Manav Infra Projects Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

Corporate information

Manav Infra Projects Limited (the Company) is a Public limited Company domiciled in India and incorporated under the provisions of the Companies Act, Corporate Identity Number: U45200MH2009PTC193084, the registered office of the Company is located at 102, Gundecha Industrial-Complex Premises Co. Op. Soc. Ltd, Akurli Road, Near Growels Mall, Kandivali East Mumbai City MH 400101 IN

The Company is engaged in infrastructure Development, Infrastructure projects, works Contracts, Site preparation and Clearance services to Real estate sector.

Note 1- Summary of Significant Accounting Policies and Key Accounting Estimates and Judgements:

a. Basis of preparation of financial statements

These financial statements are prepared in accordance with Indian Accounting Standard (Ind AS), under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values, the provisions of the Companies Act, 2013 (“the Act”) (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereafter.

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

The Company has prepared the Financial Statements which comprise the Balance Sheet as at 31st March, 2025, the Statement of Profit and Loss, the Statement of Cash Flows and the Statement of Changes in Equity for the year ended 31st March, 2025, and a summary of the significant accounting policies and other explanatory information (together hereinafter referred to as “Financial Statements.

The financial statements are presented in Indian Rupees (‘INR’) and all values are rounded to the nearest INR”, except otherwise indicated.

b. Use of estimates and judgements

The preparation of the financial statements requires that the Management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The recognition, measurement, classification or disclosure of an item or information in the financial statements is made relying on these estimates.

The estimates and judgements used in the preparation of the financial statements are continuously evaluated by the Company and are based on historical experience and various other assumptions and factors (including expectations of future events) that the Company believes to be reasonable under the existing circumstances. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

c. Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue from the Site services are recognized pro-rata over the period of the contract as and when services are rendered. It is difficult to identify the completion of the work due to the complexity of the services rendered. Hence the management''s confirmation is accepted in identifying the above.

Interest income is recognized on the time basis determined by the amount outstanding and the rate applicable and where no significant uncertainty as to measurability or collectability exists.

d. Tangible fixed assets

Fixed assets are stated at cost, less depreciation and impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Particular	Estimated life in Years
Computer and Data Processing Units	3
Plant and machinery	10
Furniture and fixtures	5
Motors Vehicles	5
Electrical Installation & Equipment	8

e. Depreciation

Depreciation methods, useful lives and residual values are reviewed periodically, including at each financial year end. Depreciation on fixed assets is provided on a straight-line basis using the rates arrived at based on the useful lives estimated by the management, or those prescribed under the Schedule II to the Companies Act, 2013, whichever is higher.

f. Borrowing

Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or loss over the period of the borrowings using the effective interest method. Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired.

g. Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. In the current year, the custom duty paid on acquisition of Fixed asset has been capitalized as the duty paid is not refundable.

All other borrowing costs are recognized in Statement of Profit and Loss in the period in which they are incurred.

h. Retirement and other employee benefits

Retirement benefit in the form of provident fund is a defined contribution scheme. The company has no obligation, other than the contribution payable to the provident fund. The company recognizes contribution payable to the provident fund scheme as expenditure, when an employee renders the related service.

i. Income taxes

T ax expense comprises current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961 enacted in India. The tax rates and tax Laws used to compute the amounts are those that are enacted, at the reporting date. Deferred Taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws enacted at the reporting date.

Deferred Taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws enacted at the reporting date.

Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets including the unrecognized deferred tax assets, if any, at each reporting date, are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which deferred tax assets can be realized.

The carrying amount of deferred tax assets are reviewed at each reporting date and are adjusted for its appropriateness.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and deferred tax assets and deferred taxes relate to the same taxable entity and the same taxation authority.

j. Earnings per share

Basic earnings per share is computed by dividing the profit/(loss) for the year by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for treasury shares, bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse share split (consolidation of shares).

Diluted earnings per share is computed by dividing the profit/(loss) for the year as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date.

k. Cash flow statement

Cash Flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transaction of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income and expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

l. Provisions, Contingent Liabilities & Contingent Assets

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, and 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.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

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 recognized as asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

m. cash and cash equivalent

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and demand deposits with an original maturity of three months or less and highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value net of outstanding bank overdrafts as they are considered an integral part of the Company’s cash management.

The Cash & bank balances in India include both rupee accounts. On a Financial basis, balance in current and deposit accounts stood at 6,98,30,687/-, as at March 31, 2025.

n. Related party transaction

As per the Ind AS 24, the disclosures of transactions with the related parties are given below -:

Name	Relation	Amount	Nature
Mahendra Raju	Director	12,00,000.00	Remuneration
Mahalakshmi Enterprise	Director''s wife	6,38,500.00	Hiring charges
Bharathi transport	Director''s Sister	6,13,240.00	Hiring charges
Hitech earthhmover	Director''s Mother	6,54,750.00	Hiring charges
Winner Transport	Director''s Sister	3,51,515.00	Hiring charges
Mahendra Raju	Director	45,75,039.00	Interest
Mahalakshmi Raju	Director	9,28,535.00	Interest

o. Event occurring after the date of balance sheet

Where material event occurring after the date of the balance sheet are considered up to the date of approval of accounts by the board of directors.

p. Recoverability of trade receivables

Required judgements are used in assessing the recoverability of overdue trade receivables and for determining whether a provision against those receivables is required. Factors considered include the credit rating of the counterparty, the amount and timing of anticipated future payments and any possible actions that can be taken to mitigate risk of non-payment.

q. The Company has reclassified/regrouped previous year figures where necessary to confirm to the current year’s classification

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Mar 31, 2024

Corporate information

Manav Infra Projects Limited (the Company) is a Public limited Company domiciled in India and
incorporated under the provisions of the Companies Act, Corporate Identity Number:
U45200MH2009PTC193084, the registered office of the Company is located at 226, Gundecha Industrial-
Complex Premises Co. Op. Soc. Ltd, Akurli Road, Near Growels Mall, Kandivali East Mumbai City MH
400101 IN

The Company is engaged in infrastructure Development, Infrastructure projects, works Contracts, Site
preparation and Clearance services to Real estate sector.

SUMMARY:

a. Basis of preparation of financial statements

These financial statements are prepared in accordance with Indian Accounting Standard (Ind AS), under
the historical cost convention on the accrual basis except for certain financial instruments which are
measured at fair values, the provisions of the Companies Act, 2013 (“the Act”) (to the extent notified) and
guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under
Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and
relevant amendment rules issued thereafter.

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

The Company has prepared the Financial Statements which comprise the Balance Sheet as at 31st March,
2023, the Statement of Profit and Loss, the Statement of Cash Flows and the Statement of Changes in
Equity for the year ended 31st March, 2024, and a summary of the significant accounting policies and other
explanatory information (together hereinafter referred to as “Financial Statements.

The financial statements are presented in Indian Rupees (‘INR’) and all values are rounded to the nearest
INR”, except otherwise indicated.

b. Use of estimates and judgements

The preparation of the financial statements requires that the Management to make estimates and
assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as
at the date of the financial statements and the reported amounts of revenue and expenses during the
reporting period. The recognition, measurement, classification or disclosure of an item or information in
the financial statements is made relying on these estimates.

The estimates and judgements used in the preparation of the financial statements are continuously
evaluated by the Company and are based on historical experience and various other assumptions and factors
(including expectations of future events) that the Company believes to be reasonable under the existing
circumstances. Actual results could differ from those estimates. Any revision to accounting estimates is
recognized prospectively in current and future periods.

c. Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company
and the revenue can be reliably measured. Revenue from the Site services are recognized pro-rata over the
period of the contract as and when services are rendered. It is difficult to identify the completion of the
work due to the complexity of the services rendered. Hence the management''s confirmation is accepted in
identifying the above.

Interest income is recognized on the time basis determined by the amount outstanding and the rate
applicable and where no significant uncertainty as to measurability or collectability exists.

d. Tangible fixed assets

Fixed assets are stated at cost, less depreciation and impairment losses, if any. The cost comprises purchase
price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset
to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at
the purchase price.

e. Depreciation

Depreciation methods, useful lives and residual values are reviewed periodically, including at each financial
year end. Depreciation on fixed assets is provided on a straight-line basis using the rates arrived at based
on the useful lives estimated by the management, or those prescribed under the Schedule II to the
Companies Act, 2013, whichever is higher. However, Management has not estimated the useful lives of
assets and rate is used as per the Companies Act, 2013.

f. Borrowing

Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are
subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs)
and the redemption amount is recognized in profit or loss over the period of the borrowings using the
effective interest method. Borrowings are removed from the balance sheet when the obligation specified in
the contract is discharged, cancelled or expired.

g. Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets,
which necessarily take a substantial period of time to get ready for their intended use or sale, are added to
the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
In the current year, the custom duty paid on acquisition of Fixed asset has been capitalized as the duty paid
is not refundable.

All other borrowing costs are recognized in Statement of Profit and Loss in the period in which they are
incurred.

h. Retirement and other employee benefits

Retirement benefit in the form of provident fund is a defined contribution scheme. The company has no
obligation, other than the contribution payable to the provident fund. The company recognizes
contribution payable to the provident fund scheme as expenditure, when an employee renders the related
service.

i. Income taxes

Tax expense comprises current and deferred tax. Current income tax is measured at the amount expected
to be paid to the tax authorities in accordance with the Income Tax Act, 1961 enacted in India. The tax
rates and tax Laws used to compute the amounts are those that are enacted, at the reporting date.
Deferred Taxes reflect the impact of timing differences between taxable income and accounting income
originating during the current year and reversal of timing differences for the earlier years. Deferred tax is
measured using the tax rates and the tax laws enacted at the reporting date.

Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets including the
unrecognized deferred tax assets, if any, at each reporting date, are recognized for deductible timing
differences only to the extent that there is reasonable certainty that sufficient future taxable income will
be available against which deferred tax assets can be realized.

The carrying amount of deferred tax assets are reviewed at each reporting date and are adjusted for its
appropriateness.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off
current tax assets against current tax liabilities and deferred tax assets and deferred taxes relate to the
same taxable entity and the same taxation authority.

Minimum Alternate Tax (MAT) paid in a year is charged to the Statement of Profit and Loss as current
tax. The Company recognizes MAT credit available as an asset only to the extent there is convincing
evidence that the Company will pay normal income tax during the specified period, i.e., the period for which
MAT Credit is allowed to be carried forward. In the year in which the Company recognizes MAT Credit
as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of
Minimum Alternate Tax under the Income Tax Act, 1961, the said asset is created by way of credit to the
statement of Profit and Loss and shown as “MAT Credit Entitlement.” The Company reviews the “MAT
Credit Entitlement” asset at each reporting date and writes down the asset to the extent the Company does
not have convincing evidence that it will pay normal tax during the sufficient period.

j. Earnings per share

Basic earnings per share is computed by dividing the profit/(loss) for the year by the weighted average
number of equity shares outstanding during the year. The weighted average number of equity shares
outstanding during the year is adjusted for treasury shares, bonus issue, bonus element in a rights issue to
existing shareholders, share split and reverse share split (consolidation of shares).

Diluted earnings per share is computed by dividing the profit/(loss) for the year as adjusted for dividend,
interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive
potential equity shares, by the weighted average number of equity shares considered for deriving basic
earnings per share and the weighted average number of equity shares which could have been issued on the
conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if
their conversion to equity shares would decrease the net profit per share from continuing ordinary
operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period,
unless they have been issued at a later date.

k. Cash flow statement

Cash Flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of
transaction of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or
payments and item of income and expenses associated with investing or financing cash flows. The cash
flows from operating, investing and financing activities of the Company are segregated.