Accounting Policies of Mahaalaxmi Texpro Ltd. Company

Mar 31, 2024

SIGNIFICANT ACCOUNTING POLICIES:

I) Basis of Preparation

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) as
prescribed by Ministry of Corporate Affairs under Companies (Indian Accounting Standards) Rules, 2015, provisions of the
Companies Act, 2013, to the extent notified and pronouncements of the Institute of Chartered Accountants of India.

Disclosures under Ind AS are made only in respect of material items and in respect of the items that will be useful to the users of
financial statements in making economic decisions.

The financial statements for the year ended 31^st March 2024 (including comparatives) are duly adopted by the Board on May 27,
2024 for consideration and approval by shareholders.

The financial statements have been prepared on going concern basis.

II) Summary of accounting policies

1) Overall considerations

The financial statements have been prepared applying the significant accounting policies and measurement bases
summarized below.

2) Revenue Recognition

Revenue is measured at fair value of the consideration received or receivable and net of returns, trade allowances and rebates
and amounts collected on behalf of third parties. It excludes any indirect taxes.

i. Sale of Products:

Revenue from sale of products if any, is recognised when significant risks and rewards of ownership pass to the
customers, as per the terms of the contract and when the economic benefits associated with the transactions will flow to
the Company.

ii. Sale of service: The company operates the unit on Job work basis and the revenue is recognised at the end of each month
based on the cumulative production and/or dispatches of the month.

iii. Interest Income:

Interest incomes are recognized using the time proportion method based on the rates implicit in the transaction. Interest
income is included in other income in the statement of profit and loss.

3) Property, plant and equipment

i. All items of Property, Plant and Equipment are stated at cost of acquisition/construction less accumulated
depreciation/amortization and impairment, if any. Cost includes:

a. Purchase Price b. Taxes and Duties c. Labour cost and

d. Directly attributable overheads incurred up to the date the asset is ready for its intended use.

However, cost excludes excise duty, value added tax, service tax, and GST to the extent credit of the duty or tax is availed
of.

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the
item can be measured reliably.

ii. Component Accounting:

The component of assets are capitalized only if the life of the components vary significantly and whose cost is significant
in relation to the cost of the respective asset, the life of the component in assets are determined based on technical
assessment and past history of replacement of such components in the assets. The carrying amount of any component
accounted for as separate asset is derecognised when replaced.

iii. Other cost:

All other repairs and maintenance cost are charged to the statement of profit and loss during the reporting period in which

they are incurred.

Profit or Losses on disposals are determined by comparing proceeds with the carrying amount. These are included in the

Statement of Profit and Loss within other income/(loss).

iv. Depreciation and amortization:

a. Depreciation is recognized on a straight-line basis, for buildings over the period of lease land and for others over the

useful life of other equipment as prescribed under Schedule II of the Companies Act, 2013.

b. Depreciation on tangible fixed assets is charged over the estimated useful life of the asset or part of the asset as

evaluated on technical assessment on straight line method, in accordance with Part A of Schedule II to the

Companies Act, 2013

c. The estimated useful life of the tangible fixed assets on technical assessment followed by the Company is furnished
below:

d. The residual value for all the above assets are retained at 5% of the cost. Residual values and useful lives are
reviewed and adjusted, if appropriate, for each reporting period.

e. On tangible fixed assets added/disposed off during the year, depreciation is charged on pro-rata basis for the period
for which the asset was purchased and used.

4) Impairment

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognised for the amount by which the asset''s carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an asset''s fair value less costs of disposal and value in use.

The recoverable amount of the assets cannot be disclosed at the stage and hence the test of impairment is not applied in the
current financial year

In respect of assets whose impairment are to be assessed with reference to other related assets and such group of assets
have independent cash flows (Cash Generating Units), such assets are grouped and tested for impairment.

Non-financial assets that suffered impairment are reviewed for possible reversal of the impairment at the end of each reporting
period.

5) Leases

i. Assets taken on Lease

As per the terms of lease agreements there is no substantial transfer of risk and reward of the property to the Company
and hence such leases are treated as operating lease.

The payments on operating lease are recognized as an expense over the lease term. Associated costs, such as
maintenance and insurance, are expensed. The Company has taken land on lease from the promotors of the company and
pursuant to the insolvency proceedings the lease rent has not been provided for.

ii. Decommissioning charges in respect of properties like Plant and equipment, furniture & fixtures and office equipment''s
presently located in land taken on lease are not provided for as it is impractical to estimate the sum that will be incurred at
the time the lease comes to end. Further there is also likelihood of the lessor renewing the lease.

6) Financial Assets Classification and subsequent measurement of financial assets:

i. For the purpose of subsequent measurement, financial assets are classified and measured based on the entity''s business
model for managing the financial asset and the contractual cash flow characteristics of the financial asset at:

a. Those to be measured subsequently at fair value either through other comprehensive income (Fair Value through
Other Comprehensive Income-FVTOCI) or through profit or loss (Fair Value through Profit and Loss-FVTPL) (However
there are no such items) and;

b. Those measured at amortized cost

1. Financial assets at Amortised Cost

Includes assets that are held within a business model where the objective is to hold the financial assets to
collect contractual cash flows and the contractual terms give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.

These assets are measured subsequently at amortized cost using the effective interest method. The loss
allowance at each reporting period is evaluated based on the expected credit losses for next 12 months and
credit risk exposure.

The Company also measures the loss allowance for a financial instrument at an amount equal to the lifetime
expected credit losses (ECL) if the credit risk on that financial instrument has increased significantly since initial
recognition

2. Financial assets at Fair Value through Other Comprehensive Income (FVTOCI) :There are no such assets.

3. Financial assets at Fair Value through Profit or Loss (FVTPL) There are no such assets.

ii. Derivative financial instruments and hedge accounting: There are no such transactions.

iii. Trade receivables

The Company follows ''simplified approach'' for recognition of impairment loss allowance based on lifetime Expected
Credit Loss at each reporting date, right from its initial recognition.

iv. Derecognition of financial assets

A financial asset is derecognised only when;

a) The Company has transferred the rights to receive cash flows from the financial asset or

b) The Company retains the contractual rights to receive the cash flows of the financial asset, but expects a

contractual obligation to pay the cash flows to one or more recipients.

7) Financial Liabilities

i. Classification, subsequent measurement and derecognition of financial liabilities

a. Classification

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss or at
amortised cost. The Company''s financial liabilities include borrowings & trade and other payables.

b. Subsequent measurement

Financial liabilities are measured subsequently at amortized cost using the effective interest method.

All interest-related charges and, if applicable, changes in an instrument''s fair value that are reported in profit or loss
are included within finance costs or finance income.

c. Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or has expired.
When an existing financial liability is replaced by another from the same lender on substantially different terms, or the
terms of an existing liability are substantially modified, such an exchange or modification is treated as the
derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying
amounts is recognised in the statement of profit or loss.

8) Inventories

Inventories are valued at lower of cost or net realizable value. Net realisable value is the estimated selling price in the ordinary
course of business less the estimated cost of completion and the estimated costs necessary to make the sale. Cost is
ascertained on weighted average basis in accordance with the method of valuation prescribed by the Institute of Chartered
Accountants of India.

i. Raw materials

Raw materials are valued at cost of purchase, net of duties (credit availed w.r.t taxes and duties) and includes all expenses
incurred in bringing the materials to location of use. At the year-end there was no stock.

ii. Work-in-process and Finished Goods

Work-in-process and finished goods include conversion costs in addition to the landed cost of raw materials. At the year-
end there was no stock.

iii. Stores and spares

Stores, spares and tools cost includes cost of purchase and other costs incurred in bringing the inventories to their
present location and condition.

9) Income Taxes

Tax expense if any, recognized in the statement of profit or loss comprises the sum of deferred tax and current tax not
recognized in other comprehensive income or directly in equity.

Calculation of current tax if any, is based on tax rates in accordance with tax laws that have been enacted or substantively
enacted by the end of the reporting period. Deferred income taxes if any, are calculated using the liability method on temporary
differences between tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at reporting
date. Deferred taxes pertaining to items recognised in other comprehensive income (OCI) are disclosed under OCI.

Deferred tax assets if any,are recognized to the extent that it is probable that the underlying tax loss or deductible temporary
difference will be utilized against future tax liability. This is assessed based on the Company''s forecast of future earnings,
excluding non-taxable income and expenses and specific limits on the use of any unused tax loss or credit.

Deferred tax liabilities if any,are generally recognized in full, although Ind AS 12 ''Income Taxes'' specifies some exemptions. As a
result of these exemptions the Company does not recognize deferred tax liability on temporary differences relating to goodwill,
or to its investments in subsidiaries.

In consideration of prudence, no provision is made in respect of net deferred tax asset, arising due to timing differences after
set off of deferred tax liability, against deferred tax asset.

10) Post-employment benefits and short-term employee benefits

i. Short term obligations:

Short term obligations are those that are expected to be settled fully within 12 months after the end of the reporting
period. They are recognised up to the end of the reporting period at the amounts expected to be paid at the time of
settlement.

ii. Other long term employee benefits obligations:

The liabilities for earned leave are not expected to be settled wholly within 12 months after end of the period in which the
employees render the related service. They are, therefore, recognised and provided for at the present value of the expected
future payments to be made in respect of services provided by employee up to the end of reporting period using the
projected unit credit method. The benefits are discounted using the market yields at the end of the reporting period that
have terms approximating to the terms of the related obligation. Remeasurements as a result of experience adjustments
and changes in actuarial assumptions are recognised in Other Comprehensive Income (OCI).

The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right
to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is
expected to occur.

Provident Fund:

The eligible employees of the Company are entitled to receive benefits in respect of provident fund, a defined
contribution plan, in which both employees and the Company make monthly contributions at a specified percentage
of the cover employee''s salary. The provident fund contributions are made to EPFO.

Bonus Payable:

The Company recognises a liability and an expense for bonus. The Company recognises a provision where
contractually obliged or where there is a past practice that has created a constructive obligation.

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Mar 31, 2014

1. Method of Accounting :

The financial statements are prepared under the historical cost convention and as per mercantile system of accounting.

2. Fixed Assets :

Fixed assets are stated at cost of acquisition, inclusive of inward freight, duties and taxes and incidental expenses related to acquisition less accumulated depreciation. Capital Work In Progress comprises outstanding advances paid to acquire fixed assets, and the cost of fixed assets that are not yet ready for their intended use at the Balance Sheet date. There are no intangible assets.

3. Depreciation :

The Company has used Continuous Process Method on Plant & Machinery, Electrical Installation & Lab Equipment and the other fixed assets are depreciated on Straight Line Method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

4. Investments :

Investments are stated at cost.

5. Inventories :

Raw Material, Work in Process, Finished Goods is valued at Cost or Net Realisable value whichever is lower. Waste stock is valued at market value/net realisable value. Cost comprises of all cost of purchase, cost of conversion and the cost incurred in brining the inventory to present location and condition. Cost formulae used is "First in First Out" .

6. Retirement Benefits :

The Company has provided retirement benefits in the form of contribution to provident fund as a fixed percentage of salary and wages to employees. Employees of the Company are covered under Payment of Gratuity Act, 1972. Provision for Gratuity and Leave Encashment is made by the Company. Actuarial Valuation reports are not availed.

7. Miscellaneous expenditure :

Preliminary expenses and miscellaneous expenditure are being amortised over a period of 5 years.

8. Taxes on Income AS - 22:

In view of Losses, no taxation Provision is made during the year. In Consideration of prudence, no provision is made in respect of net deferred tax asset, arising due to timing differences after set off of deferred tax liability, against deferred tax asset.

9. Borrowing Cost AS - 16 :

Interest and other cost in connection with the borrowing of the funds to the extent related/attributed to the acquisition/ construction of qualifying fixed assets are accumulated and capitalised upto the date when such assets are ready for their intended use and other borrowing cost are charged to Profit & Loss Account.

10. Foreign Currency Transaction :

Revenue in foreign currency is translated at the exchange rate at the time of negotiation of documents. Expenditure in foreign currency is translated at the rate prevailing at the time of remittance. Monetary items denominated in foreign currency remaining unsettled at the end of the year, are reported using the closing rates as applicable.

Exchange differences arising on the settlement of monetary items or on reporting Company''s monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognised as income or expenses in the year in which they arise.

Exchange differences in respect of fixed assets acquired, including foreign currency liabilities relating thereto, are recognised as income or expenses in the period in which they arise.

11. Revenue Recognition AS - 9 :

Sales of textile and wastes are recognised upon despatch of goods to customers. There are no revenues from construction division during the year

12. Related Party Transactions AS - 18 :

1 Promoters : Mr. Ramchandra M. Mohite

2 Key Management Personnel : Mr. Anasaheb R. Mohite, Managing Director

3 Others - Enterprises in which : M/s Maruti Construction Promoters Directors hold : M/s R.M. Mohite & Co Substantial Interest

4 Relatives to Key Managerial : Mrs. Anjali A. Mohite Personnel Associate Vice President

5 Relatives : Miss. Apurva A. Mohite.

Transactions carried out with related parties : (Previous year figures are in brackets)

13. Earnings per Share (EPS) :

The basic earnings per share (EPS) is computed by dividing the net profit/(loss) after tax for the year by the number of equity shares outstanding during the year.

14. Segment information for the year ended 31 March 2014 AS - 17 :

The construction division of the Company is inoperative, therefore the whole of the operations of the Company relates only to the Textile unit and hence Segment wise reporting is not necessitated.

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Mar 31, 2012

1. Method of Accounting

The financial statements are prepared under the historical cost convention and as per mercantile system of accounting

2. Fixed Assets

Fixed assets are stated at cost of acquisition, inclusive of inward freight, duties and taxes and incidental expenses related to acquisition less accumulated depreciation. Capital Work In Progress comprises outstanding advances paid to acquire fixed assets, and the cost of fixed assets that are not yet ready for their intended use at the Balance Sheet date. There are no intangible assets

3. Depreciation

The company has used Continuous Process Method on Plant & Machinery, Electrical Installation & Lab Equipment and the other fixed assets are depreciated on Straight Line Method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956

4. Investments

Investments are stated at cost

5. Inventories

Raw Material, Work in Process, Finished Goods is valued at Cost or Net Realisable value whichever is lower. Waste stock is valued at market value/net realisable value. Cost comprises of all cost of purchase, cost of conversion and the cost incurred in brining the inventory to present location and condition. Cost formulae used is "First in First Out"

6. Retirement Benefits

The Company has provided retirement benefits in the form of contribution to provident fund as a fixed percentage of salary and wages to employees. Employees of the Company are covered under Payment of Gratuity Act, 1972. Provision for Gratuity and Leave Encashment is made by the company. Actuarial Valuation reports are not availed.

7. Miscellaneous expenditure

Preliminary expenses and miscellaneous expenditure are being amortised over a period of 5 years. Public Issue Expenses have been written off over a period of 5 years starting from the year in which the new project has commenced trial production

8. Taxes on Income AS-22

In view of Losses, no taxation Provision is made during the year. In Consideration of prudence, no provision is made in respect of net deferred tax asset, arising due to timing differences after set off of deferred tax liability, against deferred tax asset.

9. Borrowing Cost AS -16

Interest and other cost in connection with the borrowing of the funds to the extent related/attributed to the acquisition/ construction of qualifying fixed assets are accumulated and capitalised upto the date when such assets are ready for their intended use and other borrowing cost are charged to Profit & Loss Account.

10. Foreign Currency Transaction

Revenue in foreign currency is translated at the exchange rate at the time of negotiation of documents. Expenditure in foreign currency is translated at the rate prevailing at the time of remittance. Monetary items denominated in foreign currency remaining unsettled at the end of the year, are reported using the closing rates as applicable.

Exchange differences arising on the settlement of monetary items or on reporting Company's monetary items at rates different from those at which tney were initially recorded during the year, or reported in previous financial statements, are recognised as income or expenses in the year in which they arise.

Exchange differences in respect of fixed assets acquired, including foreign currency liabilities relating thereto, are recognised as income or expenses in the period in which they arise

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Mar 31, 2010

1. Method of Accounting: The financial statements are prepared under the historical cost convention and as per mercantile system of accounting

2. Fixed Assets : Fixed assets are stated at cost of acquisition, inclusive of inward freight, duties and taxes and incidental expenses related to acquisition less accumulated depreciation. Capital Work In Progress comprises outstanding advances paid to acquire fixed assets, and the cost of fixed assets that are not yet ready for their intended use at the Balance Sheet date. There are no intangible assets.

3. Depreciation : The company has used Continuous Process Method on Plant & Machinery, Electrical Installation & Lab Equipment and the other fixed assets are depreciated on Straight Line Method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956

4. Investments : Investments are stated at cost

5. Inventories: Raw Material, Work in Process, Finished Goods is valued at Cost or Net Realisable value whichever is lower. Waste stock is valued at market value/net realisable value. Cost comprises of all cost of purchase, cost of conversion and the cost incurred in brining the inventory to present location and condition. Cost formulae used is "First in First Out"

6. Retirement Benefits : The Company has provided retirement benefits in the form of contribution to provident fund as a fixed percentage of salary and wages to employees. Employees of the Company are covered under Payment of Gratuity Act, 1972 and the Company has made provision for Gratuity based on the liabilities determined by actuarial valuation as of the Balance Sheet date. Similarly the Company has made provision for Leave Encashment on the basis of actuarial valuation as of the Balance Sheet date.

7. Miscellaneous expenditure : Preliminary expenses and miscellaneous expenditure are being amortised over a period of 5 years starting from the current year Public Issue Expenses have been written off over a period of 5 years starting from the year in which the new project has commenced trial production.

8. Income Tax: Tax expense comprises of both current tax and deferred tax. Current tax is measured at the amount expected to be paid/ recovered from the tax authorities using the applicable tax rates. Deferred tax assets and liabilities are recognized for future tax consequence attributable to timing difference between taxable income and accounting income that are measured at relevant enacted tax rates.

9. Borrowing Cost: Interest and other cost in connection with the borrowing of the funds to the extent related/attributed to the acquisition/ construction of qualifying fixed assets are accumulated and capitalised upto the date when such assets are ready for their intended use and other borrowing cost are charged to Profit & Loss Account. Rebate-accrued on interest under Technology Up-gradation Scheme upto date of commissioning has been deducted from the capitalised portion of the borrowing cost and the balance portion of the rebate has been deducted from the cost of finance.

10. Foreign Currency Transaction : Revenue in foreign currency is translated at the exchange rate at the time of negotiation of documents. Expenditure in foreign currency is translated at the rate prevailing at the time of remittance. Monetary items denominated in foreign currency remaining unsettled at the end of the year, are reported using the closing rates as applicable.

Exchange differences arising on the settlement of monetary items or on reporting Companys monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognised as income or expenses in the year in which they arise.

Exchange differences in respect of fixed assets acquired, including foreign currency liabilities relating thereto, are recognised as income or expenses in the period in which they arise

11. Revenue Recognition

i. Textile : Sales of textile and wastes are recognised upon despatch of goods to customers.

ii. Construction : There are no revenues from construction division during the year