Mewar Hi-Tech Engineering Ltd. कंपली की लेखा नीति

Mar 31, 2025

1. Basis of'' accounting: -

These financial statements have been prepared in accordance with the Generally Accepted
Accounting Principles in India (Indian GAAP) including the Accounting Standards notified
under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies
(Accounts) Rules,2014 and the relevant provisions of the Companies Act,2013.

The financial statements have been prepared under the historical cost convention on accrual
basis.

2. Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires the
management to make judgments, estimates and assumptions that affect the reported amounts
of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the
end of the reporting period. Although these estimates are based on the management’s best
knowledge of current events and actions,uncertainty about these assumptions and estimates
could resultin'' the outcomes requiring a materialadjustmcntto the carrying amounts of assets
or liabilities in future periods.

3. Revenue Recognition:-

Expenses and Income considered payable and receivable respectively are accounted for on
accrual basis.

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.

4. Principles of consolidation (*only in case where consolidation is made)

a. The consolidated financial statements relate to MEWAR HITECH ENGINEERING
LIMITED {’the Company'') and its associate/subsidiary company.

b. The consolidated financial statements have been prepared Inaccordance
with requirement of section 129 read with schedule-ill of the Companies Act 2013.
Accounting Standard (AS) 21-’Consolidated Financial Statements’ or 23-''Accounting
for investments in associates in Consolidated Financial Statements’ as specified under
section 133 of the Companies Act, 2013 read with Rule 7 of the Companies
(Accounts) Rules, 2014 and generally accepted accounting principles.

c. In case of Associates* Equity Method as stated in AS-23 “Accounting for Investments in
Associates in Consolidated Financial Statements is followed for preparation of
consolidated financial statements.

1. Basis of accounting:-

these financial statements have been prepared in accordance with the Generally Accepted
Accounting Principles in India (Indian GAAP) including the Accounting Standards notified
under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts)
Rules,2014 and the relevant provisions of the Companies Act.2013.

The financial statements have been prepared under the historical cost convention on accrual
basis.

2. Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires the
management to make judgments, estimates and assumptions that affect the reported amounts
of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the
end of the reporting period. A (though these estimates are based on the management’s best
knowledge of current events and actions , uncertainty about these assumptions and estimates
could result in the outcomes requiring a material adjustment to the carrying amounts of assets
or liabilities in future periods.

3. Revenue Recognition

Expenses and Income considered payable and receivable respectively are accounted
for on accrual basis.

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.

4. principles of consolidation (only in case where consolidation is made)

a. The consolidated financial statements relate to MEWAR HI TECH ENGINEERING
LIMITED (''the Company'') and its associate/subsidiary company

b. The consolidated financial statements have been prepared In accordance with
requirement of section 129 read with schedule -III of the Companies Act 2013,
Accounting Standard (AS) 21-''Consolidated Financial Statements'' or 23-''Accounting
for investments in associates in Consolidated Financial Statements'' as specified under
section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accou
nts) Rules, 2014 and generally accepted accounting principles

c. In case of Associates* Equity Method as stated in AS-23 “Accounting for Investments in
Associates in Consolidated Financial Statements is followed for preparation of
consolidated financial statements.

The difference between the costs of investment in the Associate, over the net assets at
the time of acquisition of shares in the Associate is disclosed in the consolidated
financial statements as Goodwill or Capital Reserve, as the case may be.

OR

In case of Subsidiary * The financial statements of the company and its subsidiary
are combined on a line by line basis by adding together like items of assets, liabilities,
equity, incomes, expenses and cash flows, after fully eliminating intra-group balances
and intra-group transactions.

Profits/losses resulting from intra-group transactions that are recognized in assets are
eliminated in full, if any.

d. As far as possible, the consolidated financial statements arc prepared using uniform
accounting policies for like transactions and other events in similar circumstances and
are presented in the same manner as the Company''s separate financial statements.

e Entities controlled by the company are consolidated from the date control commences
until the date control ceases.

f. In case of associates* If, under the equity method, an investor''s share of losses of an
associate equals or exceeds the carrying amount of the investment, the investor
ordinarily discontinues recognizing its share of further losses and the investment is
reported at nil value. Additional losses arc provided for to the extent that the investor
has incurred obligations or made payments on behalf of the associate to satisfy
obligations of the associate that the investor has guaranteed or to which the investor
is otherwise committed, if the associate subsequently reports profits , the investor
resumes including its share of those profits only after its share of the profits equals
the share of net losses that have not been recognised.

OR

In case of Subsidiary* The difference between the cost of investment in the
subsidiaries, over the net assets at the time of acquisition of shares in the subsidiaries
is recognized in the financial statements as Goodwill or Capital Reserve, as the case
may be.

1. Properly. Plant & Equipment -

Property, Plant & Equipment including intangible assets are stated at their original cost of
acquisition including taxes, freight and other incidental expenses related to acquisition and
installation of the concerned assets less depreciation till date.

Company has adopted cost model for all class of items of Property Plant and Equipment.

OR

(in case of Revaluation model)

NIL-is revalued by independent professional valuers on a triennial basis and whenever their
carrying amounts are likely to differ materially from their revalued amounts. When an asset
is revalued, any accumulated depreciation at the date of revaluation is eliminated against the
gross carrying amount of the asset. The net amount is then restated to the revalued amount of
the asset.

Increases in carrying amounts arising from revaluation, including currency translation
differences, arc recognized in the asset revaluation reserve, unless they offset previous
decreases in the carrying amounts of the same asset, in which case, they are recognized in
profit or loss. Decreases in carrying amounts that offset previous increases of the same asset
are recognized against the asset revaluation reserve. All other decreases in carrying amounts
are recognized as a loss in the statement of Profit & Loss

6. Depreciation

Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Written
down Value (WDV) Method/SLM method. Depreciation is provided based on useful life of
the assets as prescribed in Schedule to the Companies Act, 2013.

All fixed assets individually costing Rs 72927864 00 or less are fully depreciated in the year
of installation/purchase.

Depreciation on assets acquired/sold during the year is recognized on a pro-rata basis to the
statement of profit and loss till the date of acquisition/salc.

The carrying amount of assets is reviewed at each balance sheet dale if there is any indication
of impairment based on interna].¦external factors. An impairment loss is recognized wherever
the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the
greater of the assets, net selling price and value in use. In assessing value in use, the estimated
future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and risks specific to the asset.

After impairment, depreciation is provided on the revised carrying amount of the asset over its
remaining useful life

7. Foreign currency Transactions: -

Transactions arising in foreign currencies during the year are converted at the rates closely
approximating the rates ruling on the transaction dates. Liabilities and receivables in foreign
currency are restated at the year-end exchange rales. All exchange rate differences arising
from conversion in terms of the above arc included in the statement of profit and loss.

8. Investments-

Investments, which are readily realizable and intended to he held for not more than one year
from the date on which such Investments are made, are classified as current investments. All other
Investments arc classified as non-current investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase
price and directly attributable acquisition charges such as brokerage, fees and duties.

Current investments are carried in the financial statements at lower of cost and fair value
determined on an individual investment basis. Long-term investments are carried at cost.
However, provision for diminutions in value is made to recognize a decline other than
temporary in the value of the investments.

On disposal of an investment, the difference between its carrying amount and net disposal
proceeds is charged or credited to the statement of profit and loss.

9.Inventories -

Inventories arc valued as under:-

1. Inventories Lower of cost (FIFO/speeific cost/¹ Weigh led avg) or net realizable

value

2. Scrap At net realizable value.

10 Borrowing cost: -

Borrowing costs that arc attributable to the acquisition or construction of the qualifying assets
are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily
takes a substantial period of time to get ready for its intended uses or sale. All other
borrowing costs arc charged to revenue in the year of incurrence. The amount of borrowing
cost capitalized during the year is Nil,.

11 Retirement Benefits:-

The company has taken a policy from Life Insurance Corporation of India for the payment of
gratuity. The gratuity has been provided in books on accrual basis The leave encashment is
accounted for as and when the liability for it becomes due for payment.

Or

The retirement benefits are accounted for as and when liability becomes due for
payment

12. Taxes on Income:-

Provision for current tax is made on the basis of estimated taxable income for the current
accounting year in accordance with the Income TaxAct,l96l. The deferred tax for timing
differences between the book and tax profits for the year is accounted for, using the tax rates
and laws that have been substantively enacted by the balance sheet date Deferred tax assets
arising from timing differences are recognized to the extent there is virtual certainty'' with
convincing evidence that these would be realized in future. At each Balance Sheet date, the
carrying amount of deferred tax is reviewed to reassure realization.

Or

The effect of Accounting Standard-22 relating to accounting for taxes on income issued by the
Institute of Chartered Accountants of India is not being

Considered as there is no timing difference between hook and taxable profits under the head
''Income from Business or Profession'' of the asses see.

Or

No provision of tax as required by AS-22 issued by the Institute of Chartered Accountants of
India has been made due to uncertainty that sufficient taxable income against which such
deferred tax assets can be realized . The impact of same has also not been determined

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Mar 31, 2024

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