Accounting Policies of Jattashankar Industries Ltd. Company

Mar 31, 2025

1. Corporate Information:

JATTASHANKAR INDUSTRIES LIMITED (The Company) is a public Limited Company incorporated in
India under the provision of Companies Act 1956 on 11th day of August 1988 and is domiciled in India. The
Company’s Shares are listed in Bombay Stock Exchange.

The registered office of the Company is located at 11, Parasrampuria Apartment, Film City Road, Opp. Bank
of India, Gokuldham, Goregaon (East), Mumbai-400063.

2. Statement of Compliance:

These standalone financial statements (hereinafter referred to as “financial statements”) are prepared in
accordance with the Indian Accounting Standards (“Ind AS”) as per the Companies (Indian Accounting
Standards) Rules, 2015 notified under Section 133 of Companies Act, 2013 (“the Act’’), amendments
thereto and other relevant provisions of the Act and guidelines issued by the Securities and Exchange Board
of India (“SEBI”), as applicable

The standalone financial statements were authorised for issue in accordance with a resolution passed at the
meeting of the Board of Directors.

3. Basis of Preparation of Financial Statements:

These standalone financial statements have been prepared on historical cost basis except for certain financial
instruments and defined benefit plans which are measured at fair value or amortized cost at the end of each
reporting period. Historical cost is generally based on the fair value of the consideration given in exchange
for goods and services. Fair value is the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date. All assets and
liabilities have been classified as current and non-current as per the Company’s normal operating cycle.
Based on the nature of services rendered to customers and time elapsed between deployment of resources
and the realisation in cash and cash equivalents of the consideration for such services rendered
The statement of cash flows have been prepared under indirect method, whereby profit or loss is adjusted for
the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash
receipts or payments and items of income or expense associated with investing or financing cash flows. The
cash flows from operating, investing and financing activities of the Company are segregated. The Company
considers all highly liquid investments that are readily convertible to known amounts of cash and are subject
to an insignificant risk of changes in value to be cash equivalents.

4. Functional and Presentation Currency:

The standalone financial statements are presented in Indian Rupees, which is the functional currency of the
Company and the currency of the primary economic environment in which the Company operates.

5. Use of Estimates:

The preparation of Ind. AS financial statements in conformity with the Accounting Standards generally
accepted in India requires management to make judgments, estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets, liabilities, income and expenses
during the reporting period. Differences between actual results and estimated are recognized in the period in
which the results are materialized.

6. Revenue Recognition:

Revenue is recognized only when risk and rewards incidental to ownership are transferred to the
customer/client it can be reliably measured and it is reasonable to except ultimate collection.

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Mar 31, 2024

NOTE NO. 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1. Corporate Information:

JATTASHANKAR INDUSTRIES LIMITED (The Company) is a public Limited Company incorporated in India under the provision of Companies Act 1956 on 11th day of August 1988 and is domiciled in India. The Company’s Shares are listed in Bombay Stock Exchange.

The registered office of the Company is located at 11, Parasrampuria Apartment, Film City Road, Opp. Bank of India, Gokuldham, Goregaon (East), Mumbai-400063.

2. Statement of Compliance:

These standalone financial statements (hereinafter referred to as “financial statements”) are prepared in accordance with the Indian Accounting Standards (“Ind AS”) as per the Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 of Companies Act, 2013 (“the Act’’), amendments thereto and other relevant provisions of the Act and guidelines issued by the Securities and Exchange Board of India (“SEBI”), as applicable

The standalone financial statements were authorised for issue in accordance with a resolution passed at the meeting of the Board of Directors.

3. Basis of Preparation of Financial Statements:

These standalone financial statements have been prepared on historical cost basis except for certain financial instruments and defined benefit plans which are measured at fair value or amortized cost at the end of each reporting period. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. All assets and liabilities have been classified as current and non-current as per the Company’s normal operating cycle. Based on the nature of services rendered to customers and time elapsed between deployment of resources and the realisation in cash and cash equivalents of the consideration for such services rendered The statement of cash flows have been prepared under indirect method, whereby profit or loss is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of income or expense associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated. The Company considers all highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value to be cash equivalents.

4. Functional and Presentation Currency:

The standalone financial statements are presented in Indian Rupees, which is the functional currency of the Company and the currency of the primary economic environment in which the Company operates.

5. Use of Estimates:

The preparation of Ind. AS financial statements in conformity with the Accounting Standards generally accepted in India requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses during the reporting period. Differences between actual results and estimated are recognized in the period in which the results are materialized.

6. Revenue Recognition:

Revenue is recognized only when risk and rewards incidental to ownership are transferred to the customer/client it can be reliably measured and it is reasonable to except ultimate collection.

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Mar 31, 2015

A) Basis of preparation of financial statement

The financial statement has been prepared under the historical cost convention.

b) Fixed Assets :

Fixed Assets are stated at cost net of Excise Duty Cenvat availed on capital goods less depreciation. All pre-operative expenses including financing cost till the commencement of commercial production are capitalized to fixed asset on appropriate basis.

c) Depreciation :

Depreciation is provided on all depreciable assets on Straight Line Method at the rates and in the manner prescribed in schedule II of Companies Act, 2013 based on useful life.

d) Inventories :

i) Raw Material, stores & spares are valued at cost.

ii) Finished goods are valued at lower of cost or net realizable value.

iii) Work in Progress are valued at estimated cost.

e) Provision for retirement benefits

The company has made provision for gratuity of its eligible employees Contribution to Provident fund and pension funds are monthly determined and paid by the company.

f) Recognition of Income and Expenditure

All expenditure and income are accounted on accrual basis and to the extent company is reasonably certain of ultimate realization of income.

g) Sale

Sale are net of Sales return and sales tax collected on sales .Sales is recognized on the basis of invoice or dispatch to the customer.

h) Write off of miscellaneous expenditure

Preliminary expenses, share issue expenses and Increase in Authorised Share capital expenses are written off over a period of 5 years.

i) Borrowing Cost that are directly attributable to the acquisition, construction or production of a qualifying assets is capitalized and other borrowing cost are recognized as an expenses in the period in which they are incurred.

j) Use of Estimates

The preparation of financial statements in conformity with the Accounting Standards generally accepted in India requires, the management to make estimates and assumption in respect of certain items like provision for doubtful debts, provision for impairment of fixed assets etc. that affect the reported amount of assets and liability & disclosure of contingent liability as at the date of the financial statement and reported amount of revenue and expenses for the year. Actual result could differ from these estimates. Any revision to accounting estimates is recognized in current and future period.

k) Impairment of Assets

The company assesses at each balance sheet date whether there is any indication of impairment of any assets. If such indication exist , assets are impaired by comparing carrying amount of each asset to the recoverable amount being higher of net selling price.

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Mar 31, 2014

(a) Basis of preparation of financial statement

The financial statement has been prepared under the historical cost convention.

(b) Fixed Assets :

Fixed Assets are stated at cost net of Excise Duty Cenvat availed on capital goods less depreciation .All pre- operative expenses including financing cost till the commencement of commercial production are capitalized to fixed asset on appropriate basis.

(c) Depreciation :

Depreciation is provided on all depreciable assets on Straight Line Method at the rates and in the manner prescribed in schedule XIV of the Companies Act , 1956.

(d) Inventories :

i) Raw Material ,stores & spares are valued at cost .

ii) Finished goods are valued at lower of cost or net realizable value.

iii) Work in Progress are valued at estimated cost.

(e) Provision for retirement benefits

The company has made provision for gratuity of its eligible employees . Contribution to Provident fund and pension funds are monthly determined and paid by the company.

(f) Recognition of Income and Expenditure

All expenditure and income are accounted on accrual basis and to the extent company is reasonably certain of ultimate realization of income.

(g) Sale

Sale are inclusive of excise duty and net of rebate ,discount ,claims and sales tax collected on sales .Sales is recognized on the basis of invoice or dispatch to the customer.

(h) Write off of miscellaneous expenditure

Preliminary expenses, share issue expenses and Increase in Authorised Share capital expenses are written off over a period of 5 years.

(i) Borrowing Cost that are directly attributable to the acquisition , construction or production of a qualifying assets is capitalized and other borrowing cost are recognized as an expenses in the period in which they are incurred.

(j) Use of Estimates

The preparation of financial statements in conformity with the Accounting Standards generally accepted in India requires ,the management to make estimates and assumption in respect of certain items like provision for doubtful debts ,provision for impairment of fixed assets etc. that affect the reported amount of assets and liability & disclosure of contingent liability as at the date of the financial statement and reported amount of revenue and expenses for the year. Actual result could differ from these estimates .Any revision to accounting estimates is recognized in current and future period.

(k) Impairment of Assets

The company assesses at each balance sheet date whether there is any indication of impairment of any assets .If such indication exist , assets are impaired by comparing carrying amount of each asset to the recoverable amount being higher of net selling price.

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Mar 31, 2013

(a) Basis of preparation of financial statement

The financial statement has been prepared under the historical cost convention.

( b ) Fixed Assets :

Fixed Assets are stated at cost net of Excise Duty Cenvat availed on capital goods less depreciation .All pre-operative expenses including financing cost till the commencement of commercial production are capitalized to fixed asset on appropriate basis.

( c ) Depreciation :

Depreciation is provided on all depreciable assets on Straight Line Method at the rates and in the manner prescribed in schedule XIV of the Companies Act , 1956.

( d ) Inventories :

i ) Raw Material ,stores & spares are valued at cost .

ii ) Finished goods are valued at lower of cost or net realizable value.

iii ) Work in Progress are valued at estimated cost.

(e) Provision for retirement benefits

The company has not made provision for estimated liability of gratuity for its employees as the same is treated on cash basis .Contribution to Provident fund and pension funds are monthly determined and paid by the company.

(f) Recognition of Income and Expenditure

All expenditure and income are accounted on accrual basis and to the extent company is reasonably certain of ultimate realization of income except gratuity liability which is accounted for on cash basis.

(g) Sale

Sale are inclusive of excise duty and net of rebate ,discount ,claims and sales tax collected on sales .Sales is recognized on the basis of invoice or dispatch to the customer.

(h) Write off of miscellaneous expenditure

Preliminary expenses, share issue expenses and Increase in Authorized Share capital expenses are written off over a period of 5 years.

(i) Borrowing Cost that are directly attributable to the acquisition , construction or production of a qualifying assets is capitalized and other borrowing cost are recognized as an expenses in the period in which they are incurred.

(j) Use of Estimates

The preparation of financial statements in conformity with the Accounting Standards generally accepted in India requires ,the management to make estimates and assumption in respect of certain items like provision for doubtful debts ,provision for impairment of fixed assets etc. that affect the reported amount of assets and liability & disclosure of contingent liability as at the date of the financial statement and reported amount of revenue and expenses for the year. Actual result could differ from these estimates .Any revision to accounting estimates is recognized in current and future period.

(k) Impairment of Assets

The company assesses at each balance sheet date whether there is any indication of impairment of any assets .If such indication exist , assets are impaired by comparing carrying amount of each asset to the recoverable amount being higher of net selling price.

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Mar 31, 2012

(a) Basis of preparation of financial statement

The financial statement has been prepared under the historical cost convention.

(b) Fixed Assets :

Fixed Assets are stated at cost net of Excise Duty Cenvat availed on capital goods less depreciation .All pre-operative expenses including financing cost till the commencement of commercial production are capitalized to fixed asset on appropriate basis.

(c) Depreciation :

Depreciation is provided on all depreciable assets on Straight Line Method at the rates and in the manner prescribed in schedule XIV of the Companies Act, 1956.

(d) Inventories :

i) Raw Material, stores & spares are valued at cost .

ii) Finished goods are valued at lower of cost or net realizable value.

iii) Work in Progress are valued at estimated cost.

(e) Provision for retirement benefits

The company has not made provision for estimated liability of gratuity for its employees as the same is treated on cash basis .Contribution to Provident fund and pension funds are monthly determined and paid by the company.

(f) Recognition of Income and Expenditure

All expenditure and income are accounted on accrual basis and to the extent company is reasonably certain of ultimate realization of income except Leave encashment & gratuity liability which is accounted for on cash basis.

(g) Sale

Sale are inclusive of excise duty and net of rebate, discount, claims and sales tax collected on sales .Sales is recognized on the basis of invoice or dispatch to the customer.

(h) Write off of miscellaneous expenditure

Preliminary expenses, share issue expenses and Increase in Authorised Share capital expenses are written off over a period of 5 years.

(i) Borrowing Cost that are directly attributable to the acquisition, construction or production of a qualifying assets is capitalized and other borrowing cost are recognized as an expenses in the period in which they are incurred.

(j) Use of Estimates

The preparation of financial statements in conformity with the Accounting Standards generally accepted in India requires, the management to make estimates and assumption in respect of certain items like provision for doubtful debts, provision for impairment of fixed assets etc. that affect the reported amount of assets and liability & disclosure of contingent liability as at the date of the financial statement and reported amount of revenue and expenses for the year. Actual result could differ from these estimates .Any revision to accounting estimates is recognized in current and future period.

(k) Impairment of Assets

The company assesses at each balance sheet date whether there is any indication of impairment of any assets .If such indication exist, assets are impaired by comparing carrying amount of each asset to the recoverable amount being higher of net selling price.

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Mar 31, 2010

(a) Basis of preparation of financial statement

The financial statement has been prepared under the historical cost convention.

(b) Fixed Assets :

Fixed Assets are stated at cost net of Excise Duty Cenvat availed on capital goods less depreciation .All pre-operative expenses including financing cost till the commencement of commercial production are capitalized to fixed asset on appropriate basis.

(c) Depreciation :

Depreciation is provided on all depreciable assets on Straight Line Method at the rates and in the manner prescribed in schedule XIV of the Companies Act , 1956.

(d) Inventories :

i) Raw Material ,stores & spares are valued at cost .

ii) Finished goods are valued at lower of cost or net realizable value.

iii) Work in Progress are valued at estimated cost.

(e) Provision for retirement benefits

The company has not made provision for estimated liability of gratuity for its employees as the same is treated on cash basis (Please refer Note No.5 also) .Contribution to Provident fund and pension funds are monthly determined and paid by the company.

(f) Recognition of Income and Expenditure

All expenditure and income are accounted on accrual basis and to the extent company is reasonably certain of ultimate realization of income except interest on call money due from share holders, Leave encashment & gratuity liability which is accounted for on cash basis.

(g) Sale

Sale are inclusive of excise duty and net of rebate ,discount ,claims and sales tax collected on sales .Sales is recognized on the basis of invoice or dispatch to the customer.

(h) Write off of miscellaneous expenditure

Preliminary expenses, share issue expenses and Increase in Authorised Share capital expenses are written off over a period of 10 years.

(i) Borrowing Cost that are directly attributable to the acquisition , construction or production of a qualifying assets is capitalized and other borrowing cost are recognized as an expenses in the period in which they are incurred.

(j) Use of Estimates

The preparation of financial statements in conformity with the Accounting Standards generally accepted in India requires ,the management to make estimates and assumption in respect of certain items like provision for doubtful debts ,provision for impairment of fixed assets etc. that affect the reported amount of assets and liability & disclosure of contingent liability as at the date of the financial statement and reported amount of revenue and expenses for the year. Actual result could differ from these estimates .Any revision to accounting estimates is recognized in current and future period.

(k) Impairment of Assets

The company assesses at each balance sheet date whether there is any indication of impairment of any assets .If such indication exist , assets are impaired by comparing carrying amount of each asset to the recoverable amount being higher of net selling price.