Corporate Information
Zodiac JRD MKJ Limited (“the Company”) is a company limited by shares incorporated under the Companies Act,
1956. The Company's Registered Office is situated at Mumbai. The Company's shares are listed on the Bombay
Stock Exchange (BSE) with the Scrip Code 512587 and on the National Stock Exchange (NSE) (Delisted w.e.f.
2021) with the Scrip Code ZODJRDMKJ.
The Company was incorporated in the year 1987 and in December 2023, Mudit Jain and Sanghavi family of the
Bluerock Group acquired Zodiac JRD-MKJ Limited through SEBI's SAST Guidelines and Open Offer process
2023 which is engaged in the business of sale and trading of gold & diamond jewellery, Cut & Polished Diamonds,
Precious Stones & Semi Precious Stones.
Basis of Preparation:
The financial statements of the Company are prepared in accordance with the Indian Accounting Standards (Ind
AS) under the historical cost convention on the accrual basis except for Defined Employees benefit Plans, certain
financial instruments which are measured at fair values, and the provisions of the Companies Act, 2013 ('Act') (to
the extent notified). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies
(Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules,
2016.
Accounting policies have been consistently applied except where a newly issued accounting standard is initially
adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.
1. Material Accounting Policies:
The Significant Accounting Policies have been predominantly prescribed below in order of the Accounting
Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies
(Accounts) Rules, 2014.
1.1 Current versus Non-Current Classification
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. Based on the
nature of transaction, the Company has ascertained its operating cycle as 12 months for the purpose
of current / non- current classification of assets and liabilities.
1.2 Revenue Recognition:
a. Sales of Goods
The Company derives revenues primarily from business sale of “Cut and Polished diamonds”,
“Gold and Silver jewellery” and “Rough Diamond”.
Effective April 1, 2018, the Company adopted Ind AS 115.
Revenue is recognized upon transfer of control of promised products to customers in an amount
that reflects the consideration we expect to receive in exchange for those products.
b. Other Income
Other income is accounted on accrual basis and recognized when no significant uncertainty as to
its determination or realization exists.
1.3 Use of Estimates:
The preparation of the financial statements in conformity with Indian AS requires the Management to
make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure
of contingent liabilities as at the date of the financial statements and the reported amounts of revenues
and expenses during the year. The Management believes that the estimates used in the preparation of
the financial statements are prudent and reasonable. Future results could differ from those estimates
and the difference between the actual results and the estimates are recognized in the periods in which
the results are known/materialize.
Estimates and assumptions are reviewed on a periodic basis. Revisions to accounting estimates are
recognized in the period in which the estimates are revised and in any future periods affected.
1.4 Property, plant and equipment (PPE)
i. Tangible Assets
All items of tangible property, plant & equipment are stated at their historical cost (as reduced
by tax credit available) less accumulated depreciation. The cost comprises its purchase price,
borrowing cost if capitalization criteria are met and directly attributable expenditure incurred in
bringing the asset to its working condition for the intended use.
Subsequent Measurement (Depreciation & Useful lives)
Depreciation is provided on the Straight Line method as per the useful life prescribed in Schedule
II of the Companies Act 2013.
The assets' residual values, useful lives in method of depreciation are reviewed at each year
ended and adjusted prospectively, if appropriate.
Impairment of Assets:
As at each Balance Sheet date, the Company assesses the realizable value of all the assets. If
there is any indication of fall in the realizable value over the carrying cost of the assets, impairment
in value of the assets is recognized.
1.5 Valuation of Inventories:
Raw Material: Lower of cost or net realizable value. Cost is determined on Weighted Average Cost
basis. Work in progress: At cost determined on Weighted Average Cost basis upto estimated stage of
completion.
Finished goods: Lower of cost or net realizable value. Cost is determined on Weighted Average Cost
basis, includes direct material and labour charges and other expenses directly related to manufacturing
of goods.
Net realizable value is the estimated selling price in the ordinary course of business less estimated
costs necessary to make the sale.
1.6 Foreign Currency Transactions: Functional currency
The functional currency of the company is the Indian rupee. These financial statements are presented
in Indian rupees.
a) Transactions in foreign currency are recorded at the exchange rates prevailing on the date of
transaction
b) Monetary assets and liabilities denominated in foreign currencies at the year-end are translated
in the functional currency at the year-end exchange rates.
c) The exchange difference on conversion are credited or charged to the Statement of Profit and
Loss.
d) Transaction gains or losses realized upon settlement of foreign currency transactions are included
in determining net profit for the year in which the transaction is settled. Revenue, expense and
cash flow items denominated in foreign currencies are translated into the relevant functional
currencies using the exchange rate in effect on the date of the transaction.
1.7 Employee benefits:
a) The Company's contribution to Provident Fund is charged to the Statement of Profit and Loss.
b) The gratuity liability, which is a defined benefit plan, is provided on the basis of actuarial valuation
as at the Balance Sheet date on the projected unit credit method and the same is unfunded.
The Company recognizes the net obligation of a defined benefit plan in its balance sheet as an asset
or liability. Gains and losses through re-measurements of the net defined benefit liability/(asset) are
recognized in other comprehensive income. The actual return of the portfolio of plan assets, in excess
of the yields computed by applying the discount rate used to measure the defined benefit obligation is
recognized in Other Comprehensive Income. The effects of any plan amendments are recognized in
the Statement of Profit and Loss.
1.8 Earnings Per Share:
The Company reports basic earnings per share in accordance with the Ind AS 33 'Earnings per share'.
Basic earnings per share, is computed by dividing the net profi or loss before other Comprehensive
income for the year attributable to equity shareholders, by the weighted average number of equity
shares outstanding during the year. The company does not have any potentially delusive securities.
1.9 Income Taxes:
Provision for Income Tax is made for both current and deferred taxes.
Current tax is provided on the basis of the taxable income in accordance with and at the applicable tax
rates and tax laws.
Deferred tax assets and liabilities arising on account of timing differences and which are capable of
reversal in subsequent periods are recognized using the tax rates, and tax laws that have been enacted
or substantively enacted, subject to prudence. Deferred tax assets on unabsorbed depreciation and
carry forward of losses are not recognized unless there is a reasonable certainty that there will be
sufficient future taxable income available to realize such assets. Deferred tax assets and liabilities
are measured at the tax rates that are expected to apply in the year when the asset is realized or the
liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted
at the reporting date. Deferred tax relating to items recognized outside statement of profit and loss is
recognized outside statement of profit and loss (either in OCI or in equity).
MAT Credit has been recognized as per the Guidance note issued by the ICAI.
1.10 Expenses:
a) All expenses are accounted for on accrual basis.
b) Prior period items, if material, are disclosed separately.
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