Accounting Policies of Jauss Polymers Ltd. Company

Mar 31, 2024

1.3 Significant accounting policies:

(i) Property, plant and equipment:

Property, Plant and Equipment are carried at cost less accumulated depreciation and impairment losses, if
any. Cost includes expenditure that is directly attributable to the acquisition of the items.

Property, plant and equipment acquired after the transition date are stated at cost, less accumulated
depreciation and accumulated impairment losses, if any. Cost includes expenses directly attributable to
bringing the asset to the location and condition necessary for it to be capable of operating in the manner
intended by management.

Depreciation is calculated on written down value method and as per the useful life as prescribed in
Schedule II of the Companies Act 2013.

The residual values, useful lives and methods of depreciation are reviewed at each financial year end and
adjusted prospectively, if appropriate.

The cost and related accumulated depreciation are eliminated from the financial statements, upon sale
and disposition of the assets and the resultant gains or losses are recognised in the statement of profit
and loss.

(ii) Inventories:

Inventories are valued at lower of cost and net realisable value. The cost is computed on FIFO (first in first
out) basis. Finished Goods include cost of conversion and other costs incurred in bringing the inventories
to their present location and condition.

(iii) Employee benefit:

a. Defined Contribution Plan

Employee benefits in the form of Provident Fund (PF) considered as defined contribution plan and the
contributions are charged to the Statement of Profit and Loss of the year when the contribution to the
respective funds are due. The Company has no further obligations under the plan beyond its monthly
contributions.

b. Defined Benefit Plan

Retirement benefits in the form of Gratuity and Leave Encashment are considered as defined
obligations and are provided for as at the date of the balance sheet. As the company has transferred most
of the employees to its holding company, therefore no further provision has been made as the current
provision is quiet adequate to meet any liability.

c. Short-term Employee Benefits

Short term benefits are charged off at the undiscounted amount in the year in which the related service
is rendered.

d. Long-term Employee Benefits

Compensated absences which are not expected to occur within twelve months after the end of the period
in which the employee renders the related services are recognized as a provision.

Annual leaves can either be availed or encashed subject to restriction on the maximum accumulation of leaves.

(iv) Taxes on Income

a. Current tax:

Tax on income for the current period is determined on the basis of estimated taxable income and tax
credits computed in accordance with the provisions of the relevant tax laws and based on the expected
outcome of assessments / appeals.

Current income tax relating to items recognized and not in the statement of profit and loss. Management
periodically evaluates position0s taken in the tax returns with respect to situations in which applicable tax
regulations are subject to interpretation and establishes provisions where appropriate.

b. Deferred tax:

Deferred tax is provided using the balance sheet approach on temporary differences at the reporting date
between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes
at the reporting date.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply based on the tax
rates that have been enacted by the end of the reporting period.

Deferred tax items are recognized in correlation to the underlying transaction either in other comprehensive
income or directly in equity.

The break-up of the major components of the deferred tax assets and liabilities as at balance sheet date
has been arrived at after setting off deferred tax assets and liabilities.

During the year, company has not recognised deferred tax asset over the loss incurred and other temporary
items as the company has transferred its manufacturing unit along with all its employees, assests and
liabilites as a going concern to Innovative Tech Pack Limited.

(v) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability
equity instrument of another entity.

a. Financial assets

Financial assets include cash and cash equivalents, trade receivables and loans.

Financial Assets are measured at amortised cost or fair value through Other Comprehensive Income or fair
value through Statement of Profit or Loss, depending on its business model for managing those financial
assets and the assets contractual cash flow characteristics.

Subsequent measurements of financial assets are dependent on initial classification, For impairment
purposes significant financial assets are tested on an individual basis, other financial assets are assessed
collectively in groups that share similar credit risk characteristics.

The company derecognizes a financial assets when the contractual rights to the cash flows from the
financial assets expire or it transfers the financial assets and the transfer qualifies for the derecognisition
under In AS 109.

The company assesses impairment based on the expected credit losses (ECL) model to all its financial
assets measured at amortised cost.

b. Financial liabilities

Financial liabilities include trade payables.

All financial liabilities are recognised initially at fair value. After initial recognition, financial liabilities are
classified under one of the following two categories:

Financial liabilities at amortised cost: After Initial recognition, such financial liabilities are subsequently
measured at amortised cost by applying the Effective Interest Rate (EIR) method to the gross carrying
amount of the financial liability.

Financial liabilities at fair value through profit or loss: Financial liabilities which are designated as such on
initial recognition, or which are held for trading. Fair value gains / losses attributable to changes in own
credit risk is recognized in OCI. These gains / losses are not subsequently transferred to Statement of Profit
and Loss. All other changes in fair value of such liabilities are recognized in the Statement of Profit and Loss.

The Company derecognises a financial liability when the obligation specified in the contract is discharged,
cancelled or expires.

(vi) Revenue

The Company''s revenue is derived from the single performance obligation. Revenue is recognized based
on the nature of activity when, the promised goods or services are transferred to the customer and
consideration can be reasonable measured or there exists reasonable certainty of its recovery. Revenues
from sale of goods are recognized on dispatch which coincides with transfer of significant risks & rewards
to customer and is net of sales returns and discounts.

(vii) Impairment

"An asset is considered as impaired when at the date of Balance Sheet, there are indications of impairment
and the carrying amount of the asset, or where applicable, the cash generating unit to which the asset
belongs, exceeds its recoverable amount (i.e. the higher of the net asset selling price and value in use).The
carrying amount is reduced to the recoverable amount and the reduction is recognised as an impairment
loss in the statement of profit and loss. The impairment loss recognised in the prior accounting period is
reversed if there has been a change in the estimate of recoverable amount. Postimpairment, depreciation
is provided on the revised carrying value of the impaired asset over its remaining useful life.

(viii) Earnings per share (EPS)

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

(ix) Cash and cash equivalents

Cash and cash equivalents include cash on hand and at bank.

(x) Investment

Company has equity investment in subsidiary only which has been carried at cost.

(xi) Leases

The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases
that have a lease term of 12 months or less from the commencement date and do not contain a purchase
option). Lease payments on short-term leases and leases of low-value assets are recognized as expense on
a straight-line basis over the lease term.

---

Mar 31, 2015

1.1 Basis of preparation of financial statements

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 ('the Act') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). 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.

1.2 Use of Estimates

The preparation of financial statements requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. Differences between actual results and estimates are recognized in the period in which they materialize.

1.3 Change in Accounting Estimate

Pursuant to the requirements of Schedule II of the Companies Act, 2013, the management has revised the useful lives of fixed assets to bring it in line with the requirements of the said schedule. The depreciation charge for the year is lower by Rs. 8,42,281/- as a result of this change.

1.4 Sale/Revenue Recognition

Revenue (income) is recognized where no significant uncertainty as to determination or realization exists. Sales are recognized ex works and are including of excise duty but net of trade discounts and sales tax. Job work income is recognized on delivery of finished goods.

Other Income: Interest income is recognized on time proportion basis taking into account the amount outstanding and the rate applicable

1.5 Inventories

Raw Materials, Store & Spares, and Packing Materials are valued at cost*.

Finished Goods :- Lower of Cost* or Net realizable value.

* Cost is determined on the basis of first in first out (FIFO) method.

1.6 Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation and impairment loss, if any. The cost of assets comprises of purchase price and directly attributable cost of bringing the assets to working condition for its intended use including borrowing cost and incidental expenditure during construction incurred up to the date when the assets are ready to use and share issue expenses related to funds raised for financing the project.

1.7 Depreciation/ Amortisation

i) Depreciation on fixed assets is provided as per the Schedule-II of the Companies Act, 2013. As per this Schedule the carrying amount of the asset as on 1 April 2014—(a) shall be depreciated over the remaining useful life of the asset (as defined in the schedule-II) ;(b) after retaining the residual value, shall be recognised in the opening balance of retained earnings where the remaining useful life of an asset is nil.

ii) Depreciation is provided on pro-rata basis from the date on which assets are put to use in case of addition and provided upto the date of sale/disposal in case of sale/disposal.

iii) Depreciation on Plant & Machinery and Moulds is provided on written down value method.

iv) Depreciation on fixed assets, other than Plant & Machinery and Moulds is provided on straight line method.

1.8 Employee Benefits

a) Contribution to the Provident Fund and Employees State Insurance is deposited in accordance with the provisions of the relevant acts and is charged to profit and loss account.

b) Provision for gratuity and leave encashment is made on the basis of actuarial valuation at the end of the year. Actuarial gains or losses are recognized in the Statement of Profit and Loss.

1.9 Provisions

A provision is made based on a realizable estimate made. It is probable that an outflow of resources embodying economic benefits will be realized to settle an obligation. Contingent liabilities, if material, are disclosed by way of notes to accounts. Contingent assets are neither recognized nor disclosed in the financial statements.

1.10 Taxes on Income

Tax expense for the year comprising current tax and deferred tax is included in determining the net profit/(loss) for the year.

Deferred tax assets are recognised for all deductible timing differences and carried forward to the extent there is reasonable certainty that sufficient future taxable profit will be available against which such deferred tax assets can be realised. Deferred tax assets to the extent they pertain to brought forward losses and unabsorbed depreciation, are recognised only if there is virtual certainty of realisation, based on expected profitability in the future as estimated by the Company.

Deferred tax assets and liabilities are measured at the tax rates that have been enacted or substantively enacted by the balance sheet date.

1.11 Earning per Share

In determining earning per share, the company considers net profit after tax. Basic earning per share is computed using the weighted average number of equity shares outstanding during the year.Diluted earning per share is computed using the weighted average number of equity shares outstanding including dilutive potential equity shares during the year.

---

Mar 31, 2014

1.1 Basis of preparation of financial statements

The financial statements are prepared under historical cost convention, on a going concern basis and in accordance with the applicable accounting standards prescribed in the Companies (Accounting Standards) Rules, 2006 issued by the Central Government and relevant provisions of the Companies Act, 1956. 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.

1.2 Use of Estimates

The preparation of financial statements requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. Differences between actual results and estimates are recognized in the period in which they materialize.

1.3 Sale/Revenue Recognition

Revenue (income) is recognized where no significant uncertainty as to determination or realization exists. Sales are recognized ex works and are including of excise duty but net of trade discounts and sales tax. Job work income is recognized on delivery of finished goods.

1.4 Inventories

Raw Materials and Packing Materials are valued at cost*.

Finished Goods are valued at Cost* or Net realizable value, Whichever is lower.

* Cost is determined on the basis of first in first out (FIFO) method.

1.5 Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation and impairment loss, if any. The cost of assets comprises of purchase price and directly attributable cost of bringing the assets to working condition for its intended use including borrowing cost and incidental expenditure during construction incurred up to the date when the assets are ready to use and share issue expenses related to funds raised for financing the project.

1.6 Depreciation/ Amortisation

i) Depreciation on fixed assets, other than plant and machinery and moulds is provided on straight line method as per Schedule-XIV of the Companies Act, 1956.

ii) Depreciation on plant and machinery and moulds is provided on written down value method as per Schedule-XIV of the Companies Act, 1956.

iii) Depreciation is provided on pro-rata basis from the date on which assets are put to use in case of addition and provided upto the date of sale/disposal in case of sale/disposal.

iv) Leasehold improvement assets are amortised over the period of lease.

1.7 Employee Benefits

a) Contribution to the Provident Fund and Employees State Insurance is deposited in accordance with the provisions of the relevant acts and is charged to profit and loss account.

b) Provision for gratuity and leave encashment is made on the basis of actuarial valuation at the end of the year. Actuarial gains or losses are recognized in the Statement of Profit and Loss.

1.8 Provisions

A provision is made based on a realizable estimate made. It is probable that an outflow of resources embodying economic benefits will be realized to settle an obligation. Contingent liabilities, if material, are disclosed by way of notes to accounts. Contingent assets are neither recognized nor disclosed in the financial statements.

1.9 Taxes on Income

Tax expense for the year comprising current tax and deferred tax is included in determining the net profit/(loss) for the year.

Deferred tax assets are recognised for all deductible timing differences and carried forward to the extent there is reasonable certainty that sufficient future taxable profit will be available against which such deferred tax assets can be realised. Deferred tax assets to the extent they pertain to brought forward losses and unabsorbed depreciation, are recognised only if there is virtual certainty of realisation, based on expected profitability in the future as estimated by the Company. Deferred tax assets and liabilities are measured at the tax rates that have been enacted or substantively enacted by the balance sheet date.

1.10 Earning per Share

In determining earning per share, the company considers net profit after tax. Basic earning per share is computed using the weighted average number of equity shares outstanding during the year. Diluted earning per share is computed using the weighted average number of equity shares outstanding including dilutive potential equity shares during the year.

1.11 Chit Fund Loss

Loss on chit is accounted in the year of closure of chit.

---

Jun 30, 2013

1.1 Basis of preparation of financial statements

The financial statements are prepared under historical cost convention, on a going concern basis and in accordance with the applicable accounting standards prescribed in the Companies (Accounting Standards) Rules, 2006 issued by the Central Government, in consultation with the National Advisory Committee on Accounting Standards and relevant provisions of the Companies Act, 1956. 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.

1.2 Use of Estimates

The preparation of financial statements requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. Differences between actual results and estimates are recognized in the period in which they materialize.

1.3 Sale/Revenue Recognition

Revenue (income) is recognized where no significant uncertainty as to determination or realization exists. Sales are recognized ex works and are including of excise duty but net of trade discounts and sales tax. Job work income is recognized on delivery of finished goods.

1.4 Inventories

Raw Materials and Packing Materials are valued at cost*.

Finished Goods are valued at Cost* or Net realizable value, Whichever is lower.

*Cost is determined on the basis of first in first out (FIFO) method.

1.5 Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation and impairment loss, if any. The cost of assets comprises of purchase price and directly attributable cost of bringing the assets to working condition for its intended use including borrowing cost and incidental expenditure during construction incurred up to the date when the assets are ready to use and share issue expenses related to funds raised for financing the project.

1.6 Depreciation/ Amortization

i) Depreciation on fixed assets, other than plant and machinery and moulds is provided on straight line method as per Schedule-XIV of the Companies Act, 1956.

ii) Depreciation on plant and machinery and moulds is provided on written down value method as per Schedule-XIV of the Companies Act, 1956.

iii) Depreciation is provided on pro-rata basis from the date on which assets are put to use in case of addition and provided up to the date of sale/disposal in case of sale/disposal.

iv) Leasehold improvement assets are amortized over the period of lease.

1.7 Employee Benefits

a) Contribution to the Provident Fund and Employees State Insurance is deposited in accordance with the provisions of the relevant acts and is charged to profit and loss account.

b) Provision for gratuity and leave encashment is made on the basis of actuarial valuation at the end of the year. Actuarial gains or losses are recognized in the Statement of Profit and Loss.

1.8 Provisions

A provision is made based on a realizable estimate made. It is probable that an outflow of resources embodying economic benefits will be realized to settle an obligation. Contingent liabilities, if material, are disclosed by way of notes to accounts. Contingent assets are neither recognized nor disclosed in the financial statements.

1.9 Taxes on Income

Tax expense for the year comprising current tax and deferred tax is included in determining the net profit/(loss) for the year.

Deferred tax assets are recognized for all deductible timing differences and carried forward to the extent there is reasonable certainty that sufficient future taxable profit will be available against which such deferred tax assets can be realized. Deferred tax assets to the extent they pertain to brought forward losses and unabsorbed depreciation, are recognized only if there is virtual certainty of realization, based on expected profitability in the future as estimated by the Company.

Deferred tax assets and liabilities are measured at the tax rates that have been enacted or substantively enacted by the balance sheet date.

---

Jun 30, 2011

A) General

The Company generally follows accrual basis of accounting, except otherwise stated specifically and wherever it is not possible to determine the quantum of accrual with reasonable certainty e.g. insurance/other claims, overdue interest payable/receivable and liquidated damages, these continue to be accounted for on settlement basis.

b) Revenue Recognition

Revenue (income) is recognized where no significant uncertainty as to determination or realization exists. Sales are recognized ex works and are including of excise duty but net of trade discounts and sales tax.

c) Inventories

Inventories are valued at lower of cost or net realisable value. Cost is determined on First in First out (FIFO) method basis.

d) Fixed Assets / Depreciation

i) Fixed assets are stated at cost less accumulated depreciation.

ii) Depreciation on fixed assets is provided on straight line method as per Schedule-XIV of the Companies Act, 1956 except on building constructed on leased premises which is depreciated over the lease period.

iii) Depreciation is provided on pro-rata basis from the date on which assets are put to use in case of addition and provided upto the date of sale/disposal in case of sale/disposal.

e) Retirement and Other Employee Benefits

i) Company's contribution to Government administered Provident Fund and Employee's State Insurance Corporation are charged to Profit & Loss Account.

ii) Defined benefit contributions in respect of gratuity and leave encashment are provided on the basis of actuarial valuation made at the end of the financial year. Actuarial gains or loss arising from such valuations are charged to revenue in the year in which they arise.

iii) Short term employee benefit obligations are measured on an undiscounted basis and charged to the Profit & Loss Account on accrual basis.

f) Contingencies & Provisions

A provision is made based on a reasonable estimate. It is probable that an outflow of resources embodying economic benefits will be realised to settle an obligation. Contingent liabilities, if material, are disclosed by way of notes to accounts. Contingent assets are not recognised or disclosed in the financial statement.

g) Impairment of Assets

Impairment loss assessment is done at the balance sheet date to determine whether there is any indication of impairment and in the carrying amount of the company's fixed assets. If any such indication exists, the assets recoverable amount is estimated. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. After recognition of impairment loss, the depreciation charge for the assets is adjusted in future periods to allocate the assets revised carrying amount, less its residual value (if any), on straight line basis over its remaining useful life.

---

Mar 31, 2010

A) The Company generally follows accrual basis of accounting, except otherwise stated specifically and wherever it is not possible to determine the quantum of accrual with reasonable certainty e.g. insurance/other claims, overdue interest payable/receivable and liquidated damages, these continue to be accounted for on settlement basis.

b) Revenue (income) is recognized where no significant uncertainty as to determination or realization exists. Sales are recognized ex works and are including of excise duty but net of trade discounts and sales tax.

c) Inventories

Raw Material, Packing Materials At Cost.

Finished Goods At lower of cost or net

realisable value.

Cost is determined on First in First out (FIFO) method.

d) Fixed assets / depreciation

i) Fixed assets are stated at cost less accumulated depreciation.

ii) Depreciation on fixed assets is provided on straight line method as per Schedule-XI V of the Companies Act, 1956 except on building constructed on leased premises which is depreciated over the lease period.

iii) Depreciation is provided on pro-rata basis from the date on which assets are put to use in case of addition and provided upto the date of sale/disposal in case of sale/disposal.

e) Employee benefits

i) Companys contribution to Government administered Provident Fund and Employees State Insurance Corporation are charged to Profit & Loss Account.

ii) Defined benefit contributions in respect of gratuity and leave encashment are provided on the basis of actuarial valuation made at the end of the financial year. Actuarial gains or loss arising from such valuations are charged to revenue in the year in which they arise.

f) A provision is made based on a reasonable estimate. It is probable that an outflow of resources embodying economic benefits will be realised to settle an obligation. Contingent liabilities, if material, are disclosed by way of notes to accounts. Contingent assets are not recognised or disclosed in the financial statement.

g) Impairment loss assessment is done at the balance sheet date to determine whether there is any indication of impairment and in the carrying amount of the companys fixed assets. If any such indication exists, the assets recoverable amount is estimated. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. After recognition of impairment loss, the depreciation charge for the assets is adjusted in future periods to allocate the assets revised carrying amount, less its residual value (if any), on straight line basis over its remaining useful life.

---

Mar 31, 2009

A) The Company generally follows accrual basis of accounting, except otherwise stated specifically and wherever it is not possible to determine the quantum of accrual with reasonable certainty e.g. insurance/ other claims, overdue interest payable/receivable and liquidated damages, these continue to be accounted for on settlement basis.

b) Revenue (income) is recognized where no significant uncertainty as to determination or realization exists. Sales are recognized ex works and are including of excise duty but net of trade discounts and sales tax.

c) Inventories

Raw Material, Packing Materials : At Cost. Finished Goods : At lower of cost or net realizable value.

Cost is determined on First in First out (FIFO) method.

d) Fixed assets / depreciation

i) Fixed assets are stated at cost less accumulated depreciation.

ii) Depreciation on fixed assets is provided on straight line method as per Schedule-XIV of the Companies Act, 1956.

iii) Depreciation is provided on pro-rata basis from the date on which assets are put to use in case of addition and provided upto the date of sale/disposal in case of sale/disposal.

e) Employee benefits

i) Companys contribution to Government administered Provident Fund and Employees State Insurance Corporation are charged to Profit & Loss Account.

ii) Defined benefit contributions in respect of gratuity and leave encashment are provided on the basis of actuarial valuation made at the end of the financial year. Actuarial gains or loss arising from such valua- tions are charged to revenue in the year in which they arise.

(f) A provision is made based on a realizable estimate. It is probable that an outflow of resources embodying economic benefits will be realized to settle an obligation. Contingent liabilities, if material, are disclosed by way of notes to accounts. Contingent assets are not recognized or disclosed in the financial statements.

g) Impairment loss assessment is done at the balance sheet date to determine whether there is any indication of impairment and in the carrying amount of the companys fixed assets. If any such indication exists, the assets recoverable amount is estimated. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. After recognition of impairment loss, the depreciation charge for the assets is adjusted in future periods to allocate the assets revised carrying amount, less its residual value (if any), on straight line basis over its remaining useful life.