1 Corporate Information
Effwa Infra & Research Limited (Formerly Known as Effwa Infra & Research Private Limited ) was incorporated as a private Limited company under the Companies Act,1956 on 6th January, 2014 vide registration no. U90001MH2014PTC251793.. Pursuant to Certificate of Incorporation consequent upon conversion of Company into Public Company received from Registrar of Companies, CPC, dated 2nd May, 2024 status of the Company is converted from Private Limited to Public Company. The Company is registered with the Registrar of Companies, Mumbai, Maharashtra vide Registration number U90001MH2014PLC251793. The Company's main object is to undertake, design and supply pollution control equipment as well as complete plants and their operations and detailed design and engineering related to environmental protection projects, to set up and/ or operate facilities for safe disposal of industrial waters such as landfill for solid waste and incinerator for hazardous solid/ liquid wastes, to set up facilities and/ or operate for conversion of organic waste into organic manure using suitable processes including bioconversion.
2 Basis of accounting
The financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP) in India, on accrual basis under the historical cost convention and comply with the accounting standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014, to the extent applicable. The accounting policies have been consistently applied except where a newly issued Accounting Standard is initially adopted or a revision to an existing Accounting standard requires a change in the accounting policy hitherto in use.
2.1 Significant Accounting Policies:
(a) These financial statements are prepared and presented based on Schedule III to the Act. The Company follows mercantile system of accounting in accordance with requirements of the Companies Act, 2013.
(b) Use of Estimates
The presentation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although these estimates are based on management’s best knowledge of current events and actions the Company may undertake in future, actual results ultimately may differ from the estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.
(c ) Inventories
Inventories are valued at lower of cost or net realizable value and the same is as verified, valued and certified by the Management of the Company.
(d) Revenue Recognition
Revenue is recognized on when it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operations includes sale of goods including Goods and Service Tax. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.
(e) Fixed Assets and Depreciation
Fixed assets are stated at cost less accumulated depreciation. Cost of acquisition is inclusive of directly attributable costs such as freight, duties, taxes and all other expenditure required in bringing the asset to the condition required for its intended use.
Depreciation is provided on written down basis at the rates determined with reference to the useful life of the asset as estimated by the management. These rates are as prescribed under Schedule II to the Companies Act, 2013;
(f) Expenses
All expenses are accounted on accrual basis.
(g) Foreign Currency Transaction / 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 as on the date of transaction.
(ii) Conversion
Foreign currency monetary items are reported using the exchange rate prevailing as on 31st March, 2024
(iii) Exchange Difference
Exchange difference arising on settlement of monetary items or on reporting company's monetary items at rates different from those at which they are initially recorded during the year, or reported in previous financial statement, are recognised as income or as expenses in the year in which they arise.
(h) Retirement Benefit
(i) Payments are made regularly as per the Provisions of The Employees State Insurance Act, 1948 and Employees Provident Fund and Miscellaneous Provisions Act, 1952.
(ii) The provisions of the Gratuity Act, 1972 is applicable and the same is provided by the Company.
(i) Income Taxes
Provision for tax comprises of current tax and deferred tax. Current tax provision is measured by the amount of tax expected to be paid on the taxable profits after considering tax allowances and exemptions and using applicable tax rates and laws or Minimum Alternate Tax (MAT) payable in a year, as applicable.
Deferred tax asset and liability is recognised for future tax consequences attributable to timing differences between carrying amount of assets and liabilities as per the financial statements and their respective tax bases, and tax losses carried forward; these are measured by applying tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date and are reviewed for appropriateness of recognition and carrying amount at each Balance Sheet date. Changes in deferred tax asset and liability between one Balance Sheet date and the next are recognised in the Statement of Profit and Loss in the year of change; the effect of a change in tax rates is recognised in the year of change. Deferred tax assets are recognised only if there is reasonable certainty of realisation by way of future taxable income. Deferred tax assets related to unabsorbed depreciation and carry forward losses are recognised only to the extent there is virtual certainty of realisation.
Minimum alternate tax (MAT) paid in a year is charged to the Statement of Profit and Loss as current tax. MAT credit, shown as “MAT Credit Entitlement”, is recognised as an asset, for adjustment against future tax, only to the extent there is convincing evidence that it will pay normal income tax during the specified period for which MAT credit carry forward is allowed. The asset is created by credit to the Statement of Profit & Loss and the carrying value of “MAT Credit Entitlement” is reviewed at each reporting date and adjusted to the extent the company does not have convincing evidence that it will pay normal tax during the specified period.
(j) Earnings per share
Basic earnings per share (EPS) is calculated by dividing the net profit after tax for the year (including the post-tax effect of extraordinary items, if any) attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by adjusting the number of shares used for basic EPS with the weighted average number of shares that could have been issued on the conversion of all dilutive potential equity shares.
(k) Provisions and Contingencies
A provision is recognised when there is a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on management best estimates of the expenditure required to settle the obligation as at the balance sheet date. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate of each such obligation.
A contingent liability is disclosed when there is a possible or present obligation that may, but probably will not require an outflow of resources, unless the possibility of such outflow is remote.
25 Related Party Disclosures
As required by Accounting Standard - AS 18 "Related Party Disclosure" issued by the Institute of Chartered Accountants of India, following are the details of transactions during the year with related parties as defined in AS 18.
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