Provisions :
Provisions are recognised when the Companny has a present obligation (legal or constructive)
as a result of a past event, it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and a reliable estimate can be made of the
amount of the obligation. When the Company expects some or all of a provision to be reim¬
bursed, for example, under an insurance contract, the reimbursement is recognised as a sepa¬
rate asset, but only when the reimbursement is virtually certain. The expense relating to a pro¬
vision is presented in the statement of profit and loss net of any reimbursement.
If the effect of the time value of money is material, provisions are discounted using a current
pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting
is used, the increase in the provision due to the passage of time is recognised as a finance cost.
Contingent Liabilities:
Contingent liabilities are disclosed when there is a possible obligation arising from past events,
the existence of which will be confirmed only by the occurrence or non occurrence of one or
more uncertain future events not wholly within the control of the company or a present obli¬
gation that arises from past events where it is either not probable that an outflow of resources
will be required to settle or a reliable estimate of the amount cannot be made.
Contingent asset:
Contingent Assets is a possible asset that arises from past events and whose existence will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future events
not wholly within the control of the entity. Contingent assets are disclosed in the Financial
Statements by way of notes to accounts when an inflow of economic benefit is probable.
Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet
date.
Where the unavoidable costs of meeting the obligations under the contract exceed the eco¬
nomic benefits expected to be received under such contract, the present obligation under the
contract is recognised and measured as a provision.
2.27 Exceptional items
An item of income or expense which by its size, type or incidence requires disclosure in order
to improve an understanding of the performance of the Compnay is treated as an exception¬
al item and disclosed as such in the financial statements..
2.28 Empolyees Benefit
a) Liabilities for wages and salaries, including non-monetary benefits that are expected to be
settled wholly within12 months after the end of the period in which the employees render the
related service are recognized in respect of employees' services upto the end of the reporting
period and are measured at the amounts expected to be paid when the liabilities are settled.
The liabilities are presented as current employee benefit obligations in the Balance Sheet.
b) Defined Contribution Plan: Monthly contribution to the provident fund which is under
defined contribution schemes are charged to Statement of Profit & Loss and deposited with
the provident fund authorities on monthly basis.
c) Defined Benefit Plans: Gratuities to employees are covered under the employees' group gra¬
tuity schemes and the premium is paid on the basis of their actuarial valuation using the pro¬
jected unit credit method. Actuarial gain and losses net of deferred taxes arising from experi¬
ence adjustments and changes in acturial assumtions are reccognized in other comprehensive
income in the period in which they arise. Any short falls in case of premature resignation or ter¬
mination to the extent not reimbursed by LIC is being absorbed inthe year of payment.
d) Termination benefits are charged to the Statement of Profit and Loss in the year of accrual
when the Company is committed without any possibility of withdrawal of an offer made to
either terminate employment before the normal retirement date or as a result of an offer
made to encourage volutary retirement.
2.29 Taxes on income
Income tax expense comprises current and deferred tax expense. Income tax expenses are
recognized in statement of profit and loss, except when they relate to items recognized in
other comprehensive income or directly in equity, in which case, income tax expenses are also
recognized in other comprehensive income or directly in equity respectively. Current tax is the
tax payable on the taxable profit for the year, using tax rates enacted or substantively enacted
by the end of reporting period by the governing taxation laws, and any adjustment to tax pay¬
able in respect of previous periods. Current income tax assets and liabilities are measured at
the amount expected to be recovered from or paid to the taxation authorities. Management
periodically evaluates positions taken in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation and establishes provisions where
appropriate. Current year’s Income Tax Provision is netted off against current year’s advance
tax paid, tax deducted at source receivable and tax collected at source receivable.
Deferred taxes arising from deductible and taxable temporary differences between the tax
base of assets and liabilities and their carrying amount in the financial statements are recog¬
nized using substantively enacted tax rates and laws expected to apply to taxable income in
the years in which the temporary differences are expected to be received or settled. The
deferred tax arising from the initial recognition of goodwill or an asset or liability in a transac¬
tion that is not a business combination and affects neither accounting nor taxable profit or loss
at the time of the transaction are not recognized. Deferred tax asset are recognized only to the
extent that it is probable that future taxable profit will be available against which the deduct¬
ible temporary differences can be utilized. The carrying amount of deferred tax assets is
reviewed at each reporting date and reduced to the extent that it is no longer probable that
sufficient taxable profit will be available to allow all or part of the deferred income tax assets
to be utilized.
Deferred tax assets and liabilities are offset when the Company has a legally enforceable right
to do the same.
2.30 Statement of Cash Flows
Statement of Cash Flows is prepared segregating the cash flows into operating, investing and
financing activities. Cash flow from operating activities is reported using indirect method,
adjusting the profit before tax excluding exceptional items for the effects of:
(i) changes during the period in inventories and operating receivables and payables;
(ii) non-cash items such as depreciation, provisions, unrealised foreign currency gains and
losses; and
(iii) all other items for which the cash effects are investing or financing cash flows.
Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows
exclude items which are not available for general use as at the date of Balance Sheet.
2.31 Earning Per Share
Basic earnings per share is computed and disclosed using net profit or loss after tax and the
weighted average number of equity and potential equity shares outstanding during the year.
Dilutive earning per share is computed using the weighted average using net profit or loss
number of common and potential dilutive common equivalent shares outstanding during the
year, except when the resultswould be anti-dilutive.
2.32 Other Income
A. Interest income on investments and loans is accrued on a time basis by reference to the prin¬
cipal outstanding and the effective interest rate including interest on investments classified as
fair value through profit or loss or fair value through other comprehensive income. Interest
receivable on customer dues is recognised as income in the Statement of Profit and Loss on
accrual basis provided there is no uncertainty of realisation.
B. Dividend income is accounted in the period in which the right to receive the same is estab¬
lished.
C. Government grants, which are revenue in nature and are towards compensation for the
qualifying costs incurred by the Company, are recognised as other income/reduced from
underlying expenses in profit or loss in the period in which such costs are incurred. Government
grants related to an asset are reduced from the cost of an asset until the asset is ready to use
and the grant post that is presented as deferred income. Subsequently the grant is recognised
as income in profit or loss on a systematic basis over the expected useful life of the related
asset. Government grant receivable in the form of duty credit scrips is recognised as other
income in the Statement of Profit and Loss in the period in which the export is done or the
application is made to the government authorities and to the extent there is no uncertainty
towards its receipt.
D. Other items of income are accounted as and when the right to receive such income arises
and it is probable that the economic benefits will flow to the Company and the amount of
income can be measured reliably.
2.33 Commitments
Commitments are future liabilities for contractual expenditure, classified and disclosed
as follows:
(i) estimated amount of contracts remaining to be executed on capital account and not
provided for;
(ii) uncalled liability on shares and other investments partly paid;
(iii) funding related commitment to subsidiary, associate and joint venture companies,
if any; and
(iv) other non-cancellable commitments, if any, to the extent they are considered ma¬
terial and relevant in the opinion of management.
Other commitments related to sales/procurements made in the normal course of busi¬
ness are not disclosed to avoid excessive details.
2.34 Recent accounting pronouncements
There are no pronouncements made during this year.
Capital management
For the purpose of the Company's capital management, capital includes issued equity capital and all
other equity reserves attributable to the equity holders of the parent. The primary objective of the
Company's capital management is to maximise the shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic
conditions and the requirements of the financial covenants. To maintain or adjust the capital struc¬
ture, the Company may adjust the dividend payment to shareholders, return capital to shareholders
or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by
total capital plus net debt. The Company includes within net debt, borrowings, less cash and cash
equivalents, excluding discontinued operations.
In order to achieve this overall objective, the Company's capital management, amongst other things,
aims to ensure that it meets financial covenants attached to the borrowings that define capital struc¬
ture requirements. Breaches in meeting the financial covenants would permit the bank to immediate¬
ly call loans and borrowings. There have been no breaches in the financial covenants of any borrowing
in the current period. All the borrowings have been paid in full in the current period and there is no
balance of outstanding borrowing as at 31 March 2025.
No changes were made in the objectives, policies or processes for managing capital during the years
ended 31 March 2025. As company has no Net Debt, Gearing ratio is Not Applicable
Dividends
The final dividend on shares is recorded as a liability on the date of approval by the shareholders. The
Company declares and pays dividends in Indian rupees.
Companies are required to pay / distribute dividend after deducting applicable withholding income
taxes.
The amount of per share dividend recognized as distribution to equity shareholders in accordance
with Companies Act 2013 is as follows :
The Board of Directors, at its meeting on May 8, 2025, recommended a final dividend of Rs. 9 per equity
share for the financial year ended March 31, 2025. This payment is subject to the approval of share¬
holders in the Annual General Meeting (AGM) of the Company.
i. Risk management framework
The Company's board of directors has overall responsibility for the establishment and oversight of the Company's risk management framework. The board of directors
along with the top management are responsible for developing and monitoring the Company’s risk management policies.
The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor
risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The
Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees
understand their roles and obligations.
The Company’s audit committee oversees how management monitors compliance with the Company’s risk management policies and procedures, and reviews the
adequacy of the risk management framework in relation to the risks faced by the Company,
ii. Credit risk
Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally
from the Company’s trade receivables, certain loans and advances and other financial assets.
The carrying amount of financial assets represents the maximum credit exposure.
The maximum exposure to credit risk for trade and other receivables are as follows:
Cash and cash equivalents
The Company held cash and cash equivalents with credit worthy banks and financial institutions as at the reporting dates which has been measured on the 12-month
expected loss basis. The credit worthiness of such banks and financial institutions are evaluated by the management on an ongoing basis and is considered to be good
with low credit risk. Also, no impairment loss has been recorded in respect of fixed deposits that are with recognised commercial banks and are not past due.
iii. Liquidity risks
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or
another financial asset. The Company's approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they
are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.
The Company has current financial assets of March 31, 2025: Rs.28,003.02 lakhs ( Previous Year 20,461.27 lakhs ) which the management believes is sufficient to meet all
its liabilities maturing during the next 12 months amounting to March 31, 2025: Rs. 1713.30 lakhs. ( Previous Year 1,192.98 lakhs ).
iv. Market risks
Market risk is the risk of loss of future earnings or fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a
financial instrument may change as a result of changes in the interest rates, foreign exchange rates and other market changes that affect market risk sensitive
instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables. The Company is not exposed
to market risk primarily related to foreign exchange rate risk (currency risk). It however is exposed to interest rate risk. Thus the Company's exposure to market risk isjust
a function of borrowing activities as it doesnot have any transactions in foreign currency which leads to currency risk.
33 Operating segment
An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate
to transactions with any of the Company's other components and for which discrete financial information is available. The Company's chief operating decision-maker (CODM) is considered
to be the Company's Managing Director ('MD'). The Company is engaged in the business of Productions of wood adhesives which are widely used in fast moving consumer market on days.
Information reported to and evaluated regularly by the CODM for the purposes of resource allocation and assessing performance focuses on the business as a whole and accordingly, in the
context of Operating Segment as defined under the Indian Accounting Standard 108 'Segment Information', there is no separate reportable segment. Further Company sells its products
only in India and hence there is no separate reportable segment in this context.
Notes:
(i) There are no amounts due to or due from related parties which have been written off / written back during the year.
(ii) Remuneration does not include Gratuity and Leave encashment which is computed for the Company as a whole.
Additional Regulatory Information
35 The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee), as disclosed in
Note 3 on Property, plant and equipment to the financial statements, are held in the name of the Company.
36 There are no proceedings initiated or are pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 and rules made
thereunder
37 Willfull Defaulter
(i) The Company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender.
(ii) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
38 The Company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956.
39 The Registration of charge in respect of secured loans filed to ROC beyond the statutory period is NIL.
40 The company does not have any subsidiary. Therefore clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 is not applicable.
41 Ratio
42 There is no scheme of arrangements approved by the competent authority in terms of section 230 to 237 of the companies Act, 2013 during the year.
43 The Company has not advanced or loaned or invested funds to any other person or entities, including foreign entities (Intermediaries) with the understanding that the Intermediary shall (I) 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 (ii) provide any guarantee, security or the like to or on
behalf of the Ultimate Beneficiaries.
44 The Company has not received any fund from any person or entities, including foreign entities (Funding Party) with the understanding that the company shall (I) 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 (ii) provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries.
45 The Company has not received any fund from any person or entities, including foreign entities (Funding Party) with the understanding that the company shall (I) 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 (ii) provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries.
46 The Company has not surrendered or disclosed as income or the previously unrecorded income and related assets during the year in the tax assessments which are not recorded in the books
of accounts of the company.
47 The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
48 Disclosures under Rule 11(f) of the Company (Audit & Auditors) Rule, 2014 - Dividends
The final dividend on shares is recorded as a liability on the date of approval by the shareholders. The Company declares and pays dividends in Indian rupees.
49 Previous year figures have been recasted/restated wherever necessary including those as required in keeping with revised Schedule III amendments.
As per our report of even date attached for and on behalf of the Board of Directors of
For R KABRA & CO LLP JYOTI RESINS & ADHESIVES LIMITED
Chartered Accountants CIN : L24229GJ1993PLC020879 JAGDISH N PATEL
ICAI Firm Registration Number : 104502W/W100721 UTKARSH J PATEL Director
Hemant P Vastani Managing Director DIN: 00304924
Partner DIN: 02874427
TEJAL M VARDE
Membership no: 043806 ASHOK C JARDOSH
Company Secretary
Chief Financial Officer
Place: Mumbai
Place: Ahmedabad
Date: 08-05-2025
Date: 08-05-2025
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