1. General Information
Jay Ushin Limited (“The Company”) is a public limited company domiciled & incorporated in India and Listed on BSE Limited.
The address of its registered office and principal place of business is GI 48, GT Karnal Road, Industrial Area, Delhi 110033.
The principal activities of the Company are manufacturing, purchases and sale of components such as Lock and Key Sets,
Switches, Heater Control Panels (HVAC) and Door Latches for automobiles.
The financial statements for the year ended March 31, 2025 were approved by the Board of Directors and authorised for issue
on May 29, 2025.
2. Basis of preparation of Financial Statements
2.1 Statement of Compliance
The financial statements have been prepared as a going concern in accordance with Indian Accounting Standards (Ind AS)
notified under the Section 133 of the Companies Act, 2013 (“the Act”) read with the Companies (Indian Accounting Standards)
Rules, 2015 and other relevant provisions of the Act.
2.2 Basis of Measurement
The financial statements have been prepared on the historical cost convention on accrual basis except for certain financial
instruments which are measured at fair value at the end of each reporting period, as explained in the accounting policies men¬
tioned below. These financial statements are presented in Indian Rupee (INR), which is also the Company's functional currency.
All assets and liabilities have been classified as current or noncurrent according to the Company's operating cycle and other cri¬
teria set out in the Act and Ind AS. Based on the nature of products and the time between the acquisition of assets for processing
and their realisation in cash and cash equivalents less than twelve month so, the Company has ascertained its operating cycle
as twelve months for the purpose of current non-current classification of assets and liabilities.
The principal accounting policies are set out below.
2.3 Going concern
The board of directors have considered the financial position of the Company as at March 31,2025 and the projected cash flows
and financial performance of the Company for at least twelve months from the date of approval of these financial statements as
well as planned cost and cash improvement actions, and believe that the plan for sustained profitability remains on course.
The board of directors have taken actions to ensure that appropriate long-term cash resources are in place at the date of signing
the accounts to fund the Company's operations.
2.4 Operating Cycle
All assets and liabilities have been classified as current and non-current as per the Company's normal operating cycle and
other criteria set out above which are in accordance with the Schedule III of the Act. Based on the nature of services and time
between the acquisition of assets for providing of services and their realisation in cash and cash equivalents, the Company has
ascertained its operating cycle as 12 months for the purpose of current / non-current classification of assets and liabilities.
2.5 Use of Estimates
The preparation of the financial statements in conformity with IND AS requires management to make estimates, judgments
and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported
amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and
reported amounts of revenues and expenses during the period. Application of accounting policies that require critical account¬
ing estimates involves complex and subjective judgments and the use of assumptions in these financial statements have been
disclosed in Notes.
Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes
in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in
estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are
disclosed in the notes to the financial statements.
3. Material Accounting Policies
3.1 Revenue from contract with customer
Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at
an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.
The Company has generally concluded that it is the principal in its revenue arrangements because it typically controls the goods
or services before transferring them to the customer.
Sale of goods
Revenue from sale of goods is recognised at the point in time when control of the asset is transferred to the customer, generally
on delivery of the goods. The normal credit term is 30 to 60 days upon delivery. The Company also considers whether there are
other promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be
allocated. In determining the transaction price for the sale of goods, the Company considers the effects of variable consideration
the existence of significant financing components, non-cash consideration, and consideration payable to the customer (if any).
i) Variable Consideration
If the consideration in a contract includes a variable amount, the Company estimates the amount of consideration to which
it will be entitled in exchange for transferring the goods to the customer. The variable consideration is estimated at contract
inception and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue
recognised will not occur when the associated uncertainty with the variable consideration is subsequently resolved. The
contracts for the sale of goods provide price revision receivable from/payable to customers on account of change of com¬
modity prices/ purchase price and these prices escalations and relaxations give rise to variable consideration. Contract
revenue includes price revision received/receivable from customers and similarly, price revision for material purchased or
payable to vendors has also been included in purchases.
ii) Significant financing component
Generally, the Company receives short-term advances from its customers. Using the practical expedient in Ind AS 115,
the Company does not adjust the promised amount of consideration for the effects of a significant financing component if
it expects, at contract inception, that the period between the transfer of the promised good or service to the customer and
when the customer pays for that good or service will be one year or less.
Contract balances
Contract Assets
A contract asset is a right to consideration in exchange for goods or services transferred to the customers. If the Company
performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a
contract asset is recognized for the earned consideration that is conditional.
Trade receivables
A Receivable is classified as a 'trade receivable' if it is in respect to the amount due from customers on account of goods sold
or services rendered in the ordinary course of business. A receivable represents the Company's right to an amount of consid¬
eration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due). Refer to
accounting policies of financial assets for further reference.
Contract liabilities
A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consider¬
ation (or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers
goods or services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever
is earlier). Contract liabilities are recognised as revenue when the Company performs under the contract.
Other revenue streams:
i) Interest Income
Interest income is recognised on a time proportion basis taking into account the amount outstanding and the applicable
interest rate. Interest income is included under the head “other income” in the statement of profit and loss.
ii) Lease income
Rental income arising from operating leases on property let out by the Company is accounted for on a straight line basis
over the lease terms and is included in other income in statement of profit and loss.
iii) Rendering of services
Revenue from service related activities is recognised as and when services are rendered and on the basis of contractual
terms with the parties and is included in revenue in the statement of profit and loss under the head other income.
3.2 Leases
The Company is a lessee
The Company's lease asset classes primarily consist of leasehold land and buildings. The Company assesses whether a con¬
tract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the
use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to
control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii)
the Company has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the
Company has the right to direct the use of the asset. At the date of commencement of the lease, the Company recognizes a
right-of-use asset (“ROU”) and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases
with a term of twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the
Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.
Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term. ROU assets
and lease liabilities includes these options when it is reasonably certain that they will be exercised.
The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any
lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives.
They are subsequently measured at cost less accumulated depreciation and impairment losses.
Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term
and useful life of the underlying asset. Right of use assets are evaluated for recoverability whenever events or changes in
circumstances indicate that their carrying amounts may not be recoverable
Impairment of non-financial assets
Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the
higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on
available data from binding sales transactions, conducted at arm's length, for similar assets or observable market prices less
incremental costs for disposing of the asset. The value in use calculation is based on a DCF model. The cash flows are derived
from the budget for the next five years and do not include restructuring activities that the Company is not yet committed to or
significant future investments that will enhance the asset's performance of the CGU being tested. The recoverable amount is
sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used
for extrapolation purposes. These estimates are also relevant to other intangibles. During the year the Company has done the
impairment assessment of non-financial assets and have concluded that there is no impairment in value of non-financial assets
as appearing in the financial statements.
The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments
are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates
in the country of domicile of these leases. Lease liabilities are re-measured with a corresponding adjustment to the related right
of use asset if the Company changes its assessment or whether it will exercise an extension or a termination option.
The Company as a lessor
Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer
substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases
are classified as operating leases.
When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. The
sublease is classified as a finance or operating lease by reference to the right-of-use asset arising from the head lease.
For operating leases, rental income is recognized on a straight line basis over the term of the relevant lease.
3.3 Cash and Cash Equivalents
Cash and cash equivalent includes cash on hand, cash at banks and short term deposits with original maturities of three months
or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.
Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.
3.4 Foreign currencies
In preparing the financial statements of the Company, transactions in currencies other than the company's functional currency
(foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each
reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non¬
monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.
Foreign exchange differences on foreign currency borrowings are presented in the Statement of
profit and loss, within finance costs. Exchange differences on monetary items are recognised in profit or loss in the period in
which they arise.
3.5 Borrowing costs
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 profit or loss in the period in which they are incurred.
3.6 Employee benefits
Defined contribution plans
A defined contribution plan is a post-employment benefit plan under which the company pays fixed contributions into a separate
entity and will have no legal or constructive obligation to pay further amounts. Payments to defined contribution plans are
recognised as an expense when employees have rendered service entitling them to the contributions.
Defined benefit plans
For defined benefit plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial
valuations being carried out at the end of each annual reporting period. Re-measurement, comprising actuarial gains and
losses and the return on plan assets (excluding net interest), is reflected immediately in the balance sheet with a charge or
credit recognised in other comprehensive income in the period in which they occur. Re-measurement recognised in other
comprehensive income is reflected immediately in retained earnings and is not reclassified to the Statement of profit and loss.
Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset.
Defined benefit costs are categorised as follows:
• Service cost (including current service cost, past service cost, as well as gains and losses or curtailments and settlements);
• Net interest expense or income; and
• Re-measurement
The Company presents the first two components of defined benefit costs in the Statement of profit and loss in the line item
Employee benefit expense.
Remeasurements of the net defined benefit liability (asset), to be recognised in other comprehensive income.
The retirement benefit obligation recognised in the balance sheet represents the actual deficit or surplus in the Company's
defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits
available in the form of refunds from the plan or reductions in future contributions to the plans.
Short-term employee benefits
Liabilities recognised in respect of wages and salaries and other short-term employee benefits are measured at the undiscounted
amount of the benefits expected to be paid in exchange for the related service and are expensed as the related services are
provided.
Other long-term employee benefits
Liabilities recognised in respect of other long-term employee benefits are measured at the present value of the estimated future
cash outflows expected to be made by the Company in respect of services provided by employees up to the reporting date
based on the actuarial valuation using the projected unit credit method carried out at the year-end. Re measurement gain or
losses are recognised in the statement of profit and loss in the period in which they arise.
3.7 Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit before tax as reported in the
statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items
that are never taxable or deductible. The Company's current tax is calculated using tax rates that have been enacted or
substantively enacted by the end of the reporting period.
Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally
recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary
differences to the extent that it is probable that taxable profits will be available against which those deductible temporary
differences can be utilised.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is
no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is
settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of
the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in
which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and
liabilities.
Current and deferred tax for the year
Current and deferred tax are recognised in the statement of profit or loss, except when they relate to items that are recognised
in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other
comprehensive income or directly in equity respectively.
3.8 Property, plant and equipment
Property, plant and equipment (including furniture, fixtures, vehicles, etc.) held for use in the production or supply of goods or
services, or for administrative purposes, are stated in the balance sheet at cost of acquisition less accumulated depreciation
and accumulated impairment losses, if any. Cost of acquisition is inclusive of freight, duties & taxes (not recoverable) and other
incidental expenses. Freehold land is not depreciated and measured at cost.
Properties in the course of construction for production, supply or administrative purposes are carried at cost, less any recognised
impairment loss. Cost includes items directly attributable to the construction or acquisition of the item of property, plant and
equipment, and, for qualifying assets, borrowing costs capitalised in accordance with the Company's accounting policy. Such
properties are classified to the appropriate categories of property, plant and equipment when completed and ready for intended
use. Depreciation of these assets, on the same basis as-other property assets, commences when the assets are ready for their
intended use.
Capital work-in-progress comprises of the cost of fixed assets that are not yet ready for their intended use at the reporting date.
Depreciation is recognised on the cost of assets (other than freehold land and properties under construction) less their residual
values over their useful lives, using the straight-line method. The estimated useful lives, residual values and depreciation meth¬
od are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective
basis.
Depreciation is calculated using the straight line method on pro-rata basis from date when the asset is put to use. Estimated
useful life of the assets are as follows which is based on technical evaluation of the useful lives of the asset:
Subsequent expenditure related to an item of PPE is capitalised only when it is probable that future economic benefits
associated with the item will flow to the Company. When significant parts of plant and equipment are required to be replaced at
intervals, the Company depreciates them separately based on their specific useful lives. Likewise, when a major inspection is
performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria
are satisfied. All other repair and maintenance costs are recognised in statement of profit and loss as incurred. The cost and
related accumulated depreciation are eliminated from the financial statements upon sale or retirement of the asset and the
resultant gain or losses are recognized in the statement of profit and loss.
Items of stores and spares that meet the definition of PPE are capitalised at cost. Otherwise, such items are classified as
inventories.
Freehold land is in the nature of perpetual lease is not amortised.
All assets purchased during the year costing Rs. 5,000 or less are depreciated at the rate of 100%.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected
to arise from the continued use of the asset. Any gain or loss arising on the disposal or de-recognition of an item of property,
plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is
recognised in the Statement of Profit and loss.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial
year end and adjusted prospectively, if appropriate.
3.9 Investment properties
Property that is held for long-term rental yields or for capital appreciation or both, is classified as Investment property. Investment
property is measured initially at its cost, including related transaction costs and where applicable borrowing costs. Subsequent
expenditure is capitalised to the asset's carrying amount only when it is probable that future economic benefits associated with
the expenditure will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance
costs are expensed when incurred. When part of an investment property is replaced, the carrying amount of the replaced part
is derecognised.
Investment properties (except freehold land) are depreciated using the straight-line method over their estimated useful lives
over a period of thirty years. These estimated useful lives are in accordance with those prescribed under Schedule II to the
Companies Act, 2013.
3.10 Intangible assets
Intangible assets acquired separately
Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and
accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives. The
estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes
in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately
are carried at cost less accumulated impairment losses. An intangible asset is derecognised on disposal, or when no future
economic benefits are expected from use or disposal. Gains or losses arising from de-recognition of an intangible asset,
measured as the difference between the net disposal proceeds and the carrying amount of the asset, and are recognised in the
Statement of profit and loss when the asset is derecognised.
Useful lives of intangible assets
Intangible assets, comprising of software, expenditure on model fee, etc. incurred are amortised on a straight line method over
a period of 3 & 6 years on utilisation basis. Technical Fee amortised over a period of 4 years.
3.11 Impairment of tangible and intangible assets
At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to deter¬
mine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the re¬
coverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Recoverable amount
is the higher of fair value less costs of disposal and value in use.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least
annually, and whenever there is an indication that the asset may be impaired. 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 the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable
amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be
identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest
group of cash-generating units for which a reasonable and consistent allocation basis can be identified.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying
amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immedi¬
ately in profit or loss. When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating
unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed
the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generat¬
ing unit) in prior years. A reversal of an impairment loss is recognised immediately in statement of profit or loss.
3.12 Inventories
Inventories are stated at the lower of cost and net realisable value. Raw material, packing material, stores and spares are
valued at lower of cost, determined on the first in first out basis (FIFO)/weight average or net realisable value. However, raw
materials and other items held for use in the production of inventories are not written down below cost, if the finished products
in which they will be incorporated are expected to be sold at or above cost.
Finished goods and work in progress are valued at lower of cost, determined on the first in first out basis (FIFO)/weight average
and net realizable value.
Cost of inventories comprises all cost of purchases, cost of conversion and other costs incurred in bringing the inventory to their
present location and condition.
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