Accounting Policies of Jyotirgamya Enterprises Ltd. Company

Mar 31, 2025

1. Property. Plant & Equipments

The amount of borrowing costs capitalized during the year ended 31 March 2025 was INK Nil. The rate used to
determine the amount of borrow ing costs eligible for capitalization was 9%, which is the effective interest rate
of the specific borrowing.

2. Trade Receivables

No trade or other receivables are due from directors or other officers of the Company either severally or jointly
with any other person. Nor any trade or other receivable are due from firms or private companies respectively in
which any director is a partner, a director or a member.

For terms and conditions relating to related party receivables, refer item no. 17 of this note.

Trade receivables are non-interest bearing and are generally on terms of 120 to 180 days

3. Terms/Rights Attached To Equity Shares

The Company have only one class of equity shares having par value of INR 10 per share. Each holder of equity
shares is entitled to one vote per share. If declared, the Company will declare and pay dividends in Indian
rupees.

In the event of liquidation of a Company, the holders of equity shares of such Company will be entitled to
receive remaining assets of the respective Company, after distribution of all preferential amounts. The
distribution will be in proportion to the number of equity shares held by the shareholders of the respective
Company.

The Company olTsets lax assets and liabilities if and only if it has a legally enforceable right to set off current
tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes
levied by the same tax authority.

6. Trade Payables

a) Trade payables are non-interest bearing and are normally settled on 60-120 day terms.

b) Trade payables to related parties amounts to INR 34.45/- as at March 31, 2025 (March 31, 2024: INR
33.55/-).

7. Revenue from Operation

Sale of goods includes F.xcise Duty/GST collected from customers was Nil and the same was reported
accordingly.

9. Employee Benefits

Employee benefits are provided as per the requirements of Ind AS-19 on ‘Employee Benefits''

a) Short Term Employee Benefits

There is no provision for bonus has been made as per the provisions of Bonus Act and is charged to the
Profit & Loss Account.

b) Long Term Defined Contributions Plans

Long term defined contribution plans like Employees Provident Fund & Employees State Insurance are not
applicable to company during the year

c) Long Term Defined Benefit Plans

Long term defined benefits plans for gratuity and leave are not applicable to company during the year,

10. Lease

The company does not have any assets on lease, hence the provision related to lease in not applicable.

---

Mar 31, 2024

1.2 Summitry of significant accounting policies a) Current versus non-current classification

The Company presents assets and liabilities in the Balance Sheet based on current non-current classification. An asset is treated as current when it is:

a. Expected to be realised or intended to be sold or consumed in norma! operating cycle

b. Held primarily for the purpose of trading

c. Expected 10 be realised within twelve months after the reporting period, or

d. Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period

All other assets are classified as non-current.

A liability is current when it Is:

a. Expected to be settled in normal operating cycle

b. Held primarily for the purpose of trading

c. It is due to be soiled within twelve months alter the reporting period, or

d. There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period

Inferred tax assets and liabilities arc classified as non-current assets and liabilities.

Ihe operating cycle is the time between the acquisition of assets for ptoeessing and their realisation in cash and cash equivalents. The Company has identified twelve months as its operating cycle.

U Property, plant and equipment

Ail the items of property. plant and equipment are stated at historical cost less accumulated

depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. The present value of the expected cost for site restoration after the end of lease term is included in the cost of the leasehold land.

Leases under which the Company assumes substantially ail tire risks and rewards of ownership arc classified as finance leases. Assets taken on finance lease are initially capitalised at fair value of the asset or present value of the minimum lease payments at the inception of the lease, w hichever Is lower. Lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is allocated to periods during the lease term so as to produce a constant periodic rate ofintercst on the remaining balance of the liability for each period.

Capital work in progress includes cost of property, plant and equipment under installation under development as at the balance sheet date.

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, us appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably . The carrying amount of any component accounted for as a separate asset arc derecognised when replaced. Further, when each major Inspection is performed, its cost is recognised in the carrying amount of the item of properly, plant and equipment as a replacement if the recognition criteria are satisfied. All other repairs and maintenance are charged to profit and loss during the reporting period in which they are incurred.

An item of property, plant and equipment and any significant pan initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit and loss when the asset is derecognised.

The residual values, useful lives and methods of depreciation of property, plant and equipment are rex iewed at each financial year end and adjusted prospectively, if appropriate.

1.4 Depreciation on Property. Plant and Equipment

Cost of Tangible Assets, less its residual value, is depreciated on pro-rata basis on Straight Line Method over the useful life of the assets estimated by the management. Pursuant lu this policy, assets are depreciated over the follow ing term-i he above mentioned usd til fixes are based cm the management’s estimate of the useful life of tangible assets ond which are lower than the lives arrived at on the basis of Schedule It of Companies Act. 201S except for Plant & Machinery’ where fife is taken as 20 years instead of 1? years on the basis of technical advice.

1.9 Investment Property

Since there it no change in the functional currency, the Company has elected to continue with the carrying value for all of its investment property as recognised in its Indian GAAP financial statements as deemed cost at the transition date, viz.. I April 2015.

Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties arc stated at cost less accumulated depreciation and accumulated impairment loss, if any.

The cost includes the cost of replacing parts and borrowing costs for long-term construction projects if the recognition criteria are met. When significant parts of the investment property are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. All

other repair and maintenance costs are recognised in profit or loss as incurred.

I he Company depreciates building component of investment property over 20 years from the date of original purchase/construction.

The Company, based on technical assessment made by technical expert and management estimate, depreciates the building over estimated useful lives of 20 years instead of 15 years which is higher than the useful life prescribed in Schedule 11 to the Companies Act, 2013. The management believes that these estimated useful lives are realistic and rellecl fair approximation of the period over which the assets are likely to be used. The identified components are depredated separately over their useful lives; the remaining components are depreciated over the life of the principal asset.

Though the Company measures investment property using cost based measurement, the fair value of investment property b disclosed in the notes. Fair values are determined based on an annual evaluation performed by an accredited external independent valuer applying a valuation model recommended by tlte International Valuation Standards Committee.

Investment properties are derecognised either when they have been disposed of or when they are permanently withdrawn from use and no future economic benefit is expected from their disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognised in profit or loss in the period of derecognition.

U Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are curried at cost less any accumulated amortisation and accumulated impairment losses. Internally generated intangibles, excluding capitalised development costs, are not capitalised and the related expenditure is reflected in profit or loss in the period in which the expenditure is incurred.

The useful lives of intangible assets are assessed as either finite or indefinite.

Intangible assets include Computer Software which comprises ERP. Self- developed systems etc).

Losses arising from retirement and gains or losses arising from disposal of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the Statement of Profit and Loss.

1.7 Research and development cost:

Research costs we expensed as incurred. Development expenditure incurred on an individual project is recognised as an ‘intangible asset'' when all of the below conditions are met:

i. The technical feasibility of completing the intangible asset so that h will be available for use or sale

ii. The Company''s intention to complete tile asset and use or sell it

iii. Tire Company has ability to use or sell the asset

iv. It can be demonstrated how the asset will generate probable future economic benefits

v. Adequate technical, financial and other resources to complete the development and to use or selI the asset are available, and

vi. The ability to measure reliably the expenditure attributable to the intangible asset during development.

1.8 Amortisation of intangible assets

Intangible assets with finite lives arc amortised over the useful economic life and assessed for impairment whenever there is an indication that (he intangible asset may be impaired. I he amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset arc considered to modify the amortisation period or method, as appropriate, and arc treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the statement of profit and loss unless such expenditure forms part of carrying value of another asset.

Amortisation is done on the straight line method over its useful life of 6 years.

1.9 Borrowing cost

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily lakes a substantial period of time to gel ready lor its intended Lise or sale are capitalised as part of the cost of the respective asset. Alt other borrowing costs are expensed in the period in which they occur.

Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

1.10 leases

Company as a lessee

The Company applies a single recognition and measurement approach for all leases, except

for short-term leases and leases of low-value assets. The Company recognises lease liabilities representing obligations to make lease payments and right-of-use assets representing the right to use the underlying assets.

it Right-of-use assets

The Company recognises right-of-use assets at the commencement date of the lease (i.c.. the dale the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, lease payments made at or before the commencement date less any lease incentives received and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term or the estimated useful lives of the assets whichever is earlier.

If ownership of the leased asset transfers lo ilic Company at the end of ihe lease tenn or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset

Righl-of-use assets are tested for impairment whenever there is any indication that their carrying amounts may not he recoverable. Impairment loss, if any, is recognised in Ihe statement of profit and loss,

!¦) Leave* liabilities

At the commencement date of the lease, the Company recognises lease liabilities measured al the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments! less any lease incentives receivable, variable lease payments that depend on an index ora rate, and amounts expected to be paid under residual value guarantees. 1 he lease payments also include Ihe exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they arc incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses its incremental borrowing rate al the lease commencement date because the interest rale implicit in the lease is not readily determinable. After die commencement dale, die amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease Itabililies is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g„ changes lo future payments resulting from a change in an index or rate used to determine such lease payments) ora change in ihe assessment of an option to purchase the underlying asset.

The Company’s lease liabilities arc included in financial liabilities.

lit) Sbort-ti rin leases and leases of low-value assets

The Company applies the short-term lease exempt ion (i e„ those leases dial have a lease tenn of 12 months or less from the commencement date and do not contain a purchase option). It also applies ihe lease of low-value assets recognition exemption to leases ol assets that are considered to he low value. I .ease payments on short tenn leases and leases of low-value assets are recognised as expense tin a straight-line basis over the lease term.

Company as a lessor

Leases in which the Company does not transfer substantially all Ihe risks and rewards incidental to ow nership of an asset are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms mid is included in revenue in the statement of profit or loss due to its operating nature. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carry ing amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned.

H'' an arrangement contains lease anil non-tease components, the Company applies hid AS ! 15 Revenue from contracts with customers to allocate the consideration in the contract.

Transition to hid AS 116

Ministry of Corporate Affairs ("MCA”) through Companies (Indian Accounting Standards) Amendment Rules, 2016 and Companies (Indian Accounting Standards) Second Amendment Rules, has notified Ind AS 116 Leases which replaces the existing lease standard, Ind AS 17 Leases, and other interpretations. Ind AS 116 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. It introduces a single, on-balance sheet lease accounting model for lessees.

The Company has adopted Ind AS I Ifi. effective annual reporting period beginning April I. 2016 and applied the standard to its leases, retrospectively. with the cumulative effect of initially applying the standard, recognised on the date of initial application (April I. 2016). Accordingly, the Company has not restated comparative information, instead, the cumulative effect of initially applying this standard has been recognised as an adjustment to the opening balance of retained earnings as on April 1. 2016.

I.It Inventories

Inventories which comprise raw materials, work-in-progress, finished goods, stock-in-trade, stores and spares, and loose tools are carried at the lower of cost and net realisable v alue.

Cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

In determining the cost, weighted average cost method is used. In the case of manufactured inventories and work in progress, fixed production overheads are allocated on the basts of normal capacity of production facilities.

Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sate.

The net realisable value of work-in-progress is determined with reference to the selling prices of related finished products. Raw materials and other supplies held for use in the production of finished products are not written down below cost except in cases where material prices have declined and it is estimated that ihe cost of the linisbed products will exceed their net realisable value.

The comparison of cost and net realisable value is made on an ilem-by-item basis.

1.12 Impairment of non-financiat assets

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. tf any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset’s or cash generating units’ (CGIIs) fair value less cost of disposal and its value in use. The recoverable amount is determined for art individual asset, unless the asset does not generate cash in (lows that are largely independent of those from other assets or group of assets. When the carrying amount of an asset or CCli exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing value in use, The estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and The risks specific to the asset, tn determining net setting price, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for public)} traded companies or other available fair value indicators.”

The Company bases its impairment calculation on detailed budgets and forecast calculations, which arc prepared separately for each of the Company''s CGUs to which the individual assets arc allocated. These budgets and forecast calculations generally cover a period of five years, for longer periods, a long-term growth rate is calculated and applied to project future casli flows after the fifth year. To estimate cash flow projections beyond periods covered by the most recent budgets''forecasts. (he Company extrapolates cash (low projections in the budget using a steady or declining growth rate for subsequent years, unless an increasing rate can be justified. In any case, this growth rate does not exceed the long-term average growth rate for the products, industries, or country or countries in which the entity operates, or for the market in which the asset is used.

Impairment losses of continuing operations, including impairment on inventories, ore recognised in the stale men I of profit and loss, except for properties previously revalued with the revaluation surplus taken to OCI. For such properties, the impairment is recognised in OC1 up to the amount of any

previous revaluation surplus. After ''impairment, depreciation is provided on the revised carrying

amount of the asset over its remaining useful life.

For assets excluding goodwill, an assessment is made at each reporting daw to determine whether there is an indication that previously recognised impairment losses no longer exist or have decreased. If such indication exists, the Company estimates the asset''s or CGU''s recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in lhc assumptions used to determine the asset''s recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed tlte carrying amount that would have been determined, net of depreciation, trad no impairment loss been recognised for the asset in prim* years. Such reversal is recognised in the statement of profit or loss unless the asset is carried at a revalued amount, in which case, the reversal is treated as a revahutlton increase.

---

Mar 31, 2012

A. Basis of Preparation of Financial Statements

The accompanying financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under historical cost convention on accrual basis and comply with relevant statutory enactments. Indian GAAP comprises mandatory accounting standards issued by Institute of Chartered Accountants of India (ICA1) and the provisions of the Companies Act, 1956. The Accounting policies have been consistently applied by the Company.

Accounting Policies not specifically referred to, are in consistent with generally accepted accounting practices and Accounting Standards as specified in the Companies (accounting Standards) Rules, 2006.

b. Use of Estimates

The preparation of financial statements in conformity with Indian General Accepted Accounting Principles (GAAP) requires management to make estimates and assumptions that affect the report amounts of assets liabilities, disclosures relating to contingent assets & the financial statements and reported amount of income and expenses during the period. Differences between the actual results and estimates arc recognized in the period in which the results are known /materialized.

c. Revenue Recognition

* Revenue is recognized when it is earned and no significant uncertainty exists as to its realization or collection.

* Interest and other dues are accounted on accrual basis.

d. Investment

Investments are classified into current and non - current investments. Investments which are intended to be held for one year or more arc classified as non - current investments and investments which are intended to be held for less than one year are classified as current investments. Non - current investments are accounted at cost and any decline in the carrying value other than temporary in is provided for. Current investments are valued at lower of cost or market value/fair value.

e. Taxation

(i) Tax expense comprises of Current and Deferred, Current Income Tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates and tax laws.

(ii) Deferred tax is recognized subject to consideration of prudence on timing differences, being difference between taxable and accounting income that originate in one period and are capable of reversal one or more subsequent periods. Deferred Tax is measured based on the tax rates and the tax laws enacted or substantially ma@ia:at the Balance Sheet date. Deferred tax assets are recognize only to the extent there is reasonable certainty that sufficient future taxable income will be available against which these assets can be realized in future whereas in case of existence of carry forward of losses or unabsorbed depreciation , deferred tax assets are recognized only if there is virtual certainty of realization backed by convincing evidence . Deferred Tax assets are reviewed at each Balance Sheet date.



f. Provisions & Contingent Liabilities

Provisions are recognized when the Company has a present obligation as a result of past events and it is more likely that an outflow of resources will be required to settle the obligations and the amount has been reliably estimated. Provision is not discounted to its present value and is determined based on the best estimate required to settle the obligation at the yearend date. These are reviewed at each year end date and adjusted to reflect the best current estimate.

Liabilities, though contingent are provided for if there are reasonable prospects of such liabilities maturing. Other contingent liabilities, barring frivolous claims, not acknowledged as debt, are disclosed by way of notes.

g. Change in accounting policy:

Presentation and disclosure of financial statements: During the year ended 31 March 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI docs not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

h. Earnings per Share:

The Company reports basic and diluted earnings per share in accordance with AS-20, 'Earnings per Share'. Earning per shares is computed by dividing Net profit after tax by the weighted average number of equity share outstanding at the end of the year.