1.13. Provisions and Contingent liabilities and contingent assets
Provisions represent liabilities for which the amount or timing is uncertain. Provisions are recognized when the Company has a present obligation
(legal or constructive), as a result of past events, and it is probable that an outflow of resources, that can be reliably estimated, will be required
to settle such an obligation.
If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows to net present value
using an appropriate pre-tax discount rate that reflects current market assessments of the time value of money and, where appropriate, the risks
specific to the liability. Unwinding of the discount is recognized in profit or loss as a finance cost. Provisions are reviewed at each reporting date
and are adjusted to reflect the current best estimate.
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence
of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognised because it is not
probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there
is a liability that cannot be recognised because it cannot be measured reliably. The Company does not recognize a contingent liability but
discloses its existence in the financial statements.
Contingent assets are not recognised but disclosed in the financial statements when an inflow of economic benefits is probable.
1.14 Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefit will flow to the Company and the revenue can be measured
reliably.
Sale of goods:
Revenue from sale of goods is recognised when the significant risks and rewards of ownership of the goods have been transferred to the buyer
either at the time of dispatch or delivery or when the risk of loss transfers. Export sales are generally recognized based on the shipped on board
date as per bill of lading, which is when substantial risks and rewards of ownership are passed to the customers.
Revenue from sale of goods is net of taxes and recovery of charges collected from customers like transport, packing etc. are not treated as part
of sales. Sales returns are recognised when appropriate. Revenue is measured at the fair value of consideration received or receivable and is
net of price discounts, allowance for volume rebates and similar items.
Claims/Refunds not ascertainable with reasonable certainty are accounted for on final settlement and are recognized as revenue on certainty of
receipt on prudent basis.
Rendering of services:
Revenue from sale of services are recognized when the services are rendered.
Other Income
Dividend income on investments is recognised when the right to receive the dividend is established.
Interest income is recognized on a time proportionate basis taking into account the amounts invested and the rate of interest on prudent basis.
1.15. EMPLOYEE BENEFITS
Short term employee benefits
The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are
recognised as an expense during the period when the employees render the services.
(b) Defined contribution plans such as Provident fund & Superannuation fund
Post-employment benefits
Define contrubution Plans
A defined contribution plan is a post-employment benefit plan under which the Company shall pays specified contributions to a separate entity.
The Company makes specified monthly contributions towards Provident Fund, Superannuation Fund and Pension Scheme. The Company's
contribution is recognised as an expense in the Statement of Profit and Loss during the period in which the employee renders the related
service., if applicable
Defined benefit Plans
The Company pays gratuity to the employees whoever has completed five years of service with the Company at the time of resignation/
superannuation. The gratuity is paid @ 15 days salary for every completed year of service as per the Payment of Gratuity Act, 1972.
The management is considering options to value future liability on account of gratuity by a qualified actuarial valuer. On such valuation, the
liability shall be recognised in the books of the company. The management will then decide on contribution to be made to an appropriate
authority to cover future gratuity liability that may arise.
Empolyee Separation Costs
Compensation to employees who opt for retirement under the voluntary retirement scheme, if any, of the Company is payable in the year of
exercise of option by the employee. The Company recognises the employee separation cost when the scheme is announced and the Company
is demonstrably committed to it.
1.16. Foreign exchange transactions and translation
The financial statements are presented in Indian rupee (INR), which is Company's functional and presentation currency.
Transactions in foreign currencies are recognised at the prevailing exchange rates on the transaction dates. Realised gains and losses on
settlement of foreign currency transactions are recognised in the Statement of Profit and Loss.
Exchange differences arising on settlement or translation of monetary items are recognised in Statement of Profit and Loss except to the extent
of exchange differences which are regarded as an adjustment to interest costs on foreign currency borrowings that are directly attributable to the
acquisition or construction of qualifying assets, are capitalized as cost of assets.
Monetary foreign currency assets and liabilities at the year-end are translated at the year-end exchange rates and the resultant exchange
differences are recognised in the Statement of Profit and Loss.
1.17. TAXES ON INCOME
Income tax comprises current and deferred tax. Income tax expense is recognized in the statement of profit and loss except to the extent it
relates to items directly recognized in equity or in other comprehensive income.
- Current Tax
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax
rates and laws that are enacted or substantively enacted at the Balance sheet date.
- 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 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 carrying
amount of Deferred tax liabilities and assets are reviewed at the end of each reporting period.
Where there is unabsorbed depreciation and carry forward losses, deferred tax assets are recognised only if there is virtual certainty of realisation
of such assets. Other deferred tax assets are recognised only to the extent there is reasonable certainty of realisation in future.
1.18. Government Grants
Government grants are recognised when there is reasonable assurance that the grant will be received and all attached conditions will be
complied with.
Government grants related to revenue are recognised on a systematic basis in the statement of profit and loss over the periods necessary to
match them with the related costs which they are intended to compensate. Such grants are deducted in reporting the related expense. When the
grant relates to an asset, it is recognized as income over the expected useful life of the asset.
In case a non-monetary asset is given free of cost, it is recognised at a fair value. When loans or similar assistance are provided by government
or related institutions, with an interest rate below the current applicable market rate, the effect of this favourable interest is recognized as
government grant. The loan or assistance is initially recognized and measured at fair value and the government grant is measured as the
difference between the initial carrying value of the loan and the proceeds received.
1.19. Earning Per Share
The basic earning per share (EPS) is computed by dividing the net profit after tax available to equity share holdong for the year by the weighted
average number of equity shares outstanding during the current year.
The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares unless impact is
anti-dilutive.
21.13 Other Statutory Information
(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding
any Benami property.
(ii) The Company do not have any transactions with companies struck off.
(iii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,
(iv) The Company has not been declared as a willful defaulter by any lender who has powers to declare a company as a willful defaulter at any
time during the financial year or after
(v) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
(vi) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries)
with the understanding that the Intermediary shall:
a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company
(Ultimate Beneficiaries) or
b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(vii) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding
(whether recorded in writing or otherwise) that the Company shall:
a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party
(Ultimate Beneficiaries) or
The financial instruments are categorized into two levels based on the inputs used to arrive at fair value measurements as described below:
Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities; and
Level 2: Inputs other than the quoted prices included within Level 1 that are observable for the assets or liability, either directly or indirectly.
Liquidity Risk
Liquidity risk is the risk that suitable sources of funding for the company's business activities may not be available. Prudent liquidity risk management
implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit
facilities to meet obligations when due, so that the company is not forced to obtain funds at higher rates. The Company monitors rolling forecasts
of the Company's cash flow position and ensure that the Company is able to meet its financial obligation at all times including contingencies.
Credit Risk
Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or pay amounts due causing financial loss to the
company. It arises from cash and cash equivalents, financial instruments and principally from credit exposures to customers relating to outstanding
receivables. The Company deals with highly rated counter parties.
Foreign currency risk:
The company is exposed to foreign exchange risk arising through its sales and purchases denominated in foreign currencies. The risk management
strategy on foreign currency exchange fluctuation arising on account of purchase/sale of diamond is covered in Note 17.Foreign currency
sensitivity analysis:
The Company is exposed to HKD currency. The Company's sensitivity to a 1% increase and decrease in ‘Rs against the relevant foreign
currency is presented below:
The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end
for a 1 % change in foreign currency rates. There is a increase in profit by ? 83 lakhs where ? strengthens by 1 % against the relevant currencies.
21.15 Figures for the previous year have been regrouped/reclassified wherever necessary to conform to current period's classification.
In terms of our report of even date. For & on behalf of Board of Directors
For JMMK & Co.
(Earlier known as JMK & Co.) PREMJIBHAI KANANI MEHUL KUNDARIYA
Chartered Accountants Chairman Company Secretary
ICAI Firm Registeration No. : 120459W
Jitendra Doshi HARSHIL KANANI DARSHAK PANDYA
Partner Managing Director Chief Finance Officer
Membership No. 151274
UDIN No.: 25151274BMJILF1988
Mumbai Mumbai
MAY 30, 2025 MAY 30, 2025
|