g. Contingent liability

Contingent liability is not provided for in the accounts and is recognized by way of notes.

2. Other accounting policies

i. Borrowing costs

Borrowing cost 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 are capitalized as part of the cost of the
respective asset. All other borrowing costs are expensed in the period they occur.

ii. Inventories

Finished and semi-finished products produced and purchased by the Company are carried at lower of cost and
net realizable value. Raw materials purchased are carried at cost. Store and spare parts are carried at cost. Cost
has been determined by using the FIFO method.

iii. Revenue Recognition

(i) Sale of goods: Revenue from sale of goods is recognized net of rebates and discounts on transfer of
significant risks and rewards of ownership to the buyer.

(ii) Income from Services: Revenue from services is accounted for in accordance with the terms of contracts, as
and when these services are rendered.

(iii) Interest: Revenue is recognized on a time proportion basis taking into account the amount outstanding and
the rate applicable.

(iv) Dividend: Dividend Income is recognized when right to receive is established.

iv. Balance confirmation

Balances of debtors creditors and loans and advances are subject to confirmation from respective parties.

v. Tax Expenses

The tax expense for the period comprises current and deferred tax. Tax is recognised in Statement of Profit and
Loss, except to the extent that it relates to items recognised in the comprehensive income or in equity. In which
case, the tax is also recognized in other comprehensive income or equity.

vi. Current tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities, based on tax rates and laws that are enacted or substantively enacted at the Balance sheet
date.

vii. Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the
financial statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which
the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period. The carrying amount of deferred tax liabilities and
assets are reviewed at the end of each reporting period.

viii. Earnings Per Share

Basic earnings per share are 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, 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.

ix. Financial Instruments
i) Financial Assets

A. Initial recognition and measurement

All financial assets and liabilities are initially recognized at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value
through profit or loss, are adjusted to the fair value on initial recognition. Purchase and sale of financial assets
are recognised using trade date accounting.

B. Subsequent measurement

a) Financial assets carried at amortized cost (AC)

A financial asset is measured at amortized cost if it is held within a business model whose objective is to hold
the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding.

b) Financial assets at fair value through other comprehensive income (FVTOCI)

A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved by
both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset
give rise on specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.

c) Financial assets at fair value through profit or loss (FVTPL)

A financial asset which is not classified in any of the above categories are measured at FVTPL.

C. Other Equity Investments

All other equity investments are measured at fair value, with value changes recognised in Statement of Profit
and Loss, except for those equity investments for which the Company has elected to present the value changes in
Other Comprehensive Income’.

D. Impairment of financial assets

In accordance with Ind AS 109, the Company uses ‘Expected Credit Loss’ (ECL) model, for evaluating
impairment of financial assets other than those measured at fair value through profit and loss (FVTPL).

Expected credit losses are measured through a loss allowance at an amount equal to:

The 12-months expected credit losses (expected credit losses that result from those default events on the
financial instrument that are possible within 12 months after the reporting date); or

Full lifetime expected credit losses (expected credit losses that result from all possible default events over the
life of the financial instrument)

For trade receivables Company applies ‘simplified approach’ which requires expected lifetime losses to be
recognised from initial recognition of the receivables. The Company uses historical default rates to determine
impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are
reviewed and changes in the forward looking estimates are analysed.

For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no significant
increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.

Financial liabilities

A. Initial recognition and measurement

All financial liabilities are recognized at fair value and in case of loans, net of directly attributable cost. Fees of
recurring nature are directly recognised in the Statement of Profit and Loss as finance cost.

B. Subsequent measurement

Financial liabilities are carried at amortized cost using the effective interest method. For trade and other
payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due
to the short maturity of these instruments.

a) Exemptions from retrospective application

(i) Business combination exemption

The Company has applied the exemption as provided in Ind AS 101 on non-application of Ind AS 103,
“Business Combinations” to business combinations consummated prior to April 1, 2015 (the “Transition
Date”), pursuant to which Goodwill / capital reserve arising from a business combination has been stated at the
carrying amount prior to the date of transition under Indian GAAP. The Company has also applied the
exemption for past business combinations to acquisitions of investments in subsidiaries / associates / joint
ventures consummated prior to the Transition Date.

(ii) Share-based payment transactions

Ind AS 101 encourages, but does not require, first time adopters to apply Ind AS 102 Share based Payment to
equity instruments that were vested before the date of transition to Ind AS. The Company has elected not to
apply Ind AS 102to options that vested prior to April 1, 2015.

(iii) Fair value as deemed cost exemption

The Company has elected to measure items of property, plant and equipment and intangible assets at its
carrying value at the transition date except for certain class of assets which are measured at fair value as deemed
cost.

(iv) Decommissioning liabilities

The Company has elected to apply the transitional provision with respect to recognition of Decommissioning,
Restoration and Similar Liabilities.

x. The Company has security deposits of Rs. 55,838.22/- (figure in hundred), this amount stands before
the family settlement, therefore there are no supporting document available.

xi. Indusind Bank & State Bank of Patiala Both bank accounts need to be written off as Indusind
bank amount has been transferred to RBI and SBOP Bombay- There are no such documents and
balance stands from 1/4/2008 onwards.

xii. Interest receivable on FDR’s is unreconciled to the tune of Rs. 906.12/- (figure in hundred) .

xiii. To make comparable Rs. 8,138.91/- (figure in hundred) transfers from "Other Current Liabilities" to
"Trade Payables " in current year.

VI. Details of Benami Property held

The company didn’t have any Benami Property.

VII. Where the Company has borrowings from banks or financial institutions on the basis of current assets:

(a) whether quarterly returns or statements of current assets filed by the Company with banks or financial institutions
are in agreement with the books of accounts.

(b) if not, summary of reconciliation and reasons of material discrepancies, if any to be adequately disclosed
The Company didn’t have any borrowings from banks or financial institutions on the basis of Current Assets.

VIII. Willful Defaulter:

a. Date of declaration as willful defaulter,

b. Details of defaults (amount and nature of defaults),

The Company is not declared a willful defaulter during the year.

IX. Relationship with Struck off Companies:

Where the company has any transactions with companies struck off under section 248 of the Companies Act, 2013 or
section 560 of Companies Act, 1956, the Company shall disclose the following details: -

The company didn’t have any transactions with companies struck off under section 248 of the Companies Act, 2013 or
section 560 of Companies Act, 1956.

X. Registration of charges or satisfaction with Registrar of Companies:

Where any charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period,
details and reasons thereof shall be disclosed.

As informed by company there is no any charge or satisfaction yet to be registered with Registrar of
companies.

XI. Compliance with number of layers of companies:

Where the company has not complied with the number of layers prescribed under clause (87) of section 2 of the Act
read with Companies (Restriction on number of Layers) Rules, 2017, the name and CIN of the companies beyond
the specified layers and the relationship/extent of holding of the company in such downstream companies shall be
disclosed.

As informed by the company it has complied with.

XII. Compliance with approved Scheme(s) of Arrangements:

Where any Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237
of the Companies Act, 2013, the Company shall disclose that the effect of such Scheme of Arrangements have been
accounted for in the books of account of the Company ‘in accordance with the Scheme’ and ‘in accordance with
accounting standards and deviation in this regard shall be explained

Note: For further clarifications, please refer Note XV of "NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR
ENDED 31ST MARCH, 2024" annexed with Financial Statement for the Financial year 2023-2024.

As per our report of even date

For R.C. SHARMA & ASSOCIATES For and on behalf of the Board of Directors of

Chartered Accountants Mahaan Foods Limited

Firm Registration. No. 021847N

CA R.C.Sharma Sanjeev Goyal Saloni Goyal Jitender Singh Bisht

(Partner) (Managing Director) (Director) (CFO)

FCA DIN: 00221099 DIN: 00400832 PAN: BDRPB0631F

Membership No. 83543

Place: New Delhi Ritika Aggarwal

Date: 29/05/2024 Company Secretary & Compliance Officer

M.No.: A69712