Notes to Accounts of Mercury Ev-Tech Ltd.

Mar 31, 2025

*In accordance with terms of approval of Board of Directors at their meeting held on 07th November 2024, and subseuqetly as approved in the Extraordinary General Meeting of shareholders of the Company held on 12th October 2024, the Company has allotted 1,44,25,666 equity shares at a Price of Rs. 75/- per share to Promoter & Non-Promoter Group (including premium of Rs 74/- per share) on Preferential Basis to Promoter & Non-Promoter Group. Pursuant to this allotment, the Securities Premium stands increased by Rs. 10,674.99 Lakhs. The proceeds from Preferential issue have been utilised for the intended purposes as mentioned in the Notice of Shareholders Meeting.

*In accordance with terms of approval of Board of Directors at their meeting held on 9th November, 2023, and subseuqetly as approved in the Annual General Meeting held on 30th September 2023, the Company has allotted 86,80,000 equity shares at a Price of Rs. 33/- per share (including premium of Rs 32/- per share) on preferential basis. Pursuant to this allotment, the securities premium stands increased by Rs. 2772.58 Lakhs net of share issue expenses of Rs. 5.00 Lakhs. The proceeds from Preferential issue have been utilised for the intended purposes.

16.3 Terms/ right attached to equity shares

The Company has only one class of equity shares of par value of Rs. 1 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets ofthe Company after distribution of all preferential amounts.The distribution will be in proportion to the number of equity shares held by the shareholders.

As per records of the company, including its register of Shareholders / Members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

Rights as to Dividend

The Equity shareholders have right dividend when declared by the Board of Directors subject to approval in the ensuring Annual General Meeting.

Right pertaining to repayment of Capital

In the event of liquidation of the company, the holders of equity share will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be according to the shareholders rights and interest in the company.

*In accordance with terms of approval of Board of Directors at their meeting held on 07th November 2024, and subseuqetly as approved in the Extraordinary General Meeting held on 12th October 2024, the Company has allotted 4,53,000 Convertible Equity Warrants at a Price of Rs. 75/- per warrant against which the company has received 25% of the consideration. The balance 75% ofthe Warrant issue price shall be payable by the warrant holder(s) at the time of exercising conversion of Convertible Warrants

18.1 Nature of Securities for Term Loans

Primary Security

(i) an Exclusive charge by way of hypothecation ofthe company''s entire movable , including movable machinery, machinery spares, tools and accessories, and all other movable assets both , present and future;

(ii) an exclusive charge on the company''s book-debts, operating cash flows, receivables, and Inventories;

Collateral Security

Secured by Exclusive First charge by way of Mortgage on plot of land at Block No 28, Opp Amar Foods & Bewerages, Village Mangleg, Ta. Karjan, Vadodara together with the structures standing thereon (Present and future)

Joint & Several personally guaranteed by Kavit Thakkar, Arvindkumar Thkkar, Jayesh Thakkar

Corporate guarantee of EV Nest Private Limited, Raghuveer International Private Limited & Shree Saibaba Exim Private Limited

Repayment Term Loan shall be payable in 68 Monthly instalments,commencing from Aug, 2023.

Under the Micro, Small & Medium Enterprises Development Act, 2006 which came into force from 2 October 2006, certain disclosures are required to be made relating to Micro, Small & Medium Enterprises. The Company is in the process of compiling relevant information from its suppliers about their coverage under the said Act. Since the relevant information is not readily available, no disclosures have been made in the accounts. However, in the view of the management, the impact of interest, if any, which may subsequently become payable in accordance with the provisions of the act would not be material and the same, if any, would be disclosed in the year of payment of interest.

36 Additional information to the financial statements (A) Contingent Liabilities and Capital Commitments		'' in Lakhs
Particulars	31-Mar-25	31-Mar-24
(a)Contingent Liabilities (i) Claims against the Company not acknowledge as debts
(on account of outstanding law suits)	-	-
(ii)Guarantees given by Banks to third parties on behalf ofthe company (b) No provision has been made for following demands raised by the	-	-
authorities since the company has reason to believe that it would get relief at the appellate stage as the said demand are excessive and erroneous
(i) Disputed Income Tax Liability
Against Which amount already paid As at March 31, 2025 '' Nil lakhs* (As at March 31, 2024 '' Nil lakhs)	-	-
(c)Commitments*
Estimated amount of contracts remaining to be executed on capital account & not provided for (Net of Advances)	-	-
* The Details with regards to the estimated amount of contracts on account of capital expenditure is not ascertained
by the company as the data with regards to the same are under preparation.
(B) Auditor''s Remuneration
Particulars	31-Mar-24	31-Mar-23
Audit Fees (Including for Quarterly limited review)	4.60	5.52
For Certification work	-	-
Fees for other services	-	-
Total	4.60	5.52

37 IMPAIRMENT

The Company has not found any indication of impairment of the assets as per Ind AS 38 and accordingly no further exercise for calculating impairment loss has been undertaken.

38 DISCLOSURE PURSUANT LEASES:

As Lessee

Short term Leases

The Company has obtained premises for its business operations under operating lease or leave and license agreements. These are not non-cancellable and are renewable by mutual consent on mutually agreeable terms.

Lease payments are recognised in Statement of Profit and Loss under the head "Rent Expense" in note no 34.

(i) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

There are no transfers between levels 1 and 2 during the year.

The Company''s policy is to recognise transfers into and transfers out of fair value hierarchy levels at the end of the reporting period.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of the remaining financial instruments is determined using discounted analysis.

All of the resulting fair value estimates are included in level 1 or 2 except for unlisted equity securities where the fair values have been determined based on present values and the discount rates used were adjusted for counter party or own credit risk.

The carrying amounts of trade receivables, electricity deposit, employee advances, cash and cash equivalents and other short term receivables, trade payables, unclaimed dividend, borrowings, and other current financial liabilities are considered to be the same as their fair values, due to their short-term nature.

40 FINANCIAL RISK MANAGEMENT

The company''s activities expose it to market risk, liquidity risk and credit risk.

This note explai ns the sources of risk which the entity is exposed to and how the entity manages the risk.

The Company''s board of directors has overall responsibility for the establishment and oversight ofthe Company''s risk management framework.

The Company''s risk management established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management systems are reviewed periodically to reflect changes in market conditions and the Company''s activities. The Company, through its training, standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

(A) Credit risk

Credit risk is the risk offinancial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and investment securities. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

(i) Trade receivables

The Company measures the expected credit loss oftrade receivables based on historical trend, industry practices and the business environment in which the entity operates. However, based on historical data, there were no significant bad debts written off nor provision for doubful debts had been created. In determination of allowances for credit losses on trade receivables, the Company has used a practical expedience by computing the expected credit losses based on ageing matrix, which has taken into account historical credit loss experience and adjusted for forward looking information.

(ii) Cash and cash equivalents

As at the year end, the Company held cash and cash equivalents of '' 587.12 Lacs . The cash and cash equivalents are held with bank and financial institution counterparties with good credit rating.

(iii) Loans and advances

In the case of loans to employees, the same is managed by establishing limits. (Which in turn based on the employees salaries and number of years of service put in by the concern employee)

(iv) Other Financials Assets

Others Financial Assets are considered to be of good quality and there is no significant increase in credit risk.

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering

cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

Maturities of financial liabilities

The tables herewith analyse the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities for:

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(C) Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company''s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. We are not exposed to market risk primarily related to foreign exchange rate risk.

(D) CAPITAL MANAGEMENT

For the purpose of Company''s Capital Management, equity includes equity share capital and all other equity reserves attributable to the equity holders of the Company. The Company manages its capital to optimise returns to the share holders and make adjustments to it in light of changes in economic conditions or its business requirements. The Company''s objective is to safe guard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate return to share holders through continuing growth and maximise the shareholders value. The Company funds its operations through internal accruals and long term borrowings competitive rate. The Management and Board of Directors monitor the return of capital as well as the level of dividend to share holders.

41 Employee benefits

[a] Defined benefit plan:

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service.The scheme is funded. The following tables summaries the components of net benefit expense recognized in the Statement of profit and loss and the funded status and amounts recognized in the balance sheet for the gratuity plan.

The following table sets out the status of the gratuity plan and the amounts recognised in the Company''s financial statements as at March 31, 2025.

Note 1: Discount rate is determined by reference to market yields atthe balance sheet date on Government bonds, where the currency and terms of the Government bonds are consistent with the currency and estimated terms for the benefit obligation.

Note 2: The estimate of future salary increases taken into account inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

Note 3: The gratuity provision as described above is not invested or funded in any Investments options.

44 Disclosures related to the Micro, Small and Medium Enterprises.

The Company has not received information from vendors regarding their status under the Micro, Small & Medium Enterprises Development Act,2006 and hence disclosure relating to amount unpaid at the year end together with interest paid/paybale under the Act have not been given.

45 Segment Reporting

Ind AS 108 Operating Segments requires Management to determine the reportable segments for the purpose of disclosure in financial statements based on the internal reporting reviewed by Chief Operating Decision Maker (CODM) to assess performance and allocate resources.

Operating segments are defined as ''Business Units'' of the Company about which separate financial information is available that is evaluated regularly by the Chief Operating Decision Maker or decision making group in deciding how to allocate resources and in assessing performance.

The Comapany operate in Manufacturing and Trading of Electronic Vehicle and related parts. The management considers that these business units have similar economic characteristic nature ofthe product, nature ofthe regulatory environment etc. Based on the management analysis, the Company has only one operating segment, so no seperate segment report is given. The principle geographical areas in which company the Company operates is India.

47 Confirmation of parties for amount due from them as per accounts ofthe Company are not obtained. Amount due from customers include amounts due / with held on account of various claims. The Claims will be verified and necessary adjustments, if any, shall be made in the year of settlement. Subject to this, company is confident of recovering the dues and accordingly they have been classified as "debt considered good" and therefore no provision is considered necessary there against.

48 In case of Loans granted by the Company and Borrowing taken by the Company, the terms of repayment of Loan and Advances has not been specified and hence it falls under the repayable on demand,but term of Repayment of Borrowing are Specified as per Agreement with Financial Institution , On the basis of the same we have classified the entire Borrowings as Secured Loan and Loans and advances as Current Assets.

49 In the opinion of the Board of Directors, Current Assets, Loans & Advances have value at which they are stated in the Balance Sheet, if realized in the ordinary course of business. The provision for depreciation and for all know liabilities is adequate and not in excess of the amount reasonably necessary.

50 The Company do not have any Benami property, where any proceeding has been initiated or pending against the Group for holding any Benami property.

51 Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

52 The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

53 The Company have not traded or invested in Crypto currency or Virtual Currency during the year.

54 The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall: directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or provide any guarantee, security or the like to or on behalf ofthe Ultimate Beneficiaries.

55 "The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:"(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or"(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries."

56 The Company do not have any such transaction which is not recorded in the books of accounts and that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

57 The company holds all the title deeds of immovable property in its name.

58 There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

59 The company is not declared as wilful defaulter by any bank or financial Institution or other lender.

60 The Previous year''s figures, wherever necessary, have been regrouped/reclassified to conform to the current year''s presentation.

A The increase in Current Ratio is primarily on account of higher current assets during the reporting period, mainly arising from increase in trade receivables and inventory levels, coupled with higher cash and bank balances, as compared to the corresponding period.

B The reduction in Debt-Equity Ratio is attributable to repayment of term loans and short-term borrowings as well as infusion of fresh equity capital. This combined effect has improved the capital structure and reduced the Company''s dependence on external debt.

C The improvement in Debt Service Coverage Ratio is attributable to reduction in debt servicing obligations as a result of repayment of loans and lower finance cost, which has strengthened the debt servicing position of the Company.

D The increase in Inventory Turnover Ratio is a result of both higher sales and improved inventory management, which has enabled faster conversion of stock into revenue and reduced holding costs.

E The increase in Trade Receivable Turnover Ratio is a result of both higher sales and faster realisation from debtors, reflecting improved efficiency in credit management and collection processes.

F The increase in Trade Payable Turnover Ratio is the combined effect of enhanced liquidity and conscious decision of the Company to expedite payments to suppliers, thereby reducing reliance on extended credit.

G The reduction in Operating Profit Margin is attributable to higher production and overhead costs incurred consequent to commencement of manufacturing operations, as initial stages of production generally involve higher input cost, underutilisation of capacity and setup-related expenses.

H The increase in Interest Coverage Ratio is on account of improved operating profitability coupled with reduction in finance cost, thereby strengthening the debt-servicing capability of the entity.

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Mar 31, 2024

N. Provisions and Contingencies:

a) Provisions are recognized based on the best estimate of probable outflow of resources which would be required to settle obligations arising out of past events.

b) Contingent liabilities not provided for as per (a) above are disclosed in notes forming part of the Financial Statements If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

c) Contingent Assets are disclosed, where the inflow of economic benefits is probable.

O. Earnings per Share:

a) Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends, if any, and attributable taxes) by the weighted average number of equity shares outstanding during the period.

b) 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 effect of all dilutive potential equity shares.

P. Leases:

A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Company as a lessee

(A) Lease Liability

At the commencement date, the Company measures the lease liability at the present value of the lease payments that are not paid at that date. The lease payments shall be discounted using incremental borrowing rate.

(B) Right-of-use assets

Initially recognised at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives.

Subsequent measurement

(A) Lease Liability

Company measure the lease liability by (a) increasing the carrying amount to reflect interest on the lease liability; (b) reducing the carrying amount to reflect the lease payments made; and (c) remeasuring the carrying amount to reflect any reassessment or lease modifications.

(B) Right-of-use assets

Subsequently measured at cost less accumulated depreciation and impairment losses. Right-of-use assets are depreciated from the commencement date on a straight line basis over the shorter of the lease term and useful life of the under lying asset.

Impairment

Right of use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.

Short term Lease

Short term lease is that, at the commencement date, has a lease term of 12 months or less. A lease that contains a purchase option is not a short-term lease. If the company elected to apply short term lease, the lessee shall recognise the lease payments associated with those leases as an expense on either a straight-line basis over the lease term or another systematic basis. The lessee shall apply another systematic basis if that basis is more representative of the pattern of the lessee’s benefit.

As a lessor

Leases for which the company is a lessor is classified as a finance or operating lease. Whenever, the terms of the lease transfers substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.

Lease income is recognised in the statement of profit and loss on straight line basis over the lease term.

Q. Exceptional items:

Certain occasions, the size, type or incidence of an item of income or expense, pertaining to the ordinary activities of the Company is such that its disclosure improves the understanding of the performance of the Company, such income or expense is classified as an exceptional item and accordingly, disclosed in the notes accompanying to the financial statements.

2. USE OF JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

While preparing financial statements in conformity with Ind AS, the management has made certain estimates and assumptions that require subjective and complex judgments. These judgments affect the application of accounting policies and the reported amount of assets, liabilities, income and expenses, disclosure of contingent liabilities at the statement of financial position date and the reported amount of income and expenses for the reporting period. Financial reporting results rely on the management estimate of the effect of certain matters that are inherently uncertain. Future events rarely develop exactly as forecasted and the best estimates require adjustments, as actual results may differ from these estimates under different assumptions or conditions. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized prospectively.

Judgment, estimates and assumptions are required in particular for:

a) Determination of the estimated useful life of tangible assets

Useful life of tangible assets is based on the life prescribed in Schedule II of the Companies Act, 2013. In cases, where the useful life are different from that prescribed in Schedule II, they are based on technical advice, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers’ warranties and maintenance support.

b) Recognition and measurement of defined benefit obligations

The obligation arising from defined benefit plan is determined on the basis of actuarial assumptions. Key actuarial

assumptions include discount rate, trends in salary escalation, actuarial rates and life expectancy. Ihe discount rate is determined by reference to market yields at the end of the reporting period on government bonds. The period to maturity of the underlying bonds correspond to the probable maturity of the post-employment benefit obligations. Due to complexities involved in the valuation and its long-term nature, defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting period.

c) Recognition of deferred tax liabilities

Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying values of assets and liabilities and their respective tax bases, and unutilized business loss and depreciation carryforwards and tax credits. Deferred tax assets are recognized to the extent that it is probable that future taxable income will be available against which the deductible temporary differences, unused tax losses, depreciation carry-forwards and unused tax credits could be utilized.

d) Discounting of financial assets / liabilities

All financial assets / liabilities are required to be measured at fair value on initial recognition. In case of financial assets / liabilities which are required to be subsequently measured at amortized cost, interest is accrued using the effective interest method.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

There are no transfers between levels 1 and 2 during the year.

The Company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels at the end of the reporting period.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of the remaining financial instruments is determined using discounted analysis.

All of the resulting fair value estimates are included in level 1 or 2 except for unlisted equity securities where the fair values have been determined based on present values and the discount rates used were adjusted for counter party or own credit risk.

The carrying amounts of trade receivables, electricity deposit, employee advances, cash and cash equivalents and other short term receivables, trade payables, unclaimed dividend, borrowings, and other current financial liabilities are considered to be the same as their fair values, due to their short-term nature.

37 FINANCIAL RISK MANAGEMENT

The company’s activities expose it to market risk, liquidity risk and credit risk.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk.

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework.

The Company’s risk management established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management systems are reviewed periodically to reflect changes in market conditions and the Company’s activities. The Company, through its training, standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

(A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers and investment securities. Credit risk is managed tnrougn creait approvals, estaDiisning creait limits ana continuously monitoring tne creaitwortnmess or customers to wmcn tne Company grants credit terms in tne normal course of business.

(i) Trade receivables

Tne Company measures tne expected credit loss of trade receivables based on nistorical trend, industry practices and tne business environment in wliicli tne entity operates. However, based on nistorical data, tliere were no significant bad debts written off nor provision for doubful debts liad been created. In determination of allowances for credit losses on trade receivables, tne Company nas used a practical expedience by computing tne expected credit losses based on ageing matrix, wnicn nas taken into account nistorical credit loss experience and adjusted for forward looking information.

(ii) Cash and cash equivalents

As at tne year end, tne Company neld casi and casn equivalents of ¹ 897.5295 Lacs . Tne casn and casn equivalents are neld witli bank and financial institution counterparties witn good credit rating.

(iii) Loans and advances

In tie case of loans to employees, tie same is managed by establisiing limits. (Wiici in turn based on tie employees salaries and number of years of service put in by tie concern employee)

(iv) Other Financials Assets

Otiers Financial Assets are considered to be of good quality and tiere is no significant increase in credit risk.

(B) Liquidity risk

Liquidity risk is tie risk tiat tie Company will encounter difficulty in meeting tie obligations associated witi its financial liabilities tiat are settled by delivering casi or anotier financial asset. Tie Company’s approaci to managing liquidity is to ensure, as far as possible, tiat it will iave sufficient liquidity to meet its liabilities wien tiey are due, under boti normal and stressed conditions, witiout incurring unacceptable losses or risking damage to tie Company’s reputation.

Maturities of financial liabilities

Tie tables ierewiti analyse tie Company’s financial liabilities into relevant maturity groupings based on tieir contractual maturities for:

(C) Market risk

Market risk is tie risk tiat cianges in market prices - suci as foreign exciange rates, interest rates and equity prices - will affect tie Company’s income or tie value of its ioldings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. We are not exposed to market risk primarily related to foreign exciange rate risk.

(D) CAPITAL MANAGEMENT

For tie purpose of Company’s Capital Management, equity includes equity siare capital and all otier equity reserves attributable to tie equity iolders of tie Company. Tie Company manages its capital to optimise returns to tie siare iolders and make adjustments to it in light of changes in economic conditions or its business requirements. The Company s objective is to safe guard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate return to share holders through continuing growth and maximise the shareholders value. The Company funds its operations through internal accruals and long term borrowings competitive rate. The Management and Board of Directors monitor the return of capital as well as the level of dividend to share holders.

38 Employee benefits

[a] Defined benefit plan:

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service.The scheme is funded. The following tables summaries the components of net benefit expense recognized in the Statement of profit and loss and the funded status and amounts recognized in the balance sheet for the gratuity plan.

41 Disclosures related to the Micro, Small and Medium Enterprises.

The Company has not received information from vendors regarding their status under the Micro, Small & Medium Enterprises Development Act,2006 and hence disclosure relating to amount unpaid at the year end together with interest paid/paybale under the Act have not been given.

42 Segment Reporting

Ind AS 108 Operating Segments requires Management to determine the reportable segments for the purpose of disclosure in financial statements based on the internal reporting reviewed by Chief Operating Decision Maker (CODM) to assess performance and allocate resources.

Operating segments are defined as ‘Business Units’ of the Company about which separate financial information is available that is evaluated regularly by the Chief Operating Decision Maker or decision making group in deciding how to allocate resources and in assessing performance.

The Comapany operate in Manufacturing and Trading of Electronic Vehicle and related parts. The management considers that these business units have similar economic characteristic nature of the product, nature of the regulatory environment etc. Based on the management analysis, the Company has only one operating segment, so no seperate segment report is given. The principle geographical areas in which company the Company operates is India.

44 Confirmation of parties for amount due from them as per accounts of the Company are not obtained. Amount due from customers include amounts due / with held on account of various claims. The Claims will be verified and necessary adjustments, if any, shall be made in the year of settlement. Subject to this, company is confident of recovering the dues and accordingly they have been classified as “debt considered good” and therefore no provision is considered necessary there against.

45 In case of Loans granted by the Company and Borrowing taken by the Company, the terms of repayment of Loan and Advances has not been specified and hence it falls under the repayable on demand,but term of Repayment of Borrowing are Specified as per Agreement with Financial Institution , On the basis of the same we have classified the entire Borrowings as Secured Loan and Loans and advances as Current Assets.

46 In the opinion of the Board of Directors, Current Assets, Loans & Advances have value at which they are stated in the Balance Sheet, if realized in the ordinary course of business. The provision for depreciation and for all know liabilities is adequate and not in excess of the amount reasonably necessary.

47 The Company do not have any Benami property, where any proceeding has been initiated or pending against the Group for holding any Benami property.

48 Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

49 The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

50 The Company have not traded or invested in Crypto currency or Virtual Currency during the year.

51 The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall: directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

52 The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

53 The Company do not have any such transaction which is not recorded in the books of accounts and that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

54 The company holds all the title deeds of immovable property in its name.

55 There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

5 6 The company is not declared as wilful defaulter by any bank or financial Institution or other lender.

57 The Previous year''s figures, wherever necessary, have been regrouped/reclassified to conform to the current year''s presentation.

AS PER OUR REPORT OF EVEN DATE For and on behalf of the Board of Directors of

FOR M SAHU & CO Mercury EV - Tech Limited

CHARTERED ACCOUNTANTS

^{FIRM REGISTRATION NO: 130001W} Kavit J Thakkar Darshankumar J Shah

PARTNER (MANOJKUMAR SAHU) Managing director Director

PARTNER DIN:06576294 DIN:08687729

MEMBERSHIP NO. 132623 UDIN: 24132623BKELKU6254

Dhruv Yardi Charmy Milind Joshi

PLACE: VADODARA CFO Company Secretary

DATE: 30/05/2024 M No: A63905

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Mar 31, 2023

Provisions and Contingencies

a) Provisions are recognized based on the best estimate of probable outflow of
resources which would be required to settle obligations arising out of past events.

b) Contingent liabilities not provided for as per (a) above are disclosed in notes forming
part of the Financial Statements If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate that reflects, when appropriate,
the risks specific to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognized as a finance cost.

c) Contingent Assets are disclosed, where the inflow of economic benefits is probable.

O. Earnings per Share:

a) Basic earnings per share are calculated by dividing the net profit or loss for the
period attributable to equity shareholders (after deducting preference dividends, if
any, and attributable taxes) by the weighted average number of equity shares
outstanding during the period.

b) 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 effect of all dilutive
potential equity shares.

P Leases:

A contract is, or contains, a lease if the contract conveys the right to control the use of

an identified asset for a period of time in exchange for consideration.

Company as a lessee

(A) Lease Liability

At the commencement date, the Company measures the lease liability at the present
value of the lease payments that are not paid at that date. The lease payments shall
be discounted using incremental borrowing rate.

(B) Right-of-use assets

Initially recognised at cost, which comprises the initial amount of the lease liability
adjusted for any lease payments made at or prior to the commencement date of the
lease plus any initial direct costs less any lease incentives.

Subsequent measurement

(A) Lease Liability

Company measure the lease liability by (a) increasing the carrying amount to reflect
interest on the lease liability; (b) reducing the carrying amount to reflect the lease
payments made; and (c) remeasuring the carrying amount to reflect any
reassessment or lease modifications.

(B) Right-of-use assets

Subsequently measured at cost less accumulated depreciation and impairment
losses. Right-of-use assets are depreciated from the commencement date on a
straight line basis over the shorter of the lease term and useful life of the under lying
asset.

Impairment

Right of use assets are evaluated for recoverability whenever events or changes in
circumstances indicate that their carrying amounts may not be recoverable. For the
purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value
less cost to sell and the value-in-use) is determined on an individual asset basis unless
the asset does not generate cash flows that are largely independent of those from
other assets. In such cases, the recoverable amount is determined for the Cash
Generating Unit (CGU) to which the asset belongs.

Short term Lease

Short term lease is that, at the commencement date, has a lease term of 12 months or
less. A lease that contains a purchase option is not a short-term lease. If the company
elected to apply short term lease, the lessee shall recognise the lease payments
associated with those leases as an expense on either a straight-line basis over the
lease term or another systematic basis. The lessee shall apply another systematic
basis if that basis is more representative of the pattern of the lessee''s benefit.

As a lessor

Leases for which the company is a lessor is classified as a finance or operating lease.
Whenever, the terms of the lease transfers substantially all the risks and rewards of
ownership to the lessee, the contract is classified as a finance lease. All other leases
are classified as operating leases.

Lease income is recognised in the statement of profit and loss on straight line basis
over the lease term.

Q. Exceptional items:

Certain occasions, the size, type or incidence of an item of income or expense,
pertaining to the ordinary activities of the Company is such that its disclosure improves
the understanding of the performance of the Company, such income or expense is
classified as an exceptional item and accordingly, disclosed in the notes accompanying
to the financial statements.

2. USE OF JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

While preparing financial statements in conformity with Ind AS, the management has
made certain estimates and assumptions that require subjective and complex judgments.
These judgments affect the application of accounting policies and the reported amount of
assets, liabilities, income and expenses, disclosure of contingent liabilities at the
statement of financial position date and the reported amount of income and expenses for
the reporting period. Financial reporting results rely on the management estimate of the
effect of certain matters that are inherently uncertain. Future events rarely develop exactly
as forecasted and the best estimates require adjustments, as actual results may differ
from these estimates under different assumptions or conditions. Estimates and
underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized prospectively.

Judgment, estimates and assumptions are required in particular for:

a) Determination of the estimated useful life of tangible assets

Useful life of tangible assets is based on the life prescribed in Schedule II of the
Companies Act, 2013. In cases, where the useful life are different from that
prescribed in Schedule II, they are based on technical advice, taking into account the
nature of the asset, the estimated usage of the asset, the operating conditions of the
asset, past history of replacement, anticipated technological changes,
manufacturers'' warranties and maintenance support.

b) Recognition and measurement of defined benefit obligations

The obligation arising from defined benefit plan is determined on the basis of
actuarial assumptions. Key actuarial assumptions include discount rate, trends in
salary escalation, actuarial rates and life expectancy. The discount rate is determinec
by reference to market yields at the end of the reporting period on government
bonds. The period to maturity of the underlying bonds correspond to the probable
maturity of the post-employment benefit obligations. Due to complexities involved in
the valuation and its long-term nature, defined benefit obligation is highly sensitive to
changes in these assumptions. All assumptions are reviewed at each reporting
period.

c) Recognition of deferred tax liabilities

Deferred tax assets and liabilities are recognized for the future tax consequences of
temporary differences between the carrying values of assets and liabilities and their
respective tax bases, and unutilized business loss and depreciation carryforwards
and tax credits. Deferred tax assets are recognized to the extent that it is probable
that future taxable income will be available against which the deductible temporary
differences, unused tax losses, depreciation carry-forwards and unused tax credits
could be utilized.

d) Discounting of financial assets / liabilities

All financial assets / liabilities are required to be measured at fair value on initial
recognition. In case of financial assets / liabilities which are required to be
subsequently measured at amortized cost, interest is accrued using the effective
interest method.

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Mar 31, 2014

In compliance with the accounting standard-22 relating to "Accounting for taxes on Income", as there is no timing difference arises, provision for deferred tax liability is not provided in book of accounts.

Note 1

The provision for all known liabilities has been made except interest and penal interest payable to Charotar Nagrik Sahakari Bank Limited towards their OTS, as the company has not paid any installment/interest during the year. During the year Company has not provided interest liability of about Rs. 27.95 lacs @ 7% p.a. on the outstanding settlement loan amount pending.

Note 2

During the finacial year 2013-14 the company has written off long outstanding Debtors balances as Bad debts of amount to Rs. 2,06,33,396 , and disclosed the same as extra-ordinary item in the statement of Profit and Loss.

Note 3

In the opinion of the board, the current assets, Loans & Advances are approximately of the value stated therein, if realized in the ordinary course of business. Balance of secured and unsecured loans, sundry creditors, sundry debtors and loans & advances are subject to confirmation & reconciliation. In the opinion of the Management book debts and advances are outstanding since long, however these are recoverable, hence no provision has been made for doubtful debt.

Note 4

Inventories of shares are held in demate as well as physical certificate form. In respect of shares held as inventories by company, the same are stated at cost of acquisition. Company has not made provision for diminution in the value of shares held as inventories. Since in the opinion of the management, such decline is temporary phase and no provision would be necessary.

Note 5 Capital Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for Nil (Previous Year Nil).

Note 6 Contingent Liabilities

In the opinion of the Management, there is no contingent liability.

Note 7

Earning per share as required by Accounting Standard AS-20 as issued by the The Institute of Chartered Accountants of India.

Note 8

Related party disclosure as required by Accounting Standard -18 issued by the Institute of Chartered Accountants of India.

Note 9

As there is no earning / outgo in foreign currency during the year under review, additional details as requried under Companies Act, 1956 are not required to be given.

i) The company has disclosed business segments as the primary segment. Segments have been identified taking into account the nature of the products, differential risks and returns, the organizational structure and internal reporting system. The company''s operations predominantly relate to Trading of metals & shares.

ii) Company area of operations is within India only. And separate as per geographical segments is not required to be given.

Note 10

Previous year figures are regrouped and rearranged wherever necessary to compare with current year figures.

Note 11

Figures are rounded off to the nearest rupee.

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Mar 31, 2013

Note :- "1" CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF :-

Nil, as in the opinion of the Management, there is no contingent liability.

Note:- "2"

The provision for all known liabilities has been made except interest and penal interest payable to Charotar Nagrik Sahakari Bank Limited towards their OTS, as company has not paid any installment/interest during the year. During the year Company has not provided interest liability of about Rs. 27.95 lacs @ 7% on the outstanding settlement loan amount pending.

Note:- "3"

In the opinion of the board, the current assets, Loans & Advances are approximately of the value stated therein, if realized in the ordinary course of business. Balance of secured and unsecured loans, sundry creditors, sundry debtors and loans & advances are subject to confirmation & reconciliation. In the opinion of the Management book debts and advances are outstanding since long, however these are recoverable, hence no provision has been made for doubtful debt.

Note:-4

Inventories of shares are subject to physical verification. In respect of shares held inventories by company, the same are stated at cost of acquisition. In respect of quoted shares where market value is not available no provision is made for diminution in the value of shares. Since in the opinion of the management, such decline is temporary phase and no provision would be necessary.

Note:-5

Value of import on CIF basis in respect of material is :- NIL ( Previous year :- NIL) Value of all imported materials & % of such material with total cost of material is Rs. NIL (P.Y.NIL) Earning in foreign exchange is :- NIL ( Previous Year :- NIL)

Note:-6

The liabilities of small scale industries for suppliers & services in excess of 100000/- is NIL

Note:-7

Segment information for the year ended 31st March,2013

Segment information is not applicable to company as company does not have any business.

Note:-"8"

The previous year figures have been regrouped/ reclassified wherever necessary to make them comparable to current year figures

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Mar 31, 2012

During the year company has availed OTS scheme as prescribed by GOG with The Charotar Nagrik Sahkari Bank Ltd H.P A/c 72 vide their letter dated 13/12/2011 company has to pay RS. 38840455 after adjusting all FDS with the Charotar Nagrik Sahkari Bank and interest thereon. The payment terms are 15% i.e. RS. 5826069 payable immediately and balance amt. Of RS.33014386 is payable on RS.1375600 monthly 24 installments and simple interest @7% thereon. The increased in Liabilities of secured loan as compare to previous year was adjusted by debiting interest paid for Rs. 17623355.51 same amount is effected in profit & loss AC

During the year company has availed OTS scheme as prescribed by GOG with The Charotar Nagrik Sahkari Bank Ltd B/ P. A/c no. 2 vide their letter dated 13/12/2011 company has to pay RS. 86,87,942. The payment term are 15% payable i.e. RS. 13,03,191 payable immediately and balance amount of RS.73,84,751 is payable on RS. 309768 installment and simple interest @7% thereon. The increased in Liabilities of secured loan as compare to previous year was adjusted by debiting interest paid for RS. 2746610 same amount is effected in Profit & Loss A/c The above balances are subject to completion of OTS scheme by the company in prescribed time period.

Note : During the year amount payable of CST Rs. 474582 and Sales tax Rs. 10658.32 outstanding since las long period and amount receivable of Rs. 16600 from Mercury Metax Ltd. are written off during the year.

Note :- "1" CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF :-

Guarantee given by company on behalf of the Rupangi impex Ltd (Group Company) Rs. 738 Lacs Note:- "18"

In the opinion of the board, the current assets, Loans & Advances are approximately of the value stated therein, if realized in the ordinary course of business. The provision for all known liabilities are adequate and not in excess of the amount reasonably necessary. There are no contingent liabilities other than stated in the noted. Balance of secured and unsecured loans, sundry creditors, sundry debtors and loans & advances are subject to confirmation & reconciliation. No provision made for doubtful debts.

Note:- "2"

Investment and inventories of shares are subject to physical verification. In respect of shares held as investment or inventories by company. The same are stated at cost of acquisition. In respect of quoted shares where market value is not available no provision is made for diminution in the value of shares. Since in the opinion of the management, such decline is temporary phase and no provision would be necessary.

Note:- "3"

Value of import on CIF basis in respect of material is :- NIL ( Previous year :- NIL) Value of all imported materials & % of such material with total cost of material is Rs. NIL(P.Y.NIL) Earning in foreign exchange is :- NIL ( Previous Year :- NIL)

Note:- "4"

The liabilities of small scale industries for suppliers & services in excess of Rs. 100000/- is NIL

Note:- "5"

During the year ended 31st March 2012,revised Schedule VI notified under the Companies Act 1956 became applicable to the Company , for preparation and presentation of its financial statements . The adoption of revised schedule VI does not impact recognition and measurement principal followed for preparation of financial statements the previous year figures has also reclassified in accordance to requirements applicable to current year.

Note:- "6"

-Segment information for the year ended 31st March,2012

Segment information is not applicable to company as company does not have turnover of Rs.50 crore.

Note:-"25"

Related party disclosure as required by AS-18 are given below. Name of Related parties

1) Shree Metalloys Ltd.

2) Milan Metal Pvt. Ltd. ( In Liquidation)

3) Mercury Metex Ltd. ( In Liquidation)

4) Govindram L. Kabra

5) Ramprakash L. Kabra

Mercury Metex Limited balance of Rs. 16600, written off during the year.