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
“ curer "e tenz°' the”5 p“de
“)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:
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Category
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Useful life
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Computer & Laptop
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3 years
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Furniture & Fittings
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10 years
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Office Equipments
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5 years
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Plant & Machinery
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15 years
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Vehicles
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8 years
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(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 Potentia 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.
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