Accounting Policies of Jet Solar Ltd. Company

Mar 31, 2025

1. Company Profile:

Jet Solar Limited ("the Company"), formerly known as Jet Infraventure Limited, is an Indian Company and it is registered with Registrar of Companies, Mumbai vide registration number L45400MH2001PLC133483. The registered office of the Company is situated at Office No. 1, 1st Floor, ‘E'' wing, Nandanvan Apartment, Kandivali Link Road, Kandivali (West), Mumbai - 400 067. The Company is engaged in the business of Real Estate / Real Estate Development including Construction and now keeping steps in Solar Business. The company name has been changed from Jet Infraventure Limited to Jet Solar Limited vide fresh issue of incorporation certificate dated 28.10.2024.

2. Summary of Significant Accounting Policies

a. Basis of Preparation

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on an accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2021, specified under section 133 and other relevant provisions of the Companies Act, 2013.

Inventories consist of Plots and WIP as on 31/03/2025. Work in Progress includes Cost of Land, Construction Costs, Job Work & Other Costs that are attributable to projects. Plots are valued at Cost.

All assets and liabilities have been classified as current or non-current as per the Company''s operating cycle and other criteria set out in the Schedule III (Division I) to the Companies Act 2013. Based on the nature of services provided and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets and liabilities.

b. Use of Estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles 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 year. The judgements, estimates and assumptions used in the accompanying financial statements are based upon management''s evaluation of the relevant facts and circumstances as at the date of financial statements which in management''s opinion are prudent and reasonable. Actual results may differ from the estimates used in preparing the accompanying financial statements. Difference between the actual result and estimates is recognised in the year in which the results are known/ materialised.

c. Property, Plant and Equipment

Property, Plant and Equipment are stated at cost, net of 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 the management. Subsequent costs related tso an item of Property, Plant and Equipment are recognised 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 value and net realisable value and are shown separately in the financial statements under the head "Other current assets". Any write-down in this regard is recognised immediately in the Statement of Profit and Loss.

An item of Property, Plant and Equipment is derecognised on disposal or when no future economic benefits are expected from its use or disposal. The gain or loss arising on derecognition is recognised in the Statement of Profit and Loss.

d. Depreciation on Property. Plant and Equipment

Depreciation is provided on a pro-rata basis on the straight-line method over the estimated useful life of the assets, based on technical evaluation carried out by management taking into account the nature of assets, their estimated period of use and the operating condition.

The estimates of useful life of tangible assets are as follows:

Assets	Useful Life as per Schedule II	Management estimate of Useful Life
Office Equipment	5 years	3 - 5 years
Furniture and fixtures	10 years	5 years
Computers	3 years	3 years
Servers and networks	6 years	4 years
Vehicles	8 years	5 years
Warehouse Equipment	5 years	3 - 5 years
The depreciation charge for each period is recognised in the Statement of Profit and Loss.

The useful life, residual value and depreciation method are reviewed at least at each financial year end. If the expectations differ from previous estimates, the changes are accounted for prospectively as a change in accounting estimate in accordance with AS 5; "Net Profit or Loss for the period, prior period items and changes in Accounting Policies".

e. 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 life. A rebuttable presumption that the useful life of an intangible asset will not exceed ten 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. Such changes are accounted in accordance with AS 5, "Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies".

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 recognised as income or expense in the Statement of Profit and Loss. The estimated useful life of Computer Software is 3 years.

f. Borrowing Costs

Borrowing costs include interest and other costs incurred in connection with borrowing to the extent that they are regarded as an adjustment to the interest cost. General and specific borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognised in Statement of Profit and Loss in the period in which they are incurred.

g. Impairment of Assets

Assessment is done at each balance sheet date as to whether there is any indication that an asset (tangible and intangible) may be impaired. If any such indication exists, an estimate of the recoverable amount of the asset/cash generating unit ("CGU") is made. Recoverable amount is higher of an asset''s or cash generating unit''s net selling

price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. For the purpose of assessing impairment, the recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. The smallest identifiable group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets, is considered as a CGU. An asset or CGU whose carrying value exceeds its recoverable amount is considered impaired and is written down to its recoverable amount. Assessment is also done at each balance sheet date as to whether there is any indication that an impairment loss recognised for an asset in prior accounting periods may no longer exist or may have decreased. An impairment loss is reversed to the extent that the asset''s carrying amount does not exceed the carrying amount that would have been determined if no impairment loss had previously been recognised.

h. 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 measured. The following specific recognition criteria must also be met before revenue is recognized:

Sales

Revenue from sales is recognized on transfer of all significant risks and reward of ownership to buyer by way of a legally enforceable agreement/Contract even though the legal title may not be transferred or the possession of the real estate property may not be given to the buyer. Revenue has been considered as per Percentage of Completion Method.

Revenue accrued but not invoiced to the customer, as at year end, is disclosed as ''''Unbilled Revenue'''' under ''Trade Receivable''.

Interest

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable rate of interest. Interest income is included under the head "Other Income” on accrual basis.

i. Employee Retirement Benefits

1) Salary paid to the employees monthly after deduction of Income Tax as per Income Tax Act 1961.

2) Retirement benefits/Gratuity will be considered in accounts on payment basis.

j. Foreign Currency Transactions

Not Applicable

k. Current and Deferred Taxes

Tax expense for the year, comprising current tax and deferred tax, are included in the determination of the net profit or loss for the year. Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the taxation laws prevailing in the respective jurisdictions.

Deferred tax is recognised for all the timing differences, subject to the consideration of prudence in respect of deferred tax assets. Deferred tax assets are recognised and carried forward only to the extent that there is a reasonable certainty (except where the Company has unabsorbed depreciation or carry forward losses under tax loss) that sufficient future taxable income will be available against which such deferred tax assets can be realised. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. In situations, where the Company has unabsorbed depreciation or carry forward losses under tax laws, all deferred tax assets are recognised only to the extent that there is virtual certainty supported by convincing evidence that they can be realised against future taxable profits. However, even in absence of virtual certainty supported by convincing evidence deferred tax assets is recognised to the extent of deferred tax liabilities. At each balance sheet date, the Company re-assesses unrecognised deferred tax assets, if any.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle the asset and the liability on a net basis. Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off assets against liabilities representing current tax and where the deferred tax assets and the deferred tax liabilities relate to taxes on income levied by the same governing taxation laws.

Minimum alternative 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. Such asset is reviewed at each balance sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer a convincing evidence to the effect that the Company will pay normal income tax during the specified period.

l. Provisions

Provisions are recognised when there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance sheet date and are not discounted to its present value.

m. Contingent Liabilities

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.\

n. Cash and Cash Equivalents

In the cash flow statement, cash and cash equivalents comprises of cash at bank and in hand and short-term investments with an original maturity of three months or less.

o. Earnings Per Share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares, that have changed the number of equity shares outstanding, without a corresponding change in resources. 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 is adjusted for the effects of all dilutive potential equity shares.

p. Rounding of Amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakh with two decimal thereof as per the requirement of Schedule III, unless otherwise stated.

q. Segment Reporting

The Company does not have any reportable segments as per the Accounting Standard 17 on "Segment Reporting" notified under Companies (Accounting Standard) Rules, 2014.

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Mar 31, 2024

2. Significant Accounting Policies

a) Basis of Accounting

The Company maintains its accounts on historical cost conventions in accordance with Generally Accepted
Accounting Principles on accrual basis. The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statement
and the reported amount of revenues and expenses during the reporting period. Difference between actual and
estimates are recognized in the period in which the results are known/ materialized.

b) Inventories

Inventories consist of Plots and WIP as on 31/03/2024. Work in Progress includes Cost of Land, Construction
Costs, Job Work & Other Costs that are attributable to projects. Plots are valued at Cost.

c) Fixed Assets

Fixed Assets are stated at Cost including amounts added on revaluation, less accumulated depreciation and
impairment loss, if any. All costs including financing costs till commencement of actual use are capitalized.

d) Depreciation

1) Depreciation on Fixed Assets is provided on "Written Down Value Method" at the rates and in the manner
specified in Schedule - II of the Companies Act, 2013. Depreciation has been provided on the basis of useful
life of the asset as mentioned in Schedule II of the Companies Act, 2013.

2) Depreciation on additions /disposals of fixed assets during the year is provided on pro-rata basis according to
the period during which assets are put to use.

e) Impairment of Assets

The Company assess at each Balance Sheet date whether there is any indication that assets may be impaired. If
any such indication exists, the Company estimates the recoverable amount of the cash generating unit to which the
assets belong. If the recoverable amount of the cash generating unit to which the assets belong is less than its
carrying amount, the carrying amount is reduced to its recoverable amount .The recoverable amount is higher of
the value in use and realizable value. The reduction is treated as an impairment loss and is recognized in the
Statement of Profit and Loss. If, at the balance Sheet date, there is an indication that if previously
assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the
recoverable amount.

f) Revenue Recognition

1) Sales

Revenue from sales is recognized on transfer of all significant risks and reward of ownership to buyer by way
of a legally enforceable agreement/Contract even though the legal title may not be transferred or the
possession of the real estate property may not be given to the buyer. Revenue has been considered as per
Percentage of Completion Method.

2) Interest

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the
applicable rate of interest. Interest income is included under the head "Other Income" on accrual basis.

g) Cash and Cash Equivalents

Cash and Cash Equivalents for the purpose of Cash Flow Statement comprise Cash at Bank and in hand and short
term investments with an original maturity of three months or less. Cash Flow Statement is prepared using the
Indirect Method as per Accounting Standard 3 "Cash Flow Statements".

h) Earnings Per Share

Basic Earnings per Share is calculated by dividing the net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period. The weighted
average number of equity shares during the period is adjusted for events of bonus issue, new issue.

Diluted earnings per share is calculated by adjusting net profit or loss for the period attributable to equity
shareholders and the weighted number of shares outstanding during the period for the effect of all dilutive potential
equity shares.

i) Segment Reporting

The Company does not have any reportable segments as per the Accounting Standard 17 on "Segment Reporting"
notified under Companies (Accounting Standard) Rules, 2014.

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Mar 31, 2015

A) Basis of Accounting

The Company maintains its accounts on historical cost conventions in accordance with Generally Accepted Accounting Principles on accrual basis. The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statement and the reported amount of revenues and expenses during the reporting period. Difference between actual and estimates are recognized in the period in which the results are known/ materialized.

b) Inventories

Work in Progress represents cost incurred in respect of unsold area of the project under development, but there is no work in progress as at the reporting date.

Inventories include finished properties and cost of unsold land. Finished properties of completed real estate projects and land are valued at lower of cost or net realizable value.

c) Fixed Assets

Fixed Assets are stated at Cost including amounts added on revaluation, less accumulated depreciation and impairment loss, if any. All costs including financing costs till commencement of actual use, net charges on foreign exchange contracts and adjustment arising from exchange rate variations attributable to the fixed assets are capitalized.

d) Depreciation

1) Depreciation on Fixed Assets is provided on "Written Down Value Method" at the rates and in the manner specified in Schedule - II of the Companies Act, 2013. Depreciation has been provided on the basis of useful life of the asset w.e.f. 01st April, 2014 as mentioned in Schedule II of the Companies Act, 2013. Earlier, Company was providing depreciation at the rates as mentioned in Schedule XIV to the Companies Act, 1956 based on Written Down Value Method. Consequent upon the change from Schedule XIV to Schedule II to the Companies Act, 2013, additional depreciation of Rs. 4,173 /- is charged to Statement of Profit and Loss during the year.

2) Depreciation on additions /disposals of fixed assets during the year is provided on pro-rata basis according to the period during which assets are put to use.

e) Impairment of Assets

The Company assess at each Balance Sheet date whether there is any indication that assets may be impaired. If any such indication exists, the Company estimates the recoverable amount of the cash generating unit to which the assets belong. If the recoverable amount of the cash generating unit to which the assets belong is less than its carrying amount, the carrying amount is reduced to its recoverable amount .The recoverable amount is higher of the value in use and realizable value. The reduction is treated as an impairment loss and is recognised in the Statement of Profit and Loss. If, at the balance Sheet date, there is an indication that if previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

f) Revenue Recognition

1) Sale of Goods

Revenue from sale of goods is recognized on transfer of all significant risks and reward of ownership to buyer by way of a legally enforceable agreement/Contract even though the legal title may not be transferred or the possession of the real estate property may not be given to the buyer. Revenue has been considered as per Percentage of Completion Method.

2) Interest

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable rate of interest. Interest income is included under the head " Other Income" on accrual basis.

g) Cash and Cash Equivalents

Cash and Cash Equivalents for the purpose of Cash Flow Statement comprise Cash at Bank and in hand and short term investments with an original maturity of three months or less. Cash Flow Statement is prepared using the Indirect Method as per Accounting Standard 3 " Cash Flow Statements".

h) Earnings per Share

Basic Earnings per Share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares during the period is adjusted for events of bonus issue, new issue.

Diluted earnings per share is calculated by adjusting net profit or loss for the period attributable to equity shareholders and the weighted number of shares outstanding during the period for the effect of all dilutive potential equity shares.

i) Segment Reporting

The Company does not have any geographical segments. As such there are no separate reportable segments as per the Accounting Standard 17 on "Segment Reporting" notified under Companies (Accounting Standard) Rules, 2014.

j) Provisions

Provisions involving substantial degree of estimations in measurements are recognized when there is present obligation as a result of past event and it is probable that there will be an outflow of resources. Provisions are not discounted to their present value and are determined based on best estimates required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

k) Contingent liabilities

Contingent liabilities are not recognized but are disclosed in the notes.

l) Employee Retirement Benefits

Leave Encashment is charged to Statement of Profit and Loss on accrual basis.

m) Borrowing Costs

Borrowing Costs attributable to the acquisition of fixed assets are capitalized as part of the cost of such assets till such assets are put to use.

n) Taxation

1) Provisions for current tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of Income Tax Act 1961.

2) Deferred tax for timing differences between the book profits and tax profits for the year is accounted for using the tax rates and laws that apply substantively as on the date of Balance Sheet. Deferred tax assets arising from timing differences are recognized only if there is reasonable certainty that these will be realized in future.

Deferred tax asset, in case of unabsorbed loss and depreciation are recognized only if there is virtual certainty that such deferred tax assets can be realized against future taxable profits.