Accounting Policies of Integrity Infrabuild Developers Ltd. Company

Mar 31, 2025

A.    Corporate Information:

INTEGRITY INFRABUII.D DEVELOPERS LIMITED (‘the Company') Is a company domiciled in India and incorporated/ Converted under the provisions of the Companies Act, 2013.

The Company was previously operated as Partnership Firm in the name of "Integrity Infrabuild" which was converted into private limited company with effect from 01/06/2024 under Companies Act, 2013

The registered office of the Company is located at office No - 02 India bulls Megamall, (etalpur Road, Akota, Vadodara- 390020, Gujarat The Company is in the business of Construction and Maintenance of Infrastructure Projects such as Roads, Bridges and Buildings.

B.    Significant Accounting Policies

1.    Basis of accounting:-

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) including the Accounting Standards notified under Section 133 of the Companies Act. 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 and Schedule 111 of the Act

The financial statements have been prepared under the historical cost convention on accrual basis.

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.

3.    Revenue Recognition: -

Revenue from construction contracts is recognized using the Percentage of Completion Method (POCM), based on the cost incurred to total estimated cost Contract revenue includes variations, claims, and Incentives when reliably measurable.

Contract costs are expensed as incurred, and expected losses are recognized immediately. Unbilled revenue is recorded as an asset, while excess billings over revenue are shown as a liability.

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the interest rate appiicablc. All other income and expenditure are

recognized and accounted for on accrual basis.

Insurance claims are recognized as Income only when there is reasonable certainty of realization

4.    Property, Plant & Equipment & Intangible assets: :-Property, Plant & Equipment:

Freehold land is carried at historical cost All other items of property, plant and equipment are stated at acquisition cost net of accumulated depredation and accumulated impairment losses, if any. The cost of an item of property, plant and equipment comprises of its purchase pnee including import duties and other non-refundable purchase taxes or levies, directly attributable cost of bringing the asset to its working condition for its intended use and the initial estimate of decommissioning, restoration and similar liabilities, if any. Any trade discount or rebate Is deducted in arriving at the purchase price.

Items such as spare parts, stand-by equipment and servicing equipment that meet the definition of property, plant and equipment are capitalized at cost and depreciated over their useful life. Costs In nature of repairs and maintenance are recognized in the statement of profit and loss as and when incurred.

The cost and related accumulated depreciation are eliminated from the Financial Statements upon sale or retirement of the property, plant and equipment and the resultant gains or losses are recognized in the statement of profit and loss. Property, plant and equipment to be disposed of are reported at the lower of the carrying value or the fair value less cost of disposal.

Where an item of property, plant and equipment comprises major components having different useful lives, these components are accounted for as separate items.

5.    Depreciation :•

Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Written down Value (WDV) Method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act. 2013.

The useful lives estimated by the management are mentioned below: Motor Vehicles	8 Years
Furniture and fixtures	10 Years
Electrical fitting and fixing _	10 Years
Computer and related equipment	3 Years
Office Equipment	5 Years
Building	30 Years

General Plant & Machineries and Plant and Machinery related to road making have been depreciated over a period of IS years and 12 years respectively which is the economic useful life of those machineries as per management

All fixed assets individually costing Rs. 5000/- or less are fully depreciated in the year of installadon/purchase.

The useful lives are reviewed by the management periodically and revised, if appropriate. In case of a revision, the unamortized depreciable amount is charged over the revised remaining useful life. Depreciation is provided on a pro-rata basis l.e. from the date on which asset is ready for use. Property. Plant and Equipment is eliminated from the financial statements on disposal or when no further benefit is expected from its use and disposal.

Depreciation on assets acquired/sold during the year is recognized on a pro-rata basis to the statement of profit and loss till the date of acqulsitlon/sale.

The carrying amount of assets is reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount The recoverable amount is the greater of the assets, net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and risks specific to the asset

After impairment depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

7.    Investments:-

On initial recognition, all investments are measured at cost The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties.

Current investments are carried in the financial statements at lower of cost and fair value determined on an Individual investment basis. Long-term investments are carried at cost However, provision for diminutions in value is made to recognize a decline other than temporary in the value of the investments.

On disposal of an investment the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

8.    Inventories

Cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

Work-in-Progress (WIP) are valued on the basis of Percentage of completion certified by Project Engineer. Cost includes direct materials, labour, site expenses, attributable overheads, and borrowing costs (if applicable)

9.    Borrowing cost:-

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 that are directly attributable to the acquisition or construction of an asset that necessarily takes a substantial period of time to get ready for Its intended use are capitalized. All other borrowing costs are expensed In the period in which they occur.

10.    Retirement Benefits:-

a)    Short Term Obligations

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits and they are recognized in the period in which the employee renders the related service. The Company recognizes the undiscounted amount of short-term employee benefits expected to be paid in exchange for services rendered as a liability (accrued expense) after deducting any amount already paid.

b)    Post-Employment Benefits

i) Defined benefit plan Gratuity liability is a defined benefit obligation and recognized based on actuarial valuation carried out using the Projected Unit Credit Method.

it) Defined contribution plan A Defined Contribution Plan is plan under which the Company makes contribution to Employee’s Provident Fund administrated by the Central Government The Company's contribution is charged to the statement of profit and foss.

11.    Taxes on Income:-

The accounting treatment for the income tax in respect of the Company's income is based on the Accounting Standard on ’Accounting for Taxes on Income' (AS-22). The provision made for income tax In accounts comprises both, current tax and deferred tax.

Provision for current tax is made on the assessable income tax rate applicable to the relevant assessment year after considering various deductions available under the Income Tax Act 1961.

The deferred tax for timing differences between the book and tax profits for the year is accounted for. using the tax rates and laws that have been substantively enacted by the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is virtual certainty with convincing evidence that these would be realized in future. At each Balance Sheet date, the carrying amount of deferred tax is reviewed and consequential adjustments are carried out

12.    Provisions, Contingent Liabilities and Contingent Assets:- (AS-29)

Provisions are recognized only when there is a present obligation as a result of past events and when a reliable estimate of the amount of the obligation can be made.

Contingent Liabilities is disclosed In Notes to the account for:-

(i)    Possible obligations which will be confirmed only by future events not wholly within the control of the company or

(ii)    Present Obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

Contingent assets are not recognized in the financial statement since this may result in the recognition of the income that may never be realized.

13.    Events after Reporting date:-

Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events is adjusted within the Standalone Financial Statements. Otherwise, events after the Balance Sheet date of material size or nature are only disclosed.

14.    Earnings per Share:-

Basic earnings per share are calculated by dividing the net profit or loss (attributable to owners of the Company) for the period (after deducting preference dividends and attributable taxes) by the weighted average number of equity share outstanding during the period.

For the purpose 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.

15.    General:

Except wherever stated, accounting policies are consistent with the generally accepted accounting principles and have been consistently applied.

16.    Leases:

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

17.    Cash & cash equivalents:

Cash and cash equivalents comprises cash-in-hand. current accounts, fixed deposits mth banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value. Other bank balances arc short-term balance ( with original maturity is more than three months but less than twelve months).

17. Cash Flow Statement

The Cash Flow Statement has been prepared under the 'Indirect Method’ as set out in the Accounting Standard (AS) 3 " Cash Flow Statement" prescribed under the Companies (Accounting Standards) Rules, 2006.