Accounting Policies of Jeyyam Global Foods Ltd. Company

Mar 31, 2025

1 Corporate Information

M/s Jeyyam Global Foods Limited ("the Company), is engaged in the business of manufacturing food products, in the field of pulses, especially fried grams and other dal varieties.

Jeyyam Global Foods Limited, a limited company domiciled in India and incorporated under the Companies Act, 2013 on 24th day of March 2008 and is having its registered office in Chennai.

2.A Significant Accouting Policies

i) Basis of Preparation of Financial Statements

The financial statements have been prepared in conformity with the generally accepted accounting principles in India to comply with all material respects with the notified Accounting Standards under Section 133 of the Companies Act, 2013. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year except for the change in accounting policies explained below. The complete financial statements have been prepared along with all disclosures.

ii) Use of Estimates

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 the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised.

ⁱⁱⁱ⁾ Inventory

lnventories are valued as under:-

1. lnventories : Lower of cost or net realizable value

2. Scrap : At net realizable value.

^iv) 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.

^v) Property, Plant & Equipment

Property, Plant & Equipment are stated at cost net of GST and includes amounts added on revaluation, less accumulated depreciation and impairment loss if any. All costs, including financing costs till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the Property, Plant & Equipmentss are capitalised. Each part of an item of property,plant & equipment with a cost that is significant in relation to the total cost of the item is depreciated seperately.

The residual value for all fixed assets was rationalized during the current financial year 2024-2025 and the impact of the same is not material.

Assets where useful life is same as Schedule II
Asset	Useful Life (In Y ears)
Computers	3
Office Equipments	5
Electrical Equipment	5
Furniture & Fittings	10

vi) Depreciation

Depreciation on Fixed Assets is provided to the extent of depreciable amount on the SLM method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

Depreciation on assets acquired/sold during the year is recognised on a pro-rata basis to the statement of profit and loss till the date of acquisition/sale.

vii) Impairment of Assets

The carrying amount of assets is reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets, net selling price and value in use. ln assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and risks specific to the asset.

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life

viii) Foreign Currency transactions

(a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of transaction.

(b) Monetary items denominated in foreign currencies at the year end are restated at year end rates. In case of items which are covered by forward exchange contracts, the difference between the year end rate and the rate on the date of the contract is recognised as exchange difference and the premium paid on forward contracts is recognised over the life of the contract.

(c) Non monetary foreign currency items are carried at cost.

(d) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Profit and Loss account except in case of long term liabilities, where they relate to acquisition of Property, Plant & Equipmentss, in which case they are adjusted to the carrying cost of such assets.

ix) Borrowing costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to Profit and Loss account.

x) Accounting for taxes on income

Income tax expense is accounted in accordance with Accounting Standard - 22 "Accounting for Taxes on Income" which includes current tax and deferred tax.

Current tax

The current charge for the income taxes is calculated in accordance with the relevant tax regulations applicable to the Company.

Deferred tax

Deferred taxes reflect the impact of current year timing differences between the taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax assets are recognised only to the extent that there is reasonable/ virtual certainty that sufficient future taxable income will be available.

^xi) Provisions and Contingent Liabilities and Contingent Assets

A provision is recognized when the company has a present obligation as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation and in respect ofwhich a reliable estimate can be made. Provisions are determined based on management estimate required to settle the obligation at the balance sheet date and are not discounted to present value.

Contingent Liabilities are not recognized but disclosed in Financial Statements. Contingent Assets are neither recognized nor disclosed in the financial statements.

xm) Employee Benefits Short Term

Short term employee benefits are recognised as an expense as per the company''s scheme based on expected obligations.

Post Retirement

Post retirement benefits comprise of provident fund and gratuity which are accounted as follows :

Provident Fund

This is a defined contribution plan. Contributions remitted to provident fund authorities in accordance with the relevant statute/rules are charged to statement of profit and loss as and when due. The company has no further obligations other than its monthly contributions.Presently, the company has not deducted any amount towards Provident fund.

Gratuity

This is a defined benefit plan. The liability is determined based on actuarial valuation using projected unit credit method. Actuarial gains and losses, comprising of experience adjustments and the effects of changes in actuarial assumptions are recognised immediately in the statement of profit and loss. The company has provided for the provision as per AS-15 Compensated Absence

The Company has a policy on compensated absences which are both accumulating and non-accumulating in nature. The expected cost of accumulating compensated absences is determined by actuarial valuation performed by an independent actuary at each balance sheet date using projected unit credit method on the additional amount expected to be paid / availed as a result of the unused entitlement that has accumulated at the balance sheet date. Expense on non-accumulating compensated absences is recognized in the period in which the absences occur. The company has provided for the provision for Compensated absence as per AS-15

xm) Earnings per Share

Basic earnings per share are 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. For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shareholders.

ix) Cash Flow

Cash flows are reported using indirect method, whereby profit before tax is adjusted for the effects of transactions of non - cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. Cash flows from operating, investing and financing activities of the Company are segregated accordingly.

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Mar 31, 2024

2.A Significant Accouting Policies
1) Basis of Preparation of Financial Statements

The financial statements have been prepared in conformity with the generally accepted accounting principles in India to comply with all material respects
with the notified Accounting Standards under Section 133 of the Companies Act, 2013. The financial statements have been prepared under the historical cost
convention on an accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous
year except for the change in accounting policies explained below. The complete financial statements have been prepared along with all disclosures.

li) Use of Estimates

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
the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates
are recognised in the period in which the results are known/matenalised.

iii) Inventory

Inventories are valued as under:-
1 Inventories : Lower of cost or net realizable value
2. Scrap : At net realizable value.

iv) 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.

^v) Property, Plant & Equipment

Property, Plant & Equipment are stated at cost net of GST and includes amounts added on revaluation, less accumulated depreciation and impairment loss if
any. All costs, including financing costs till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising
from exchange rate variations attributable to the Property, Plant & Equipmentss are capitalised.Each part of an item of property ,plant & equipment with a
cost that is significant in relation to the total cost of the item is depreciated seperately.

vi) Depreciation

Depreciation on Fixed Assets is provided to the extent of depreciable amount on the SLM method. Depreciation is provided based on useful life of the assets
as prescribed in Schedule 11 to the Companies Act, 2013.

Depreciation on assets acquired/sold during Hie year is recognised on a pro-rata basis to the statement of profit and loss till the date of acquisition/sale.

vii) Impairment of Assets

The carrying amount of assets is reviewed at each balance sheet date if there is any indication of impairment based on inlemal/exlemal factors. An
impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets,
net selling price and value

in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and risks specific to the asset.

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life

viii) Foreign Currency transactions

(a) transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual
rate at the date of transaction,

(b) Monetary items denominated in foreign currencies at the year end are restated at year end rates. In case of items which are covered by forward exchange
contracts, the difference between the year end rate and the rate on the date of the contract is recognised as exchange difference and the premium paid on
forward contracts is recognised over the life of the contract.

(c) Non monetary foreign currency items arc carried at cost.

(d) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Profit and Loss account except in
case of long term liabilities, where they relate to acquisition of Property'', Plant & Equipmentss, in which case they-sH^-a^Tjsted ^to die carrying cost of such

assets

ix) Borrowing costs /O/ \

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalise| such assets. A qualifying
asset is one that necessarily takes substantial period ol time to get ready for its intended use. All otheiy&Wowing costsAS/charged to Profit and Loss
account v vv^^vw

x) Accounting for taxes on income

Income tax expense is accounted in accordance with Accountmg Standard 22 "Accounting for Taxes on Income" which includes current tax and deferred
tax.

Current tax

The current charge for the income taxes is calculated in accordance with the relevant tax regulations applicable to the Company.

Deferred tax

Deferred taxes reflect the impact of c urrent year timing differences between the taxable income and accounting income for the year and rev ersal of timing
differences of earlier years. Deferred tax assets are recognised only to the extent that there is reasonable virtual certainty that sufficient future taxable
income will be available.