Accounting Policies of Shree Krishna Infrastructure Ltd. Company

Mar 31, 2025

1. 1 Basis of preparation
Compliance with Ind AS

The financial statements have been prepared to comply in all material respects with the Indian
Accounting Standard (''Ind AS''] notified under section 133 of the Companies Act, 2013 read
together with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and
Companies (Indian Accounting Standards) Amendment Rules, 2016 issued by the Ministry of
Corporate Affairs, except additional disclosures required by the Companies Act 2013.

The financial statements are based on the classification provisions contained in Ind AS 1,
''Presentation of Financial Statements’ and division II of schedule III of the Companies Act 2013.
Further, for the purpose of clarity, various items are aggregated in statement of profit and loss
and balance sheet. Nonetheless, these items are disaggregated separately in the notes to the
financial statements, where applicable or required.

All assets and liabilities have been classified as current or non-current as per the Company''s
operating cycle and other criteria set out in Schedule III to the Companies Act, 2013. Based on
the nature of products and the time between acquisition of assets for processing and their
realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12
months for the purpose of current or non-current classification of assets and liabilities.

1.2 Use of Estimates and Judgments

In preparing the financial statements, the Management has to make certain assumptions and
estimates that may substantially impact the presentation of the Company’s financial position
and/ or results of operations.

Such assumptions and estimates mainly relate to the useful life of Property, Plant and
Equipment, the recognition of provisions and impact of COVID-19.

The estimates and judgments 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. Although the Company regularly
assesses these estimates, actual results may differ from these estimates. Changes in estimates
are recorded in the periods in which they become known.

1.3 Property, plant and equipment (‘PPE’)

Freehold land is carried at historical cost. Property, plant and equipment is carried at the cost of
acquisition or construction and depreciated over its estimated useful life. An impairment loss is
recognized in addition if an asset''s recoverable amount falls below its carrying amount.

Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as
appropriate, only when it meets the asset recognition criteria as per Ind AS 16 - Property, Plant
and Equipment.

Significant asset components with different useful lives are accounted for for depreciated
separately.

If there are indications that an individual item of property, plant and equipment may be impaired,
the recoverable amount is compared to the carrying amount. The recoverable amount is the
higher of an asset''s fair value less costs to sell and its value in use. If the recoverable amount is
less than the carrying amount, an impairment loss is recognized for the difference. If the reasons
for a previously recognized impairment loss no longer apply, the impairment loss is reversed
provided that the reversal does not exceed the carrying amount that would have been determined
(net of depreciation) had no impairment loss been recognized for the asset in prior years.

1.4Financial Liabilities

Financial liabilities are initially recognized at fair value if the Company has a contractual
obligation to transfer cash or other financial assets to another party. Borrowings and payables are
recognized net of directly attributable transaction costs. In subsequent periods, such liabilities are
measured at amortised cost using the effective interest method.

Financial liabilities are derecognized when the contractual obligation is discharged or cancelled
or has expired.

1,5 Taxes

The income tax expense comprises of current and deferred income tax. Income tax is recognized
in the statement of profit and loss, except to the extent that it relates to items recognised in the
other comprehensive income or directly in equity, in which case the related income tax is also
recognised accordingly.

a. Current tax

The current tax is calculated based on the tax rates, laws and regulations, which have been
enacted or substantively enacted as at the reporting date. The payment made in excess /
(shortfall) of the Company''s income tax obligation for the period are recognized in the balance
sheet as current income tax assets /liabilities.

Any interest / penalties, related to accrued liabilities for potential tax assessments are not
included in Income tax charge or (credit), but are rather recognised within finance costs.

b. Deferred tax .

Deferred tax is recognised, using the liability method, on temporary differences arising between
the tax bases of assets and liabilities and their carrying values in the financial statements.
However, deferred tax are not recognised if it arises from initial recognition of an asset or
liability in a transaction other than a business combination that at the time of the transaction
affects neither accounting nor taxable profit or loss.

Deferred tax assets are recognised only to the extent that it is probable that future taxable profit
will be available against which the temporary differences can be utilized.

The unrecognised deferred tax assets / carrying amount of deferred tax assets are reviewed at
each reporting date for recoverability and adjusted appropriately.

Deferred tax is determined using tax rates (and laws) that have been enacted or substantively
enacted by the reporting date and are expected to apply when the related deferred income tax
asset is realised or the deferred income tax liability is settled.

16 Cash and cash equivalents

Cash and cash equivalents include cash in hand, bank balances and any deposits with original
maturities of three months or less (that are readily convertible to known amounts of Cash and
cash equivalents and subject to an insignificant risk of changes in value). However, for the
purpose of the Statement of cash flows, in addition to above items, any bank overdrafts / cash
credits that are integral part of the Company’s cash management, are also included as a
component of Cash and cash equivalents.

1.7 Share capital / Share premium

Ordinary shares are classified as Equity when the Company has an un-conditional right to avoid
delivery of cash or another financial asset, that is, when the dividend and repayment of capital
are at the sole and absolute discretion of the Company and there is no contractual obligation
whatsoever to that effect.

1.8 Employee benefits

The Company''s employee benefits mainly include wages, salaries and bonuses. The employee
benefits are recognised in the period in which the associated services are rendered by the
Company employees.

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Mar 31, 2024

1. Summary of significant accounting policies 1. 1 Basis of preparation Compliance with Ind AS

The financial statements have been prepared to comply in all material respects with the Indian Accounting Standard (''Ind AS'') notified under section 133 of the Companies Act, 2013 read together with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016 issued by the Ministry of Corporate Affairs, except additional disclosures required by the Companies Act 2013.

The financial statements are based on the classification provisions contained in Ind AS 1, ''Presentation of Financial Statements'' and division II of schedule III of the Companies Act 2013. Further, for the purpose of clarity, various items are aggregated in statement of profit and loss and balance sheet. Nonetheless, these items are dis-aggregated separately in the notes to the financial statements, where applicable or required.

All assets and liabilities have been classified as current or non-current as per the Company''s operating cycle and other criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets and liabilities.

1.2 Use of Estimates and Judgments

In preparing the financial statements, the Management has to make certain assumptions and estimates that may substantially impact the presentation of the Company''s financial position and/ or results of operations.

Such assumptions and estimates mainly relate to the useful life of Property, Plant and Equipment, the recognition of provisions and impact of COVID-19.

The estimates and judgments 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. Although the Company regularly assesses these estimates, actual results may differ from these estimates. Changes in estimates are recorded in the periods in which they become known.

1.3 Property, plant and equipment (''PPE'')

Freehold land is carried at historical cost. Property, plant and equipment is carried at the cost of acquisition or construction and depreciated over its estimated useful life. An impairment loss is recognized in addition if an asset''s recoverable amount falls below its carrying amount.

Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate, only when it meets the asset recognition criteria as per Ind AS 16 - Property, Plant and Equipment.

Significant asset components with different useful lives are accounted for and depreciated separately.

If there are indications that an individual item of property, plant and equipment may be impaired, the recoverable amount is compared to the carrying amount. The recoverable amount is the higher of an asset''s fair value less costs to sell and its value in use. If the recoverable amount is less than the carrying amount, an impairment loss is recognized for the difference. If the reasons for a previously recognized impairment loss no longer apply, the impairment loss is reversed provided that the reversal does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognized for the asset in prior years.

1.4 Financial Liabilities

Financial liabilities are initially recognized at fair value if the Company has a contractual obligation to transfer cash or other financial assets to another party. Borrowings and payables are recognized net of directly attributable transaction costs. In subsequent periods, such liabilities are measured at amortised cost using the effective interest method.

Financial liabilities are derecognized when the contractual obligation is discharged or cancelled or has expired.

1.5 Taxes

The income tax expense comprises of current and deferred income tax. Income tax is recognized in the statement of profit and loss, except to the extent that it relates to items recognised in the other comprehensive income or directly in equity, in which case the related income tax is also recognised accordingly.

a. Current tax

The current tax is calculated based on the tax rates, laws and regulations, which have been enacted or substantively enacted as at the reporting date. The payment made in excess / (shortfall) of the Company''s income tax obligation for the period are recognized in the balance sheet as current income tax assets /liabilities.

Any interest / penalties, related to accrued liabilities for potential tax assessments are not included in Income tax charge or (credit), but are rather recognised within finance costs.

b. Deferred tax

Deferred tax is recognised, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying values in the financial statements. However, deferred tax are not recognised if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss.

Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized.

The unrecognised deferred tax assets / carrying amount of deferred tax assets are reviewed at each reporting date for recoverability and adjusted appropriately.

Deferred tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the reporting date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

1.6 Cash and cash equivalents

Cash and cash equivalents include cash in hand, bank balances and any deposits with original maturities of three months or less (that are readily convertible to known amounts of Cash and cash equivalents and subject to an insignificant risk of changes in value). However, for the purpose of the Statement of cash flows, in addition to above items, any bank overdrafts / cash credits that are integral part of the Company''s cash management, are also included as a component of Cash and cash equivalents.

1.7 Share capital / Share premium

Ordinary shares are classified as Equity when the Company has an un-conditional right to avoid delivery of cash or another financial asset, that is, when the dividend and repayment of capital are at the sole and absolute discretion of the Company and there is no contractual obligation whatsoever to that effect.

1.8 Employee benefits

The Company''s employee benefits mainly include wages, salaries and bonuses. The employee benefits are recognised in the period in which the associated services are rendered by the Company employees.