Shubhlaxmi Jewel Art Ltd. कंपली की लेखा नीति

Mar 31, 2025

1 Significant Accounting Policies:

1.1 Basis of Accounting:

The financial statements have been prepared in accordance with the recognition and measurement
principles laid down in the Accounting Standards specified under Section 133 of the Companies
Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and other accounting
principles generally accepted in India.

The Company''s financial statements are reported in Indian Rupees, which is also the company''s
functional currency, and all values are rounded to the nearest lacs except otherwise indicated.

1.2 Use of Estimates:

The preparation of financial statements in conformity with GAAP requires the management to
make estimates and assumptions that affect the reported amounts of assets and liabilities,
disclosure of contingent assets and liabilities at the date of financial statements and the reported
amount of revenues and expenses during the reporting period. Actual results could differ from
these estimates. Any revision to accounting estimates is recognized prospectively in current and
future periods.

1.3 Property, Plant and Equipment: ^

Tangible Assets are stated at cost less depreciation. All the costs incurred till the date of the assets
ready for use, including installation and substantial modification to the fixed assets are capitalized
and included in the cost of the respective assets. Depreciation is provided on Straight Line Method
in the manner specified in the Schedule II in accordance with the provisions of section 123(2) of the
Companies Act, 2013.

1.4 Inventories: (Refer note no. 26)

Inventories are valued at cost or net realizable value, whichever is lower. Cost is determined on
the following basis:

i

i. Packing materials - on weighted average basis;

ii. Stock in trade - at material cost plus direct expenses.

1.5 Revenue Recognition; ,

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 be measured.

Revenue from sale of goods are recognized when significant risks and rewards of ownership are
passed the buyer, which generally coincides with despatch of goods. Goods & Service Tax is
collected on behalf of the Government and therefore, excluded from the revenue.

1.6 Goods and Service Tax:

Purchased of goods and fixed assets are accounted for net of GST input credits, wherever
applicable.

1.7 Employee Benefits:

Post-employment benefit plans:

i) Defined Contribution Plan: Contribution for provident fund are accrued in accordance with
applicable statutes and deposited with the Regional Provident Fund Commissioner.

ii) Defined Benefit Plan: The liability in respect of gratuity and leave encashment is determined

using Projected Unit Credit Method with actuarial valuation carried out as at balance sheet date.
Actuarial gains are recognised in full in the profit and loss account for the period in which they
occur. .

Short-term employee benefits: The undiscounted amount of short-term benefits expected to be
paid in exchange for services rendered by employee is recognised during the period when the
employee renders the service.

1.8 Borrowing Costs:

Net cost of borrowed funds for the projects till completion are capitalized and included in the cost
of fixed assets. Other borrowing costs are recognized as expenses in the period in which they are
incurred.

1.9 Taxation:

Provisions are made for current tax based on tax liability computed in accordance with relevant tax
rates and tax laws. Deferred tax is recognized, subject to the consideration of prudence, on timing
difference, being the difference between taxable income and accourjting income that originate in
one period and are capable of reversal in one or more subsequent periods.

1.10 Earning per Share:

Basic earning per share is computed by dividing the net profit attributable to equity shareholders
for the year by weighted average number of equity shares outstanding during the year.

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Mar 31, 2024

Company Information:

lr Srubhlaxmi Jewel Art Limited ("the Company") is a public limited company domiciled in India and ¦corporated on 2^nd May, 2018 under the provisions of Companies Act applicable in India. I’he Company is Jeaiing in gold, silver, jewellery and other precious metals. The registered office of tire Company is located I at 1, "D & I Excelus", Waghawadi Road, Bhavnagar - 364 002, Gujarat, India. The equity shares of the Company are listed on Emerge SME platform of the National Stock Exchange (NSE).

Note: 1

Significant Accounting Policies:

Basis of Accounting:

The financial statements have been prepared in accordance with tire recognition and measurement principles laid down in the Accounting Standards specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and other accounting principles generally accepted in India.

The Company''s financial statements are reported in Indian Rupees, which is also the company''s functional currency, and all values are rounded to the nearest lacs except otherwise indicated.

12 Use of Estimates:

The preparation of financial statements in conformity with GAAP requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

13 Property, Plant and Equipment:

Tangible Assets are stated at cost less depreciation, All the costs incurred till the date of the assets ready for use, including installation and substantial modification to the fixed assets are capitalized and included in the cost of the respective assets. Depreciation is provided on Straight Line Method in the manner specified in tire Schedule II in accordance with the provisions of section 123(2) of the Companies Act, 2013. ,

/

1.4 Inventories:

Inventories are valued at cost or net realizable value, whichever is lower. Cost is determined on the following basis:

i. Packing materials - on weighted average basis;

ii. Stock in trade - at material cost plus direct expenses.

1.5 Revenue Recognition:

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 be measured.

Revenue from sale of goods are recognized when significant risks and rewards of ownership are passed the buyer, which generally coincides with dispatch of goods. Goods & Service Tax is collected on behalf of the Government and therefore, excluded from the revenue.

spi j

Goods and Service Tax:

Purchased of goods and fixed assets are accounted for net of GST input credits, wherever applicable.

Employee Benefits:

Post-employment benefit plans:

Defined Contribution Plan: Contribution for provident fund are accrued in accordance with applicable statutes and deposited with the Regional Provident Fund Commissioner.

Defined Benefit Plan: The liability in respect of gratuity and leave encashment is determined using Projected Unit Credit Method with actuarial valuation carried out as at balance sheet date. Actuarial gains are recognised in full in the profit and loss account for the period in which they occur.

Short-term employee benefits: The undiscounted amount of short-term benefits expected to be paid in exchange for services rendered by employee is recognised during the period when the employee renders the service.

1.8 Borrowing Costs:

Net cost of borrowed funds for tire projects till completion are capitalized and included in the cost of fixed assets. Other borrow ing costs are recognized as expenses in the period in which they are incurred.

1.9 Taxation:

Provisions are made for current tax based on tax liability computed in accordance with relevant tax rates and tax laws. Deferred tax is recognized, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

1.10 Earning per Share:

Basic earning per share is computed by dividing the net profit attributable to equity shareholders for the year by weighted average number of equity shares outstanding during the year.

I ll Provision and Contingencies:

t

The Company creates a provision when there is present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow'' or where a reliable estimate of the obligation can not be made.