Manoj Jewellers Ltd. कंपली की लेखा नीति

Mar 31, 2025

2 MATERIAL ACCOUNTING POLICIES

These policies have been consistently applied to all the years presented, unless otherwise stated.

2.1 Basis of Accounting

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles m
India (Indian GAAP) including the Accounting Standards notified under Section 133 of the Companies Act. 2013.
read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013.
The financial statements have been prepared under the historical cost convention on an accrual basis.

2.2 Use of Estimates

The preparation of financial statements in conformity with Indian GAAP which requires the management to make
judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities
and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on
the management’s best knowledge of current events and actions, uncertainty about these assumptions and estimates
could result in the outcomes requiring a material adjustment to the carrying amounts ot assets or liabilities in future
periods,

2.3 Inventories

As per (AS) 2, The inventories are physically verified at regular intervals by the management. Raw Materia!
inventories are valued ai the lower of cost and net realizable value. Finished goods, Stock-in-Trade and Work-in¬
Progress are valued at lower of cost and net realizable value. Cost of inventories comprises of cost of purchase, cost
of conversion and other costs including manufacturing overheads net of recoverable taxes incurred in bringing them
to their respective present location and condition. Consumable stores and spares are valued at the lower of cost and
net realizable value, as estimated by the management. Obsolete, defective, unserviceable and slow non-moving
stocks are duly provided for.

2.4 Revenue Recognition

Revenue from the operations is recognized on generally accepted accounting principal. Revenue in relation to a
transaction involving the sale of goods is recognised when property in goods has been transferred to the buyer for a
price or all significant risks and rewards of ownership have been transferred to the buyer and the company retains no
effective control of the goods transferred and no significant uncertainty exists regarding the amount of the
consideration that will be derived from the sale of the goods. Revenue is recognized to the extent that it is probable
that the economic benefits will flow to the Company and the revenue can be reliably measured. The capital gain on
sale of investments if any are recognized on completion of transaction. No notional profit/loss are recognized on
such investments. Interest income is recognized on a time proportion basis taking into account the amount
outstanding and the rate applicable.

2.5 Property, Plant and Equipment and Depreciation

Property. Plant and Equipment are stated ai cost less accumulated depreciation and impairment losses, if any. Cost
comprises of all expenses incurred to bring the assets to its present location and condition, Borrowing cost directly
attributable to the acquisition /construction are included in the cost of fixed assets. Adjustments arising from
exchange rate variations attributable to the fixed assets are capitalized.

The company has adopted cost model for all class of items of Property. Plant and Equipment, In case of new
projects / expansion of existing projects, expenditure incurred during construction / preoperative period including
interest and finance charge on specific / general purpose loans, prior to commencement of commercial production

are capitalized. The same are allocated to the respective on completion of construction / erection of the capital
project / fixed assets. Subsequent expenditures related to an item of tangible asset are added to its book value only if
they increase the future economic benefits from the existing asset beyond its previously assessed standard of
performance.

Capital assets (including expenditure incurred during the construction period) under erection I installation are stated
ill the Balance Sheet as "Capital Work in Progress."

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization/depletion
and impairment loss, if any, The cost comprises purchase price, borrowing costs, and any cost directly attributable to
bringing the asset to its working condition for the intended use and net charges on foreign exchange contracts and

adjustments arising from exchange rale variations attributable to the intangible assets.

Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Written down Value (WDV)
Method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies
Act. 2013. The carrying amount of assets is reviewed at each balance sheet date if there is any indication of
impairment based on internal or externa! factors. An impairment loss is recognized wherever the carrying amount of
an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset''s net selling price and
value in use, 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 risks specific to the
asset, After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining
useful life.

2.6 Foreign currency Transactions:

Conversion

Foreign currency monetary items are reported using the closing rate,

Non-monetary items, which are carried in terms of historical cost denominated in a foreign currency are reported
using the exchange rate at the date of the transaction.

Exchange Differences

Exchange differences arising on the settlement or reporting of monetary'' items at rates different from those at which
they were initially recorded during the year, or reported in previous Standalone financial statement, are recognized
as income or expense in the Statement of Profit and Loss.

2.7 Employee Benefits

(i) Short Term Employee Benefits ; All employee benefits payable wholly within 12 months of rendering the service
are classified as Short — term employee benefits. These are recognized as an expense at the undiscounted amount in
the profit & loss account of the year in W''hich the related service is rendered,

(ii) Long Term Employee benefit (gratuity) are recognized are accounted in the books of account based on Valuation
report of Actuarial.

(iii) Defined Contribution Plans: Contributions to defined contribution schemes such as Employee State Insurance
are charged off to the Profit and Loss Account during the year in which the employee renders the related service.

(iv) Defined Benefit Plans: The present value of the obligation under such plan is determined based on an actuarial
valuation using the Projected Unit Credit Method. Actuarial gains and losses arising on such valuation are
recognised Immediately In llic Profit and Loss Account. Termination benefits ate recognisfed as and when incurred.