Accounting Policies of Glaam Up Jwel Ltd. Company

Mar 31, 2025

01 CORPORATE INFORMATION

Gleam Fabmat Limited (“the Company”) is a limited company incorporated under Indian Companies Act, 2013, having its registered office at 5504/15, Ground Floor, Basti Harpool Singh, Sadar Bazar, Delhi-110006. The Company is in the business of trading of precious and non precious stones and metals including rough diamonds in the state of Gujarat.

02 MATERIAL ACCOUNTING POLICIES

(a) Basis of Accounting and Preparation of the Financial Statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (“GAAP”) and in accordance with the applicable Accounting Standards (“AS”) as specified under Section 133 of the Companies Act, 2013 (“the 2013 Act”) and the relevant provisions of the 1956 Act / 2013 Act, as applicable. The financial statements of the Company are prepared under the historical cost convention using the accrual method of accounting. The accounting policies adopted in the preparation of the financial statements are consistent with those of the previous year. All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria set out in Schedule III to the 2013 Act.

(b) Use of Estimates

The presentation of the financial statements, in conformity with Indian GAAP, requires the Management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent liabilities. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable, future results could differ, the differences between the actual results and the estimates are recognized in the period in which the results are known / materialize.

(c) Property, plant and equipment (PPE)

Tangible assets are carried at cost less accumulated depreciation and accumulated impairment losses, if any. Cost comprises of the purchase price including import duties and non-refundable taxes, and directly attributable expenses incurred to bring the asset to the location and condition necessary for it to be capable of being operated in the manner intended by management. Capital expenditure incurred on rented properties is classified as ‘Leasehold improvements’ under property, plant and equipment.

Subsequent costs related to an item of Property, Plant and Equipment are recognized in the carrying amount of the item if the recognition criteria are met. Items of Property, Plant and Equipment that have been retired from active use and are held for disposal are stated at the lower of their net carrying amount and net realizable value and are shown separately in the financial statements under the head ‘Other current assets’. Any write-down in this regard is recognized immediately in the Statement of Profit and Loss. An item of Property, Plant and Equipment is derecognized on disposal or when no future economic benefits are expected from its use or disposal. The gain or loss arising on derecognition is recognized in the Statement of Profit and Loss.

Depreciation on tangible asset is recognized on a straight line basis based on a useful life of the assets prescribed in Schedule II to the Act. If the management’s estimates of the useful life of an asset at the time of acquisition of assets or of the remaining useful life on a subsequent review is shorter than that envisaged in the aforesaid schedule, depreciation is provided at a higher rate owing to their risk of higher obsolesce / wear & tear. The useful life of the assets has been reassessed based on the number of years for which the assets have already been put to use and the estimated minimum balance period for which the assets can be used in the Company. The estimated life of property, plant and equipment has been determined as follows:

Estimated useful life has been tabulated below:

Nature of Assets	Useful Life (In years)
Vehicles	10
Office Equipment	5
Computer	3
Furniture & Fixture	10

No further depreciation is provided in respect of assets that are fully written down but are still in use.

Leasehold land in the nature of perpetual lease is not amortised. Other leasehold land are amortised over the period of the lease. All property, plant and equipment individually costing less than ?5,000/-are fully depreciated in the year of purchase.

(d) Intangible assets

Intangible assets are stated at acquisition cost, net of accumulated amortization and accumulated impairment losses, if any. Intangible assets are amortised on a straight line basis over their estimated useful lives. A rebuttable presumption that the useful life of an intangible asset will not exceed fifteen years from the date when the asset is available for use is considered by the management. The amortisation period and the amortisation method are reviewed at least at each financial year end. If the expected useful life of the asset is significantly different from previous estimates, the amortisation period is changed accordingly.

Gains or losses arising from the retirement or disposal of an intangible asset are determined as the difference between the net disposal proceeds and the carrying amount of the asset and recognized as income or expense in the Statement of Profit and Loss. The estimated useful lives of intangible assets are as follows:

Nature of Assets	Useful Life (In years)
Software	3

(e) Inventories

The figure of closing stock is taken on the basis of physical count of stock by the management at the end of the year.

Inventories are valued at lower of historical cost and net realizable value.

Cost of inventories have been computed to include all costs of purchases, cost of conversion, all non-refundable duties & taxes and other costs incurred in bringing the inventories to their present location and condition.

Stock-in-trade are based on weighted average cost basis.

Obsolete, slow moving and defective inventories are valued at net realizable value i.e. scrap rate. Goods in transit are stated at actual cost incurred up to the date of Balance Sheet.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated cost of completion and estimated cost necessary to make the sale. Necessary adjustment for shortage / excess stock is given based on the available evidence and past experience of the Company.

(f) Revenue Recognition

1) Revenue from sale of product

Revenue is recognized in respect of sales on dispatch of product from warehouse to customers. Quality rebates, claims and other discounts, if any, are disclosed separately.

2) Other revenue

Interest on bank deposits is recognized on the time proportion basis taking into account the amounts invested and the rate of interest as applicable.

Dividend income on investment is accounted for when the right to receive the dividend is established. Profit/Loss on sale of mutual funds is recognized when the title to mutual funds ceases to exist.

(g) Employee Benefits

1) Gratuity

Gratuity is calculated in the manner prescribed under Income Tax Act, 1961 and is recognized as expense on actual payment basis.

2) Other Short Term Benefits

Other short-term benefits are recognized as expenses on actual payment basis for the period during which services are rendered by the employee.

(h) Taxation

The tax expense comprises of current tax and deferred tax. Current tax is the amount of income tax determined to be payable in respect of taxable income for a period as per the provisions of Income Tax Act, 1961. Deferred tax is the effect of timing differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are reviewed at each balance sheet date and recognised/derecognised only to the extent that there is reasonable/virtual certainty, depending on the nature of the timing differences, that sufficient future taxable income will be available against which such deferred tax assets can be realised.

Minimum Alternate Tax (‘MAT’) credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income-tax Act, 1961, the said asset is created by way of a credit to the Statement of Profit and Loss and shown as MAT credit entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT credit entitlement to the extent it is not reasonably certain that the Company will pay normal income tax during the specified period.

(i) Contingent liabilities and provisions

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably.

A disclosure is made for a contingent liability when there is a:

a) possible obligation, the existence of which will be confirmed by the occurrence/non-occurrence of one or more uncertain events, not fully with in the control of the Company;

b) present obligation, where it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation;

c) present obligation, where a reliable estimate cannot be made.

A provision is recognised when the Company has a present obligation as a result of past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not disclosed to their present value and are determined based on best estimates required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and are adjusted to reflect the current best estimates.

(j) Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

(k) Cash, Cash Equivalents and Bank Balances

Cash, Cash Equivalents and Bank Balances for the purpose of Cash Flow Statement comprise Cash at Bank, Cash in Hand, Cheques / Drafts in Hand, Deposits with Bank within 12 months maturity and other permissible instruments as per Accounting Standard AS-3.

(l) Others

Amounts related to previous years, arisen / settled during the year have been debited / credited to respective heads of accounts.

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Mar 31, 2024

(a) Basis of Accounting and Preparation of the Financial Statements

The financial statements of the Company have been prepared in accordance with the Generally
Accepted Accounting Principles in India (“GAAP”) and in accordance with the applicable
Accounting Standards (“AS”) as specified under Section 133 of the Companies Act, 2013 (“the 2013
Act”) and the relevant provisions of the 1956 Act / 2013 Act, as applicable. The financial statements
of the Company are prepared under the historical cost convention using the accrual method of
accounting. The accounting policies adopted in the preparation of the financial statements are
consistent with those of the previous year. All assets and liabilities have been classified as current or
non-current as per the Company’s normal operating cycle and other criteria set out in Schedule III to
the 2013 Act.

(b) Use of Estimates

The presentation of the financial statements, in conformity with Indian GAAP, requires the
Management to make estimates and assumptions that affect the reported amounts of assets and
liabilities, revenues and expenses and disclosure of contingent liabilities. Management believes that
the estimates used in the preparation of the financial statements are prudent and reasonable, future
results could differ, the differences between the actual results and the estimates are recognized in the
period in which the results are known / materialize.

(c) Property, plant and equipment (PPE)

Tangible assets are carried at cost less accumulated depreciation and accumulated impairment losses,
if any. Cost comprises of the purchase price including import duties and non-refundable taxes, and
directly attributable expenses incurred to bring the asset to the location and condition necessary for it
to be capable of being operated in the manner intended by management. Capital expenditure
incurred on rented properties is classified as ‘Leasehold improvements’ under property, plant and
equipment.

Subsequent costs related to an item of Property, Plant and Equipment are recognized in the carrying
amount of the item if the recognition criteria are met. Items of Property, Plant and Equipment that
have been retired from active use and are held for disposal are stated at the lower of their net
carrying amount and net realizable value and are shown separately in the financial statements under
the head ‘Other current assets’. Any write-down in this regard is recognized immediately in the
Statement of Profit and Loss. An item of Property, Plant and Equipment is derecognized on disposal
or when no future economic benefits are expected from its use or disposal. The gain or loss arising
on derecognition is recognized in the Statement of Profit and Loss.

Depreciation on tangible asset is recognized on a straight line basis based on a useful life of the assets
prescribed in Schedule II to the Act. If the management’s estimates of the useful life of an asset at
the time of acquisition of assets or of the remaining useful life on a subsequent review is shorter than
that envisaged in the aforesaid schedule, depreciation is provided at a higher rate owing to their risk
of higher obsolesce / wear & tear. The useful life of the assets has been reassessed based on the
number of years for which the assets have already been put to use and the estimated minimum

balance period for which the assets can be used in the Company. The estimated life of property,
plant and equipment has been determined as follows:

No further depreciation is provided in respect of assets that are fully written down but are still in use.

(d) Intangible assets

Intangible assets are stated at acquisition cost, net of accumulated amortization and accumulated
impairment losses, if any. Intangible assets are amortised on a straight line basis over their estimated
useful lives. A rebuttable presumption that the useful life of an intangible asset will not exceed fifteen
years from the date when the asset is available for use is considered by the management. The
amortisation period and the amortisation method are reviewed at least at each financial year end. If
the expected useful life of the asset is significantly different from previous estimates, the amortisation
period is changed accordingly.

Gains or losses arising from the retirement or disposal of an intangible asset are determined as the
difference between the net disposal proceeds and the carrying amount of the asset and recognized as
income or expense in the Statement of Profit and Loss. The estimated useful lives of intangible assets
are as follows:

(e) Inventories

The figure of closing stock is taken on the basis of physical count of stock by the management at the
end of the year.

Inventories are valued at lower of historical cost and net realizable value.

Cost of inventories have been computed to include all costs of purchases, cost of conversion, all
non-refundable duties & taxes and other costs incurred in bringing the inventories to their present
location and condition.

Stock-in-trade are based on weighted average cost basis.

Obsolete, slow moving and defective inventories are valued at net realizable value i.e. scrap rate.

Goods in transit are stated at actual cost incurred up to the date of Balance Sheet.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated
cost of completion and estimated cost necessary to make the sale. Necessary adjustment for shortage
/ excess stock is given based on the available evidence and past experience of the Company.

(f) Revenue Recognition

1) Revenue from sale of product

Revenue is recognized in respect of sales on dispatch of product from warehouse to customers.
Quality rebates, claims and other discounts, if any, are disclosed separately.

2) Other revenue

Interest on bank deposits is recognized on the time proportion basis taking into account the
amounts invested and the rate of interest as applicable.

Dividend income on investment is accounted for when the right to receive the dividend is
established. Profit/Loss on sale of mutual funds is recognized when the title to mutual funds
ceases to exist.

(g) Employee Benefits

1) Gratuity

Gratuity is calculated in the manner prescribed under Income Tax Act, 1961 and is recognized as
expense on actual payment basis.

2) Other Short Term Benefits

Other short-term benefits are recognized as expenses on actual payment basis for the period
during which services are rendered by the employee.

(h) Taxation

The tax expense comprises of current tax and deferred tax. Current tax is the amount of income tax
determined to be payable in respect of taxable income for a period as per the provisions of Income
Tax Act, 1961. Deferred tax is the effect of timing differences between taxable income and
accounting income that originate in one period and are capable of reversal in one or more
subsequent periods. Deferred tax is measured based on the tax rates and the tax laws enacted or
substantively enacted at the balance sheet date. Deferred tax assets are reviewed at each balance
sheet date and recognised/derecognised only to the extent that there is reasonable/virtual certainty,
depending on the nature of the timing differences, that sufficient future taxable income will be
available against which such deferred tax assets can be realised.

Minimum Alternate Tax (‘MAT’) credit is recognised as an asset only when and to the extent there is
convincing evidence that the Company will pay normal income tax during the specified period. In the
year in which MAT credit becomes eligible to be recognised as an asset in accordance with the
recommendations contained in Guidance Note on Accounting for Credit Available in respect of
Minimum Alternative Tax under the Income-tax Act, 1961, the said asset is created by way of a credit
to the Statement of Profit and Loss and shown as MAT credit entitlement. The Company reviews
the same at each balance sheet date and writes down the carrying amount of MAT credit entitlement
to the extent it is not reasonably certain that the Company will pay normal income tax during the
specified period.