I. SIGNIFICANT ACCOUNTING POLICIES
A. Basis of preparation of Standalone Financial
Statements:
The Balance Sheet as at March 31, 2025, and, the
Statements of Profit and Loss for the period ended March
31, 2025, the Cash Flow Statement for the period ended
March 31, 2025, the Summary Statement of Significant
Accounting Policies, the Notes and Annexures as
forming part of these Financial Statements (collectively,
the “Financial Information”), as approved by the Board
of Directors of the company.
These financial statements are prepared in accordance
with Indian Generally Accepted Accounting Principles
(GAAP) under the historical cost convention on
the accrual basis. GAAP comprises mandatory
accounting standards as prescribed under Section
133 of the Companies Act, 2013 (‘the Act’) read with
Rule 7 of the Companies (Accounts) Rules, 2014, the
provisions of the Act.
The accounting policies adopted in the preparation of
financial statements have been consistently applied.
AIL assets and liabilities have been classified as
current or non-current as per the company’s normal
operating cycLe and other criteria set out in the
Schedule III to the Companies Act, 2013. Based on
the nature of operations and time difference between
the provision of services and realization of cash
and cash equivalents, the company has ascertained
its operating cycle as 12 months for the purpose of
current and non-current cLassification of assets
and Liabilities. Amounts in the financial statements
are rounded off to nearest Lacs. Figures in brackets
indicate negative values.
The company has been formed by conversion of a
partnership firm i.e. “M/s Vision Infra” (referred as
erstwhile partnership firm), under the provisions of
Companies Act, 2013. The Firm was converted to a
public Limited company with effect from 12th January,
2024.AccordingLy, the Statement of Profit and Loss
for the period ended 31st March, 2024 reflects the
income and expenses pertaining only to the period
from 12th January, 2024 to 31st March, 2024, i.e.,
post-conversion.
B. Use of Estimates
The preparation of financial statements is in
conformity with Indian GAAP requires judgments,
estimates and assumptions to be made that affect
the reported amount of assets and LiabiLities,
discLosure of contingent LiabiLities on the date of the
financiaL statements and the reported amount of
revenues and expenses during the reporting period.
Difference between the actuaL resuLts and estimates
are recognized in the period in which the resuLts are
known/materiaLized.
C. Accounting Convention
The Company follows the mercantile system of
accounting, recognizing income and expenditure on
accrual basis. The accounts are prepared on historical
cost basis and as a going concern. Accounting
poLicies not referred to specificaLLy otherwise, are
consistent with the generaLLy accepted accounting
principLes.
The foLLowing significant accounting poLicies are
adopted in the preparation and presentation of these
financial statements:
1 Revenue Recognition
Revenue is recognized to the extent that it is
probable that the economic benefits wiLL flow to
the Company and the revenue can be reLiabLy
measured.
SaLes of goods are recognized on transfer of
significant risks and rewards of ownership to
the buyer, which generaLLy coincides with the
deLivery of goods to customers.
RentaL Income from the Equipment and income
from service contract is recognized on an
accruaL basis when it is earned and the right
to receive payment is reasonabLy assured.
Income is recognized over the period for which
the Equipment is made avaiLabLe for use, in
accordance with the terms of the agreement.
Interest Income is recognized on a time
proportion basis taking into account the amount
outstanding and the rate appLicabLe i.e. on the
basis of matching concept.
With effect from 1st October 2024, the Company
has revised its accounting poLicy for the
cLassification of income from saLe of used rentaL
equipment. Hitherto, such income was cLassified
as ‘Other Income’ under the head ‘Profit on SaLe
of Fixed Assets’. The revised poLicy cLassifies
such income as ‘Revenue from Operations’, in
aLignment with the Company’s core business of
trading and renting refurbished road construction
equipment. The change in poLicy is expected to
provide more reLevant information by refLecting
aLL operating revenues under a singLe head. The
Company beLieves this change resuLts in more
reLiabLe and reLevant presentation of its financiaL
statements.
The impact of this change on the financial results
for the year ended 31st March 2025 is as follows:
• Increase in Revenue from Operations: 1727.99
Lakhs
• Increase in Purchases due to Conversion of
Fixed Assets into Inventories: 999.71 Lakhs
• Decrease in Other Income: 728.28 Lakhs
• Impact on Profit Before Tax/Profit After Tax: Nil.
2 Property, Plant and Equipment and Intangible
Assets
i. Property, Plant & Equipment:
a) Property, Plant and Equipment are
stated as per Cost Model i.e., at cost
less accumulated depreciation and
impairment, if any; Costs directly
attributable to acquisition are
capitalized until the Property, Plant
and Equipment are ready for use, as
intended by the management;
b) Subsequent expenditures relating to
Property, Plant and Equipment are
capitalized only when it is probable that
future economic benefits associated
with these will flow to the Company and
the cost of the item can be measured
reliably. Repairs & maintenance costs
are recognized in the Statement of profit
& Loss when incurred;
c) The cost and related accumulated
depreciated are eliminated from the
financial statements upon sale or
retirement of the asset and the resultant
gains or losses are recognized in the
Statement of Profit or Loss. Assets
to be disposed of are reported at the
lower of the carrying value or the fair
value less cost to sell;
d) Depreciation on fixed assets will be
calculated using the Written Down
Value Method (WDV) method, which
involves applying depreciation rates
prescribed under Schedule II to the
Companies Act 2013. to the carrying
amount of the asset. The carrying
amount is reduced each year by the
amount of depreciation charged.
e) Depreciation methods, useful lives,
and residual values are reviewed
periodically, including at each financial
year end;
ii. Intangible assets:
Intangible assets are stated at cost of
acquisition net of recoverable taxes less
accumulated amortisation/ depletion.
All costs, including financing costs till
commencement of commercial production,
net charges on foreign exchange contracts
and adjustments arising from exchange
rate variations attributable to the intangible
assets are capitalised. Depreciation on
Intangible assets is calculated on Written
down value method.
3 Capital Work in Progress and Intangible Asset
under Development
Projects under which assets are not ready for
their intended use are disclosed under Capital
Work-in-progress. Property, Plant and Equipment
under construction or installation, included in
capital work-in-progress are not depreciated.
4 Impairment
The Management periodically assesses, using
external and internal sources, whether there
is an indication that an asset may be impaired.
An impairment loss is recognized 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. An
impairment loss for an asset is reversed if, and
only if, the reversal can be related objectively
to an event occurring after the impairment loss
was recognized. The carrying amount of an asset
is increased to its revised recoverable amount,
provided that this amount does not exceed
the carrying amount that would have been
determined (net of any accumulated amortization
or depreciation) had no impairment loss been
recognized for the asset in prior years.
5 Inventories
Inventories are valued after providing for
obsolescence, as follows:
Raw Materials/Spare Parts - Lower of cost or net
realizable value. However, materials and other
items held for use in the production of inventories
are not written down below cost if the finished
products in which they will be incorporated are
expected to be sold at or above cost. Cost is
determined on First in First out (FIFO) basis.
Finished goods are valued at the lower of cost
and net realisable value. Cost is determined on
First in First out (FIFO) basis.
6 Foreign Exchange Transactions
All transactions in foreign currency are recorded
at the rates of exchange prevailing at the date
of transaction. Any gain/ loss on account of the
fluctuation in the rate of exchange is recognized
in the statement of Profit and Loss.
Monetary items in the form of Loans, Current
Assets and Current Liabilities in foreign
currencies outstanding at the close of the
year are converted in Indian currency at the
appropriate rates of exchange prevailing on the
date of Balance Sheet. Resultant gain or loss on
account of the fluctuation in the rate of exchange
is recognized in the statement of Profit and Loss.
7 Cash Flow Statement
Cash flows are reported using the indirect
method, whereby profit before tax is adjusted
for the effects of transactions of a non- cash
nature, any deferrals or accruals of past or future
operating cash receipts or payments and item of
income or expenses associated with investing
or financing cash flows. The cash flows from
operating, investing and financing activities are
segregated.
8 Borrowing Costs
Borrowing costs that are directly attributable to the
acquisition or construction of a qualifying asset
are capitalized as part of the cost of that asset till
such time the asset is ready for its intended use. A
qualifying asset is an asset that necessarily takes
a substantial period of time to get ready for its
intended use. Costs incurred in raising funds are
amortized equally over the period for which the
funds are acquired. All other borrowing costs are
charged to profit and loss account.
9 Income Tax
The accounting treatment for the Income Tax in
respect of the Company’s income is based on the
Accounting Standard on ‘Accounting for Taxes on
Income’ (AS-22). The provision made for Income
Tax in Accounts comprises both, the current
tax and deferred tax. Provision for Current Tax
is made on the assessable Income Tax rate
applicable to the relevant assessment year after
considering various deductions available under
the Income Tax Act, 1961.
Deferred tax is recognized for all timing
differences; being the differences between
the taxable income and accounting income
that originate in one period and are capable of
reversal in one or more subsequent periods.
Such deferred tax is quantified using the tax
rates and laws enacted or substantively enacted
as on the Balance Sheet date. The carrying
amount of deferred tax asset/liability is reviewed
at each Balance Sheet date and consequential
adjustments are carried out.
10 Earnings Per Share
Basic earnings per share is computed by dividing
the net profit after tax by the weighted average
number of equity shares outstanding during the
period. Diluted earnings per share is computed
by dividing the profit after tax by the weighted
average number of equity shares considered for
deriving basic earnings per share and also the
weighted average number of equity shares that
could have been issued upon conversion of all
dilutive potential equity shares.
The diluted potential equity shares are adjusted
for the proceeds receivable had the shares been
actually issued at fair value which is the average
market value of the outstanding shares. Dilutive
potential equity shares are deemed converted
as of the beginning of the period, unless issued
at a later date. Dilutive potential equity shares
are determined independently for each period
presented.
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