Accounting Policies of Monind Ltd. Company

Mar 31, 2025

2. Material accounting policies

2.1 Basis of preparation

The financial statements of the Company have been prepared in accordance with Indian
Accounting Standards (Ind AS) notified under the Companies (Indian Accounting
Standards) Rules, 2015 and the Companies (Indian Accounting Standards)
(Amendment) Rules, 2016.

The financial statements have been prepared on a historical cost basis, except for the
certain assets and liabilities which have been measured at different basis and such basis
has been disclosed in relevant accounting policy.

The financial statements are presented in INR and all values are rounded to the nearest
lacs (INR 00,000), except when otherwise indicated.

2.2 Significant accounting policies

a. Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current /
non-current classification.

An asset/liability is treated as current when it is:

• Expected to be realised or intended to be sold or consumed or settled in normal
operating cycle

• Held primarily for the purpose of trading

• Expected to be realised/settled within twelve months after the reporting period, or

• Cash or cash equivalent unless restricted from being exchanged or used to settle
a liability for at least twelve months after the reporting period

• There is no unconditional right to defer the settlement of the liability for at least
twelve months after the reporting period.

All other assets and liabilities are classified as non-current.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities
respectively.

b. Property, plant and equipment

i)Tangible assets

Property, plant and equipment are stated at cost [i.e., cost of acquisition or construction
inclusive of freight, erection and commissioning charges, non-refundable duties and
taxes, expenditure during construction period, borrowing costs (in case of a qualifying
asset) upto the date of acquisition/ installation], net of accumulated depreciation.

When significant parts of property, plant and equipment (identified individually as
component) are required to be replaced at intervals, the Company derecognizes the
replaced part, and recognizes the new part with its own associated useful life and it is
depreciated accordingly. Whenever major inspection/overhaul/repair is performed, its
cost is recognized in the carrying amount of respective assets as a replacement, if the
recognition criteria are satisfied. All other repair and maintenance costs are recognized
in the statement of profit and loss.

The present value of the expected cost for the decommissioning of an asset after its
use is included in the cost of the respective asset if the recognition criteria for a
provision are met.

Property, plant and equipments are eliminated from financial statements, either on
disposal or when retired from active use. Losses/gains arising in case
retirement/disposals of property, plant and equipment are recognized in the statement
of profit and loss in the year of occurrence.

Depreciation on property, plant and equipments are provided to the extent of
depreciable amount on the straight line (SLM) Method. Depreciation is provided at the
rates and in the manner prescribed in Schedule II to the Companies Act, 2013.

The residual values, useful lives and methods of depreciation/amortization of property,
plant and equipment are reviewed at each financial year end and adjusted
prospectively, if appropriate.

ii) Capital work in progress

Capital work in progress includes construction stores including material in transit/
equipment / services, etc. received at site for use in the projects.

All revenue expenses incurred during construction period, which are exclusively
attributable to acquisition / construction of fixed assets, are capitalized at the time of
commissioning of such assets.

c. 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 capitalised as part of the cost of the respective asset. All other
borrowing costs are expensed in the period in which they occur.

d. Impairment of non-financial assets

The Company assesses, at each reporting date, whether there is an indication that an
asset may be impaired. If any indication exists, or when annual impairment testing for

an asset is required, the Company estimates the asset’s recoverable amount. An
asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s
(CGU) fair value less costs of disposal and its value in use. Recoverable amount is
determined for an individual asset, unless the asset does not generate cash inflows
that are largely independent of those from other assets or groups of assets. When the
carrying amount of an asset or CGU exceeds its recoverable amount, the asset is
considered impaired and is written down to its recoverable amount.

Impairment losses of continuing operations, including impairment on inventories, are
recognised in the statement of profit and loss.

e. Inventories

Items of inventories are measured at lower of cost or market value. Cost of
inventories comprises of cost of purchase, cost of conversion and other costs
including manufacturing overheads incurred in bringing them to their respective
present location and condition. Cost of raw material, stores and spares, packing
materials, trading and other products are determined on weighted average basis.

f. Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will
flow to the Company and the revenue can be reliably measured, regardless of when
the payment is being made. Revenue from operations includes sale of goods,
services and excise duty, adjusted for discounts (net).

Interest income is recognized on a time proportion basis taking into account the
amount outstanding and the interest rate applicable.

Dividend Income is recognised for as and when declared by respective company.

g. Foreign currency transactions

The Company’s financial statements are presented in INR, which is also its functional
currency.

Foreign currency transactions are initially recorded in functional currency using the
exchange rates at the date the transaction.

At each balance sheet date, foreign currency monetary items are reported using the
exchange rate prevailing at the year end.

Exchange differences arising on settlement or translation of monetary items are
recognised in statement of profit and loss.

Non-monetary items that are measured in terms of historical cost in a foreign
currency are translated using the exchange rates at the dates of the initial
transactions.

h. Taxes on income

Deferred tax

Deferred tax is provided using the liability method on temporary differences between
the tax bases of assets and liabilities and their carrying amounts for financial
reporting purposes at the reporting date.

Deferred tax assets are recognised for all deductible temporary differences, the carry
forward of unused tax credits and any unused tax losses. Deferred tax assets are
recognised to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences, and the carry forward of unused tax
credits and unused tax losses can be utilised.

Deferred tax assets and liabilities are measured at the tax rates that are expected to
apply to the period when the asset is realized or the liability is settled, based on tax
rates (and tax laws) that have been enacted or substantively enacted at the balance
sheet date. Tax relating to items recognized directly in equity/other comprehensive
income is recognized in respective head and not in the statement of profit & loss.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right
exists to set off current tax assets against current tax liabilities and the deferred taxes
relate to the same taxable entity and the same taxation authority.

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Mar 31, 2024

2. Material accounting policies

2.1 Basis of preparation

The financial statements of the Company have been prepared in accordance with
Indian Accounting Standards (Ind AS) notified under the Companies (Indian
Accounting Standards) Rules, 2015 and the Companies (Indian Accounting
Standards) (Amendment) Rules, 2016.

The financial statements have been prepared on a historical cost basis, except for
the certain assets and liabilities which have been measured at different basis and
such basis has been disclosed in relevant accounting policy.

The financial statements are presented in INR and all values are rounded to the
nearest lacs (INR 00,000), except when otherwise indicated.

2.2 Significant accounting policies

a. Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current /
non-current classification.

An asset/liability is treated as current when it is:

• Expected to be realised or intended to be sold or consumed or settled in
normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realised/settled within twelve months after the reporting
period, or

• Cash or cash equivalent unless restricted from being exchanged or used to
settle a liability for at least twelve months after the reporting period

• There is no unconditional right to defer the settlement of the liability for at
least twelve months after the reporting period.

All other assets and liabilities are classified as non-current.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities
respectively.

b. Property, plant and equipment

i) Tangible assets

Property, plant and equipment are stated at cost [i.e., cost of acquisition or
construction inclusive of freight, erection and commissioning charges, non¬
refundable duties and taxes, expenditure during construction period, borrowing
costs (in case of a qualifying asset) upto the date of acquisition/ installation], net of
accumulated depreciation.

When significant parts of property, plant and equipment (identified individually as
component) are required to be replaced at intervals, the Company derecognizes
the replaced part, and recognizes the new part with its own associated useful life
and it is depreciated accordingly. Whenever major inspection/overhaul/repair is
performed, its cost is recognized in the carrying amount of respective assets as a
replacement, if the recognition criteria are satisfied. All other repair and
maintenance costs are recognized in the statement of profit and loss.

The present value of the expected cost for the decommissioning of an asset after its
use is included in the cost of the respective asset if the recognition criteria for a
provision are met.

Property, plant and equipments are eliminated from financial statements, either on
disposal or when retired from active use. Losses/gains arising in case
retirement/disposals of property, plant and equipment are recognized in the
statement of profit and loss in the year of occurrence.

Depreciation on property, plant and equipments are provided to the extent of
depreciable amount on the straight line (SLM) Method. Depreciation is provided at
the rates and in the manner prescribed in Schedule II to the Companies Act, 2013.

The residual values, useful lives and methods of depreciation/amortization of
property, plant and equipment are reviewed at each financial year end and
adjusted prospectively, if appropriate.

ii) Capital work in progress

Capital work in progress includes construction stores including material in
transit/ equipment / services, etc. received at site for use in the projects.

All revenue expenses incurred during construction period, which are exclusively
attributable to acquisition / construction of fixed assets, are capitalized at the
time of commissioning of such assets.

c. 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 capitalised as part of the cost of the
respective asset. All other borrowing costs are expensed in the period in which
they occur.

d. Impairment of non-financial assets

The Company assesses, at each reporting date, whether there is an indication that
an asset may be impaired. If any indication exists, or when annual impairment
testing for an asset is required, the Company estimates the asset''s recoverable
amount. An asset''s recoverable amount is the higher of an asset''s or cash¬
generating unit''s (CGU) fair value less costs of disposal and its value in use.
Recoverable amount is determined for an individual asset, unless the asset does
not generate cash inflows that are largely independent of those from other assets
or groups of assets. When the carrying amount of an asset or CGU exceeds its
recoverable amount, the asset is considered impaired and is written down to its
recoverable amount.

Impairment losses of continuing operations, including impairment on
inventories, are recognised in the statement of profit and loss.

e. Inventories

Items of inventories are measured at lower of cost or market value. Cost of
inventories comprises of cost of purchase, cost of conversion and other costs
including manufacturing overheads incurred in bringing them to their respective
present location and condition. Cost of raw material, stores and spares, packing
materials, trading and other products are determined on weighted average basis.

f. Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits
will flow to the Company and the revenue can be reliably measured, regardless of
when the payment is being made. Revenue from operations includes sale of
goods, services and excise duty, adjusted for discounts (net).

Interest income is recognized on a time proportion basis taking into account the
amount outstanding and the interest rate applicable.

Dividend Income is recognised for as and when declared by respective company.

g. Foreign currency transactions

The Company''s financial statements are presented in INR, which is also its
functional currency.

Foreign currency transactions are initially recorded in functional currency using
the exchange rates at the date the transaction.

At each balance sheet date, foreign currency monetary items are reported using
the exchange rate prevailing at the year end.

Exchange differences arising on settlement or translation of monetary items are
recognised in statement of profit and loss.

Non-monetary items that are measured in terms of historical cost in a foreign
currency are translated using the exchange rates at the dates of the initial
transactions.

h. Taxes on income

Deferred tax

Deferred tax is provided using the liability method on temporary differences
between the tax bases of assets and liabilities and their carrying amounts for
financial reporting purposes at the reporting date.

Deferred tax assets are recognised for all deductible temporary differences, the
carry forward of unused tax credits and any unused tax losses. Deferred tax
assets are recognised to the extent that it is probable that taxable profit will be
available against which the deductible temporary differences, and the carry
forward of unused tax credits and unused tax losses can be utilised.

Deferred tax assets and liabilities are measured at the tax rates that are expected
to apply to the period when the asset is realized or the liability is settled, based
on tax rates (and tax laws) that have been enacted or substantively enacted at the
balance sheet date. Tax relating to items recognized directly in equity/other
comprehensive income is recognized in respective head and not in the statement
of profit & loss.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable
right exists to set off current tax assets against current tax liabilities and the
deferred taxes relate to the same taxable entity and the same taxation authority.

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Mar 31, 2015

I. Basis of preparation of financial statements:

These financial statements have been prepared to comply with Accounting Principles Generally accepted in India (Indian GAAP), the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The financial statements are prepared on accrual basis under the historical cost convention. The financial statements are presented in Indian rupees rounded off to the nearest rupees

II. Use of estimates:

The preparation of financial statements in conformity with Indian GAAP requires judgements, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

III. Tangible & Intangible Fixed Assets:

a) Tangible assets are stated at their original cost of acquisition inclusive of inward freight, duties and expenditure incurred in the acquisition, construction/installation less accumulated amortization and impairment loss, if any. CENVAT/ VAT credit availed on capital equipment is accounted for by credit to respective fixed assets.

b) Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization/ depletion and impairment loss, if any.

IV. Depreciation and amortization:

Depreciation / amortization on tangible and intangible fixed assets is provided to the extent of depreciable amount on the straight line (SLM) Method. Depreciation is provided at the rates and in the manner prescribed in Schedule II to the Companies Act, 2013

V. Investments:

Long-term investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary.

VI. Inventories:

Items of inventories are measured at lower of cost and net realizable value after providing for obsolescence. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and condition.

Inventories are valued on the following basis:

a) Stores and Spares - at moving weighted average basis.

b) Raw Materials - at moving weighted average basis.

c) Work-in-Process - at estimated cost

d) Finished Goods - at lower of cost or net realizable value

VII. Revenue Recognition:

Revenue is recognized only when risks and rewards incidental to ownership are transferred to the customer, it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operations includes sale of goods, services and excise duty, adjusted for discounts (net).

Dividend received is accounted for as and when it is declared. However, dividend accrued on non-convertible cumulative redeemable preference shares is accounted for on accrual basis.

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the interest rate applicable.

VIII. Excise Duty:

Excise duty is accounted on the basis of both, payments made in respect of goods cleared and provision made for goods lying in bonded warehouses.

IX. Foreign Currency Transactions:

a) Transactions denominated in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.

b) Monetary items denominated in foreign currencies at the year end are restated at year end rates, except in cases covered by forward exchange contracts.

c) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the profit and loss account.

X. Employee Benefits:

Liability for Gratuity & Leave encashment benefits has been provided on arithmetical basis on gross liability on balance date. The management is of the view that it is in compliance of AS-15.

XI. Provision, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

XII. Unless specifically stated to be otherwise, these policies are consistently followed.

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Mar 31, 2014

1. Basis of Accounting

The Company has prepared its financial statements in accordance with generally accepted accounting principles and also in accordance with the requirements of the Companies Act, 1956.

2. Income and Expenditure

Accounting of Income & Expenditure is done on accrual basis.

3. Revenue in respect of claims are recognized only when the same are reasonably ascertained.

4. Fixed Assets & Depreciation

a) Fixed assets are stated at their original cost of acquisition inclusive of inward freight, duties and expenditure incurred in the acquisition, construction & installation.

b) Depreciation is charged on Written Down Value (WDV) Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956 in respect of assets in use only.

c) In respect of Assets Leased out as on 31st March, 2014 the cost of leased assets is depreciated over the primary lease Year in line with the method recommended by the Institute of Chartered Accountants of India.

5 Investments

Long Term Investments are stated at cost.

6. Retirement Benefits

Liability for Gratuity & Leave encashment benefits has been provided on arithmetical basis on gross liability on balance date. The management is of the view that it is in compliance of AS-15.

7. Cash and Cash equivalents

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short term investments with an original maturity of three months or less.

8. Contingent Liabilities

Contingent Liabilities are determined on the basis of available information and are disclosed by way of notes to the accounts.

9. Dividend received is accounted for as and when it is declared. However, dividend accrued on non-convertible commutative redeemable preference shares is accounted for on accrual basis.

10. Unless specifically stated to be otherwise, these policies are consistently followed.

DISCLOSURES REGARDING LONG TERM BORROWINGS

a) The term loan is secured against First pari passu charge by way of hypothecation and mortage over entire present & future movable & immovable fixed assets of the Company

b) The loan is further secured by exclusive charge by way of mortage over the immovable property at 10-11, Masjid Moth G.K.-II New Delhi owned by M/s Pace Enterprises Pvt. Ltd. & M/s Cambridge Construction ( Delhi ) Ltd.

c) The loan is further secured by pledge of CRPS issued by M/s Monnet Ispat & Energy Ltd. and all rights under the CRPS.

d) The loan is further secured by personal gurantee of Sh. Sandeep Jajodia and corporate gurantee of M/s Pace Enterprises Pvt. Ltd. & M/s Cambridge Construction ( Delhi ) Ltd.

e) The loan is repayable in 3 equal instalment payable at the end of 3th, 4th & 5th years from the date of disbursement. The loan is carrying interest rate between 11.5% to 12.75 %.

f) There has been no continuing default on the balance sheet date in repayment of loan and interest.

g) The total amount of borrowing has been invested in 6.5% Non Convertible Cumulative Reedemable Preference shares of M/s Monnet Ispat & Energy Ltd. @ Rs.100/- per Share

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Mar 31, 2011

1. Basis of Accounting

The Company has prepared its financial statements in accordance with generally accepted accounting principles and also in accordance with the requirements of the Companies Act, 1956.

2. Income and Expenditure

Accounting of Income & Expenditure is done on accrual basis.

3.Revenue in respect of claims are recognised only when the same are reasonably ascertained.

4. Fixed Assets & Depreciation

a) Fixed assets are stated at their original cost of acquisition inclusive of inward freight, duties and expenditure incurred in the acquisition, construction & installation.

b) Depreciation is charged on Written Down Value (WDV) Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956 in respect of assets in use only.

c) In respect of Assets Leased out as on 31 st March, 2011 the cost of leased assets is depreciated over the primary lease Year in line with the method recommended by the Institute of Chartered Accountants of India.

d) Modvat credit availed on capital goods is accounted for by credit to respective fixed assets and henceforth depreciation has been charged on net cost of Fixed Assets.

5 Investments

Long Term Investments are stated at cost.

6 Excise Duty

Modvat credit, to the extent availed, is adjusted towards cost of materials.

MONNET INDUSTRIES LIMITED Standalone Balance Sheet for period 01/04/2010 to 31/03/2011

7. Gratuity/Retirement Benefits:

Retirement benefits are accounted for on accrual basis.

8. Contingent Liabilities

Contingent Liabilities are determined on the basis of available information and are disclosed by way of notes to the accounts.

9.Dividend received is accounted for as and when it is declared.

10.Unless specifically stated to be otherwise, these policies are consistently followed.

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Mar 31, 2010

1. Basis of Accounting

The Company has prepared its financial statements in accordance with generally accepted accounting principles and also in accordance with the requirements of the Companies Act, 1956.

2. Income and Expenditure

Accounting of Income & Expenditure is done on accrual basis.

3. Revenue in respect of claims are recognised only when the same are reasonably ascertained.

4. Fixed Assets & Depreciation

a) Fixed assets are stated at their original cost of acquisition inclusive of inward freight, duties and expenditure incurred in the acquisition, construction & installation.

b) Depreciation is charged on Written Down Value (WDV) Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956 in respect of assets in use only.

c) In respect of Assets Leased out as on 31st March, 2010 the cost of leased assets is depreciated over the primary lease Year in line with the method recommended by the Institute of Chartered Accountants of India.

d) Modvat credit availed on capital goods is accounted for by credit to respective fixed assets and henceforth depreciation has been charged on net cost of Fixed Assets.

5. Investments

Long Term Investments are stated at cost.

6. Excise Duty

Modvat credit, to the extent availed, is adjusted towards cost of materials.

7. Gratuity/Retirement Benefits

Retirement benefits are accounted for on accrual basis.

8. Contingent Liabilities

Contingent Liabilities are determined on the basis of available information and are disclosed by way of notes to the accounts.

9. Dividend received is accounted for as and when it is declared.

10. Unless specifically stated to be otherwise, these policies are consistently followed.