Accounting Policies of Maxvolt Energy Industries Ltd. Company

Mar 31, 2025

B. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

Basis of preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted
Accounting Principles in India (Indian GAAPs) to comply with the Accounting Standards notified under the
Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act,
2013.

The Financial Statements are prepared as a Going concern concept under the historical cost convention on an
accrual basis unless specifically stated.

Use of estimates

The preparation of the financial statements in conformity with the generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amount of assets and liabilities
as at the balance sheet date, the results of operation during the reported period and disclosure of contingent
liabilities as on the reporting date. Management believes that the estimates used in the preparation of the financial
statements are prudent and reasonable and are in their best knowledge of current event and actions. Actual results
could differ from these estimates and differences between actual results and estimates are recognized in the period
in which the results are known or materialize. Significant estimates used by the management in the preparation of
these financial statements include provision for employee benefits, estimates of the economic useful life of plant
and equipment, provision for expenses, provisioning for taxation etc.

The following significant accounting policies are adopted in the preparation and presentation of these financial

1. Revenue Recognition

a) Revenue is recognized to the extent that is probable that the economic benefits will flow to the Com pany and the
revenue can be reliably measured.

b) Revenue from sale of goods is recognized when the significant risk and rewards are transferred as per the terms of
sale. Revenues are recorded at invoice value.

c) Income in respect of interest, insurance claims, export benefits, subsidy etc. is recognized to the extent the
company is reasonably certain of its ultimate realization.

2. Inventories

Inventories comprising of raw materials, work in progress and finished goods are valued at lower of cost or net
realizable value. Cost here represents landed cost including custom duty in case of imports and is net of duty
which is convertible or refundable. Cost of inventories is determined on FIFO basis. Net realizable value is the
estimate of the selling price in the ordinary course of business less further cost expected to be incurred for its
completion and disposal. The work in progress and finished goods cost includes raw material cost, variable cost
and manufacturing overheads.

3. Foreign Currency Transaction:

a) Foreign currency transactions are recorded at the exchange rates prevailing on the date of the transaction.

b) Short term monetary items denominated in foreign currencies (such as cash, receivable, payable etc.) outstanding
at the year end, are translated /re-converted at the year-end exchange rate unless covered by a forward contract.

c) Any gain or loss arising on settlement and / or translation of short-term monitory transaction in foreign currency is
accounted for in the statement of Profit and Loss.

4. Employee Benefits

- Defined Benefit Plans

For Defined Benefit Plans, the cost of providing benefits is determined using the Projected Unit Credit Method, with
actuarial valuations being carried out at the date of each statement of financial position.

The retirement benefit obligations recognized in the statement of financial position represents the present value of
the defined benefit obligations reduced by the fair value of scheme assets. Any asset resulting from this calculation is
limited to the present value of available refunds and reductions in future contributions to the scheme.

5. Borrowing Costs

Borrowing cost includes interest and amortization of ancillary costs incurred in connection with the arrangement of
borrowings. Borrowing costs directly attributable to the acquisition, construction or production of an asset that
necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the
cost of the respective asset. All other borrowing costs are expensed in the period they occur.

6. Accounting for Taxes on Income

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid
to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India. The tax rates and tax laws used to
compute the amount are those that are enacted or substantively enacted, at the reporting date.

a) Deferred income taxes reflect the impact of timing differences between taxable income and accounting income
originating during the current year and reversal of timing differences for the earlier years. Deferred ax is measured
using the tax rates and the tax laws enacted or substantively enacted at the reporting date.

b) Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are ''ecognized for
deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets can be realized. In situations where the Company has
unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual
certainty supported by convincing evidence that they can be realized against future taxable profits.

The carrying amount of deferred tax assets are reviewed at each reporting date. The company writes-down the
carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the
case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized.

Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may
be, that sufficient future taxable income will be available.

7. Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity
shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during
the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they are entitled to
participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number
of equity shares outstanding during the period is adjusted for events such as bonus issue, share split and reverse share
split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding
change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of
all dilutive potential equity shares.

8. Property, Plant and Equipment

Property, plant and equipment are stated at cost, less accumulated depreciation and accumulated impairment
losses. The initial cost of a property, plant and equipment comprises its purchase price, any costs directly
attributable to bringingthe property, plantand equipment into the locationand condition necessary for it to be
capable of operating in the manner intended by management.An item of property, plant and equipment is
derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the
asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined
as the difference between the sales proceeds and the carrying amount of the asset and is recognized in statement of
profit and loss.

The Company provides depreciation on items of property, plant and equipment on Written Down Value (WDV)
Method based on useful life specified as below:

Depreciation amount for asset is the cost of an asset less its estimated residual value. In case of impairment
depreciation is provided on revised carrying amount over its remaining useful life.

9. Intangible Assets

Intangible assets are stated at cost of acquisition net of recoverable taxes less accumulated amortisation/ depletion.
All costs, including financing costs till commencement of commercial production, net charges on foreign exchange
contracts and adjustments arising from exchange rate variations attributable to the intangible assets are capitalised.
Depreciation on Intangible assets is calculated on Written down value method at useful life of 10 years.

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Mar 31, 2024

1. Significant Accounting Policies: NOTE-21

Basis of preparation:

The financial statements have been prepared and presented under the historic cost convention on accrual basis
of accounting, in accordance with generally accepted accounting principles ("GAAP") applicable in India. GAAP
comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 (''Act'')
and pronouncements of the Institute of Chartered Accountants of India, the provisions of the Act (to the extent
notified).

The financial statements are presented in Indian Rupees (INR) and are rounded off to the nearest thousands
except per share data and unless stated otherwise. Due to rounding off, the numbers presented throughout the
document may not add up precisely to the totals and percentages may not precisely reflect the absolute figures.
The figures which are appearing as ''0''are result of rounding off.

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 the Schedule III of the Act. 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 ascertained its operating cycle as 12 months for current and non-current classification of assets and
liabilities.

Key Accounting Estimates and Judgements:

The preparation of standalone financial statements requires management to make judgments, estimates and
assumptions in the application of accounting policies that affect the reported amounts of assets, liabilities,
income and expenses. Actual results may differ from these estimates. Continuous evaluation is done on the
estimation and judgments based on historical experience and other factors, including expectations of future
events that are believed to be reasonable. Revisions to accounting estimates are recognized prospectively.

Significant Accounting Policies:

The significant accounting policies used in preparation of the standalone financial statements are as under.

2. Property, Plant and Equipment:

• Property, plant and equipment is stated at acquisition cost net of accumulated depreciation and
accumulated impairment losses, if any. Cost of acquisition or construction of property, plant and
equipment comprises its purchase price including import duties and non-refundable purchase taxes
after deducting trade discounts, rebates and any directly attributable cost of bringing the item to its
working condition for its intended use.

• Subsequent costs are included in the asset''s carrying amount or recognized 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. All other repairs and maintenance cost
are charged to the standalone statement of profit and loss during the period in which they are incurred.

• Gains or losses that arise on disposal or retirement of an asset are measured as the difference between
net disposal proceeds and the carrying value of property, plant and equipment and are recognized in the
statement of profit and loss when the same is derecognized.

• Depreciation is calculated on pro rata basis on straight-line / WDV method based on estimated useful
life prescribed under Schedule II of the Companies Act, 2013. Freehold land is not depreciated.

• Intangible assets purchased are initially measured at cost.

3. Impairment of Assets:

During the year, the Company has undertaken a review of all fixed assets in line with the requirement of AS-28
on "impairment of assets" issued by the Institute of Chartered Accountants of India. Based on such review, no
provision for impairment is required to be recognized for the year.

4. Depreciation and Amortization:

Depreciation on the fixed assets is provided as per the period prescribed in Schedule II to the Companies Act,
2013 as to charge off the cost of assets to the Statement of Profit and Loss over their estimated useful life.

5. Employee Benefits:

Short-term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss
account of the year in which the related service is rendered.

6. Inventories:

Stock in trade, stores and spares are valued at the lower of the cost or net realizable value. Net realizable value
is the estimated selling price in the ordinary course of business, less estimated costs of completion and
estimated costs necessary to make the sale. Cost of stock in trade procured for specific projects is assigned by
specific identification of individual costs of each item. Costs of stock in trade, that are interchangeable and not
specific to any project is determined using the weighted average cost formula. Cost of stores and spare parts is
determined using weighted average cost.

7. Borrowing Costs:

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily
takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of
the respective asset. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of
interest, exchange differences arising from foreign currency borrowings to the extent they are regarded as an
adjustment to the interest cost and other costs that an entity incurs in connection with the borrowing of funds.

8. Revenue Recognition:

Revenue from Operations

• Sale and operating income includes sale of products, services, etc.

• Sale of goods are recognized, net of returns and trade discounts, on transfer of significant risks and rewards
of ownership to the buyer.

9. Taxation:

Income-tax expense comprises current tax (i.e. amount of tax for the period determined in accordance with the
income-tax law) and deferred tax charge or credit effects of timing differences between accounting income and
taxable income for the period). Income-tax expense is recognized in profit or loss except that tax expense
related to items recognized directly in reserves is also recognized in those reserves.

Current tax is measured at the amount expected to be paid to (recovered from) the taxation authorities, using
the applicable tax rates and tax laws. Deferred tax is recognized in respect of timing differences between taxable
income and accounting income i.e. differences that originate in one period and are capable of reversal in one or
more subsequent periods. The deferred tax charge or credit and the corresponding deferred tax liabilities or
assets are recognized using the tax rates and tax laws that have been enacted or substantively enacted by the
balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the
assets can be realized in future; however, where there is unabsorbed depreciation or carried forward loss under
taxation laws, deferred tax assets are recognized only if there is a virtual certainty supported by convincing
evidence that sufficient future taxable income will be available against which such deferred tax assets can be
realized. Deferred tax assets are reviewed as at each balance sheet date and written down or written-up to
reflect the amount that is reasonably/virtually certain (as the case may be) to be realized.

Minimum Alternative Tax (''MAT'') under the provisions of the Income-tax Act, 1961 is recognized as current tax
in the Statement of Profit and Loss. The credit available under the Act in respect of MAT paid is recognized as an
asset only when and to the extent there is convincing evidence that the company will pay normal income tax
during the period for which the MAT credit can be carried forward for set-off against the normal tax liability.
MAT credit recognized as an asset is reviewed at each balance sheet date and written down to the extent the
aforesaid convincing evidence no longer exists.

10. Earnings per share:

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to
equity shareholders and the weighted average number of shares outstanding during the year are adjusted for
the effects of all dilutive potential equity shares.

EPS - Rs.5.94.