit and
loss.

g Investments

Long-term investments and current maturities of long-term investments are stated at cost, less
provision for other than temporary diminution in value. Current investments, except for current
maturities of long- term investments, comprising investments in mutual funds, government securities
and bonds are stated at the lower of cost and fair value.

h Revenue recognition

Revenue from the sale of inventory is recognised as per percentage completion
method. Revenue is reported net of discounts.

Dividend is recorded when the right to receive payment is established. Interest income is recognised
on time proportion basis taking into account the amount outstanding and the rate applicable.

i Taxation

Current income tax expense comprises taxes on income from operations in India and in foreign
jurisdictions. Income taxpayable in India is determined in accordance with the provisions of the
Income Tax Act, 1961. Tax expense relating to foreign operations is determined in accordance with tax
laws applicable in countries where such operations are domiciled.

Deferred tax expense or benefit is recognised on timing differences being the difference between
taxable income and accounting income that originate in one period and is likely to reverse in one or
more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax
laws that have been enacted or substantively enacted by the balance sheet date.

Advance taxes and provisions for current income taxes are presented in the balance sheet after off¬
setting advance tax paid and income tax provision arising in the same tax jurisdiction for relevant tax
paying units and where the Company is able to and intends to settle the asset and liability on a net
basis.

The Company offsets deferred tax assets and deferred tax liabilities if it has a legally enforceable right
and these relate to taxes on income levied by the same governing taxation laws.

j Inventories

Raw materials are carried at the lower of cost and net realisable value. Cost is determined on a
weighted average basis. Purchased goods-in-transit are carried at cost. Work-in-progress is carried at
the lower of cost and net realisable value. Stores and spare parts are carried at lower of cost and net
realisable value.

Finished goods produced or purchased by the Company are carried at lower of cost and net realisable

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Mar 31, 2024

2 SIGNIFICANT ACCOUNTING POLICIES
a Basis of Preparation

These financial statements have been prepared in accordance with the Generally Accepted Accounting
Principles in India (''Indian GAAP'') to comply with the Accounting Standards specified under Section 133 of
the Companies Act, 2013, as applicable. The financial statements have been prepared under the historical
cost convention on accrual basis, except for certain financial instruments which are measured at fair
value.Cash Flow Statement is prepared as per Indirect method as prescribed in AS-3. All figures are rounded
off in nearest hundred.

b Use of estimates

The preparation of financial statements requires the management of the Company to make estimates and
assumptions that affect the reported balances of assets and liabilities and disclosures relating to the
contingent liabilities as at the date of the financial statements and reported amounts of income and expense
during the year. Examples of such estimates include provisions for doubtful receivables, provision for income
taxes, the useful lives of depreciable fixed assets and provision for impairment. Future results

c Property, Plant and Equipment

Property, Plant and Equipment are stated at cost, less accumulated depreciation / amortisation. Costs
include all expenses incurred to bring the asset to its present location and condition.

d Depreciation / amortisation

In respect of Property, Plant and Equipment (other than freehold land and capital work-in-progress) acquired
during the year, depreciation/amortisation is charged on a straight line basis so as to write-off the cost of the
assets over the useful lives.

e Leases

Assets taken on lease by the Company in its capacity as lessee, where the Company has substantially all the
risks and rewards of ownership are classified as finance lease. Such a lease is capitalised at the inception of
the lease at lower of the fair value or the present value of the minimum lease payments and a liability is
recognised for an equivalent amount. Each lease rental paid is allocated between the liability and the interest
cost so as to obtain a constant periodic rate of interest on the outstanding liability for each year.

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Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest
with the lessor, are recognised as operating leases. Lease rentals under operating leases are recognised in
the statement of profit and loss on a straight-line basis.

f Impairment

At each balance sheet date, the management reviews the carrying amounts of its assets included in each
cash generating unit to determine whether there is any indication that those assets were impaired. If any
such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of
impairment. Recoverable amount is the higher of an asset''s net selling price and value in use. In assessing
value in use, the estimated future cash flows expected from the continuing use of the asset and from its
disposal are discounted to their present value using a pre-tax discount rate that reflects the current market
assessments of time value of money and the risks specific to the asset. Reversal of impairment loss is
recognised as income in the statement of profit and loss.

g Investments

Long-term investments and current maturities of long-term investments are stated at cost, less provision for
other than temporary diminution in value. Current investments, except for current maturities of long- term
investments, comprising investments in mutual funds, government securities and bonds are stated at the
lower of cost and fair value.
h Revenue recognition

Revenue from the sale of inventory is recognised as per percentage completion method.

Revenue is reported net of discounts.

Dividend is recorded when the right to receive payment is established. Interest income is recognised on time
proportion basis taking into account the amount outstanding and the rate applicable.

i Taxation

Current income tax expense comprises taxes on income from operations in India and in foreign jurisdictions.

Income taxpayable in India is determined in accordance with the provisions of the Income Tax Act, 1961. Tax
expense relating to foreign operations is determined in accordance with tax laws applicable in countries
where such operations are domiciled.

Deferred tax expense or benefit is recognised on timing differences being the difference between taxable
income and accounting income that originate in one period and is likely to reverse in one or more subsequent
periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been
enacted or substantively enacted by the balance sheet date.

Advance taxes and provisions for current income taxes are presented in the balance sheet after off-setting
advance tax paid and income tax provision arising in the same tax jurisdiction for relevant tax paying units
and where the Company is able to and intends to settle the asset and liability on a net basis.

The Company offsets deferred tax assets and deferred tax liabilities if it has a legally enforceable right and
these relate to taxes on income levied by the same governing taxation laws.

j Inventories

Raw materials are carried at the lower of cost and net realisable value. Cost is determined on a weighted
average basis. Purchased goods-in-transit are carried at cost. Work-in-progress is carried at the lower of cost
and net realisable value. Stores and spare parts are carried at lower of cost and net realisable value. Finished
goods produced or purchased by the Company are carried at lower of cost and net realisable