Accounting Policies of VVIP Infratech Ltd. Company

Mar 31, 2025

2. Use of Estimates

The preparation of the Financial Statements in conformity with Indian GAAP requires the Management
to make estimates and assumptions considered in the reported amounts of assets and liabilities
(including contingent liabilities) and the reported income and expenses during the period/year. The
Management believes that the estimates used in preparation of the Financial Statements are prudent
and reasonable. Future results could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which the results are known /
materialize.

3. Revenue Recognition :-

Revenue is measured at the fair value of consideration received or receivable by the Company for
services provided, excluding trade discounts and other applicable taxes. Revenue is recognised upon
transfer of control of promised services under a contract.

Revenue is recognised when the amount can be measured reliably, it is probable that the economic
benefits associated with the transaction will flow to the Company, the costs incurred or to be incurred
can be measured reliably, and when the criteria for each of the Company''s different activities has been
met.

The Company derives revenues from two types of activities:

a) Construction contracts - Customer contracts towards delivering aSewerage treatment plant,
WaterPipeline, Tube well, Water Tank, Water treatment facility, civil construction and Electrical
Distribution,Erection& Substation works that is fit for purpose as per the contract.

b) Operation and maintenance contracts - Customer contracts towards operation and maintenance
of sewerage waterPipeline, Tubewell, Water Tank & Water treatment facility.

The Company determines its performance obligations included in the contracts signed with
customers. When a customer contract includes both a construction and operation & maintenance, the
performance obligations are separately identified and revenue is recognised in accordance with the
principles of Accounting Standards

a) Construction Contracts:

Construction contracts generally involve design, supply, construction, installation and
commissioning of a Sewerage treatment plant, Water Pipeline, Tubewell, Water Tank, Water
treatment facility, Building construction and Electrical Distribution, Erection & Substation works.

The transaction price is usually a fixed consideration with a variable consideration on a case to case
basis. Variable consideration (penalties, damages, claims etc.) is included in the transaction price
to the extent it is highly probable that a significant reversal in the amount of revenue recognised will
not occur.

Construction contracts usually have a single performance obligation, wherein the control of goods
and services are transferred progressively over the period of the contract. The Company satisfies
its performance obligation upon completing the scope of the construction contract and achieving
customer acceptance.

b) Operation & Maintenance contracts

Operation and maintenance contracts involve operation and maintenance services for water
treatment facilities and the supply of spares. Revenue from operation and maintenance contracts
are recognized as the services are provided and invoiced to the customer, as per the terms of the
contract.

4. Other Income :-

Interest income is accounted on accrual basis. Income other than interest income is accounted for
when right to receive such income is established.

5. Property, Plant &Equipment''s:-
Tangible Assets

Property, Plants & Equipment are stated at their original cost of acquisition including taxes, freight
and other incidental expenses related to acquisition and installation of the concerned assets less
depreciation till date.

Subsequent expenditure incurred on an item of property, plant and equipment is added to the book
value of that asset only if this increases the future benefits from the existing asset beyond its
previously assessed standard of performance.

Depreciation methods, estimated useful lives and residual value

Depreciation on assets is provided on written down method at the rates and in the manner
prescribed in Schedule II to the Companies Act, 2013.Schedule II to the companies Act 2013
prescribes the useful lives for various class of assets. For certain class of assets, based on technical

evaluation and assessment, Management believes that the useful lives adopted by it reflect the
period over which these assets are expected to be used.

Accordingly for those assets, the useful lives estimated by the management are different from
those prescribed in the Schedule. Management''s estimates of the useful lives for various classes of
fixed assets are as given below:-

Intangible Assets

The cost of intangible asset comprises its purchase cost including any taxes and directly
attributable expenditure on making the asset ready for its intended use. It is accounted as purchase
price less amortization, if any.

6. Depreciation :-

Depreciation on Property, Plant & Equipment''s 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.

7. Impairment of Assets :-

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value.
Recoverable amount is the higher of an asset''s net selling price and its value in use. Value in use is
the present value of estimated future cash flows expected to arise from the continuing use of the
asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable
from sale of the asset in an arm''s length transaction between knowledgeable, willing parties, less
the costs of disposal. As told by the management of the company, no impairment loss is recognized
during the year as there are no indicators of impairment found in the company.

8. Cash and Cash Equivalents :-

Cash and cash equivalents comprises Cash-in-Hand, Short-term Deposits and Balance in Current
Accounts with 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.

9. Investments :-

In Subsidiary company-

Investments are stated at cost.

In Partnership Firms-

Investments are stated at cost price /- profit/ Loss of the Firm.

10. Inventories :-

Inventories i.e. closing work in progress and material at site are valued at cost price; The
Inventories are valued, verified and certified by the management of the company.

11. Employee Benefits:-

I .Defined Contribution Plan

The company''s monthly contribution towards Employee Provident Fund and Employee State
Insurance are accounted on accrual basis.

II. Defined Benefit Plan

Liabilities on account of Gratuity and Leave Encashment are accounted on the basis of Actuarial
Valuation report and the same was charged to the statement of profit & Loss and provision has been
made based on the certified actuarial report. Actuarial gain and losses in respect of post
employment benefits are charged to the statement of profit & Loss.

12. Earning Per Share :-

Basic earning per share is computed by dividing the profit/ (loss) after tax (including the post tax
effect of extraordinary items, if any) by the weighted average number of equity share outstanding
during the period. Diluted earning per share is computed by dividing the profit/ (loss) after tax
(including the post tax effect of extraordinary items, if any) 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 which could have been issued on
the conversion of all dilutive potential equity shares. However the basic and dilutive EPS of the
company are same as there are no options, warrants or any dilutive potential equity shares during
the year. Refer Note No 26 of Standalone Financial Statement for calculation of EPS.

13. Taxation & Deferred Tax:-

Income taxes are accounted for in accordance with Accounting Standard (AS-22) - "Accounting for
taxes on income", notified under Companies (Accounting Standard) Rules, 2014. Income tax
comprises of both current and deferred tax. Current tax is measured on the basis of estimated
taxable income and tax credits computed in accordance with the provisions of the Income Tax Act,
1961. The tax effect of the timing differences that result between taxable income and accounting
income and are capable of reversal in one or more subsequent periods are recorded as a deferred
tax asset or deferred tax liability. They are measured using substantially enacted tax rates and tax
regulations as of the Balance Sheet date. Deferred tax assets arising mainly on account of brought
forward losses and unabsorbed depreciation under tax laws, are recognized, only if there is virtual
certainty of its realization, supported by convincing evidence. Deferred tax assets on account of
other timing differences are recognized only to the extent there is a reasonable certainty of its
realization.

14. Foreign Exchange Transaction

Foreign Currency transactions are booked at the rate prevailing at the time of transaction and any
Gain/loss arising out of fluctuations in exchange rate is accounted for at the year end as per AS-11
issued by the Institute of Chartered Accountants of India. There are no Foreign transactions in the
company during the year.

15. Segment Reporting :-

The Company is engaged in the business of construction of Infrastructure Projects, primarily,
Sewer, Sewer Treatment plants, Water Tanks, Water treatment plants, Road sector development,
Electrification Development and its Transmission and Distribution Infrastructure and Civil
Construction Work. Based on similarity of activities, risk and reward structure, organisation
structure and internal reporting system, the company has structured its operations into single
operating segment and hence there is no reportable segment as per AS-17 "Segment Reporting".

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Mar 31, 2024

SIGNIFICANT ACCOUNTING POLICY AND NOTES TO THE RESTATED STANDALONE SUMMARY STATEMENTS MUMfiLAiM ^ ANNEXURE - 4

A. COMPANY OVERVIEW

Vibhor Vaibhav Infra Private limited (popularly known as "WIP") (the "Company") is a Private limited Company domiciled in India and was incorporated on 10th August 2010 vide Registration No.U45201DL2001PTC111999 under the provisions of the Companies Act 1956. The registered office of the Company is situated at Fifth Floor, WIP Style, NH-58 , Raj Nagar Extension , Ghaziabad.. Thereafter, the name of our Company was changed from ''Vibhor Vaibhav Infra Private Limited'' to ''WIP Infratech Private Limited'' on November 01, 2023 and thereafter conversion of our Company from private to public company, pursuant to a special resolution passed by the shareholders of our Company on November 28, 2023 and a fresh certificate of incorporation consequent to change of name from (" The Company") was issued by the ROC on January 04, 2024. The Company s Corporate Identity Number is

U45201UP2001PLC136919.

The Company is engaged in the business of construction of Infrastructure Projects , primarily, Sewer Sewer Treatment plants, Water Tanks, Water treatment plants, Road sector development, Electrification Development , its Transmission and Distribute Infrastructure and building construction activity.

13. SIGNIFICANT ACCOUNTING POLICY

The''^unfmary¹ statement of restated assets and liabilities of the Company as at 31st March 2024 31st March 2023, March 2022 and 31st March, 2021 and the related summary statement of restated profit and loss and cash flows for the year ended 31st M 2024 31st March 2023, 31st March, 2022 and 31st March, 2021 (collectively referred to as the "Restated summary financial mforma on ) have'' been prepared specifically for tire purpose of inclusion in the offer document to be filed by the Company in connection with the proposed Initial Publk Offering (hereinafter referred to as ''IPO''). The figures are rounded off in Lakhs except number of shares. Previous years; figures have been regrouped/ recast to make them comparable with the current period figures.

The restated summary financial information has been prepared by applying necessary adjustments to the financial statements (f>™nc statements'') of the Company. The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles Tn India (Indian GAAP) to comply with the accounting standards specified under sect™i 33> of the Companies Act, 2013, of the Companies (Accounts) Rules, 2014 and tire relevant provisions of the Companies Act, 2013 (the 2013 Act") as applicable and Securities and Exchange Board of India (Issue of Capital and Disclosure Requirement*) regulations 2009 as amended^^''(fte ''Regulations"). The financial statements have been prepared on accrual basis under the historica cost convention. The accounting policies adopted in the preparation of the financial statements are consistently applied. The Profits of the Partnership Fir i.e WIPL BCPL - JV and WIP-KKR JV , KIPL WIP - JV and KVS - JV for the year ended 31st March 2024 are not considered w i e

preparing Restated Financial Statement for the year ended 31st March 2024.

Tte ^^rof the financial statements in conformity with Generally Accepted Accounting Principles requires the Mmuigement m . ^{P P}. , j motions that affect the reported balances of assets and liabilities and disclosures relating to contingent assets ^S=^=^ -=s and the reported amounts income and expenses during the year. Examples of L“esri»”s Mode provisions for doubtful debts, income taxes, post - sales customer support and the useful lives of Property Plan, and Equipments and intangible assets.

“a⁸„y a"d the revenue I be reliably measured in accordance with AS-9, Revenue Recognition. Sales are recognized on accrual

“ ^cur^er "^{e ten}z°'' ^the”⁵ p“d^e

“)MereluncometTevenue is recognized on the time proportion basis after taking into account the amount outstanding and the rate

^income : Other items of income and^eu^ure are recoded on accrual basis and a, a going concern basis, and the .•______•_________cirtanf tvMtti fhp accounting: policies© -

(ii) Property Plant and Equipment including Intangible assets:

Property Plant and Equipments are stated at cost, less accumulated depreciation. Cost includes cost of acquisition including material cost, freight, installation cost, duties and taxes, and other incidental expenses, incurred up to the installation stage, related to such acquisition.

Intangible assets that are acquired by the Company are measured initially at cost. After initial recognition, an intangible asset is carried at its cost less any accumulated amortisation and any accumulated impairment loss.

(iv) Depreciation & Amortisation:

The estimated useful lives of assets are as follows:

Category	Useful life
Computer & Laptop	3 years
Furniture & Fittings	10 years
Office Equipments	5 years
Plant & Machinery	15 years
Vehicles	8 years

(v) Impairment of assets:

The Management periodically assesses using, external and internal sources, whether there is an indication that an asset may be impaired. An impairment loss is recognised wherever the carrying value of an asset exceeds its recoverable amount. The recoverable amount is higher of the asset''s net selling price and value in use, which means the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. Reversal of impairment loss is recognised immediately as income in the profit and loss account.

(vi) Employee Benefits:

The company provides for the various benefits plans to the employees. These are categorized into Defined Benefits Plans and Defined Contributions Plans. Defined contribution plans includes the amount paid by the company towards the liability for Provident fund to the employees provident fund organization and Employee State Insurance fund in respect of ESI and defined benefits plans includes the retirement benefits, such as gratuity and Leave Encashment.

a. In respect Defined Contribution Plans, contribution made to the specified fund based on the services rendered by the employees are charged to Statement of Profit & Loss in the year in which services are rendered by the employee.

b. Liability in respect of Defined Long Term benefit plan is determined at the present value of the amounts payable determined using actuarial valuation techniques performed by an independent actuarial at each balance sheet date using the projected unit credit methods. Re-measurement, comprising actuarial gain and losses, the effects of assets ceiling (if applicable) and the return on plan assets (excluding interest), is reflected immediately in the statement of Financial Position with a charge or credit recognized in other comprehensive income in the period in which they occur. Past Service cost is recognized in the statement of profit & loss in the period of plan amendment.

c. Liabilities for short term employee benefits am^gaeagitred at undi^g&unted an^yunt of the bej^fits expected to be paid and

chareed to Statement of Profit & Loss in the relate^serviceis^ndered. .vt^ . . M.

Income^ax⁰expense*is accounted for in accordance with AS-22 "Accounting for Taxes on Income" for both Current Tax and Deferred Tax stated below:

A. Current Tax: . ,

Provision for current tax is made in accordance with the provisions of the Income Tax Act, 196 .

Deferred tax ^recognised, subject to the consideration of prudence, as the tax effect of timing difference between the taxable income and accounting income computed for the current accounting year using the tax rates and tax laws that have been enacted or substantially enacted by the balance sheet date.

Deferred tax assets are recognised and carried forward to the extent that there is a reasonable certainty, except arising from unabsorbed depreciation and carried forward losses, that sufficient future taxable income will be available against which such

deferred tax assets can be realised.

InvenloriesTe''dosing work in progress and material at site are valued a. cos. price. The Inventories are valued, verified and certified by the management of the company.

A^roviskm^s recognised ^^a^^ result of past event, the Company has a present legal obligation that can be estimated reliably and it is probable that an outflow of economic benefit will be required to settle the obligation ^Pr°^vlslo"^s determined by the best estimate of outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources. Where there is possible obligation or present obligation in respect of which the likelihood of outflow of resources remote, no provision or disclosure is made. It is disclosed in Annexure No 37 of the restated Financial Statement.

Bask^Eantings''peroshare is computed by dividing the net profit after tax by the weighted average number of equity shares outstfndhig during the period. Diluted earnings per share is computed by dividing the net profit after tax by t weighted average number of shares considered for deriving basic earnings per share and also the ^weighted average num er of eauitv shares⁸ that could have been issued upon conversion of all dilutive potential equity shares. The dduted P^otentia eauitv shares are adjusted for the proceeds receivable had the shares been actually issued at fair value which is the averag ma^t vie Ithfoutstanding shares. Dilutive potential equity shares are deemed converted as at the beguuung of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period present .

It is disclosed in Annexure No 33 of the restated Financial Statement.