Notes to Accounts of Mercury Ev-Tech Ltd.

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.