Max Earth Resources Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

A. Convention:

The Financial Statement have been prepared in accordance with the generally accepted accounting principles in India under
the historical cost convention on accrual basis. Pursuant to Section 133 of the Companies Act, 2013 read with Rule 7 of
the Companies (Accounts) Rules, 2014, till the standards of accounting or any addendum thereto are prescribed by Central
Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting
Standards notified under the Companies Act, 1956 will continue to apply. Consequently, the Financial Statements have been
prepared to comply in all material aspects with the Accounting Standard notified under section 211(3C) of the Companies
Act, 2013, Companies (Accounting Standards) Rules, 2006, as amended and other relevant provisions of the Companies Act,
2013. The Accounting Policies which have been applied consistently are set out below:

B. Basis of Preparation:

All assets and liabilities have been classified as current or non-current as per the normal operating cycle of the Company and
other criteria set out in Schedule III of the Companies Act, 2013. Based on the nature of products and the time between the
acquisition of the assets for processing and their realization in cash and cash equivalents, the company has ascertained
its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.

C. Use of Estimates:

The preparation of the financial statements with conformity with generally accepted accounting principle required to
management to make assumptions and estimates that affect the reported amounts of assets and liabilities and disclosure of
contingent liabilities of the date of the financial statements and the results of operation during the reporting period.

These estimates are based on the evaluation of the relevant facts and circumstances on the date of financial statement by
the Management, which may differ from future revisions and actual results in subsequent periods. Differences are adjusted
in subsequent periods as they occur.

D. Fixed Assets:

Tangible Assets:

Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost of the fixed assets comprises
of its purchase price, non-refundable duties and taxes and other cost which are incurred for bringing the assets ready for
their use. Borrowing cost directly attributable to qualifying assets / capital projects are capitalized and included in the cost
of fixed assets to the extent they relate to the period till such assets are ready for their intended use.

Intangible assets:

Intangible assets are stated at cost, less accumulated amortization and impairment losses, if any.

E. Depreciation and Amortization expenses:

Depreciation:

Depreciation on tangible assets is provided on the written down value over the useful lives of assets. Depreciation is calculated
on pro-rata basis from the date of acquisition and installation till the date the assets are sold or disposed of. Machinery spares
which are capitalized are depreciated over the useful life of the related fixed asset. The written down value of such spares is
charged in the Statement of Profit and Loss, on issue for consumption. Leasehold land is amortized on a written down value
over the period of lease. Depreciation and amortization methods, useful lives and residual values are reviewed periodically,
including at each financial year end. Useful lives as prescribed under Part C of Schedule II of the Companies Act, 2013
are applied.

F. Impairment of Assets:

The carrying amounts of assets are reviewed at each Balance Sheet date to assets if there is any indication of impairment based
on internal & external factors. An impairment loss on such assessment will be recognized wherever the carrying amount of an
asset exceeds its recoverable amount. The recoverable amount of the assets is net price or value in use, whichever is higher.
While assessing value in use, the estimated future cash flows are discounted to the present value by using weighted average
cost of capital. A previously impairment loss is further provided or reversed depending on changes in the circumstances.

G. Finance Costs:

Borrowing costs in relation to acquisition and constructions of qualifying assets are capitalized as part of cost of such assets
up to the date when such assets are ready for intended use. Other borrowing costs are charged as expense in the year in
which these are incurred.

H. Investments:

I nvestments that are intended to be held for more than a year, from the date of acquisition, are classified as long-term
investments and are carried at cost. However, provision for diminution in value of investments is made to recognize a decline,
other than temporary, in the value of investments.

Current investments not intended to be held for a period more than one year are stated at lower of cost and fair value.

I. Inventories:

Raw materials, packing materials, purchased finished goods, work in progress, finished goods manufactured; fuel, stores and
spares other than specific spares for machinery are valued at cost or net realizable value whichever is lower.

J. Foreign currency transactions:

Initial recognition:

There is no foreign currency transaction during the year.

Exchange Differences:

There is no foreign currency transaction, so no foreign currency exchange differences in current year.

K. Revenue recognition:

Revenue from sales is recognized when all significant risks and reward of ownership have been transferred to be buyer and
no significant uncertainty exists regarding the amount of consideration that will be derived from the sale of goods.

Sale of goods and services:

I. Domestic sales are accounted for on dispatch from the point of sale, where property is in goods are transferred to
the buyer

II. Service income is recognized on a time proportion basis considering the amount outstanding and the rate applicable.
Other revenue:

I. Interest income is recognized on a time proportion basis considering the amount outstanding and the rate applicable.

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Mar 31, 2024

I. SIGNIFICANT NOTES TO ACCOUNT AND ACCOUNTING POLICIES

A. Convention:

The Financial Statement have been prepared in accordance with the generally accepted accounting principles in India
under the historical cost convention on accrual basis. Pursuant to Section 133 of the Companies Act, 2013 read with
Rule 7 of the Companies (Accounts) Rules, 2014, till the standards of accounting or any addendum thereto are prescribed
by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing
Accounting Standards notified under the Companies Act, 1956 will continue to apply. Consequently, the Financial
Statements have been prepared to comply in all material aspects with the Accounting Standard notified under section
211(3C) of the Companies Act, 2013, Companies (Accounting Standards) Rules, 2006, as amended and other relevant
provisions of the Companies Act, 2013. The Accounting Policies which have been applied consistently are set out below:

B. Basis of Preparation:

All assets and liabilities have been classified as current or non-current as per the normal operating cycle of the Company
and other criteria set out in Schedule III of the Companies Act, 2013. Based on the nature of products and the time
between the acquisition of the assets for processing and their realization in cash and cash equivalents, the company
has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets
and liabilities.

C. Use of Estimates:

The preparation of the financial statements with conformity with generally accepted accounting principle required
to management to make assumptions and estimates that affect the reported amounts of assets and liabilities and
disclosure of contingent liabilities of the date of the financial statements and the results of operation during the
reporting period.

These estimates are based on the evaluation of the relevant facts and circumstances on the date of financial statement
by the Management, which may differ from future revisions and actual results in subsequent periods. Differences are
adjusted in subsequent periods as they occur.

D. Fixed Assets:

Tangible Assets:

Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost of the fixed assets
comprises of its purchase price, non-refundable duties and taxes and other cost which are incurred for bringing the
assets ready for their use. Borrowing cost directly attributable to qualifying assets / capital projects are capitalized and
included in the cost of fixed assets to the extent they relate to the period till such assets are ready for their intended use.

Intangible assets:

Intangible assets are stated at cost, less accumulated amortization and impairment losses, if any.

E. Depreciation and Amortization expenses:

Depreciation:

Depreciation on tangible assets is provided on the written down value over the useful lives of assets. Depreciation is
calculated on pro-rata basis from the date of acquisition and installation till the date the assets are sold or disposed
of. Machinery spares which are capitalized are depreciated over the useful life of the related fixed asset. The written
down value of such spares is charged in the Statement of Profit and Loss, on issue for consumption. Leasehold land is
amortized on a written down value over the period of lease. Depreciation and amortization methods, useful lives and
residual values are reviewed periodically, including at each financial year end. Useful lives as prescribed under Part C
of Schedule II of the Companies Act, 2013 are applied.

F. Impairment of Assets:

The carrying amounts of assets are reviewed at each Balance Sheet date to assets if there is any indication of impairment
based on internal & external factors. An impairment loss on such assessment will be recognized wherever the carrying
amount of an asset exceeds its recoverable amount. The recoverable amount of the assets is net price or value in use,

whichever is higher. While assessing value in use, the estimated future cash flows are discounted to the present value
by using weighted average cost of capital. A previously impairment loss is further provided or reversed depending on
changes in the circumstances.

G. Finance Costs:

Borrowing costs in relation to acquisition and constructions of qualifying assets are capitalized as part of cost of such
assets up to the date when such assets are ready for intended use. Other borrowing costs are charged as expense in
the year in which these are incurred.

H. Investments:

Investments that are intended to be held for more than a year, from the date of acquisition, are classified as long-term
investments and are carried at cost. However, provision for diminution in value of investments is made to recognize a
decline, other than temporary, in the value of investments.

Current investments not intended to be held for a period more than one year are stated at lower of cost and fair value.

I. Inventories:

Raw materials, packing materials, purchased finished goods, work in progress, finished goods manufactured; fuel,
stores and spares other than specific spares for machinery are valued at cost or net realizable value whichever is lower.

J. Foreign currency transactions:

Initial recognition:

There is no foreign currency transaction during the year.

Exchange Differences:

There is no foreign currency transaction, so no foreign currency exchange differences in current year.

K. Revenue recognition:

Revenue from sales is recognized when all significant risks and reward of ownership have been transferred to be buyer
and no significant uncertainty exists regarding the amount of consideration that will be derived from the sale of goods.

Sale of goods and services:

I. Domestic sales are accounted for on dispatch from the point of sale, where property is in goods are transferred
to the buyer

II. Service income is recognized on a time proportion basis considering the amount outstanding and the rate applicable.
Other revenue:

I. Interest income is recognized on a time proportion basis considering the amount outstanding and the rate applicable.

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Mar 31, 2012

1. Basis of Preparation of Financial Statements

The Restated Financial Statements have been prepared under Historical Cost conventions and on accrual basis in accordance with the Generally Accepted Accounting Principles (''GAAP'') applicable in India, Companies (Accounting Standard) Rules, 2006 notified by Ministry of Company Affairs and Accounting Standards issued by the Institute of Chartered Accountants of India as applicable and relevant provisions of the Companies Act, 1956, as adopted consistently by the Company.

2. Use of Estimates

The preparation of Financial Statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made, that affects the reported amounts of assets and liabilities on the date of the Financial Statements and the reported amounts of revenue and expenses during the reporting period. Differences between the actual results and estimates are recognized in the period in which the results are known / materialized.

3. Fixed Assets

a) Fixed Assets are capitalized at cost inclusive of erection expenses & other incidental expenses in connection with the acquisition of assets, net of VAT, if any, less accumulated depreciation. Financing costs relating to acquisition of fixed assets are also included to the extent they relate to the period till such assets are ready to be put to use.

b) Fixed assets acquired under Hire Purchase are shown at their principal cost excluding the interest cost.

4. Depreciation / Amortization

Depreciation on fixed assets is provided on Written Down Value method (WDV) at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. In respect of additions made or asset sold / discarded during the year pro-rata depreciation has been provided.

5. Inventories

Traded goods are valued at cost, determined on FIFO basis. Cost includes, purchase price and freight and taxes (other than those subsequently recoverable from the taxing authorities), duties and all incidental expenses directly attributable to the purchases including costs incurred in bringing the material to its present location and condition.

6. Revenue Recognition

Revenue from sales transactions is recognized as and when the property in goods is sold /transferred to the buyer for a definite consideration. Other Income has been recognized on the basis of Accounting Standard - 9 (Revenue Recognition) notified by the Companies (Accounting Standards) Rules, 2006.

7. Investment

Investments that are readily realizable and intended to be held for not more than a year are classified as "Current Investments''. All other Investments are classified as Long Term Investments. Current Investments are carried at lower of cost or Market / Fair Value determined on an individual investment basis. Long Term investments are valued at cost. Provision for diminution in the value of long-term investment is made only if such decline is other than temporary in nature.

8. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that takes necessarily substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

9. Employee Benefits

Employee benefit plans comprise both defined benefit and defined contribution plans.

- Provident fund is a defined contribution plan. Each eligible employee and the Company make equal contributions at a percentage of the basic salary specified under the Employees'' Provident Funds and Miscellaneous Provisions Act, 1952. The Company has no further obligations under the plan beyond its periodic contributions.

10. Taxation

Tax expenses for the year comprise of current tax and deferred tax. Current tax is measured after taking into consideration the deductions and exemptions admissible under the provision of Income Tax Act, 1961.

Deferred Tax assets or liabilities are recognized for further tax consequence attributable to timing difference between taxable income and accounting income that are measured at relevant enacted tax rates and in accordance with Accounting Standard 22 on ''Accounting for Taxes on Income", issued by ICAI. At each Balance Sheet date the Company reassesses unrecognized deferred tax assets, to the extent they become reasonably certain or virtually certain of realization, as the case may be.

11. Leases Finance Lease

Leases which effectively transfer to the Company all risks and benefits incidental to ownership of the leased item are classified as Finance Lease. Lease rentals are capitalized at the lower of the fair value and present value of the minimum lease payments at the inception of the lease term and disclosed as leased assets. Lease payments are apportioned between the finance charges and reduction of the lease liability based on the implicit rate of return.

Operating Lease

Lease where the lesser effectively retains substantially all risks and benefits of the asset are classified as Operating lease. Operating lease payments are recognized as an expense in the Profit & Loss account on a Straight Line Basis over the Lease term.

12. Impairment of Assets

As on Balance Sheet date, the Company reviews the carrying amount of Fixed Assets to determine whether there are any indications that those assets have suffered "Impairment Loss". Impairment loss, if any, is provided to the extent, the carrying amount of assets exceeds their recoverable amount. Recoverable amount is higher of an asset s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from continuing use of an asset and from its disposal at the end of its useful life.

13. Foreign Exchange Transactions

i) Transactions in Foreign currency are recorded at the rate of exchange prevailing on the date of the respective transactions.

ii) Year-end balance of monitory assets and liabilities are translated at the yearend rates. Exchange differences arising on restatement or settlement are charged to Profit and Loss Account.

14. Earnings per Share

In determining the Earnings Per share, the company considers the net profit after tax which includes any post tax effect of any extraordinary / exceptional item. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period.

The number of shares used in computing Diluted earnings per share comprises the weighted average number of shares considered for computing Basic Earnings per share and also the weighted number of equity shares that would have been issued on conversion of all potentially dilutive shares.

In the event of issue of bonus shares, or share split the number of equity shares outstanding is increased without an increase in the resources. The number of Equity shares outstanding before the event is adjusted for the proportionate change in the number of equity shares outstanding as if the event had occurred at the beginning of the earliest period reported.

15. Contingent Liabilities& Provisions

Provisions are recognized only when there is a present obligation as a result of past events and when a reliable estimate of the amount of obligation can be made.

Contingent Liability is disclosed for

a) Possible obligation which will be confirmed only by future events not wholly within the control of the Company or

b) Present obligations arising from the 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.

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

d) Counter guarantee in respect of bank guarantee issued by banks on behalf of company : Amount outstanding as on 31/03/2012 Rs. 1, 33,12,631 / - (P.Y. 1,71,29,916/-)