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 and services. 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.
fill Conversion
Foreign currency monetary items are reported using the exchange rate prevailing as on 31st March, 2025
fiii) 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
fi) Payments are made regularly as per the Provisions of The Employees State Insurance Act, 1948 and Employees Provident Fund
and Miscellaneous Provisions Act, 1952.
fii) The provisions of the Gratuity Act, 1972 is made as per the required law.
(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 fMAT) 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 fMAT) 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.
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