Accounting Policies of B.R.Goyal Infrastructure Ltd. Company

Mar 31, 2025

1. Corporate Information:

B.R.Goyal Infrastructure Limited (hereinafter referred to as "the Company") is a Public limited company domiciled in India and has come into existence as a Company on conversion of M/s Balkrishna Ramkaran Goyal, Partnership firm into a private Company under Part IX of the Companies Act, 1956 on 1 st April, 2005. On 09.5.2018, the company has converted under section 18 of the companies act into a public company formally known as B.R.Goyal Infrastructure Limited. The Company is incorporated under part IX of the Companies Act, 1956 to carry on the business of erstwhile partnership firm. Its registered office is in Indore, Madhya Pradesh. At present the company is engaged in the business of Construction Activities, Wind Power Generation, Toll Collection Contracts, Real Estate and sale of goods

2. Significant Accounting policies2.1 Basis of Accounting and preparation of financial statements:

The financial statements of the Company 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, read with Rule 7 of the Companies (Accounts) Rules, 2016.

2.2 Use of estimates:

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

2.3 Property, Plant and Equipment:

Fixed assets are stated at cost, net of accumulated depreciation and accumulated 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.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.

Gains or losses arising from derecognition of fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.

2.4 Intangible Assets

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any.

Intangible assets are amortised on a straight line basis over the estimated useful economic life.

2.5 Borrowing costs

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings (if any) to the extent they are regarded as an adjustment to the interest cost.

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the

respective asset. All other borrowing costs are expensed in the period they occur.

2.6 Depreciation:

Depreciation on Fixed assets is provided on SLM Method over the useful life of the assets as prescribed under part C of Schedule II of the Companies Act, 2013.

Useful lives/ depreciation rates:

Till the year ended 31 March 2014, depreciation rates prescribed under Schedule XIV were treated as minimum rates and the company was not allowed to charge depreciation at lower rates even if such lower rates were justified by the estimated useful life of the asset. Schedule II to the Companies Act 2013 prescribes useful lives for fixed assets which, in many cases, are different from lives prescribed under the erstwhile Schedule XIV. However, Schedule II allows companies to use higher/ lower useful lives and residual values if such useful lives and residual values can be technically supported and justification for difference is disclosed in the financial statements

Considering the applicability of Schedule II, the management has re-estimated useful lives and residual values of all its fixed assets. The management believes that depreciation rates currently used fairly reflect its estimate of the useful lives and residual values of fixed assets prescribed under Schedule II. Hence, this change in accounting policy did not have any material impact on financial statements of the company.

2.7 Impairment of Assets:

The company periodically tests its assets for impairment and if the carrying values are found in excess of value in use, the same is charged to Statement of profit and loss as per AS 28. The impaired loss charged to Statement of profit and loss will be reversed in the year on the event and to that extent of enhancement in estimate of value in use.

2.8 Inventories:

Raw materials and consumables are valued at lower of cost and net realizable value. However, materials and other items held for use in the production of inventories are not written down

below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. Cost is determined on a First in First out Basis and includes all applicable overheads in bringing the inventories to their present location and condition.

Work-in-progress is valued at lower of cost and net realizable value. Cost includes direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity.

2.9 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. The following specific recognition criteria must also be met before revenue is recognized:

Income from Construction activity

The company accounts for income on the percentage of completion basis, which necessarily involve technical estimates of the percentage of completion, and costs to completion, of each contract/ activity, on the basis of which profit/ losses are accounted. Such estimates are based on the certificate provided by the authorized person (architect).

Expenditure incurred during the progress of contracts and the estimated profits to the stage of completion are carried forward as work in progress. Advances and progress payments, received and receivable from customers in respect of such long term contracts in progress are disclosed under current liabilities.

Income from Power Generation Activity

Revenue from power supply is accounted for on the basis of billing to Rajasthan Electricity Board. Generally bills are raised on the basis of recording of consumption of energy by installed meters. In case there is a drop in annual generation then Developer compensates the company for the year at the prevailing purchase rate of State Electricity Board at the time of such shortfall during the year as per the agreement with Developer.

Income from Rent of Commercial Property

Rent from customers under agreement to sell is accounted for on accrual basis except in cases where ultimate collection is considered doubtful.

Sale of goods

Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer. Gross turnover includes excise duty but does not include GST, sale tax and VAT. Excise Duty deducted from turnover (gross) are the amount that is included in the amount of turnover (gross) and not the entire amount of liability arising during the period.

Income from Toll

Revenue from Tolls is typically recognized as vehicles pass through the Toll booths or when the toll transactions occur. The revenue is recognized at the time of the transaction, regardless of when the payment is received. This is based on the principle of accrual accounting, where revenue is recognized when it''s earned, rather than when the cash is received.

2.10 Taxation

Tax expense comprises both current and deferred taxes

The provision for Current Income Tax liability is made on the basis of estimated taxable income computed under the Income Tax Act, 1961, using the applicable tax rates. The Company has opted for the concessional tax regime under Section 115BAA of the Income Tax Act, 1961. Accordingly, the current tax charge has been determined after considering the provisions of Section 115BAA, which excludes certain exemptions, deductions, and incentives. The management has carried out a detailed working to determine the eligible deduction under Section 80JJAA based on prescribed conditions. The Company also complies with all applicable Income Computation and Disclosure Standards. Any additional tax liability, if arises upon completion of assessments, is recognized and paid as and when due.

Provision is made for deferred tax liability arising due to timing differences between profit computed for Income tax and the book profits as per the financial statement, for creation of a

deferred tax asset or a liability. This liability is recognized only if there is a reasonable certainty that the deferred tax assets/liability will be created and are reviewed at each balance sheet date. This liability is calculated at the regular tax rates applicable to the company.

2.11 Government Grants:

Accounting Standard 12 - ''Accounting for Government Grants'' is not applicable in the present case, as the nature of the transaction does not fall within the scope of government grants as defined under the standard. Accordingly, no recognition in the Capital Reserve or Statement of Profit & Loss is warranted under AS 12.

2.12 Employee Benefits

Provident Fund:

The Company contributes to the statutory Provident Fund maintained by the Government, which qualifies as a Defined Contribution Plan. The Company''s obligation is limited to the amount of contribution, which is charged to the Statement of Profit and Loss in the period in which the employee renders the related service.

Gratuity and Other Defined Benefit Plans:

The Company provides for gratuity and other defined benefit obligations on an unfunded basis. The liability for such benefits is

determined based on actuarial valuation

carried out at each balance sheet date using appropriate actuarial assumptions.

Actuarial gains and losses arising from changes in assumptions or experience adjustments are recognized immediately in the Statement of Profit and Loss in the period in which they occur.

Past service cost and any gain or loss arising from curtailment or settlement of the benefit plan is recognized in the Statement of Profit and Loss when the event occurs.

2.13 Provisions and contingencies:

A provision is recognized when the Company has a present obligation as a result of past event, 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. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or nonoccurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.

2.14 Earnings per Share:

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

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

2.15 Cash and Cash Equivalents:

Cash and cash equivalents for the purposes of cash flow statement comprise cash in hand, at bank (excluding margin deposits with banks).

2.16 Bad-Debts:

Bad-Debts are written off to Statement of profit and loss as and when the debt is determined as un-realizable as per the opinion of the Management.

2.17 Cash flow statement:

Cash flow statement has been prepared in accordance with the indirect method prescribed in Accounting Standard 3 -Cash flow Statement. Cash and Cash equivalents for cash flow statement comprises cash at bank and in hand and bank deposits.

2.18 Foreign currency translation

(i) Initial recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction

(ii) Conversion

At the year-end, monetary assets in foreign currency are translated at the rates of exchange at the balance sheet date and resultant gain or loss is recognized in the Profit and Loss Account.

(iii) Exchange differences

All exchange differences arising on settlement/ conversion on foreign currency transactions are included in the Profit and Loss Account, except in cases where they relate to the acquisition of fixed assets, in which case they are adjusted in the cost of the corresponding asset.

2.19 Share Premium Account

Share premium account includes difference between consideration received in respect of shares and face value of shares.

2.20 Provision for doubtful debt

The company has policy for provision for doubtful debts as specified below:

		% of
S. No	Particulars
		provision
1	Debtors outstanding for more than 1 year	5%
2	Debtors outstanding for more than 2 years	10%
3	Debtors outstanding for more than 3 years	15%

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Mar 31, 2024

2. Significant Accounting policies

2.1 Basis of Accounting and preparation of financial statements:

The financial statements of the Company 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, read with Rule 7 of the Companies
(Accounts) Rules, 2016.

2.2 Use of estimates:

The preparation of financial statements in conformity with Indian GAAP requires the
management to make judgments, estimates and assumptions that affect the reported
amounts of revenues, expenses, assets and liabilities and the disclosure of contingent
liabilities, at the end of the reporting period. Although these estimates are based on the
management''s best knowledge of current events and actions, uncertainty about these
assumptions and estimates could result in the outcomes requiring a material adjustment to
the carrying amounts of assets or liabilities in future periods.

2.3 Property, Plant and Equipment:

Fixed assets are stated at cost, net of accumulated depreciation and accumulated 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.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it
increases the future benefits from the existing asset beyond its previously assessed standard
of performance. All other expenses on existing fixed assets, including day-to-day repair and
maintenance expenditure and cost of replacing parts, are charged to the statement of profit
and loss for the period during which such expenses are incurred.

Gains or losses arising from derecognition of fixed assets are measured as the difference
between the net disposal proceeds and the carrying amount of the asset and are recognized in
the statement of profit and loss when the asset is derecognized.

2.4 Intangible Assets

Intangible assets acquired separately are measured on initial recognition at cost. Following
initial recognition, intangible assets are carried at cost less accumulated amortization and
accumulated impairment losses, if any.

Intangible assets are amortised on a straight line basis over the estimated useful economic life.
The Company uses a rebuttable presumption that the useful life of an intangible asset will not
exceed five years from the date when the asset is available for use.

2.5 Borrowing costs

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with
the arrangement of borrowings and exchange differences arising from foreign currency
borrowings to the extent they are regarded as an adjustment to the interest cost.

Borrowing costs directly attributable to the acquisition, construction or production of an asset
that necessarily takes a substantial period of time to get ready for its intended use or sale are
capitalized as part of the cost of the respective asset. All other borrowing costs are expensed
in the period they occur.

2.6 Depreciation:

Depreciation on Fixed assets is provided on SLM Method over the useful life of the assets as
prescribed under part C of Schedule II of the Companies Act, 2013.

Useful lives/ depreciation rates:

Till the year ended 31 March 2014, depreciation rates prescribed under Schedule XIV were
treated as minimum rates and the company was not allowed to charge depreciation at lower
rates even if such lower rates were justified by the estimated useful life of the asset. Schedule
II to the Companies Act 2013 prescribes useful lives for fixed assets which, in many cases, are
different from lives prescribed under the erstwhile Schedule XIV. However, Schedule II allows
companies to use higher/ lower useful lives and residual values if such useful lives and residual
values can be technically supported and justification for difference is disclosed in the financial
statements

Considering the applicability of Schedule II, the management has re-estimated useful lives and
residual values of all its fixed assets. The management believes that depreciation rates
currently used fairly reflect its estimate of the useful lives and residual values of fixed assets
prescribed under Schedule II. Hence, this change in accounting policy did not have any
material impact on financial statements of the company.

2.7 Impairment of Assets:

The company periodically tests its assets for impairment and if the carrying values are found
in excess of value in use, the same is charged to Statement of profit and loss as per AS 28. The
impaired loss charged to Statement of profit and loss will be reversed in the year on the event
and to that extent of enhancement in estimate of value in use.

2.8 inventories:

Raw materials and consumables are valued at lower of cost and net realizable value.
However, materials and other items held for use in the production of inventories are not

written down below cost if the finished products in which they will be incorporated are
expected to be sold at or above cost. Cost is determined on a First in First out Basis and
includes all applicableoverheads in bringing the inventories to their present location and
condition.

Work-in-progress is valued at lower of cost and net realizable value. Cost includes direct
materials and labour and a proportion of manufacturing overheads based on normal operating
capacity.

2.9 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. The following specific recognition
criteria must also be met before revenue is recognized:

Income from Construction activity

The company accounts for income on the percentage of completion basis, which necessarily
involve technical estimates of the percentage of completion, and costs to completion, of each
contract/ activity, on the basis of which profit/ losses are accounted. Such estimates arebased
on the certificate provided by the authorized person (architect).

Expenditure incurred during the progress of contracts and the estimated profits to the stage of
completion are carried forward as work in progress. Advances and progress payments,
received and receivable from customers in respect of such long term contracts in progress are
disclosed under current liabilities.

Income from Power Generation Activity

Revenue from power supply is accounted for on the basis of billing to Rajasthan Electricity
Board. Generally bills are raised on the basis of recording of consumption of energy by
installed meters. In case there is a drop in annual generation then Developer compensates the
company for the year at the prevailing purchase rate of State Electricity Board at the time of
such shortfall during the year as per the agreement with Developer.

Income from Rent of Commercial Property

Rent from customers under agreement to sell is accounted for on accrual basis except in cases
where ultimate collection is considered doubtful.

Sale of goods

Revenue is recognized when the significant risks and rewards of ownership of the goods have
passed to the buyer. Gross turnover includes excise duty but does not include GST, sale tax
and VAT. Excise Duty deducted from turnover (gross) are the amount that is included in the
amount of turnover (gross) and not the entire amount of liability arising during the period.

Income from Toll

Revenue from Tolls is typically recognized as vehicles pass through the Toll booths or when the
toll transactions occur. The revenue is recognized at the time of the transaction, regardless of
when the payment is received. This is based on the principle of accrual accounting, where
revenue is recognized when it''s earned, rather than when the cash is received.

2.10Taxation

Tax expense comprises both current and deferred taxes

The provision for Current Income Tax liability is made on estimated Taxable Income under
Income Tax Act, 1961 using the applicable tax rates, after considering permissible tax
exemptions, deductions and disallowances. The current tax charge of the company includes
Minimum Alternative Tax (MAT) determined under section 115JB of the Income Tax Act, 1961.
Liability for additional taxes, if any, is provided/ paid as and when assessments are completed.
The company also complies with all the Income computation and disclosure standards as
applicable.

Provision is made for deferred tax liability arising due to timing differences between profit
computed for Income tax and the book profits as per the financial statement, for creation of a
deferred tax asset or a liability. This liability is recognized only if there is a reasonable certainty
that the deferred tax assets/liability will be created and are reviewed at each balance sheet
date. This liability is calculated at the regular tax rates applicable to the company.

2.11Government Grants:

Government Grants are recognised either in Capital reserve or as income in Statement of Profit
& Loss as and when the grant is actually received by the company depending on the nature of
grant received as enumerated in Accounting Standard 12 "Accounting for Government Grants"
and the conditions for the recognition of Government grants are met as per Accounting
Standard 12 "Accounting for Government Grants".

2.12Empioyee Benefits:

Retirement benefit in the form of provident fund is a defined contribution scheme. The
contributions to the provident fund are charged to the statement of profit and loss for the
year when the contributions are due.

For defined benefit plans, the cost of providing benefits is determined using the Projected Unit
Credit Method, with actuarial valuations being carried out at each balance sheet date.

Actuarial gains and losses arise due to difference in the actual experience and the assumed
parameters and also due to changes in the assumptions used for valuation. The Company
recognizes these actuarial gains and losses immediately in the statement of profit and loss as
income or expense.

When the benefits of the plan are changed, or when a plan is curtailed or settlement occurs,
the portion of the changed benefit related to past service by employees, or the gain or loss on
curtailment or settlement, is recognized immediately in the profit or loss account when the
plan amendment or when a curtailment or settlement occurs.