1.1 The Company overview :
“Jauss Polymers Limited is a public limited company incorporated and domiciled in India and its shares are publicly traded on the Bombay Stock Exchange (BSE), in India. The Registered office of the company is situated at Plot No 51, Roz Ka Meo Industrial Area, Sohna, Gurugram-122103, Haryana (India). The Company is engaged in job work and manufacturing pet jars/bottles and caps.
1.2 Basis of preparation of financial statements:
(i) Statement of compliance:
These financial statements have been prepared in accordance with Indian Accounting Standards (hereinafter referred to as the 'Ind AS') as prescribed under Section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) (Amendment) Rules, 2017 and relevant provisions of the Companies Act, 2013.
(ii) Basis of preparation:
The standalone financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015.
(iii) Basis of measurement:
The financial statements have been prepared under historical cost convention on accrual basis, except for the items that have been measured at fair value as required by relevant Ind AS.
Going Concern
The Company has made significant investment of Rs. 355.00 lakhs in a subsidiary which has ventured into
container services business for which it has acquired land in Kakinada, Andhra Pradesh, an upcoming port along with necessary approvals from Government bodies. This project is likely to yield very high profits.
(iv) Current & Non-Current Classifications
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 the Schedule III to the Companies Act, 2013. Deferred tax assets and liabilities are classified as non-current assets and liabilities.
1.3 Significant accounting policies:
(i) Property, plant and equipment:
Property, Plant and Equipment are carried at cost less accumulated depreciation and impairment losses, if any. Cost includes expenditure that is directly attributable to the acquisition of the items.
Property, plant and equipment acquired after the transition date are stated at cost, less accumulated depreciation and accumulated impairment losses, if any. Cost includes expenses directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is calculated on written down value method and as per the useful life as prescribed in Schedule II of the Companies Act 2013.
The residual values, useful lives and methods of depreciation are reviewed at each financial year end and adjusted prospectively, if appropriate.
The cost and related accumulated depreciation are eliminated from the financial statements, upon sale and disposition of the assets and the resultant gains or losses are recognized in the statement of profit and loss.
(ii) Inventories:
Inventories are valued at lower cost and net realisable value. The cost is computed on FIFO (first in first out) basis. Finished Goods include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.
(iii) Employee benefit:
a. Defined Contribution Plan
Employee benefits in the form of Provident Fund (PF) considered as defined contribution plan and the contributions are charged to the Statement of Profit and Loss of the year when the contribution to the respective funds are due. The Company has no further obligations under the plan beyond its monthly contributions.
b. Defined Benefit Plan
Retirement benefits in the form of Gratuity and Leave Encashment are considered as defined obligations and are provided for as at the date of the balance sheet. As the company has transferred most of the employees to its holding company, therefore no further provision has been made as the current provision is quiet adequate to meet any liability.
c. Short-term Employee Benefits
Short term benefits are charged off at the undiscounted amount in the year in which the related service is rendered.
d. Long-term Employee Benefits
Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognized as a provision.
Annual leaves can either be availed or uncashed subject to restriction on the maximum accumulation of leaves.
(iv) Taxes on Income
a. Current tax:
Tax on income for the current period is determined on the basis of estimated taxable income and tax credits computed in accordance with the provisions of the relevant tax laws and based on the expected outcome of assessments / appeals.
Current income tax relating to items recognized and not in the statement of profit and loss. Management periodically evaluates position0s taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.
b. Deferred tax:
Deferred tax is provided using the balance sheet approach on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply based on the tax rates that have been enacted by the end of the reporting period.
Deferred tax items are recognized in correlation to the underlying transaction either in other comprehensive income or directly in equity. The break-up of the major components of the deferred tax assets and liabilities as at balance sheet date has been arrived at after setting off deferred tax assets and liabilities.
During the year, company has not recognised deferred tax asset over the loss incurred and other temporary items as the company has transferred its manufacturing unit along with all its employees, assests and liabilites as a going concern to Innovative Tech Pack Limited.
(v) Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability equity instrument of another entity.
a. Financial assets
Financial assets include cash and cash equivalents, trade receivables and loans.
Financial Assets are measured at amortised cost or fair value through Other Comprehensive Income or fair value through Statement of Profit or Loss, depending on its business model for managing those financial assets and the assets contractual cash flow characteristics.
Subsequent measurements of financial assets are dependent on initial classification, For impairment purposes significant financial assets are tested on an individual basis, other financial assets are assessed collectively in groups that share similar credit risk characteristics.
The company derecognizes a financial assets when the contractual rights to the cash flows from the financial assets expire or it transfers the financial assets and the transfer qualifies for the derecognisition under In AS 109.
The company assesses impairment based on the expected credit losses (ECL) model to all its financial assets measured at amortised cost.
b. Financial liabilities
Financial liabilities include trade payables.
All financial liabilities are recognised initially at fair value. After initial recognition, financial liabilities are classified under one of the following two categories:
Financial liabilities at amortised cost: After Initial recognition, such financial liabilities are subsequently measured at amortised cost by applying the Effective Interest Rate (EIR) method to the gross carrying amount of the financial liability.
Financial liabilities at fair value through profit or loss: Financial liabilities which are designated as such on initial recognition, or which are held for trading. Fair value gains / losses attributable to changes in own credit risk is recognized in OCI. These gains / losses are not subsequently transferred to Statement of Profit and Loss. All other changes in fair value of such liabilities are recognized in the Statement of Profit and Loss.
The Company derecognises a financial liability when the obligation specified in the contract is discharged, cancelled or expires.
(vi) Revenue
The Company's revenue is derived from the single performance obligation. Revenue is recognized based on the nature of activity when, the promised goods or services are transferred to the customer and consideration can be reasonable measured or there exists reasonable certainty of its recovery. Revenues from sale of goods are recognized on dispatch which coincides with transfer of significant risks & rewards to customer and is net of sales returns and discounts.
(vii) Impairment
"An asset is considered as impaired when at the date of Balance Sheet, there are indications of impairment and the carrying amount of the asset, or where applicable, the cash generating unit to which the asset belongs, exceeds its recoverable amount (i.e. the higher of the net asset selling price and value in use).The carrying amount is reduced to the recoverable amount and the reduction is recognised as an impairment loss in the statement of profit and loss. The impairment loss recognised in the prior accounting period is reversed if there has been a change in the estimate of recoverable amount. Post impairment, depreciation is provided on the revised carrying value of the impaired asset over its remaining useful life.
(viii) Earnings per share (EPS)
Basic earnings per share is calculated by dividing the profit or loss for the period attributable to the equity holders of the company by the weighted average number of ordinary shares outstanding during the year.
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 are adjusted for the effects of all dilutive potential equity shares.
(ix) Cash and cash equivalents
Cash and cash equivalents include cash on hand and at bank.
(x) Investment
Company has equity investment in subsidiary only which has been carried at cost.
(xi) Leases
The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). Lease payments on short-term leases and leases of low-value assets are recognized as expense on a straight-line basis over the lease term.
(xii) Provisions, contingent liabilities and contingent assets
"Provisions are recognized only when there is a present obligation as a result of past events and when a reasonable estimate of the amount of obligation can be made. Contingent liability is disclosed for
(a) Possible obligation which will be confirmed only by future events not wholly within the control of the company or (b) present obligations arising from past events where it is probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made. Contingent assets are neither recognized nor disclosed in the financial statement."
(xiii) Functional and presentation currency
Items included in the financial statements are measured using the currency of the primary economic env' meat in which the entity operates ('the functional currency). The financial statements are presented in IndianiroRn(lNR), which is Company's functional and presentation currency.
1.4 Significant accounting judgements, estimates and assumptions:
The Preparation of these financial statements requires managements judgements, estimates and assumptions that affect the application of accounting policies, the accounting disclosures made and the reported amounts of assets, liabilities, income and expenses.
Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates are made in the period, in which, the estimates are revised and in any future periods, effected pursuant to such revisions:
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