Accounting Policies of Jetmall Spices and Masala Ltd. Company

Mar 31, 2025

Note : 4 Significant Accounting Policies

4.1 Property, Plant and Equipment (PPE)

(i) Property, Plant and Equipment are stated at cost of acquisition net of accumulated depreciation/
amortization and impairment losses if any, except free hold land which is carried at cost less
impairment losses if any. The cost comprises purchase prices, borrowing cost if capitalization criteria
are met and directly attributable cost of bringing the asset to its working condition for the intended use.

(ii) The Company identifies the significant parts of plant and equipment separately which are required to
be replaced at intervals. Such parts are depreciated separately based on their specific useful lives. The
cost of replacement of significant parts are capitalized and the carrying amount of replaced parts are de¬
recognized. When each major inception/ overhauling is performed, its cost is recognized in the carrying
amount of the item of property, plant and equipment as a replacement if the recognition criteria are
satisfied. Any remaining carrying amount of the cost of the previous inspection/ overhauling (as distinct
from physical parts) is de- recognized.

(iii) Other expenses on fixed assets, including day-to-day repair and maintenance expenditure and cost
of replacing parts that does not meet the capitalization criteria in accordance with IND AS 16 are
charged to the Statement of Profit and Loss for the period during which such expenses are incurred.

(iv) PPEs are eliminated from the financial statements on disposal or when no further benefit is
expected from its use or disposal. Gains or losses arising from disposal of plant, property and
equipment are measured as the difference between the net disposal proceeds and the carrying amount
of such assets are recognized in the statement of profit and loss.

(v) Depreciation for plant and machinery has been provided on Straight line method

(vi) The residual values, useful lives and methods of depreciation of property, plant and equipment are
reviewed at each reporting date and adjusted prospectively, if appropriate.

4.2 Capital Work in progress

Capital work in progress includes cost of property, plant and equipment under installation, under
development including related expenses and attributable interest as at reporting date.

4.3 Current or Non-Current classification

An asset or liability is classified as current if it satisfies any of the following conditions:

i) Asset or liability is expected to be realized in the company''s normal settlement cycle.

ii) Asset is intended for sale or consumption.

iii) Asset or liability is held primarily for the purpose of trading.

iv) Asset or liability is expected to be realized or settled within twelve months after reporting period.

4.4 Intangible assets

i) The cost of computer software that are installed are accounted at cost of acquisition of such assets
and are carried at cost less accumulated amortization and impairment, if any. Internally generated
software is not capitalized and the expenditure is reflected in the statement of profit and loss in the year
in which the expenditure is incurred.

ii) The residual values, useful lives and methods of depreciation of intangible assets are reviewed at
each reporting date and adjusted prospectively, if appropriate.

4.5 Inventories

(i) Inventories are valued at cost or net realizable value whichever is lower. Cost includes the cost
incurred in bringing the inventories to their present location and condition.

(ii) Raw materials, stores and spares are valued at cost or net realizable value whichever is lower. Cost
includes the cost incurred in bringing the inventories to their present location and condition. For cost
calculation of Raw materials as it is not ordinarily inter changeable specific identification method is
used. For cost calculation of stores and spares weighted average method is used.

(iii) For valuation of finished goods / stock-in-process, cost includes material, direct labour, overheads
(other than abnormal amount of wasted materials, storage costs, selling and administrative overheads)
wherever applicable.

4.6 Revenue Recognition

(i) Revenue is recognized to the extent that is probable that the economic benefits will flow to the
company and the revenue can be reliably measured.

(ii) Sale of products is recognized when the significant risk and reward of ownership of the goods have
been passed to the buyer. Revenue is measured at fair value of the consideration received or
receivable, after deduction of any taxes or duties collected on behalf of the government which are
levied on sales such as GST, etc.

(iii) Dividend income, if any, is recognized when the company''s right to receive dividend is established
by the reporting date.

(iv) Interest income from financial assets is recognized at the effective interest rate applicable on initial
recognition.

(v) Scrap sales is recognized at the fair value of consideration received or receivable upon transfer of
significant risk and rewards. It comprises of invoice value of goods and after deducting applicable taxes
on sale.

4.7 Employee Benefits

(i) Short-term employee benefits viz., salaries and wages are recognized as expense at the
undiscounted amount in the statement of profit and loss for the year in which the related service is
rendered.

(ii) Defined Benefit Plan: Company''s liability towards gratuity in respect of all other employees is worked
out on the basis of actuarial valuation (performed by an independent actuary, at each Balance sheet
date) and is normally funded.

Leave Encashment:

As per policy of the company unavailed leave, casual leave/ earned leave cannot be carried forward or
encashed and hence there is no additional cost. The company recognises the cost as expense as and
when the employee avails paid leave.

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Mar 31, 2024

Note: 4 Significant Accounting Policies

4.1 Property, Plant and Equipment (PPE)

(i) Property, Plant and Equipment are stated at cost of acquisition net of accumulated depreciation/
amortization and impairment losses if any, except free hold land which is carried at cost less impairment
losses if any. The cost comprises purchase prices, borrowing cost if capitalization criteria are met and
directly attributable cost of bringing the asset to its working condition for the intended use.

(ii) The Company identifies the significant parts of plant and equipment separately which are required to
be replaced at intervals. Such parts are depreciated separately based on their specific useful lives. The
cost of replacement of significant parts are capitalized and the carrying amount of replaced parts are de¬
recognized. When each major inception/ overhauling is performed, its cost is recognized in the carrying
amount of the item of property, plant and equipment as a replacement if the recognition criteria are
satisfied. Any remaining carrying amount of the cost of the previous inspection/ overhauling (as distinct
from physical parts) is de- recognized.

(iii) Other expenses on fixed assets, including day-to-day repair and maintenance expenditure and cost
of replacing parts that does not meet the capitalization criteria in accordance with IND AS 16 are
charged to the Statement of Profit and Loss for the period during which such expenses are incurred.

(iv) PPEs are eliminated from the financial statements on disposal or when no further benefit is expected
from its use or disposal. Gains or losses arising from disposal of plant, property and equipment are

measured as the difference between the net disposal proceeds and the carrying amount of such assets
are recognized in the statement of profit and loss.

(v) Depreciation for plant and machinery has been provided on Straight line method

(vi) The residual values, useful lives and methods of depreciation of property, plant and equipment are
reviewed at each reporting date and adjusted prospectively, if appropriate.

4.2 Capital Work in progress

Capital work in progress includes cost of property, plant and equipment under installation, under
development including related expenses and attributable interest as at reporting date.

4.3 Current or Non-Current classification

"An asset or liability is classified as current if it satisfies any of the following conditions:

i) Asset or liability is expected to be realized in the company''s normal settlement cycle.

ii) Asset is intended for sale or consumption.

iii) Asset or liability is held primarily for the purpose of trading.

iv) Asset or liability is expected to be realized or settled within twelve months after reporting period."

4.4 Intangible assets

i) The cost of computer software that are installed are accounted at cost of acquisition of such assets
and are carried at cost less accumulated amortization and impairment, if any. Internally generated
software is not capitalized and the expenditure is reflected in the statement of profit and loss in the year
in which the expenditure is incurred.

ii) The residual values, useful lives and methods of depreciation of intangible assets are reviewed at each
reporting date and adjusted prospectively, if appropriate.

4.5 Inventories

(i) Inventories are valued at cost or net realizable value whichever is lower. Cost includes the cost
incurred in bringing the inventories to their present location and condition.

(ii) Raw materials, stores and spares are valued at cost or net realizable value whichever is lower. Cost
includes the cost incurred in bringing the inventories to their present location and condition. For cost
calculation of Raw materials as it is not ordinarily inter changeable specific identification method is used.
For cost calculation of stores and spares weighted average method is used.

(iii) For valuation of finished goods / stock-in-process, cost includes material, direct labour, overheads
(other than abnormal amount of wasted materials, storage costs, selling and administrative overheads)
wherever applicable.

4.6 Revenue Recognition

(i) Revenue is recognized to the extent that is probable that the economic benefits will flow to the
company and the revenue can be reliably measured.

(ii) Sale of products is recognized when the significant risk and reward of ownership of the goods have
been passed to the buyer. Revenue is measured at fair value of the consideration received or receivable,
after deduction of any taxes or duties collected on behalf of the government which are levied on sales
such as GST, etc.

(iii) Dividend income, if any, is recognized when the company''s right to receive dividend is established by
the reporting date.

(iv) Interest income from financial assets is recognized at the effective interest rate applicable on initial
recognition.

(v) Scrap sales is recognized at the fair value of consideration received or receivable upon transfer of
significant risk and rewards. It comprises of invoice value of goods and after deducting applicable taxes
on sale.

4.7 Employee Benefits

(i) Short-term employee benefits viz., salaries and wages are recognized as expense at the undiscounted
amount in the statement of profit and loss for the year in which the related service is rendered.

(ii) Defined Benefit Plan: Company''s liability towards gratuity in respect of all other employees is worked
out on the basis of actuarial valuation (performed by an independent actuary, at each Balance sheet
date) and is normally funded.

Leave Encashment:

As per policy of the company unavailed leave, casual leave/ earned leave cannot be carried forward or
encashed and hence there is no additional cost. The company recognises the cost as expense as and
when the employee avails paid leave.

---

Mar 31, 2023

Significant Accounting Policies

4.1 Property, Plant and Equipment (PPE)

(i) Property, Plant and Equipment are stated at cost of acquisition net of accumulated depreciation/
amortization and impairment losses if any, except free hold land which is carried at cost less impairment
losses if any. The cost comprises purchase prices, borrowing cost if capitalization criteria are met and
directly attributable cost of bringing the asset to its working condition for the intended use.

(ii) The Company identifies the significant parts of plant and equipment separately which are required to be
replaced at intervals. Such parts are depreciated separately based on their specific useful lives. The cost of
replacement of significant parts are capitalized and the carrying amount of replaced parts are de¬
recognized. When each major inception/ overhauling is performed, its cost is recognized in the carrying
amount of the item of property, plant and equipment as a replacement if the recognition criteria are
satisfied. Any remaining carrying amount of the cost of the previous inspection/ overhauling (as distinct
from physical parts) is de- recognized.

(iii) Other expenses on fixed assets, including day-to-day repair and maintenance expenditure and cost of
replacing parts that does not meet the capitalization criteria in accordance with IND AS 16 are charged to
the Statement of Profit and Loss for the period during which such expenses are incurred.

(iv) PPEs are eliminated from the financial statements on disposal or when no further benefit is expected
from its use or disposal. Gains or losses arising from disposal of plant, property and equipment are
measured as the difference between the net disposal proceeds and the carrying amount of such assets are
recognized in the statement of profit and loss.

(v) Depreciation for plant and machinery has been provided on Straight line method

(vi) The residual values, useful lives and methods of depreciation of property, plant and equipment are
reviewed at each reporting date and adjusted prospectively, if appropriate.

4.2 Capital Work in progress

Capital work in progress includes cost of property, plant and equipment under installation, under
development including related expenses and attributable interest as at reporting date.

4.3 Current or Non-Current classification

"An asset or liability is classified as current if it satisfies any of the following conditions:

i) Asset or liability is expected to be realized in the company''s normal settlement cycle.

ii) Asset is intended for sale or consumption.

iii) Asset or liability is held primarily for the purpose of trading.

iv) Asset or liability is expected to be realized or settled within twelve months after reporting period."

4.4 Intangible assets

i) The cost of computer software that are installed are accounted at cost of acquisition of such assets and
are carried at cost less accumulated amortization and impairment, if any. Internally generated software is
not capitalized and the expenditure is reflected in the statement of profit and loss in the year in which the
expenditure is incurred.

ii) The residual values, useful lives and methods of depreciation of intangible assets are reviewed at each
reporting date and adjusted prospectively, if appropriate.

4.5 Inventories

(i) Inventories are valued at cost or net realizable value whichever is lower. Cost includes the cost incurred in
bringing the inventories to their present location and condition.

(ii) Raw materials, stores and spares are valued at cost or net realizable value whichever is lower. Cost
includes the cost incurred in bringing the inventories to their present location and condition. For cost
calculation of Raw materials as it is not ordinarily inter changeable specific identification method is used. For
cost calculation of stores and spares weighted average method is used.

(iii) For valuation of finished goods / stock-in-process, cost includes material, direct labour, overheads (other
than abnormal amount of wasted materials, storage costs, selling and administrative overheads) wherever
applicable.

4.6 Revenue Recognition

(i) Revenue is recognized to the extent that is probable that the economic benefits will flow to the company
and the revenue can be reliably measured.

(ii) Sale of products is recognized when the significant risk and reward of ownership of the goods have been
passed to the buyer. Revenue is measured at fair value of the consideration received or receivable, after
deduction of any taxes or duties collected on behalf of the government which are levied on sales such as
VAT, GST, etc.

(iii) Dividend income, if any, is recognized when the company''s right to receive dividend is established by the
reporting date.

(iv) Interest income from financial assets is recognized at the effective interest rate applicable on initial
recognition.

(v) Scrap sales is recognized at the fair value of consideration received or receivable upon transfer of
significant risk and rewards. It comprises of invoice value of goods and after deducting applicable taxes on
sale.

4.7 Employee Benefits

(i) Short-term employee benefits viz., salaries and wages are recognized as expense at the undiscounted
amount in the statement of profit and loss for the year in which the related service is rendered.

(ii) Defined Benefit Plan: Company''s liability towards gratuity in respect of all other employees is worked out
on the basis of actuarial valuation (performed by an independent actuary, at each Balance sheet date) and is
normally funded.

Leave Encashment:

As per policy of the company unavailed leave, casual leave/ earned leave cannot be carried forward or
encashed and hence there is no additional cost. The company recognises the cost as expense as and when
the employee avails paid leave.