Accounting Policies of Crane Infrastructure Ltd. Company

Mar 31, 2024

1. METHOD OF ACCOUNTING :

The Company follows Mercantile System of accounting and recognizes income and expenditure
on an accrual basis. The accounts are prepared on historical cost basis.

2. PROPERTY, PLANT AND EQUIPMENT:

Property, Plant and Equipments are accounted for on historical cost basis less accumulated
depreciation. Cost comprises of purchase price and all expenses directly attributable to bringing
the asset to its present working condition.

3. DEPRECIATION :

Depreciation is provided on the Straight Line Method basis as per the useful and in the manner
specified in Schedule II of the Companies Act, 2013.

4. INVESTMENTS:

Long Term:

Investments are stated at cost less provision for permanent diminution in value.

Short Term:

Short term investments are stated at cost or market value which ever is lower.

5 PRIOR PERIOD ADJUSTMENTS:

Income and expenditure pertaining to prior periods are accounted under respective heads of profit
and loss account. However, net effect of such amount, where material, is disclosed separately.

6 RECOGNITION OF INCOME

Rental Income is recognised on accrual basis.

7 TAXES ON INCOME:

a) Current Tax:

Tax on Income for the Current Period is determined on the basis of taxable income and tax credits
computed in accordance with the provisions of the Income Tax Act 1961, and based on expected
out come of assessments / appeals, if any.

b) Deferred Tax:

Deferred Tax for timing differences between taxable income and accounting income are considered
by using the tax rates that are substantively enacted by the Balance Sheet date. Deferred Tax
assets are recognised only to the extent where there is reasonable certainity that they shall be
realised.

Note - 22

Other Accompanying Notes to Financial Statements

a) All the figures are rounded off to the nearest thousands otherwise specified.

b) No claims under Interest on delayed payments to Small Scale and Ancillary Industrial Undertakings
are outstanding with the Company.

c) In the opinion of the Board of Directors, Current Assets, loans and advances as at 31st March
2024 are expected to produce on realization in the ordinary course of the company’s business, at
least the amounts at which they are stated in the Balance Sheet.

d) The Revaluation Reserve acquired from Virat Crane Industries Ltd, which is created in the year
2006-07 on revaluation of Fixed Assets, is charged / debited by Rs.18,87.55 being the difference
between the depreciation computed on revalued buildings and the written down value of building
before revaluation.

e) The difference between the Demerger Reserve and Shares allotted amounting to Rs.3,70,86.14
has been treated as Goodwill in the books of accounts.

f) The information reuired by as per general instruction for preparation of the statement of profit
and loss as per Schedule - III of the Companies Act, 2013:

h) The information reuired by as per general instruction for preparation of the statement of profit
and loss as per Schedule - III of the Companies Act, 2013:

A. Expenditure in Foreign Currency NIL NIL

B. Income in Foreign Currency NIL NIL

C. Particulars of Capacities and Production Not Applicable Not Applicable

D. Particulars of Consumption of Imported

and Indigenous Materials Not Applicable Not Applicable

Note 24 - Financial Risk Management Framework

The Company’s board of directors has overall responsibility for the establishment and oversight
of the Company’s risk management framework. The board of directors has established a Risk Management
Framework which is reviewed and monitored by the Risk Management Committee. The Committee
reports regularly to the board of directors on its activities.

The Company’s risk management policies are established to identify and analyse the risks faced by the
Company, to set appropriate limits and controls and to monitor risks and adherence to limits. The Company,
through its training and established procedures, aims to maintain a disciplined and constructive control
environment in which all employees understand their roles and obligations.

The Company’s activities expose it to Credit risk and Liquidity risk.

Credit Risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial

loss.

Based on the overall credit worthiness of Receivables coupled with their past track record, Company
expects No/Minimum risk with regard to its outstanding receivables. Also, there is a mechanism in
place to periodically track the outstanding amount and assess the same with regard to its realisation.
Company expects that all the debtors will be realised in full, and accordingly, no provision has been
made in the books of account for doubt receivables.

Liquidity Risk

The Company’s principal sources of liquidity are cash and cash equivalents, working capital
facility with banks and the cash flows that are generated from operations.

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and
by continuously monitoring, forecasting and actual cash flow and by matching the maturity profiles of
financial assets and liabilities.

This ratio has been Decreased from 0.34 in March, 2023 to 0.11 in March, 2024.The reason for the
same as follows:Negative changes in “Changes in inventories of finished goods, Stock-in-trade and
Work-in-Progress”and low gross revenue which resulted the high gross and net profit The reason for
decrease in net profit during the F.Y 2023-24 was due to the positive changes in “Changes in inventories
of finished goods, Stock-in-trade and Work-in-Progress”.It was heppened due to the sale of land in the
previous F.Y2022-23.

This ratio has been Decreased from 0.18 in March, 2023 to 0.06 in March, 2024 mainly due to
decrease in profit , The reason for the same as follows:Negative changes in “Changes in inventories
of finished goods, Stock-in-trade and Work-in-Progress”and low gross revenue which resulted the
high gross and net profit The reason for decrease in net profit during the F.Y 2023-24 was due to the
positive changes in “Changes in inventories of finished goods, Stock-in-trade and Work-in-Progress”.It
was heppened due to the sale of land in the previous F.Y2022-23.

k) Return on Investment

Since theres are investment made by the company, the ratio is not given

For Pundarikashyam & Associates For and on behalf of the Board

CHARTERED ACCOUNTANTS K.Praveen

Firm Registration No.011330S ^{Executive Director}

DIN: 07143744

Ch.V.S.S.KIShore Kumar

^{(CA. B.Surya Prakasa Rao)} _Director

^Partner DIN: 01823606

Membership No. 205125

Nehal Vyas

^{P ace: untur} Company Secretary

^Date: 30-5-24 Mem No. A53357

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Mar 31, 2015

1. METHOD OF ACCOUNTING :

The Company follows Mercantile System of accounting and recognizes income and expenditure on an accrual basis. The accounts are prepared on historical cost basis.

2. FIXED ASSETS :

Fixed Assets are accounted for on historical cost basis less accumulated depreciation. Cost comprises of purchase price and all expenses directly attributable to bringing the asset to its present working condition.

3. DEPRECIATION :

Depreciation is provided on the Straight Line Method. The useful life of the assets adopted are as per Schedule II of the Companies Act, 2013.

4. INVESTMENTS: Long Term:

Investments are stated at cost less provision for permanent diminution in value.

Short Term:

Short term investments are stated at cost or market value which ever is lower.

5 PRIOR PERIOD ADJUSTMENTS:

Income and expenditure pertaining to prior periods are accounted under respective heads of profit and loss account. However, net effect of such amount, where material, is disclosed separately.

6 RECOGNITION OF INCOME

Rental Income is recognised on accrual basis.

7 TAXES ON INCOME:

a) Current Tax:

Tax on Income for the Current Period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act 1961, and based on expected out come of assessments / appeals, if any.

b) Deferred Tax:

Deferred Tax for timing differences between taxable income and accounting income are considered by using the tax rates that are substantively enacted by the Balance Sheet date. Deferred Tax assets are recognised only to the extent where there is reasonable certainity that they shall be realised.