Accounting Policies of Grover Jewells Ltd. Company

Mar 31, 2025

1 COMPANY INFORMATION

The company is engaged in the business of manufacturing and sale of gold ornaments. This is the fourth year of company''s existence.

2 MATERIAL ACCOUNTING POLICIES a Basis of Preparation

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (''Indian GAAP'') to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, as applicable. The financial statements have been prepared under the historical cost convention on accrual basis, except for certain financial instruments which are measured at fair value.

b Property, Plant and Equipment

Property, Plant and Equipment are stated at cost, less accumulated depreciation / amortisation. Costs include all expenses incurred to bring the asset to its present location and condition.

c Intangible assets

Intangible assets are recorded at cost and are carried at cost less accumulated amortization and impairment losses, if any. d Depreciation and amortization

Depreciation has been provided on the Fixed Asset on the WDV method and in accordance with the useful life of the Asset as prescribed under Schedule II of the Companies Act, 2013.

Amortization is charged on a systematic basis over the estimated useful life.

The useful life of the Assets has been taken as below;

Type of Assets	Useful Life
Buildings	30 Years
Plant and Equipment	15 Years
Furniture and Fixtures	10 Years
Vehicles	8 Years
Office equipment	5 Years
Computers	3 Years/6 Years
Accounting Software	6 Years
Website/ Application	6 Years

e Impairment of assets

At each balance sheet date, the management reviews the carrying amounts of its assets included in each cash generating unit to determine whether there is any indication that those assets were impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment. Recoverable amount is the higher of an asset''s net selling price and value in use_; In assessing value in use, the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of time valine of money and the risks specific to the asset. Reversal of impairment loss is recognised as income in the statement of profit and loss.

f Investment

Long-term investments(if any) and current maturities of long-term investments are stated at cost, less provision for other than temporary diminution in value. Current investments, if any, except for current maturities of long-term investments, comprising investments in mutual funds, government securities and bonds are stated at the lower of cost and fair value.

g Inventories

Raw materials are carried at the lower of cost and net realisable value. Cost is determined on a weighted average basis. Work-in-progress is carried at the lower of cost and net realisable value. Stores and spare parts are carried at lower of cost and net realisable value. Finished goods produced or purchased by the Company are carried at lower of cost and net realisable value. Cost includes direct material and labour cost and a proportion of manufacturing overheads.

The valuation for inventories is as follows;

Classification	Valuation Policy
Finished Goods Raw Material	At lower of cost or net realizable value. At lower of cost or net realizable value.

h Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amount of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents.

i 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.

Dividend, if any, is recorded when the right to receive payment is established. Interest income is recognised on time proportion basis taking into account the amount outstanding and the rate applicable.

j Employee Benefits

• All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. Benefits such as salaries, wages, bonus, leave salary, allowances, etc are recognised as actual amounts due in period in which the employee renders the related services.

• Retirement benefits in the form of Provident Fund is a defined contribution scheme and the contributions are charged to the Statement of Profit and Loss of the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective funds.

i

k Foreign currency transactions

Income and expense in foreign currencies are converted at exchange rates prevailing on the date of the transaction. Foreign currency monetary assets and liabilities other than net investments in non-integral foreign operations are translated at the exchange rate prevailing on the balance sheet date and exchange gains and losses are recognised in the statement of profit and loss, if any.

I Taxation

Current income tax expense comprises taxes on income from operations in India and in foreign jurisdictions. Income taxpayable in India is determined in accordance with the provisions of the Income Tax Act, 1961.

Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax after the tax holiday period. Accordingly, MAT is recognised as an asset irf the balance sheet when the asset can be measured reliably ahd it is probable that the future economic benefit associated with it will fructify.

Deferred tax expense or benefit is recognised on timing differences being the difference between taxable income and accounting income that originate in one period and is likely to reverse in one or more subsequent periods. 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.

Advance taxes and provisions for current income taxes are presented in the balance sheet after off-setting advance tax paid and income tax provision arising in the same tax jurisdiction for relevant tax paying units and where the Company is able to and intends to settle the asset and liability on a net basis.

The Company offsets deferred tax assets and deferred tax liabilities if it has a legally enforceable right and these relate to taxes on income levied by the same governing taxation laws.

m Earnings Per Shares

Basic earning per share is computed 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. Diluted earning per share is computed by taking into account the weighted average number of equity shares outstanding during the period and the weighted average number of equity shares which would be issued on conversion of all dilutive potential equity shares into equity shares.

n Provisions, Contingent liabilities and Contingent assets

A provision is recognised when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits and compensated absences) are not discounted to its present value and are determined based on best estimate 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. Contingent liabilities are not recognised in the financial statements. A contingent asset is neither recognised nor disclosed in the financial statements.

o Previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary.

---

Mar 31, 2024

Significant Accounting Policies:

A. Basis of preparation of financial statements:

The accounts of the company are prepared under the historical cost
convention, under fundamental accounting assumptions of (a) going
concern, (b) consistency and (c) accrual basis of accounting and in
accordance with applicable accounting standards.

B. Basis of Accounting

All income and expenditure items having a material bearing on the
financial statements are recognized on accrual basis.

C. Property, plant and equipment and intangible assets:

Property, plant and equipment

Property, plant and equipment are carried at cost less accumulated
depreciation and impairment losses, it any. The cost ot fixed assets
includes interest on borrowings attributable to acquisition of qualifying
fixed assets up to the date the asset is ready for its intended use and other
incidental expenses incurred up to that date.

Intangible assets

Intangible assets are carried at cost less accumulated depreciation and
impairment losses, if any. The cost of fixed assets includes interest on
borrowings attributable to acquisition of qualifying fixed assets up to the
date the asset is ready for its intended use and other incidental expenses
incurred up to that date.

D. Depreciation on Property, plant and equipment and intangible assets:

Depreciation has been provided as per the “Written down value method”
under provisions of the Companies Act, 2013 based on the expected useful
life of the assets in the manner prescribed in Schedule II of the said Act.

E. Inventories:

Inventories are valued at cost using weighted average cost formula or Net
realizable value whichever is lower.

F. Accounting for Retirement Benefits:

The company has no retirement benefit scheme in operation presently. The
Company has adopted policy for accounting of such expenses / liability
whenever paid/to be paid by it _______

G. Accounting for taxes on income:

Taxes on income are accounted in accordance with Accounting Standard
22 issued by Institute of Chartered Accountants of India.

(a) Deferred tax is recognized for all timing differences, subject to the
consideration of prudence, applying the tax rates that have been
substantively enacted by the Balance Sheet date.

H. Earning per share:

Basic earnings per share are 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.

I. Impairment:

The carrying amounts of the company fixed assets are reviewed at each
balance sheet date in accordance with Accounting Standard 28’ Impairment
of Assets’, to determine whether there is any indication of impairment. If any
such indication exists, the asset’s recoverable amount is estimated as higher
of its net selling price and value in use. An impairment loss is recognized
whenever the carrying amount of an asset or its cash generating unit exceeds
its recoverable amount. Impairment losses are recognized in the profit and
loss account.

An impairment loss is reversed if there has been a change in the estimates
used to determine them recoverable amount. An impairment loss is reversed
only to the extent that the asset’s carrying amount does not exceed the
carrying amount that would have been determined net of depreciation or
amortization, had no impairment loss been recognised.

However, there was no impairment loss or any reversal thereof which needed
to be recognized during this year.