Savy Infra and Logistics Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

Mar 31, 2025

2. SIGNIFICANT ACCOUNTING POLICIES

2.01 BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS

The restated summary statement of assets and liabilities of the Company as at March 31, 2025 ,
March 31, 2024, and March 31,2023 and the related restated summary statement of profits and loss
and cash flows for the year ended March 31 , 2025 , March 31, 2024, and March 31, 2023 (herein
collectively referred to as (“Restated Summary Statements”) have been compiled by the management
from the audited Financial Statements of the Company for the year ended on March 31 , 2025 ,
March 31, 2024, and March 31,2023 approved by the Board of Directors of the Company. Restated
Summary Statements have been prepared to comply in all material respects with the provisions of
Part I of Chapter III of the Companies Act, 2013 (the “Act”) read with Companies (Prospectus and
Allotment of Securities) Rules, 2014, Securities and Exchange Board of India (Issue of Capital and
Disclosure Requirements) Regulations, 2018 (“ICDR Regulations”) issued by SEBI and Guidance
note on Reports in Companies Prospectuses (Revised 2019) (“Guidance Note”). Restated Summary
Statements have been prepared specifically for inclusion in the offer document to be filed by the
Company with the NSE in connection with its proposed SME IPO. The Company’s management has
recast the Financial Statements in the form required by Schedule III of the Companies Act, 2013 for

__the purpose of restated Summary Statements._

The financial statements of the Company have been prepared in accordance with the Generally
Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards
specified under Section 133 of the Companies Act, 2013 and the relevant provisions of the
Companies Act, 2013 ("the 2013 Act"), as applicable. The financial statements have been prepared
on accrual basis under the historical cost convention. The accounting policies adopted in the

__preparation of the financial statements are consistent with those followed in the previous year._

Accounting policies not specifically referred to otherwise are consistent and in consonance with
generally accepted accounting principles in India.

All 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 Schedule III to the Companies Act, 2013. Based on the
nature of products and the time between the acquisition of assets for processing and their realization
in cash and cash equivalents, the Company has determined its operating cycle as twelve months for
__the purpose of current - non-current classification of assets and liabilities._

2.02 USE OF ESTIMATES

The preparation of the financial statements in conformity with Indian 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 differences between the
actual results and the estimates are recognised in the periods in which the results are known /
__materialise._

2.03 PROPERTY, PLANT & EQUIPMENT AND INTANGIBLE ASSETS

(i) Property, Plant & Equipment

All Property, Plant & Equipment are recorded at cost including taxes, duties, freight and other
incidental expenses incurred in relation to their acquisition and bringing the asset to its intended use.

(ii) Intangible Assets

Intangible Assets are stated at acquisition cost, net of accumulated amortization and accumulated
__impairment losses, if any._

2.04 DEPRE CIATION / AMORTISATION

Depreciation on fixed assets is calculated on a Written - Down value method using the rates arrived
at based on the useful lives estimated by the management, or those prescribed under the Schedule II
__to the Companies Act, 2013._

205 INVENTORIES

Inventories such as Raw Materials, Work-in-Progress, are valued at the lower of cost or net realisable
value (except scrap/waste which are value at net realisable value) in line wih Accounting Standard 2
(''AS-2'') "Valuation of Inventory". Inventories are measured at the lower of cost and net realisable
value. The cost of inventories is based on the first-in, first-out principle.
Net realizable value is the estimated selling price in the ordinary course of business, less the estimated
__costs of completion and the estimated costs necessary to make the sale._

206 IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value.
Recoverable amount is the higher of an asset''s net selling price and its value in use. Value in use is
the present value of estimated future cash flows expected to arise from the continuing use of the asset
and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale
of the asset in an arm''s length transaction between knowledgeable, willing parties, less the costs of
disposal. An impairment loss is charged to the Statement of Profit and Loss in the year in which an
asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed
__if there has been a change in the estimate of the recoverable value._

²⁰⁷ INVESTMENTS:_

Non-current investments are carried at cost less any other-than-temporary diminution in value,
determined on the specific identification basis.

Profit or loss on sale of investments is determined as the difference between the sale price and carrying
value of investment, determined individually for each investment. Cost of investments sold is arrived

__using average method._

2.08 FOREIGN CURRENCY TRANSLATIONS

Income and expense in foreign currencies are converted at exchange rates prevailing on the date of
the transaction. Any income or expense on account of exchange difference either on settlement or on
translation at the balance sheet date is recognized in Profit & Loss Account in the year in which it
__arises._

BORROWING COSTS

2.09__

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised
as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of
time to get ready for intended use. All other borrowing costs are recognised in Statement of Profit and
Loss in the period in which they are incurred.