Accounting Policies of Innovators Facade Systems Ltd. Company

Mar 31, 2025

Note 1 : Significant Accounting Policies:

A Corporate Information:

innovators Facade Systems Limited (“the Company”)
is a company domiciled in india and incorporated on
8th June, 1999 under the provisions of Companies
Act, 1956. The Company is mainly engaged in the
Business of design, engineering, fabrication, supply
and installation of facade systems.

B Basis of Accounting:

The Financial Statements have been prepared under
the historical cost convention, on an accrual basis
of accounting and in accordance with the Generally
Accepted Accounting Principles in india and comply
with the Accounting Standards specified under section
133 of the Companies Act, 2013 read with Rules 7 of
the Companies (Accounts) Rule, 2014.

C Use of Estimates:

i) The preparation of financial statements in conformity
with Generally Accepted Accounting Principles
requires estimates and assumptions to be made that
affect the reported amounts of assets and liabilities
and disclosure of contingent liabilities on the financial
statements and the reported amounts of revenues
and expenses during the reporting period. Difference
between actual results and estimates are recognized
in the periods in which the results are known/
materialize.

ii) The Company uses the percentage-of-completion
method in accounting for its fixed-price contracts.
Use of the percentage of completion method requires
the Company to estimate the total costs and balance
cost to be incurred. Costs incurred have been used to
measure progress towards completion as there is a
direct relationship between cost incurred and revenue
recognition . The Company uses significant judgments
while determining the estimated cost.

D Operating Cycle

All assets and liabilities have been classified as current
or non-current as per the Company''s normal operating
cycle and other criteria set out in the Schedule ii to the
Companies Act, 2013. The Company has ascertained
its operating cycle as twelve months for the purpose
of current and non-current classification of assets and
liabilities.

E Revenue Recognition:

i) Revenue from fixed price contracts is recognized on
the percentage of completion method, measured in
proportion of the percentage of cost incurred-to-date
to the total estimated contract cost.

ii) Revenue in respect of sales is recognised on the basis
of actual execution of work contracts or as and when
work contracts is certified.

iii) Unbilled revenue is a part of work executed but not
billed untill the last day of the reporting period due to
contractual terms.

iv) interest income is recognized on time proportion
basis.

F Property Plant & Equipment’s :

i) Tangible Assets

Property Plant & Equipment''s are stated at actual
cost of acquisition net of recoverable taxes less
accumulated depreciation. Cost comprises the
purchase price and any attributable cost of bringing
the asset to its working condition for its intended use
and net charges on foreign exchange contracts and
adjustments arising from exchange rate variations
attributable to the assets.

ii) Intangible Assets

intangible Assets are stated at cost of acquisition net
of recoverable taxes less accumulated amortisation/
depletion and impairment loss, if any The cost
comprises purchase price, borrowing costs, and any
cost directly attributable to bringing the asset to its
working condition for the intended use and net charges
on foreign exchange contracts and adjustments
arising from exchange rate variations attributable to
the intangible assets

i ii ) Capital work- in- prog ress includ es cost of property,
plant and equipment under installation/under
development as at the balance sheet date.

G Depreciation & Amortisation:

Depreciation on tangible assets has been provided on
''Straight Line Method'' based on the useful life of the
assets and in the manner prescribed in the Schedule ii
of the Companies Act, 2013.

intangible assets are amortised over the life of
underlying assets. Computer software are amortised
over a period of 3 Years.

H Investments:

investments that are intended to be held for more than
a year, from the date of acquisition, are classified as
long term investment and are carried at cost less any
provision for diminution in value other than temporary.
investments other than long term investments being
current investments are valued at cost or fair value
whichever is lower.

I Inventories:

i) Raw Material are valued at lower of Cost or net
realisable value and Stores & Spares are valued at
cost.

ii) Work in Progress and Finished Goods are valued at
lower of cost or net realisable value. Cost of inventories
comprises of cost of purchase, cost of conversion
and other costs including manufacturing overheads
incurred in bringing them to their respective present
location and condition.

J Foreign Currency Transactions:

i) The transactions in foreign currencies are stated
at the rate of exchange prevailing on the date of
transactions.

ii) The difference on account of fluctuation in the rate
of exchange prevailing on the date of transaction and
the date of realization is charged to the Statement of
Profit and Loss.

iii) Differences on translations of Current Assets and
Current Liabilities remaining unsettled at the year-end
are recognized in the Statement of Profit and Loss.

iv) The premium in respect of forward exchange contract
is amortised over the life of the contract. The net
gain or loss on account of any exchange difference,
cancellation or renewal of such forward exchange
contracts is recognised in the Statement of Profit &
Loss.

K Accounting for Taxes of Income:

Current Taxes

Provision for current income-tax is recognized in
accordance with the provisions of indian income-
tax Act, 1961 and is made after taking credit for tax
allowances, exemptions and disallowances.

Deferred Taxes

Deferred tax assets and liabilities are recognized for
the future tax consequences attributable to timing
differences that result between the profits offered
for income taxes and the profits as per the financial
statements. Deferred tax assets and liabilities are
measured using the tax rates and the tax laws that have
been enacted or substantially enacted at the balance
sheet date. Deferred tax Assets are recognized only to
the extent there is reasonable certainty that the assets
can be realized in the future. Deferred Tax Assets are
reviewed as at each Balance Sheet date.

L Employee Benefits:

i) Short-term obligations

Liabilities for wages and salaries, Leave encashments
including non-monetary benefits that are expected
to be settled wholly within twelve months after the
end of the period in which the employees render the
related service are recognized in respect of employee
service upto the end of the reporting period and are
measured at the amount expected to be paid when
the liabilities are settled. The liabilities are presented
as current employee benefit obligations in the balance
sheet.

Leave encashment liabilities are settled within twelve
months after the end of the period in which employee
render the related services and hence considered
short term obligation and charged to the statement of
profit & loss on accrual basis.

ii) Post-employment

Defined contribution plan

The Company makes specified monthly contribution
towards employee provident fund to Employees''
Provident Fund. The Company''s contributions to the
fund are recognised in the Statement of Profit and Loss
in the financial year to which the employee renders the
service.

Defined benefit plan

The Company''s gratuity scheme is a defined benefit
plan. The present value of obligation under such
defined benefit plan is determined based on actuarial
valuation carried at the year-end using the Projected
Unit Credit Method, which recognises each period of
service as giving rise to additional unit of employee
benefit entitlement and measures each unit separately
to build up the final obligation. The obligation is
measured at the present value of the estimated future
cash flows. The discount rate used for determining the
present value of the obligation under defined benefit
plans, is based on the market yields on Government
securities as at the balance sheet date.

M Leases :

i) Operating Lease

Leases where the lessor effectively retains substantially
all the risks and benefits of ownership of the leased
item, are classified as operating leases. Operating
lease payments are recognized as an expense in the
statement of profit and loss on a straight line basis
over the lease term

ii) Finance Lease

Leases which effectively transfer to the Company
substantially all the risks and benefits incidental to
ownership of the leased assets, are classified as finance
leases and are capitalized at the lower of the fair value
and present value of the minimum lease payments at
the inception of the lease term and disclosed as leased
assets. Lease payments are apportioned between the
finance charges and reduction of the lease liability
based on the implicit rate of return. Finance charges
on account of finance leases are charged to statement
of profit and loss.

N 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. The weighted
average number of equity shares outstanding during
the period is adjusted for events such as bonus issue,
bonus element in a rights issue, share split, and reverse
share split (consolidation of shares) if any that have
changed the number of equity shares outstanding,
without a corresponding change in resources.

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 effect of all potentially dilutive equity
shares.

O Cash Flow Statement

Cash Flow Statement have been prepared on Indirect
Method as prescribed under Accounting Standard
-3 on Cash Flow Statements, whereby profit for the
period is adjusted for the effects of transactions of a
non-cash nature, any deferrals or accruals of past or
future operating cash receipts or payments and item
of income or expenses associated with investing or
financing cash flows. The cash flows from operating,
investing and financing activities of the Company are
segregated.

---

Mar 31, 2024

Note 1 : Significant Accounting Policies:

A Corporate Information:

Innovators Facade Systems Limited ("the Company") is a company domiciled in India and incorporated on 8^th June, 1999 under the provisions of Companies Act, 1956. The Company is mainly engaged in the Business of design, engineering, fabrication, supply and installation of facade systems.

B Basis of Accounting:

The Financial Statements have been prepared under the historical cost convention, on an accrual basis of accounting and in accordance with the Generally Accepted Accounting Principles in India and comply with the Accounting Standards specified under section 133 of the Companies Act, 2013 read with Rules 7 of the Companies (Accounts) Rule, 2014.

C Use of Estimates:

i) The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the financial statements and the reported amounts of revenues and expenses during the reporting period. Difference between actual results and estimates are recognized in the periods in which the results are known/ materialize.

ii) The Company uses the percentage-of-completion method in accounting for its fixed-price contracts. Use of the percentage-of-completion method requires the Company to estimate the total costs and balance cost to be incurred. Costs incurred have been used to measure progress towards completion as there is a direct relationship between cost incurred and revenue recognition. The Company uses significant judgments while determining the estimated cost.

D Operating Cycle

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule II to the Companies Act, 2013. The Company has ascertained its operating cycle as twelve months for the purpose of current and non-current classification of assets and liabilities.

E Revenue Recognition:

i) Revenue from fixed price contracts is recognized on the percentage of completion method, measured

in proportion of the percentage of cost incurred-to-date to the total estimated contract cost.

ii) Revenue in respect of sales is recognised on the basis of actual execution of work contracts or as and when work contracts is certified.

iii) Unbilled revenue is a part of work executed but not billed until the last day of the reporting period due to contractual terms.

iv) I nterest income is recog nized on time proportion basis.

F Property Plant & Equipment''s :

i) Tangible Assets

Property Plant & Equipment''s are stated at actual cost of acquisition net of recoverable taxes less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use and net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets.

ii) Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortisation/depletion and impairment loss, if any. The cost comprises purchase price, borrowing costs, and any cost directly attributable to bringing the asset to its working condition for the intended use and net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets

iii) Capital work- in- progress includes cost of property, plant and equipment under installation/ under development as at the balance sheet date.

G Depreciation & Amortisation:

Depreciation on tangible assets has been provided on ''Straight Line Method'' based on the useful life of the assets and in the manner prescribed in the Schedule II of the Companies Act, 2013.

Intangible assets are amortised over the life of underlying assets. Computer software are amortised over a period of 3 Years.

H Investments:

Investments that are intended to be held for more than a year, from the date of acquisition, are classified as long term investment and are carried at cost less any provision for diminution in value other than temporary. Investments other than long term investments being current investments are valued at cost or fair value whichever is lower.

I Inventories:

i) Raw Material are valued at lower of Cost or net realisable value and Stores & Spares are valued at cost.

ii) Work in Progress and Finished Goods are valued at lower of cost or net realisable value. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and condition.

J Foreign Currency Transactions:

i) The transactions in foreign currencies are stated at the rate of exchange prevailing on the date of transactions.

ii) The difference on account of fluctuation in the rate of exchange prevailing on the date of transaction and the date of realization is charged to the Statement of Profit and Loss.

iii) Differences on translations of Current Assets and Current Liabilities remaining unsettled at the year-end are recognized in the Statement of Profit and Loss.

iv) The premium in respect of forward exchange contract is amortised over the life of the contract. The net gain or loss on account of any exchange difference, cancellation or renewal of such forward exchange contracts is recognised in the Statement of Profit & Loss.

K Accounting for Taxes of Income:

Current Taxes

Provision for current income-tax is recognized in accordance with the provisions of Indian Income-tax Act, 1961 and is made after taking credit for tax allowances, exemptions and disallowances.

Deferred Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to timing differences that result between the profits offered for income taxes and the profits as per the financial statements. Deferred tax assets and liabilities are measured using the tax rates and the tax laws that have been enacted or substantially enacted at the balance sheet date. Deferred tax Assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future. Deferred Tax Assets are reviewed as at each Balance Sheet date.

L Employee Benefits:

i) Short-term obligations

Liabilities for wages and salaries, Leave encashments including non-monetary benefits that are expected to be settled wholly within twelve months after the end of the period in which the employees render the related service are recognized in respect of employee service upto the end of the reporting period and are measured at the amount expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

Leave encashment liabilities are settled within twelve months after the end of the end of the period in which employee render the related services and hence considered short term obligation and charged to the statement of profit & loss on accrual basis.

ii) Post-employment

Defined contribution plan

The Company makes specified monthly contribution towards employee provident fund to Employees'' Provident Fund. The Company''s contributions to the fund are recognised in the Statement of Profit and Loss in the financial year to which the employee renders the service.

Defined benefit plan

The Company''s gratuity scheme is a defined benefit plan. The present value of obligation under such defined benefit plan is determined based on actuarial valuation carried at the year-end using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation is measured at the present value of the estimated future cash flows. The discount rate used for determining the present value of the obligation under defined benefit plans, is based on the market yields on Government securities as at the balance sheet date.

M Leases :

i) Operating Lease

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss on a straight line basis over the lease term

ii) Finance Lease

Leases which effectively transfer to the Company substantially all the risks and benefits incidental to ownership of the leased assets, are classified as finance leases and are capitalized at the lower of the fair value and present value of the minimum lease payments at the inception of the lease term and disclosed as leased assets. Lease payments are apportioned between the finance charges and reduction of the lease liability based on the implicit rate of return. Finance charges on account of finance leases are charged to statement of profit and loss.

N 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. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share split, and reverse share split (consolidation of shares) if any that have changed the number of equity shares outstanding, without a corresponding change in resources.

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 effect of all potentially dilutive equity shares.

O Cash Flow Statement

Cash Flow Statement have been prepared on Indirect Method as prescribed under Accounting Standard -3 on Cash Flow Statements, whereby profit for the period is adjusted for the effects of

transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

P Provisions and Contingent Liabilities:

i) Provisions are recognized in terms of Accounting Standard 29- "Provisions, Contingent Liabilities and Contingent Assets when there is a present legal or statutory obligation as a result of past events where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

ii) Contingent Liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company or where reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for.

iii) Contingent Liabilities are disclosed by way of notes.

Q Impairment of Assets:

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

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Mar 31, 2018

A Corporate Information:

Innovators Facade Systems Limited (“the Company”) is a company domiciled in India and incorporated on 8th June, 1999 under the provisions of Companies Act, 1956. The Company is mainly engaged in the Business of design, engineering, fabrication, supply and installation of facade systems.

B Basis of Accounting:

The Financial Statements have been prepared under the historical cost convention, on an accrual basis of accounting and in accordance with the Generally Accepted Accounting Principles in India and comply with the Accounting Standards specified under section 133 of the Companies Act, 2013 read with Rules 7 of the Companies (Accounts) Rule, 2014.

C Use of Estimates:

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the financial statements and the reported amounts of revenues and expenses during the reporting period. Difference between actual results and estimates are recognized in the periods in which the results are known/materialize.

D Revenue Recognition:

i) Revenue from fixed price construction contracts is recognized on the percentage of completion method, measured in proportion of the percentage of cost incurred-to-date to the total estimated contract cost.

ii) Revenue in respect of saIes is recognised on the basis of actuaI execution of work contracts or as and when work contracts is certified.

iii) Unbilled Revenue is the part of work executed but not billed on the last day of financial year end due to contractual obligation.

iv) Interest income is recognized on time proportion basis.

E Fixed Assets:

Fixed Assets are stated at actual cost less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

F Depreciation & Amortisation:

Depreciation on Fixed Assets has been provided on ‘Written Down Value Method’ based on the useful life of the assets and in the manner prescribed in the Schedule II of the Companies Act, 2013.

G Investments:

Investments that are intended to be held for more than a year, from the date of acquisition, are classified as long term investment and are carried at cost less any provision for diminution in value other than temporary. Investments other than long term investments being current investments are vaIued at cost or fair value whichever is lower.

H Inventories:

i) Raw Material are valued at lower of Cost or net realisable value and Stores & Spares are valued at cost.

ii) Work in Progress and Finished Goods are valued at lower of cost or net realisable value. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and condition.

I Foreign Currency Transactions:

i) The transactions in foreign currencies are stated at the rate of exchange prevailing on the date of transactions.

ii) The difference on account of fluctuation in the rate of exchange prevailing on the date of transaction and the date of realization is charged to the Statement of Profit and Loss.

iii) Differences on translations of Current Assets and Current Liabilities remaining unsettled at the year-end are recognized in the Statement of Profit and Loss.

iv) The premium in respect of forward exchange contract is amortised over the life of the contract. The net gain or loss on account of any exchange difference, cancellation or renewal of such forward exchange contracts is recognised in the Statement of Profit & Loss.

J Accounting for Taxes of Income:

Current Taxes

Provision for current income-tax is recognized in accordance with the provisions of Indian Income-tax Act, 1961 and is made after taking credit for tax allowances, exemptions and disallowances.

Deferred Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to timing differences that result between the profits offered for income taxes and the profits as per the financial statements. Deferred tax assets and liabilities are measured using the tax rates and the tax laws that have been enacted or substantially enacted at the balance sheet date. Deferred tax Assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future. Deferred Tax Assets are reviewed as at each Balance Sheet date.

Minimum Alternative Tax

Minimum Alternative Tax (MAT) credit is recognised as an assets in accordance with the recommendation contained in the Guidance note issued by the Institute of Chartered Accountants of India. The said assets is created by way of credit to the Statement of Profit and Loss and shown as MAT credit entitlement. The Company review the same at each Balance Sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal lncome Tax during the specified period.

K Employee Benefits:

i) Company’s contribution to Provident Fund and other Funds for the year is accounted on accrual basis and charged to the Statement of Profit & Loss for the year.

ii) Retirement benefits in the form of Gratuity are considered as defined benefit obligations and are provided on the basis of the actuarial valuation, using the projected unit credit method as at the date of the Balance Sheet.

L Provisions and Contingent Liabilities:

i) Provisions are recognized in terms of Accounting Standard 29- “Provisions, Contingent Liabilities and Contingent Assets when there is a present legal or statutory obligation as a result of past events where it is probable that there will be outflow of resources to settle the obligation and when are liable estimate of the amount of the obligation can be made.

ii) Contingent Liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company or where reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for.

iii) Contingent Liabilities are disclosed by way of notes.

M Impairment of Assets:

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

N Miscellaneous Expenditure:

IPO Expenses are written off against Securities Premium Account. Preliminary expenses are amortised in the year in which they are incurred.