Notes to Accounts of Mahan Industries Ltd.

Mar 31, 2024

B.7 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when the Company has a present obligation (legal or constructive) as a
result of a past event, it is probable that the Company will be required to settle the obligation, and a
reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the
present obligation at the end of the reporting period, taking into account the risks and uncertainties
surrounding the obligation.

When some or all of the economic benefits required to settle a provision are expected to be
recovered from a third party, a receivable is recognised as an asset if it is virtually certain that
reimbursements will be received and the amount of the receivable can be measured reliably.

Contingent liability is disclosed for possible obligations which will be confirmed only by future events
not within the control of the Company or present obligations arising from past events where it is not
probable that an outflow of resources will be required to settle the obligation or a reliable estimate of
the amount of the obligation cannot be made.

Contingent Assets are not recognized since this may result in the recognition of income that may
never be realized.

B.8 Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the
contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial assets and financial liabilities (other than
financial assets and financial liabilities at fair value through profit or loss) are added to or deducted
from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition.
Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair
value through profit or loss are recognised immediately in profit or loss.

Financial assets:

All regular way purchases or sales of financial assets are recognised and derecognised on a trade
date basis. Regular way purchases or sales are purchases or sales of financial assets that require
delivery of assets within the time frame established by regulation or convention in the marketplace.

Classification of financial assets

The financial assets are initially measured at fair value. Transaction costs that are directly
attributable to the acquisition of financial assets are added to the fair value of the financial assets on
initial recognition.

After initial recognition:

(i) Financial assets (other than investments) are subsequently measured at amortised cost using the
effective interest method.

Effective interest method is a method of calculating the amortised cost of a debt instrument and of
allocating interest income over the relevant period. The effective interest rate is the rate that exactly
discounts estimated future cash receipts (including all fees and points paid or received that form an
integral part of the effective interest rate, transaction costs and other premiums or discounts)
through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net
carrying amount on initial recognition.

Investments in debt instruments that meet the following conditions are subsequently measured at
amortised cost:

• The asset is held within a business model whose objective is to hold assets in order to collect
contractual cash flows; and

• the contractual terms of the instrument give rise on specified dates to cash flows that are solely
payments on principal and interest on the principal amount outstanding.

Income on such debt instruments is recognised in profit or loss and is included in the "Other
Income".

The Company has not designated any debt instruments as fair value through other comprehensive
income.

(ii) Financial assets (i.e. investments in instruments other than equity of subsidiaries) are
subsequently measured at fair value.

Such financial assets are measured at fair value at the end of each reporting period, with any gains
(e.g. any dividend or interest earned on the financial asset) or losses arising on re-measurement
recognised in profit or loss and included in the "Other Income".

Investments in equity instruments of subsidiaries

The Company measures its investments in equity instruments of subsidiaries at cost in accordance
with Ind AS 27. At transition date, the Company has elected to continue with the carrying value of
such investments measured as per the previous GAAP and use such carrying value as its deemed
cost.

Impairment of financial assets:

A financial asset is regarded as credit impaired when one or more events that may have a
detrimental effect on estimated future cash flows of the asset have occurred. The Company applies
the expected credit loss model for recognising impairment loss on financial assets (i.e. the shortfall
between the contractual cash flows that are due and all the cash flows (discounted) that the
Company expects to receive).

De-recognition of financial assets:

The Company de-recognises a financial asset when the contractual rights to the cash flows from the
asset expire, or when it transfers the financial asset and substantially all the risks and rewards of
ownership of the asset to another party. If the Company neither transfers nor retains substantially all
the risks and rewards of ownership and continues to control the transferred asset, the Company
recognises its retained interest in the asset and an associated liability for amounts it may have to
pay. On de-recognition of a financial asset in its entirety, the difference between the asset''s carrying
amount and the sum of the consideration received and receivable is recognised in the Statement of
profit and loss.

Financial liabilities and equity instruments

Equity instruments

Equity instruments issued by the Company are classified as equity in accordance with the substance
and the definitions of an equity instrument. An equity instrument is any contract that evidences a
residual interest in the assets of an entity after deducting all of its liabilities.

Financial liabilities

All financial liabilities are subsequently measured at amortised cost using the effective interest
method. The carrying amounts of financial liabilities that are subsequently measured at amortised
cost are determined based on the effective interest method. Interest expense that is not capitalised
as part of costs of an asset is included in the "Finance Costs".

The effective interest method is a method of calculating the amortised cost of a financial liability and
of allocating interest expense over the relevant period. The effective interest rate is the rate that
exactly discounts estimated future cash payments (including all fees and points paid or received that
form an integral part of the effective interest rate, transaction costs and other premiums or
discounts) through the expected life of the financial liability, or (where appropriate) a shorter period,
to the net carrying amount on initial recognition.

De-recognition of financial liabilities

The Company de-recognises financial liabilities when, and only when, the Company''s obligations are
discharged, cancelled or have expired. An exchange between with a lender of debt instruments with
substantially different terms is accounted for as an extinguishment of the original financial liability
and the recognition of a new financial liability. Similarly, a substantial modification of the terms of an
existing financial liability (whether or not attributable to the financial difficulty of the debtor) is
accounted for as an extinguishment of the original financial liability and the recognition of a new
financial liability. The difference between the carrying amount of the financial liability derecognised
and the consideration paid and payable is recognised in profit or loss.

B. 9 Earnings per share

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

C. Critical Accounting judgements and key sources of estimation uncertainty

The preparation of financial statements in conformity with Ind AS requires the Company''s
Management to make judgments, estimates and assumptions about the carrying amounts of assets
and liabilities recognised in the financial statements that are not readily apparent from other sources.
The judgements, estimates and associated assumptions are based on historical experience and other
factors including estimation of effects of uncertain future events that are considered to be relevant.
Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates (accounted on a prospective basis) and recognised in the period in which the estimate is
revised if the revision affects only that period, or in the period of the revision and future periods of
the revision affects both current and future periods.

The following are the key estimates that have been made by the Management in the process of
applying the accounting policies:

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot
be measured based on quoted prices in active markets, their fair value are measured using valuation
techniques. The inputs to these models are taken from observable markets where possible, but
where this is not feasible, a degree of judgement is required in establishing fair values. Judgements
include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in
assumptions relating to these factors could affect the reported fair value of financial instruments.

Allowance for doubtful trade receivables

Trade receivables do not carry any interest and are stated at their nominal value as reduced by
appropriate allowances for estimated irrecoverable amounts.

Estimated irrecoverable amounts are derived based on a provision matrix which takes into account
various factors such as customer specific risks, geographical region, product type, currency
fluctuation risk, repatriation policy of the country, country specific economic risks, customer rating,
and type of customer, etc.

4. Additional Regulatory Information

The Company does not have any benami property where any proceedings have been

a. initiated on or are pending against the Company for holding benami property under the
Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and rules made thereunder.

_b. The Company has not been declared wilful defaulter by any bank or financial institution or

^b. government or any government authority.

c The Company has not entered into any scheme of arrangement which has an accounting

c. impact on current or previous financial year.

The Company has not advanced or loaned or invested funds to any other person(s) or
d entity(ies), including foreign entities (Intermediaries) with the understanding that the

^d. 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 Beneficiary) or

- provide any guarantee, security or the like to or on behalf of the ultimate beneficiary.

The Company has 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

- 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

- provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

The Company does not have any transaction which is not recorded in the books of
accounts 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.

The Company has not traded or invested in crypto currency or virtual currency during the
. year under review.

There are no charges or satisfaction which are yet to be registered with Registrar of
. Companies beyond the statutory period.

The Company has no transactions with the Companies struck off under section 248 of the
. Companies Act, 2013 or section 560 of the Companies Act, 1956.

For, S D P M & Co. For, Mahan Industries Limited

Chartered Accountants
Firm Reg. No. 126741W

Sd/- Sd/-

Yogendrakumar Gupta Sunil Gurnani

Managing Director Director/Chief Financial Officer
DIN: 01726701 PAN: AJNPG3441M

Sd/-

Sunil Dad
Partner

Membership No. 120702

Place: Ahmedabad
Date: 28/05/2024

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Mar 31, 2014

1. Corporate Information

MAHAN INDUSTRIES LIMITED having registered office in Ahmedabad is a Gujarat based Public Limited Company incorporated under provisions of the Companies Act, 1956. The main business of the company is Investment, Trading in Shares & Securities. The company is also into textile business.

The Company is registered with RBI vide Reg. No.01-00247 dt. 16.5.1998; as a Non deposit taking Non- Banking Finance Company (NBFC).

2. Basis of preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which is, measured at fair values. GAAP comprises mandatory accounting standards as prescribed by the companies (Accounting Standards) Rules , 2006 , the provisions of the companies ACT 2013(to the extent notified), the companies Act, 1956 (to the extent applicable), and guidelines issued by the securities and Exchange Board of the India (SEBI). Accounting policies have been consistently applied except where newly issued accounting standards is initially adopted or a version to an existing accounting standards requires a change in the policy hereto in use.

3. The company has only 1 class of shares referred to as Equity shares having face value of Rs. 10/- Each holder of Equity share is entitled to 1 vote per share.

In the event of liquidation of the company,the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exists currently. The distribution will be in proportion to the number of shares held by the shareholders.

4. Contingent Liabilities

Income Tax demand for the Asst. Year 2001-02. :

The company has made an appeal to the CIT (A) against the order of ITO for assessment year 2001-02. The original demand of Rs.2,225,639/- was reduced to Rs. 46,490/- by the CIT (A), which was duly paid. But the department has filed an appeal in I.T.A.T. against this order; the appeal has been set aside by ITAT and is referred back to the CIT (A).

5. Income Tax demand for the Asst. Year 2006-07 :

The company has made an appeal to CIT(A) against the order for assessment year 2006-07. The original demand of Rs.65,84,951/-

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Mar 31, 2013

1. Corporate Information

MAHAN INDUSTRIES LIMITED having registered office in Ahmedabad is a Gujarat based Public Limited Company incorporated under provisions of the Companies Act, 1956. The main business of the company is Investment, Trading in Shares &. Securities. The company is also into textile business.

The Company is registered with RBI vide Reg. No.01-00247 dt.16.5.1998; as a Non deposit taking Non- Banking Finance Company (NBFC).

2. Basis of preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies ( Accounting Standards) Rules, 2006, (as amended ) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention,

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below: