Accounting Policies of Anna Infrastructures Ltd. Company

Mar 31, 2024

NOTE 1. SIGNIFICANT ACCOUNTING POLICIES

1.1 GENERAL INFORMATION

Anna Infrastructures Ltd. (The “Company”) is a public limited company incorporated in India with its registered office
in Agra, Uttar Pradesh, India. The Company is listed on the Bombay Stock Exchange Limited, Mumbai. The Company
is engaged in the business of Real Estate Developer.

1.2 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The Financial Statement of the company have been prepared in accordance with the Indian Accounting Standards
(IND AS) prescribed under section 133 of the Companies (Indian Accounting Standards) Rules, as amended from
time to time. The financial statement are consistent with those followed in the previous year.

1.3 USE OF ESTIMATES

The preparation of the financial statement in conformity with India 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 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 difference
between the actual and the estimates are cognized in which the results are known/materialize.

1.4 RECOGNITION OF INCOME AND EXPENDITURE

(a) Under the Real Estate Division of the Company the Income recognized at the point of Sale or booking amount
received on estimation basis and balance of Profit & Loss of particular project accounted in that year in which
the entire sale of said project will be completed.

(b) The Company has booked the Income on a GP basis on sales/Bookings of Plots Shops, and balance of Profit &
Loss of particular project accounted in that year in which the entire sale of said project will be completed. The
Company is following the same method of accounting from more than 10 years consistently. Company has not
started new project after 01-04-2012 hence guidance note on Real Estate transaction (issued by ICAI) is not
applicable on Company.

(c) Revenue/Income and costs/Expenditure are recognized on an accrual basis except dividends.

1.5 FIXED ASSETS

Fixed Assets are stated at Cost less accumulated depreciation.

1.6 TRANSITION TO IND AS

On transition to IND AS, the group has elected to continue with the carrying value of all its property plant and
equipment recognized as at April 1, 2016, measured as per the previous GAAP, and use that carrying value as the
deemed cost of such property, plant and equipment.

1.7 SUBSEQUENT EXPENDITURE

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the
expenditure will flow to the group.

1.8 DEPRECIATION

Depreciation on Fixed Assets has been provided based on life assigned to each asset in accordance with schedule II
of the Companies Act, 2013.

1.9 INVESTMENTS

Investments are held by the Company are classified into Current and Long Term Investments Categories in terms of
RBI Guidelines and valued accordingly. Long Term Investments are stated at cost and provision for diminution in
value is made wherever considered necessary, if the diminution is of permanent nature. Current Investments are stated
at lower of cost and fair value. Gains/Losses on disposal or redemption of investments are recognized in the profit &
Loss Statement.

1.10 INVENTORIES

Inventories under Real Estate Division of the Company are stated at lower of cost or net realizable value.

1.11 CASH FLOW STATEMENT

Cash flow are reported using the indirect method, whereby profit/(loss) before tax is adjusted for the effects of
transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash
flow from operating, investing and financing activities of the group are segregated based on the available information.

1.12 Reporting on ICDS

ICDS 1 - Accounting Policies

The Financial Statements have been prepared in accordance with the generally accepted accounting principles in India
under the historical cost convention on accrual basis. The entity follows the mercantile system of accounting and
recognizes income and expenditure on an accrual basis except in case of significant uncertainties.

ICDS II - Valuation of Inventories

Work in Progress is valued at cost or net realizable value, whichever is lower. Cost comprises all cost of purchase,
cost of conversion and other cost incurred in bringing the inventory to the present location and condition. The Cost
formulae used is either first in first out or specific identification, or the average cost as applicable. In terms section
145A the purchases, sales and inventory is valued inclusive of taxes the net impact of the same on profit and loss
account is Nil.

ICDS III - Construction Contracts

This ICDS is not applicable to the entity.

ICDS IV - Revenue Recognition

Revenue/ Income and Cost/ Expenditure are generally accounted for on accrual basis as they are earned or incurred,
except in case of significant uncertainties. However, where the ultimate collection of the same lacks reasonable
certainty, revenue recognition is postponed to extent of uncertainty. Sale of Goods is recognized on transfer of
significant risks and rewards of ownership.

ICDS V - Tangible Fixed Assets

Fixed Assets are stated at cost less depreciation charged to accounts. Costs directly attributable to bring the Assets to
its working condition are also capitalized. Disposal on fixed Assets is charged at rates as specified in schedule of Fixed
Assets. Rate of Depreciation is consistent of previous financial years.

ICDS VII - Government Grants
This ICDS is not applicable to the entity.

ICDS IX - Borrowing Costs

Interest and other borrowing costs attributable to qualifying assets, are added to the cost of the qualifying asset, until
such time as the assets are substantially ready for their intended use. Qualifying assets for capital of general borrowing
costs are those that necessarily take more than one year or substantial period of time to get ready for their intended
use.

---

Mar 31, 2015

1. RECOGNITION OF INCOME AND EXPENDITURE: -

(a) Under the Real Estate Division of the Company the Income recognized at the point of Sale or booking amount received on estimation basis and balance of Profit & Loss of particular project accounted in that year in which the entire sale of said project will be completed.

(b) The Company has booked the Income on a GP basis on sales/Bookings of Plots Shops, and balance of Profit & Loss of particular project accounted in that year in which the entire sale of said project will be completed. The Company is following the same method of accounting from more than 10 years consistently.

(c) Revenue/Income and costs/Expenditure are recognized on an accrual basis except dividends.

2. FIXED ASSETS

Fixed Assets are stated at Cost less accumulated depreciation.

3. DEPRECIATION

Depreciation on Fixed Assets has been provided based on life assigned to each asset in accordance with schedule II of the Companies Act, 2013. However, in case where useful life of asset has been expired, the Carrying Cost of Asset stands in excess of Residual Value, the same has been transferred to Retained Earnings.

4. INVESTMENTS

Investments are held by the Company are classified into Current and Long Term Investments Categories in terms of RBI Guidelines and valued accordingly. Long Term Investments are stated at cost and provision for diminution in value is made wherever considered necessary, if the diminution is of permanent nature. Current Investments are stated at lower of cost and fair value. Gains/Losses on disposal or redemption of investments are recognized in the profit & Loss Statement.

5. INVENTORIES

Inventories under Real Estate Division of the Company are stated at lower of cost or net realizable value.

6. Confirmation of various debit and credit balances, loans and advances given and other liabilities etc. have not been received in some cases, which may have a revenue impact.

The Company is of the opinion that the computation of the net profit under section 198 of the Companies Act 2013 is not necessary as no commission is paid/payable to the Directors for the year ended 31.03.2015.

The total Remuneration paid to Director(s) is less than 5 % of the Net Profits of the Company in accordance with Section 197(1)i of the Companies Act, 2013.

8. Under Real Estate Division of the Company, the sale and booking is in progress in the following projects:

- Plots in Ikon city Project

- Plots in Ikon Greens Project

- Plots in Ikon Vatica Project

- Shops in Anna Complex

- Shops in Anna Ikon

The Company has booked the Gross Profit @ 30% on sales/Bookings of Inventories and balance of Profit & Loss of particular project accounted in that year in which the entire sale of said project will be completed.

9. Segment Information Composition of Business segment

The Company's business divided into two segments as

I. Real Estate Business

II. Loan and Investment

Normally there is no inter segment transactions in the company.

---

Mar 31, 2014

1. RECOGNITION OF INCOME AND EXPENDITURE: -

(a) Under the Real Estate Division of the Company the Income recognized at the point of Sale or booking amount received on estimation basis and balance of Profit & Loss of particular project accounted in that year in which the entire sale of said project will be completed.

(b) Revenue/Income and costs/Expenditure are recognized on an accrual basis except dividends.

2. FIXED ASSETS

Fixed Assets are stated at Cost less accumulated depreciation.

3. DEPRECIATION

Depreciation on Fixed Assets is provided on straight-line method at the relevant rates of depreciation on pro-rata basis as specified in schedule XIV of the Companies Act, 1956.

4. INVESTMENTS

Investments are held by the Company are classified into Current and Long Term Investments Categories in terms of RBI Guidelines and valued accordingly. Long Term Investments are stated at cost and provision for diminution in value is made wherever considered necessary, if the diminution is of permanent nature. Current Investments are stated at lower of cost and fair value. Gains/Losses on disposal or redemption of investments are recognized in the profit & Loss Statement.

5. INVENTORIES

Inventories under Real Estate Division of the Company are stated at lower of cost or net realizable value.

6. Confirmation of various debit and credit balances, loans and advances given and other liabilities etc. have not been received in some cases, which may have a revenue impact.

7. Remuneration to Directors

Particulars Current Year Previous Year (Rs.) (Rs.)

Salary 3,60,000 3,36,000

The Company is of the opinion that the computation of the net profit under section349 of the Companies Act 1956 is not necessary as no commission is paid/payable to the Directors for the year ended 31.03.2013.

8. Under Real Estate Division of the Company, the sale and booking is in progress in the following projects:

Plots in Ikon city Project

Plots in Ikon Greens Project

Plots in Ikon Vatica Project

Shops in Anna Complex

Shops in Anna Ikon

The Company has booked the Income @ 15% on sales/Bookings of Plots and 20% on sales/bookings of Shops, and balance of Profit & Loss of particular project accounted in that year in which the entire sale of said project will be completed.

9. Segment Information

Composition of Business segment

The Company''s business divided into two segment as

I. Real Estate Business

II. Loan and Investment

Normally there is no inter segment transactions in the company.

As at 31.03.2014 segment revenues, result and other information

A. Segment Revenue (Income)

I. Real Estate Business 23,15,800/-

II. Loan and Investment 53,88,477/-

Income from Operations 77,04,277/-

B. Segment Results

I. Real Estate Business 8,92,633/-

II. Loan and Investment 42,72,983/- Total 51,65,616/-

Less: Interest 5,70,935/-

Less : Net Unallocable Expenditure 9,72,875/-

Total Profit before Tax 36,21,806/-

C. Capital Employed

i. Real Estate Business 2,16,88,150/-

II. Loan and Investment 5,56,85,931/-

Total 7,73,74,081/-

10. Figures have been rounded off to the nearest rupee.

---

Mar 31, 2013

1. RECOGNITION OF INCOME AND EXPENDITURE: -

(a) Under the Real Estate Division of the Company the Income recognized at the point of Sale or booking amount received on estimation basis and balance of Profit & Loss of particular project accounted in that year in which the entire sale of said project will be completed.

(b) Revenue/Income and costs/Expenditure are recognized on an accrual basis except dividends.

2. FIXED ASSETS

Fixed Assets are stated at Cost less accumulated depreciation.

3. DEPRECIATION

Depreciation on Fixed Assets is provided on straight-line method at the relevant rates of depreciation on pro- rata basis as specified in schedule XIV of the Companies Act, 1956.

4. INVESTMENTS

Investments are held by the Company are classified into Current and Long Term Investments Categories in terms of RBI Guidelines and valued accordingly. Long Term Investments are stated at cost and provision for diminution in value is made wherever considered necessary, if the diminution is of permanent nature. Current Investments are stated at lower of cost and fair value. Gains/Losses on disposal or redemption of : investments are recognized in the profit & Loss Statement.

5. INVENTORIES

Inventories under Real Estate Division of the Company are stated at lower of cost or net realizable value.

6. Confirmation of various debit and credit balances, loans and advances given and other liabilities etc. have not been received in some cases, which may have a revenue impact.

7. Remuneration to Directors

The Company is of the opinion that the computation of the net profit under section349 of the Companies Act ¦ 1956 is not necessary as no commission is paid/payable to the Directors for the year ended 31.03.2013.

8. Under Real Estate Division of the Company, the sale and booking is in progress in the following projects: Plots in Ikon city Project ;

Plots in Ikon Greens Project

Plots in Ikon Vatica Project

Shops in Anna Complex

Shops in Anna Ikon The Company has booked the Income @ 15% on sales/Bookings of Plots and 20% on sales/bookings of Shops, and balance of Profit & Loss of particular project accounted in that year in which the entire sale of said project will be completed.

9. Segment Information Composition of Business segment

The Company''s business divided into two segment as

I. Real Estate Business

II. Loan and Investment

Normally there is no inter segment transactions in the company.

10. Figures have been rounded off to the nearest rupee.

---

Mar 31, 2012

1. RECOGNITION OF INCOME AND EXPENDITURE: -

(a) Under the Real Estate Division of the Company the Income recognized at the point of Sale or booking amount received on estimation basis and balance of Profit & Loss of particular project accounted in that year in which the entire sale of said project will be completed.

(b) Revenue/Income and costs/Expenditure are recognized on an accrual basis except dividends.

2. FIXED ASSETS

Fixed Assets are stated at Cost less accumulated depreciation.

3. DEPRECIATION

Depreciation on Fixed Assets is provided on straight-line method at the relevant rates of depreciation on pro- rata basis as specified in schedule XIV of the Companies Act, 1956.

4. INVESTMENTS

Investments are held by the Company are classified into Current and Long Term Investments Categories in terms of RBI Guidelines and valued accordingly. Long Term Investments are stated at cost and provision for diminution in value is made wherever considered necessary, if the diminution is of permanent nature. Current Investments are stated at lower of cost and fair value. Gains/Losses on disposal or redemption of investments are recognized in the profit & Loss Statement.

5. RETIREMENT BENEFITS

As none of the Employee is covered by the eligibility criteria hence no provision for the retirement benefit has been made.

6. INVENTORIES

Inventories under Real Estate Division of the Company are stated at lower of cost or net realizable value.

7. PROVISION FOR INCOME TAX

Provision for Income Tax has been made keeping in view provisions of the Income Tax Act, 1961 and the rules made there under. According to Accounting Standard-22, issued by the Institute of Chartered Accountants of India, A provision has also been made for deferred Tax Asset/Liability.

8. CONTINGENT LIABILTIES

Contingent Liabilities are not provided for and are disclosed by way of notes.

---

Mar 31, 2010

1. RECOGNITION OF INCOME AND EXPENDITURE: -

(a) Under the Real Estate Division of the Company the Income recognized at the point of Sale or booking amount received on estimation basis and balance of Profit & Loss of particular project accounted in that year in which the entire sale of said project will be completed.

(b) Revenue/Income and costs/Expenditure are recognized on an accrual basis except dividends, delayed payment charges and Income recognized on non-performing assets based on actual recovery as per the prudential norms prescribed by the Reserve Bank of India which are accounted on Receipt basis.

(c) Income is not recognized in respect of Non-performing Assets, if any, as per the guidelines for prudential norms prescribed by the Reserve Bank of India.

2. FIXED ASSETS

Fixed Assets are stated at Cost less accumulated depreciation.

3. DEPRECIATION

Depreciation on Fixed Assets is provided on straight-line method at the relevant rates of depreciation on pro-rata basis as specified in schedule XIV of the Companies Act, 1956.

4. INVESTMENTS

Investments are held by the Company are classified into Current and Long Term Investments Categories in terms of RBI Guidelines and valued accordingly. Long Term Investments are stated at cost and provision for diminution in value is made wherever considered necessary, if the diminution is of permanent nature. Current Investments are stated at lower of cost and fair value. Gains/Losses on disposal or redemption of investments are recognized in the profit & Loss Account.

5. RETIREMENT BENEFITS

As none of the Employee is covered by the eligibility criteria hence no provision for the retirement benefit has been made.

6. INVENTORIES

Inventories under Real Estate Division of the Company are stated at lower of cost or net realizable value.

7. PROVISION FOR INCOME TAX

Provision for Income Tax has been made keeping in view provisions of the Income Tax Act, 1961 and the rules made there under. According to Accounting Standard-22, issued by the Institute of Chartered Accountants of India, A provision has also been made for deferred Tax Liability.

8. CONTINGENT LIABILTIES

Contingent Liabilities are not provided for and are disclosed by way of notes.