Accounting Policies of Mega Nirman & Industries Ltd. Company

Mar 31, 2025

e) Use of judgments and estimates

In preparing these financial statements, the Management has made judgments, estimates and
assumptions that affect the application of accounting policies and the reported amount of assets,
liabilities, the disclosure of contingent liabilities and contingent assets as at the date of financial
statements, income and expenses during the period. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an on-going basis. Revisions to estimates are
recognized prospectively in current and future periods.

f) Measurement of fair values

A number of the Company’s accounting policies and disclosures require measurement of fair values, for
both financial and non- financial assets and liabilities. The Company has an established control
framework with respect to measurement of fair values. The directors are responsible for overseeing all
significant fair value measurements, including Level 3 fair values. Directors regularly reviews
significant unobservable inputs and valuation adjustments.

Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the
valuation techniques as follows:

- Level 1: quoted prices (unadjusted) in active markets for identical assets and liabilities.

- Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

- Level 3: inputs for the asset or liability that are not based on observable market data (unobservable
inputs).

When measuring the fair value of an asset or liability, the Company uses observable market data as far
as possible. If the inputs used to measure the fair value of an asset or liability fall into different levels of
the fair value hierarchy, then the fair value measurement is categorised in its entirely in the same level
of the fair value hierarchy as the lowest level input that is significant to the entire measurement.
The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting
period during which the changes have occurred.

III Significant Accounting Policy

The Company has consistently applied the following accounting policies to till periods presented in
the financial statements.

a) Property, Plant and Equipment

i) Recognition and measurement

Items of property, plant and equipment are measured at cost, less accumulated depreciation and
accumulated impairment losses, if any. Cost of an item of property, plant and equipment comprises its
purchase price, any directly attributable cost of bringing the item to its working condition for its
intended use and estimated cost of dismantling and removing the item and restoring the site on which
is located. Borrowing costs relating to acquisition of qualifying fixed assets, if material, are also
included in cost to the extent they relate to the period till such assets are ready to be put to use. Capital
work-in-progress includes cost of property, plant and equipment under installation / under
development as at the balance sheet date. Advances paid towards the acquisition of property, plant and
equipment outstanding at each balance date is classified as capital advances under other noncurrent
assets. An item of property, plant and equipment is derecognised when no future economic benefit are
expected to arise from the continued use of the assets or upon disposal. Any gain or loss on disposal of
an item of property, plant and equipment is recognised in profit or loss.

ii) Depreciation

Depreciation on property, plant and equipment is provided on the WDV Method based on Cost of
Assets less there residual values over their use full lives, Using Written Down Value Method as
perSchedule II of the Companies Act, 2013. Depreciation on additions to or on disposal of assets is
calculated on pro-rata basis i.e.from (upto) the date on which the property, plant and equipment is
available for use (disposed off).

b) Impairment of non-financial assets

At each reporting date, the Company reviews the carrying amounts of its non-financial assets (other
than inventories and deferred tax assets) to determine whether there is any indication on impairment.
If any such indication exists, then the asset''s recoverable amount is estimated. An impairment loss is
recognised if the carrying amount of an asset exceeds its estimated recoverable amount. Impairment
losses are recognised in Statement of Profit and Loss.

c ) Inventories

Inventories are valued at lower of Cost and Net Realisable value.

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Mar 31, 2024

III Significant Accounting Policy

The Company has consistently applied the following accounting policies to till periods presented in
the financial statements.

a) Property, Plant and Equipment

i) Recognition and measurement

Items of property, plant and equipment are measured at cost, less accumulated depreciation and
accumulated impairment losses, if any. Cost of an item of property, plant and equipment comprises
its purchase price, any directly attributable cost of bringing the item to its working condition for its
intended use and estimated cost of dismantling and removing the item and restoring the site on which
is located. Borrowing costs relating to acquisition of qualifying fixed assets, if material, are also
included in cost to the extent they relate to the period till such assets are ready to be put to use.
Capital work-in-progress includes cost of property, plant and equipment under installation / under
development as at the balance sheet date. Advances paid towards the acquisition of property, plant
and equipment outstanding at each balance date is classified as capital advances under other
noncurrent assets. An item of property, plant and equipment is derecognised when no future
economic benefit are expected to arise from the continued use of the assets or upon disposal. Any
gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss.

ii) Transition to Ind AS

On transition to Ind AS, the Company has elected to continue with the carrying value of all its
property, plant and equipment recognised as at April 1, 2017 measured as per previous GAAP and
use that carrying value as the deemed cost of the property, plant and equipment.

iii) Depreciation

Depreciation on property, plant and equipment is provided on the WDV Method based on Cost of
Assets less there residual values over their use full lives, Using Written Down Value Method as per
Schedule II of the Companies Act, 2013. Depreciation on additions to or on disposal of assets is
calculated on pro-rata basis i.e. from (upto) the date on which the property, plant and equipment is
available for use (disposed off).

b) Impairment of non-financial assets

At each reporting date, the Company reviews the carrying amounts of its non-financial assets (other
than inventories and deferred tax assets) to determine whether there is any indication on impairment.
If any such indication exists, then the asset''s recoverable amount is estimated. An impairment loss is
recognised if the carrying amount of an asset exceeds its estimated recoverable amount. Impairment
losses are recognised in Statement of Profit and Loss.

c ) Inventories

Inventories are valued at lower of Cost and Net Realisable value.

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Mar 31, 2015

A) Basis of Preparation

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis of accounting. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the companies Act 2013 (Act) and in accordance with the Accounting Standards notified in the Companies (Accounting Standard) Rules, 2014.Accounting Policies have been consistently applied except where a newly issued accounting Standard is initially adopted or a revision to an existing Accounting Standard requires a change in the Accounting Policy hitherto in use. Profit & Loss Statement & Balance sheet are prepared accordance to Schedule III of The companies Act, 2013.

b) Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to Contingent Liabilities as at the date of the financial statements and the reported amounts of Income and Expenses during the Period. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known/materialize.

c) Cash and Cash Equivalents :

Cash & Cash Equivalent consists of Cash in hand, Bank balances and Bank Deposits.

d) Cash Flow Statement

Cash flows are reported using the indirect method, as per AS-3, issued by the ICAI. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

e) Fixed Assets & Depreciation

Fixed Assets are stated at cost of acquisition less accumulated depreciation thereon. Direct costs are capitalized until assets are ready to be put to use.

Depreciation on the Fixed Assets has been provided on the basis of Written Down Value method over the useful lives of assets as per useful life prescribed under Schedule II of Companies Act, 2013.

f) Investments

Long term investments are carried individually at cost less provision for diminution, other than temporary, in the value of such investments determined on an individual basis.

g) Provision & Contingencies

The Company recognizes a provision when there is a present obligation as a result of an obligating event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure of contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources.

h) Income Tax

Taxation is accounted on the basis of the "Liability Method" which is generally followed in India. Provision is made for income tax based on computation after considering rebates, relief and exemption under the Income Tax Act, 1961.

In accordance with the Accounting Standards 22 "Accounting for taxes on Income" issued by the Institute of Chartered Accountants of India, Deferred Tax Liability/Assets has been calculated on timing differences between the accounting income and the taxable income for the year and quantified using the tax rate enacted or substantively enacted as on the Balance Sheet date.

i) Provision, Contingent Liabilities & 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 statement.

j) Provision for Gratuity

No provision for gratuity has been made as the provisions of Payment of Gratuity Act, 1972 are not applicable.