Notes to Accounts of Perfect Infraengineers Ltd.

Mar 31, 2024

12. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

13. Borrowing Cost:

a) Borrowing costs, less any income on the temporary investment out of those borrowings, that are directly attributable to acquisition of an asset that necessarily takes a substantial period of time to get ready for its intended use are capitalized asa part of the cost of that asset

b) Other borrowing costs are recognized as expense in the period in which they are incurred.

14. Leases:

a) Assets taken on lease, under which the lessor effectively retains all the risks and rewards of ownership, are classified as operating lease. Operating lease payments are recognized as expense in the Statement of Profit and Loss on a straight-line basisover the lease term.

b) Assets acquired under leases where all the risks and rewards of ownership are substantially transferred to the Company are classified as Finance leases. Such leases are capitalized at the inception of the lease at the lower of fair value or the present value of minimum lease payments and liability is created for an equivalent amount. Each lease rental paid is allocated between the liability and interest cost so as to obtain a constant periodic rate of interest on the outstanding liability for each year.

15. Provision for Doubtful Debts and Loans and Advances:

Provision is made for doubtful trade receivables, loans and advances when the management considers trade receivables, loans and advances to be doubtful of recovery.

16. Earnings per share:

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post-tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year.

17. Cash & Cash Equivalents

Cash and cash equivalents for the purpose of cash flow statement comprise cash at bank and in hand, cheques in hand and deposits with banks having maturity period less than three months from the date of acquisition.

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Mar 31, 2023

12. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes.Contingent Assets are neither recognised nor disclosed in the financial statements.

13. Borrowing Cost:

a) Borrowing costs, less any income on the temporary investment out of those borrowings, that are directly attributable to acquisition of an asset that necessarily takes a substantial period of time to get ready for its intended use are capitalized asa part of the cost of that asset

b) Other borrowing costs are recognized as expense in the period in which they are incurred.

14. Leases:

a) Assets taken on lease, under which the lessor effectively retains all the risks and rewards of ownership, are classified as operating lease. Operating lease payments are recognized as expense in the Statement of Profit and Loss on a straight-line basisover the lease term.

b) Assets acquired under leases where all the risks and rewards of ownership are substantially transferred to the Company are classified as Finance leases. Such leasesare capitalized at the inception of the lease at the lower of fair value or the present value of minimum lease payments and liability is created for an equivalent amount. Each lease rental paid is allocated between the liability and interest cost so as to obtain a constant periodic rate of interest on the outstanding liability for each year.

15. Provision for Doubtful Debts and Loans and Advances:

Provision is made for doubtful trade receivables, loans and advances when the management considers trade receivables, loans and advances to be doubtful of recovery.

16. Earnings per share:

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post-tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year.

17. Cash & Cash Equivalents

Cash and cash equivalents for the purpose of cash flow statement comprise cash at bank andin hand, cheques in hand and deposits with banks having maturity period less than three months from the date of acquisition.

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Mar 31, 2016

NOTE 1: Operating Leases

The Company''s lease agreements are in respect of operating lease for office premises. These lease arrangements are cancellable by either parties there to as per the terms and condition of the agreements.

NOTE 2: Segment Reporting

The Company is predominantly in the business of execution of HVAC & MEP Contracts and allied activities and as such there are no separate reportable segments.

NOTE 3: During the year the Company came out with Initial Public Offering (IPO) in the month of October, 2015 to fulfill the requirement of its long term working capital requirements and to invest money in its subsidiary and got listed first time on National Stock Exchange SME Exchange on 20th November, 2015. The total issue size of the IPO was Rs. 5, 76,84,000/- and proceeds of the IPO were utilized as follows,

Out of the Said issue Proceeds Rs. 5, 97,494/- were held in escrow account on the date of the balance sheet, which are utilized towards payment of outstanding issue expenses during the subsequent year.

NOTE 4: The Sale tax Authorities have carried out survey/search in respect of the Company''s operations In Maharashtra under MVAT Act, 2005 on 5/4/2016. No specific demand is raised on the Company so far and also the Management is confident that no major liability will be payable by the Company in respect of the said search/survey. Meanwhile the Company has deposited Rs.20, 00,000/- under protest.

NOTE 5: PREVIOUS YEAR FIGURES

Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current periods classification/disclosure.